An Evaluation of Technology Innovation on the Performance of Indigenous Textile Weaving Firms in Southwestern Nigeria

Abstract

The study evaluated the impact of technology innovation on the performance of indigenous textile weaving firms in south-western Nigeria. Primary data were collected through structured questionnaire administered on indigenous weavers in the study area. Results of correlation analysis showed the relationship between business performance and source of raw material (r=0.17, t=2.84, p<0.01); product innovations (r=0.10, t=1.65, p<0.05); investment in technology innovations (r=0.19, t=3.25, p<0.01); business advisory services (r=0.11; t=1.74, p<0.05); reduction of tax (r=0.11; t=1.73, p<0.05), export incentives (r=0.13; t=2.09, p<0.01); and total capital investment (r=0.21; t=3.55, p<0.01). Factors with negative effect are cost of R&D (r=-0.19; t=3.24, p<0.01); threats by competitors (r=-0.18; t=3.06, p<0.01) and production of quality products (r=-0.09; t=1.64, p<0.05). Regression analysis and its impact on business performance were local marketing, (β=17.95, z=11.18, p<0.01); national marketing, (β=18.35, z=1.64, p<0.01); product innovations, (β=3.17, z=3.03, p<0.01); total capital invested, (β=2.68, z=10.19, p<0.01) and experience in business, (β=2.66, z=2.96, p<0.01). Factors with negative effect were payment of tax, (β=-17.46, z=-21.31, p<0.01); regional marketing, (β=-17.38, z=-18.08, p<0.01); local competition, (β=-16.53, z=-9.02, p<0.01). The study concluded that sale of products in the domestic market; product innovations; total capital invested and years of experience in business were the factors responsible for the resilience and sustenance of indigenous textile weaving firms. However, factors such as payment of tax, sale of products in regional market, local competition, trade liberalization and cost of R&D are the major constraints in the performance of firms in the industry.