Technological Innovation and SME Growth in Benue South Senatorial District, Benue State, Nigeria: An Empirical Survey

Abstract

This study examined the effect of technological innovation on the growth of Small and Medium Enterprises (SMEs) in Benue South Senatorial District, Benue State, Nigeria. Technological innovation was operationalized in terms of digital tools adoption, production technologies, and mobile platform utilization, while SME growth was measured using sales growth and market expansion. The study was anchored on the Diffusion of Innovation Theory (Rogers, 2003). A descriptive survey research design was employed, and data were collected using a structured questionnaire administered to SME owners and managers across selected Local Government Areas in the senatorial district. A total of 430 questionnaires were distributed, out of which 415 were returned and found usable, representing a response rate of 96.5%. Data were analyzed using descriptive statistics and inferential techniques, including correlation and multiple regression analysis, with two separate regression models estimated for the disaggregated dependent variables. Diagnostic tests such as normality, multicollinearity, and autocorrelation were conducted to ensure the suitability of the data for regression analysis. The findings revealed that all three dimensions of technological innovation have significant positive effects on both sales growth and market expansion. Digital tools adoption emerged as the most influential predictor of sales growth, while mobile platform utilization had the strongest effect on market expansion. Production technologies also exhibited significant but comparatively weaker effects across both models. The study concluded that technological innovation plays a critical role in enhancing SME growth by improving operational efficiency, facilitating customer engagement, and enabling market access. It recommended that SME owners invest in digital tools, mobile platforms, and modern production technologies, while government and policy makers should provide supportive infrastructure, financing, and capacity-building initiatives to promote effective adoption of technological innovations among SMEs.