DYNAMIC MARKETING CAPABILITIES AND COMPETITIVENESS OF LEATHERBASED SMEs IN ABA, ABIA STATE, NIGERIA: THE MEDIATING EFFECT OF PRODUCT INNOVATION
Abstract
This study investigates the effect of dynamic marketing capabilities and SMEs’ competitiveness, through
the mediating role of product innovation. Drawing from the Resource Based View (RBV), this study
hypothesizes that SMEs’ capacity to sense, seize and reconfigure enhances their ability to compete by
increasing the rate and quality of their new product development. The study used empirical data from
3650 leather-based SMEs in Aba, Abia State of Nigeria and a sample size of 321 obtained through the
Taro Yamane sample size determination formula. The Statistical Package for the Social Sciences (SPSS)
and Microsoft Excel were used in the study, while Structural Equation Modeling (SEM) was used for data
analysis. The study found that market sensing capability positively and significantly (1%) affects product
innovation. Market seizing capability was found to positively and significantly (1%) affect product
innovation. Market reconfiguration capability positively and significantly (1%) affects product
innovation. Product innovation was found to be positively and significantly (1%) related to SMEs’
competitiveness. We conclude by recommending that practitioners and managers of SMEs, like those of
the studied leather-based SMEs, should shift their focus from optimizing current operations to investing
in the dynamic capability routines themselves. The managers must systematically dedicate resources to
proactive market intelligence, customer feedback mechanisms, and technological forecasting. SMEs
should also view product innovation not as a spontanous outcome, but as the strategic output directly
generated by its dynamic capabilities.
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Published in BUSINESS AND FINANCE JOURNAL
ISSN: 988-47878
This article appears in our peer-reviewed academic journal
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