THE EFFECT OF PRODUCT INNOVATION ON THE PERFORMANCE OF INDIGENOUS TEXTILE FIRMS IN ILA LOCAL GOVERNMENT OF OSUN STATE

CHAPTER ONE

INTRODUCTION

1. Background of the Study

To produce textile clothes such as "Aso-oke," which are worn by the Yoruba people of southwestern Nigeria and exported to other parts of the world, the majority of weaving enterprises in the small scale sector use the local technologies, which evolved from indigenous knowledge. This is the case because local technologies are predominantly used. Nonetheless, national indices showed that these textile weaving sectors fared poorly in terms of growth competitiveness, technological innovation, and innovativeness. Researchers such as Oyelaran-Oyeyinka (2019), Akinbinu (2021), and Adegbite (2020) believe that elements in the business environment are to blame for at least some of the abysmal performance. Bird (2018) defined the business environment as the events, circumstances, situations, locations, and niches that surround entrepreneurial activity. He called this the "business environment." In a similar vein, Gnyawali and Fogel (2019) define the business environment as the overall economic, socio-cultural, and political factors that influence an individual's willingness and ability to engage in entrepreneurial activities. These factors can be broken down into three categories: economic, socio-cultural, and political. A favorable atmosphere for business and investment will encourage private companies to be effectively managed and effective, to be profitable in order to expand, to generate employment, to raise the pace of economic growth, and to eliminate poverty (Agboli and Ukaegbu, 2016). With Nigeria in particular in mind, a stronger business climate would encourage the operators of micro and small enterprises to invest, develop, and expand. According to Agboli and Ukaegbu (2016), in their research on the business environment in Nigeria's private sector, they found that other researchers such as Forrest (2021) had conducted studies on the growth of Nigeria's indigenous private sector. This was discovered by Agboli and Ukaegbu in their investigation of the business environment in Nigeria's private sector. Although some academics, like Ukaegbu (2022), struggled to understand the structure and dynamics of management in indigenous organizations, Kilby (2018) was more concerned with the continued existence of businesses. These studies have offered insights into the many facets of the business sector; however, they did not concentrate on the variables that drive technological breakthroughs, notably in the indigenous textile manufacturing sector, and their effect on the continued existence of businesses. Hence, the study seeks to examine the effect of product innovation on the performance of indeginous textile firms in Ila local government of Osun State.

1. 1. Statement of the Problem

The Organization of African Unity (OAU) Lagos Plan of Action was the first document that acknowledged and provided a summary of some of the issues that were responsible for the challenges of creating a technological base in most African nations, including Nigeria (1980). Among these issues is imported technology that is complex, requires a large amount of cash, does not fit the context, and cannot be maintained. Moreover, highly specialized labor is required by the imported technology, which is not readily accessible in the majority of African nations. Because of these variables, the process of acquiring new technology, passing it on to others, and adapting it has become very challenging (Ilori, 2022). In addition to this, they have not contributed to the development or improvement of domestic indigenous technical capabilities or technological innovation (Oyeyinka-Oyelaran, 2019and Ilori, 2022). As a direct result of this, the Federal Government of Nigeria (FGN) has prioritized the enhancement of indigenous technology, notably in the textile weaving sector, in order to expedite the overall process of development. Therefore, the study will examine the effect of product innovation on the performance of indeginous textile firms in Ila local government of Osun State.

1. 1. Objective of the Study

The broad objective of the study is to examine the study will examine the effect of product innovation on the performance of Indigenous textile firms in Ila local government of Osun State. The specific objectives is as follows:

1. To determine whether there is a significant relationship between product innovation and organizational performance of Indigenous Textile Firms.

2. To find out whether product innovation improves the product acceptability of Indigenous Textile firms in Ila local government of Osun State.

3. To find out whether product innovation improves the competitive advantage of Indigenous Textile firms in Ila local government of Osun State.

4. To find out whether product innovation improves the sales volume of Indigenous Textile firms in Ila local government of Osun State.

1. 1. Research Questions

The following questions have been prepared for the study:

1. Is there a significant relationship between product innovation and organizational performance of Indigenous Textile Firms?

2. Does product innovation improve the product acceptability of Indigenous Textile firms in Ila local government of Osun State?

3. Does product innovation improve the competitive advantage of Indigenous Textile firms in Ila local government of Osun State?

4. Does product innovation improves the sales volume of Indigenous Textile firms in Ila local government of Osun State?

1. 1. Research Hypothesis

Ho: There is no significant relationship between product innovation and organizational performance of Indigenous Textile Firms.

HA: There is a significant relationship between product innovation and organizational performance of Indigenous Textile Firms.

1. 1. Significance of the Study

The study is significant to production firms in Nigeria as product innovation helps companies stay relevant in their market and continue growing and improving over time. A company's ability to innovate is considered essential for its long-term viability. Companies need to venture out of their comfort zone and get creative when designing new products.

The study is significant to the academic community as it will contribute to the existing literature.

1. 1. Scope of the Study

The scope of this study borders on the effect of product innovation on the performance of indigenous textile firms.

Geographically, this study will be conducted in Ila local government of Osun State.

1. 1. Limitation of the Study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1. 1. Definition of Terms

Product : an article or substance that is manufactured or refined for sale.

Innovation: the action or process of innovating.

Indigenous: originating or occurring naturally in a particular place; native.

Textile:a type of cloth or woven fabric.