BUSINESS MODEL INNOVATION AND COMPETITIVE ADVANTAGE OF MANUFACTURING FIRMS IN RIVERS STATE, NIGERIA

Eleanya Ojuu Kalu¹ and B. Chima Onuoha²

1. Doctoral Student, Department of Management, University of Port Harcourt.
2. Professor of Management, Department of Management, University of Port Harcourt

Abstract

This study examined the relationship between business model innovation and competitive advantage of manufacturing firm in Rivers state, Nigeria. The cross-sectional survey design was utilized and a total population of 290 supervisors and managers from ten (10) manufacturing firms in Rivers State was covered. A sample size of 165 managers and supervisors was drawn as the sample size of the study. Data were collected using copies of well-structured questionnaire and the simple random sampling technique was utilized in the study. The data was analyzed using the Spearman’s Rank Order Correlation and Partial Correlation. The result of the analysis revealed that the dimensions of business model innovation (Value Creation Innovation and Value Innovation) have a significant positive relationship with differentiation and organizational responsiveness. It was concluded that enhanced business model innovation in terms of value creation innovation and value innovation will help improve the competitive advantage of manufacturing firms. The study recommended amongst others that management of manufacturing firms should constantly train their employees in order to develop new competence as such will help improve their competitive advantage in the industry.

Keywords: Business model innovation; Value Creation Innovation; Value Innovation; Differentiation; Organizational Responsiveness.