Node between firm’s knowledge-intensive activities and their propensity to innovate: Insights from Nigeria’s mining industry

Abstract

While studies have examined the nexus between knowledge and innovative performance, the literature from the context of developing countries is very scant. This study thus examines which knowledge-intensive activities influence the propensity of mining firms in Nigeria to implement either product innovation, process innovation or both kinds of innovations. The study explored 106 purposively selected mining firms in Nigeria to check the effect of knowledge on the prevalence of innovation in the industry. Using a questionnaire administered to the chief executive officers/most senior managers of the firms, the study identified six main knowledge indicators for the mining industry which were regressed against indicators of technological innovations. The study found that while R&D activities were important for product innovation, acquisition of machinery, equipment, hardware and software were the principal drivers of process innovation. The knowledge-based activities common to both innovation types were acquisition of external knowledge/technologies, learning, knowledge exchange and training as well as other activities like feasibility studies, market research, continuous improvement, business process re-engineering, tooling-up, routine software upgrades, amongst others. The study concludes that certain knowledge-intensive activities are important for different kinds of innovations in the firms.