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MODERATING EFFECT OF INNOVATION CAPABILITY ON THE INFLUENCE OF HUMAN CAPITAL ON THE PERFORMANCE OF SMES IN KADUNA STATE

Aug 2026 · GUSAU JOURNAL OF ECONOMICS AND DEVELOPMENT STUDIES · Vol 7, pp. 391-402 · 0 citations

Abstract

Despite this immense potential, SMEs in Kaduna State and across Nigeria face numerous constraints that impede their performance and sustainability. These constraints are closely linked to the core variables of this study. First, deficiencies in human capital hinder the ability of SMEs to innovate and respond effectively to market changes. The study examined the moderating effect of innovation capability on the influence of human capital on the performance of SMES in Kaduna State. The population of this study comprises of Small and Medium Enterprises (SMEs) operating within Kaduna State. Kaduna State has one thousand and seventy-two (1,072) SMEs (SMEDAN, 2022). Sample size of 285 were drawn from the population using Krejcie and Morgan (1970). The findings of the study revealed that human capital has significant relationship with Small and Medium Enterprise performance and innovation capability significantly moderates the relationship between human capital and Small and Medium Enterprises performance. The study recommended that entrepreneur should strive for more knowledge, attend seminars, and enrol for courses that will promote his personality traits towards improving and having a rewarding business outfit.

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