How Business Strategies Enlivens Innovation of Selected Flour Milling Companies in Nigeria

Abstract

Strategic management scholars have long emphasis the importance of innovation for a firm's competitive advantage and performance. However, our current state of knowledge about business strategies and innovation is characterized by conflicting theoretical predictions persisting knowledge gaps and theoretical inconsistency. This study investigated business strategies and innovation in selected flour milling companies in Nigeria. Business strategies components are cost leadership, product differentiation, backward integration, market development, business diversification and regrouping. The study used cross sectional survey research design to capture the respondent. The study was carried out in five flour milling companies in Lagos state Nigeria in which they constitute the population of this study. 678 top and functional managers were selected out of 4,375 staffs. The study adapted the research instrument and its content and construct was critically examined before used. Data treatment was done on this study using Linearity test, Multicollinearity test, Normality test and Homoscedasticity test. Hypothesis was tested using multiple regression (adjusted R² is 0.396 (F_{(6, 597)} = 66.980, p=0.000) which implies that business strategies have a significant effect on innovation in selected flour milling companies in Nigeria. The result further revealed that business strategies dimensions (cost leadership (β = 0.178, t = 3.391, p<0.05, product differentiation β = 0.241, t = 4.524, p<0.05, market development β = 0.098, t = 2.153, p<0.05, business diversification β = 0.224, t = 4.306, p<0.05, and regrouping β = 0.173, t = 3.512, p<0.05) have positive and significant effect on innovation in selected flour milling companies in Nigeria. The result further showed that backward integration (β = 0.009, t = 0.209, p>0.05) has positive and insignificant effect on innovation in selected flour milling companies in Nigeria. The study concludes that organizations are to always introduce new idea, new technology to their companies