Impact of strategic alliance on the innovation of women-owned enterprises in Nigeria

Nigeria faces significant economic challenges, including widespread poverty exacerbated by factors like sluggish economic growth and the COVID-19 pandemic. Women have increasingly taken on the burden of supporting their families through micro and small enterprises (MSEs), contributing significantly to job creation and economic development. However, these women-owned enterprises often face obstacles such as sociocultural factors (religious and male-dominated family structures, discrimination), financial constraints (high interest rates, lack of access to credit), and innovation challenges. This study investigates the role of strategic alliances in mitigating these challenges and fostering innovation within women-owned enterprises in Nigeria. The central hypothesis is that there is a statistically significant relationship between strategic alliances and innovation in these enterprises.

The literature review extensively examines women's entrepreneurship in Africa and Nigeria, highlighting their significant contribution to economic development despite numerous challenges. Studies reveal the key drivers of women's involvement in entrepreneurship (financial needs, self-reliance, role modeling), as well as significant obstacles faced by women entrepreneurs (lack of finance, family support issues, work/home conflict, sociocultural barriers, inadequate educational exposure, and restricted access to capital). Existing research emphasizes the importance of networking and strategic alliances in enhancing the performance of small and medium-sized enterprises (SMEs), including those owned by women. However, there's a gap in understanding the specific impact of strategic alliances on innovation within women-owned enterprises in Nigeria, prompting this study to address that gap.

This study employed a quantitative research design, specifically a survey approach. The study area was Enugu State, Nigeria, chosen for its emerging market economy and the presence of a significant number of SMEs. Using the Yaro Yamane formula, a sample size of 293 enterprises was determined, from which 109 women-owned enterprises were purposefully selected from five manufacturing subsectors (fashion designing/cloth making, nylon and paper bag production, food and catering services, printing and publishing, and miscellaneous assembly/decoration). Data was collected via a questionnaire survey using a five-point Likert scale, measuring innovation (process and product) and strategic alliance characteristics (cost reduction, risk reduction, resource accessibility, knowledge accessibility, technological advancement, improved quality of service, and new opportunities). The questionnaire was validated by three professionals and tested for reliability using Cronbach's alpha (0.72). Data analysis involved regression analysis using SPSS version 28.0.

Regression analysis revealed that strategic alliances significantly impacted both process and product innovation in the sampled women-owned enterprises. For process innovation, a decrease in cost reduction led to a 0.76 increase, and new opportunities led to a 0.62 increase. Improved quality of services and risk reduction also contributed positively (0.23 and 0.07 respectively). The model showed a significant relationship (R² = 0.54, F-value < 0.001). Similarly, for product innovation, cost reduction had a positive effect of 0.63 and new opportunities of 0.56. The model showed a significant relationship (R² = 0.57, F-value < 0.001). The hypothesis of a significant relationship between strategic alliances and innovation was supported (at a 95% confidence level).

The findings demonstrate the crucial role of strategic alliances in enabling women-owned enterprises in Nigeria to achieve both process and product innovation. Cost reduction through collaboration, access to new technologies and resources, and the ability to focus on core competencies significantly boosted innovation. The positive impact of new market opportunities highlights the importance of strategic alliances in expanding market reach. These findings align with the theoretical frameworks of transaction cost reduction, the strategic perspective, knowledge-based theory, and the resource-based view, all supporting the benefits of strategic alliances for innovation.

This study demonstrates the significant positive relationship between strategic alliances and innovation among women-owned enterprises in Nigeria. Strategic alliances provide crucial mechanisms for cost reduction, access to resources, risk mitigation, and the development of new products and processes. Policymakers should actively encourage the formation and strengthening of strategic alliances to enhance the innovation capacity and competitiveness of women-owned businesses. Further research could explore the influence of different types of strategic alliances, the role of specific institutional support mechanisms, and the long-term sustainability of these alliances.

The study's geographical scope limited the generalizability of findings to other parts of Nigeria. The reliance on survey methodology might be considered a limitation, as alternative methods could provide additional insights. Future research should expand geographical coverage, incorporate other methodological approaches, and employ a larger sample size to enhance the robustness and generalizability of the results.