Fostering Innovation Performance in Nigerian SMEs: Exploring the Influence of Knowledge Sharing

Small and medium-sized enterprises (SMEs) are the heart of Nigeria’s economy, driving job creation and contributing significantly to GDP. However, many SMEs struggle with challenges like limited funding, weak management skills, and poor infrastructure, which slow their growth and competitiveness. One way to overcome these hurdles is through innovation—developing better products, services, and business models to boost productivity, reduce costs, and open new market opportunities. But innovation doesn’t happen in isolation; it thrives when businesses share ideas, insights, and experiences. Unfortunately, knowledge sharing is not always easy due to time constraints, lack of trust, and limited access to technology. This study explores how knowledge sharing impacts innovation among SMEs in Eti Osa, Lagos, Nigeria. Using a descriptive research design and simple random sampling, the study surveyed SME owners, managers, and employees through questionnaires. Out of 153 distributed questionnaires, 142 were valid, yielding an 81.1% response rate. Data was analyzed using descriptive statistics and regression analysis via SPSS. The findings highlight the power of knowledge sharing in driving innovation and provide actionable insights for policymakers, business leaders, and SME owners looking to strengthen business performance and economic growth in Nigeria.