THE INFLUENCE OF BUYER BARGAINING POWER AND COST LEADERSHIP STRATEGY ON INNOVATION WITHIN NIGERIA'S CONSUMER GOODS INDUSTRY

Abstract

This study investigates the impact of buyer's bargaining power (BPB) and cost leadership strategy (CLS) on innovation (INV) within Nigeria’s consumer goods industry, focusing on four listed companies. Employing CFA and SEM, data collected via a structured questionnaire from 442 personnel across various roles in household consumer goods companies were analyzed using multivariate regression. The results reveal a positive albeit marginally significant association between BPB and INV, while CLS shows a significant negative correlation with INV. The study underscores the intricate dynamics in the consumer goods sector, where buyer power and strategic approaches profoundly influence innovation outcomes. Highly significant intercepts for BPB and CLS emphasize their predictive value for INV, offering baseline insights for further analysis. Future research should explore additional factors influencing innovation in Nigeria’s consumer goods sector, aiding stakeholders in making informed decisions to foster innovation and competitiveness. These findings provide valuable insights for navigating challenges and seizing growth opportunities in Nigeria's consumer goods market.