Dynamic Capabilities and Management Innovation in the Nigerian Manufacturing Industry

Abstract

This study investigates the relationship between dynamic capabilities and management innovation in Nigerian manufacturing firms. The study draws together knowledge from a variety of fields to propose that management innovation can be viewed as a form of organizational capability. An extensive review of the literature on management innovation leads to the development of a conceptual model of a firm as an innovation engine. The model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. The findings indicate that there is a significant and positive relationship between dynamic capabilities and management innovation in Nigerian manufacturing firms. It also shows that firms invest and nurture this capability, through which they execute effective innovation processes, leading to innovations in new products, cutting-edge services and processes delivery and superior business performance. The study concludes by providing a framework for managers and showing that the process of innovation can be managed, systemized and replicated within organizations.