PRODUCT INNOVATION STRATEGY AND PROFITABILITY OF AGRICULTURAL SMALL AND MEDIUM ENTERPRISES (AGRI-SMES) IN LAGOS STATE, NIGERIA

Abstract

This study explores the influence of product innovation strategy on the profitability of small and medium-sized agricultural enterprises (Agri-SMEs) in Lagos State, Nigeria. Data were acquired from 253 registered Agri-SMEs in Lagos using cross-sectional and survey research approaches. Following Slovin's scientific process, the sample size of 153 was established. The total number of questionnaires disseminated was 190 after an extra 37 respondents were included to accommodate for expected difficulties including incomplete or unreturned surveys. The results reveal that the profitability of agricultural SMEs in Lagos State is considerably favorably influenced by their approach to product innovation. Using statistical study, it was shown that these organizations' financial performance is considerably enhanced when product innovation strategies are executed successfully. This highlights how vital innovation is to product development and market adaptability for Lagos State's agriculture industry to grow sustainably and remain competitive. Overall, the study demonstrates that in order for agricultural SMEs to attain and retain profitability in Lagos State's fast-paced economic climate, they must take proactive approaches to product innovation. Subsequent research might study other variables impacting the success of product innovation techniques in this context and look into possible policy and practice consequences.