This study examines the moderating effect of absorptive on the relationship between entrepreneurial innovation and performance of selected SMEs in Lagos State, Nigeria. The study adopted cross-sectional survey research design. The population comprised 42,067 owners/managers of SMEs in Lagos State, Nigeria, and sample size of 495 was derived using Cochran’s formula. Simple random sampling technique was employed to select the respondents. A structured and validated questionnaire was used for data collection and 458 copies were retrieved representing 92.5 % and later used for analysis. The reliability test yielded Cronbach’s alpha for the constructs ranging from 0.716 to 0.879. The hypothesis was tested using the hierarchical regression analysis at 5% level of significance. The findings revealed that the effect of entrepreneurial innovation dimensions on performance of SMEs was not significantly moderated by absorptive capacity (ß= -.004, t= -0.900, ?R2 = 0.001, ?F= 0.81, p>0.05). The study concluded that absorptive capacity has a negative and statistically insignificant moderating effect on the relationship between entrepreneurial innovation and the performance of the selected SMEs in Lagos State, Nigeria. It was recommended that SMEs operating in Lagos State, should improve their absorptive capacity, through effective harness of internal and external knowledge resources to drive innovation, improve decision-making processes, and foster organisational resilience in the face of uncertainty and change.
Absorptive Capacity, Entrepreneurial Innovation, SMEs, SMEs Performance
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