Innovation as a Mediator Between Information Technology and Competitive Advantage of Selected Manufacturing Companies in Northern Nigeria
Keywords:
Structural equation modelling, competitive advantage, information technology, manufacturing, mediation, innovationAbstract
The study examined the mediating role of innovation in the relationship between information technology (IT) and competitive advantage (CA) of selected manufacturing companies in Northern Nigeria. A survey was conducted in a cross-sectional examination of members of the Manufacturers Association of Nigeria (MAN) in 2018, where a sample of 144 companies responded to the questionnaire. The partial least squares structural equation modeling revealed that IT and innovation had significant effects on CA. The R2 values obtained for the full model were moderate at 0.362 and 0.330 for innovation and CA respectively, while the variance accounted for (VAF) of 36% indicated that organizational innovation as a mediator has moderate effect on CA. It, therefore, implies that innovation can play a positive and significant role in supporting manufacturing companies to gain a CA. Despite the abundance of information technologies, it was recommended that managers of manufacturing companies should encourage individuals within their organizations to be innovative, both in process and products, as it will better support their abilities to gain CA
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