Organisational Capabilities and Product Innovation Performance among Nigerian Food and Beverage Companies

This study examined the mediatory role of entrepreneurial orientation capability in the link between knowledge management capability and product innovation, using a survey research design and a validated questionnaire for data collection. The population was 672 Lagos-based food and beverage manufacturing companies from which six quoted companies were randomly selected as the study’s sampling frame. A sample size of 353 managers was mathematically determined, while proportional and simple random sampling techniques were employed. The response rate was 61.19%. Data was analysed using descriptive statistics and partial least square structural equation modelling. The findings showed that knowledge management capability mediated by entrepreneurial orientation capability has a significant positive effect on product innovation. The study concluded that organisational capabilities positively affect innovation performance. The positive effect is particularly enhanced when entrepreneurial orientation capability is employed as a mediatory variable to link knowledge management and product innovation. The study contributes to extant knowledge by demonstrating that a complementary combination of capabilities can enhance innovation performance, thereby helping to clarify contentions about firms’ capacity to respond to changes in the business environment. In addition, the study contributes to theory development as the findings reinforced, the complementary perspective of the resource-based view where one firm resource mediates with other resources to influence innovation performance.