Abstract:
Globalization has created a mindset for SMEs to think outside the box in order to be above board in the ever-changing
world trends in business. Despite the important role of SMEs in economic growth, SMEs participation in international
business has been a far cry for our nation Nigeria in terms of export. This requires SMEs to establish robust market
innovation capabilities as well as organizational innovation capabilities to keep them fit to compete gallantly. On this
backdrop this study examined the effect of innovation on SMEs international business in Nigeria. The study also
focused on export-oriented SMEs in Nigeria. Descriptive research design was used. A stratified sample size of 228 was
drawn from the population of 529 performing exporters in Nigeria using a structured questionnaire formulated for the
purpose of the study. Multiple regressions were used to analyze data and the existing relationship between selected
variables. The findings of the study revealed that both Market and Organizational Innovation exerted significant
positive effect on SMEs international business in Nigeria. The study therefore recommended that SME exporters in
Nigeria exhibit market innovation skills and knowledge of product to increase market share across borders and generate
more profit for the enterprises. SMEs were also recommended to come up with new organizational methods to improve
their services to customers, and also imbibe change as a constant means for achieving business objectives such as
profitability, growth and expansion.
