Marketing Innovation Strategies and Operational Performance of MSMEs in an Emerging Economy

Abstract

This study examines the effect of marketing innovation on the operational performance of Micro, Small and Medium Enterprises (MSMEs) in Taraba State, Nigeria. Marketing innovation was operationalized through four dimensions—digital marketing innovation, branding innovation, customer relationship innovation, and promotional innovation—within a conceptual framework grounded in the Unified Theory of Acceptance and Use of Technology (UTAUT). A quantitative survey design was adopted, and data were collected from 350 MSME employees across five Local Government Areas in Taraba State using a structured, validated questionnaire. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. The results show that the four marketing innovation dimensions jointly explain 70.6% of the variance in operational performance [F(4, 345) = 207.55, p < 0.001]. Customer relationship innovation emerged as the strongest individual predictor (β = 0.363, p = 0.001), followed by promotional innovation (β = 0.295, p < 0.001) and digital marketing innovation (β = 0.256, p = 0.044). Branding innovation was not a significant unique predictor in the regression model (β = −0.047, p = 0.709), a result attributed to multicollinearity with digital marketing innovation, although its bivariate correlation with operational performance remained strong and significant (r = 0.795, p < 0.001). The findings indicate that marketing innovation functions as an integrated, mutually reinforcing system rather than a set of independent practices, and that customer-centric and promotional strategies offer the most direct route to improved operational performance among MSMEs in resource-constrained, emerging-economy settings. The study contributes to theory by extending UTAUT beyond adoption intention to operational performance outcomes, and offers practical guidance for MSME managers, industry associations, and policymakers seeking to strengthen MSME competitiveness through marketing innovation, particularly within agribusiness-dominated value chains.