Role of Innovation in Enhancing Performance of selected Firms in Nigeria’s Oil and Gas Downstream Subsector

Abstract

This study examines the role of innovation in enhancing performance of firms within Nigeria’s oil and gas downstream subsector. Specifically, it investigates the impact of three innovation approaches (marketing, supply chain, and technological innovation) on performance of firms. Using a descriptive research design, the study targeted 273 managerial employees across 18 selected firms, with a sample size of 162 respondents. Data were collected through structured questionnaires, and regression analysis was performed using SPSS. The results reveal that marketing innovation (β = 0.449), supply chain innovation (β = 0.450), and technological innovation (β = 0.369) all significantly contribute to firm performance, with supply chain innovation having the strongest impact. Additionally, the combined effects of the three innovations (R² = 0.448) also significantly explain the variance in performance, although technological innovation's effect was less significant. The study suggests that firms in the downstream subsector should invest in innovative supply chain technologies, data-driven marketing strategies, and targeted technological solutions that align with business goals to enhance operational efficiency, customer engagement, and value creation. It also recommends that oil and gas companies develop a holistic innovation framework by establishing dedicated innovation units and cross-functional teams to integrate marketing, supply chain, and technological advancements across their operations.