Innovative culture, innovative behaviour, social capital and performance of small and medium ICT enterprises in Lagos, Nigeria

Abstract

This study examined the influence of innovative culture, innovative behavior, and social capital on the performance of Small and Medium-sized Information and Communication Technology Enterprises (SMICTEs) in Lagos, Nigeria. It also explored how innovative culture and social capital affect innovative behavior. Guided by Social Exchange and Social Capital theories, the study utilized a descriptive sample survey research design. The study was conducted at Otigba and Saka Tinubu Computer Villages in Lagos, using a sample of 360 business owners or representatives. Data was collected using a pretested and validated questionnaire covering innovative culture, social capital, innovative behavior, performance, and demographic characteristics. Analysis involved Confirmatory Factor Analysis, and Structural Equation Modelling, with decisions made at a 0.05 significance level. Respondents included owners (67.4%), supervisors (13.6%), managers (12.6%), and other staff (6.8%). Most were male (78.2%), aged 21–40 (71.4%). A majority (95.8%) could generate new ideas, 83.8% explored novel methods, and 91.4% shared innovations internally. Trust among SMEs was low (43.4%), but mutual support was valued (60.4%). Innovative culture positively impacted performance (β = 0.299) and predicted innovative behavior (β = 0.315), while social capital also predicted innovative behavior (β = 0.191). Social capital and innovative behavior did not significantly predict performance. There should be collaboration between Nigeria's NITDA and ICT SMEs to foster innovation through continuous learning, mentorship programs, networking mechanisms, and technology hubs.