MODERATING EFFECT OF INNOVATION ON OPERATIONAL MANAGEMENT AND ORGANIZATIONAL PERFORMANCE OF FOOD AND BEVERAGE COMPANIES IN KADUNA METROPOLIS.
1 Department ofBusiness Administration, Faculty ofManagement Sciences, Kaduna State University
2 Department of Business Administration and Entrepreneurship, Faculty of Management Sciences, Kaduna State University
* Corresponding author: mibrahimbarau@gmail.com
2 Department of Business Administration and Entrepreneurship, Faculty of Management Sciences, Kaduna State University
* Corresponding author: mibrahimbarau@gmail.com
Abstract
This study explores the moderating role ofinnovation in the relationship between operational
management and organizational performance among food and beverage companies in
Kaduna Metropolis, Nigeria. Employing a cross-sectional survey design, primary data were
collected from 452 respondents across selected firms and analyzed using Partial Least
Squares Structural Equation Modeling (PLS-SEM). Findings reveal that operational
management encompassing planning, supervision, product development, and inventory
control significantly enhances organizational performance. Innovation was also found to
have a positive and direct impact on performance. However, contrary to expectations,
innovation did not significantly moderate the relationship between operational management
andperformance, suggesting that both contribute independently to organizational outcomes.
The study concludes that while innovation and
operational strategies are vital drivers of
performance, their integration does not necessarily
produce synergistic effects. It recommends that firms pursue parallel strategies for innovation and operational efficiency,
supported by dedicated resources, training, and policy frameworks. These insights are
valuable for managers, policymakers, and researchers aiming to optimize organizational
performance in competitive and resource-constrained environments.
Keywords
Innovation
Operational Management
Organizational Performance and Food and Beverage Sector
References
- Abbas, Y. (2020). Innovation and firm performance in the Nigerian food and beverage sector. Unpublished manuscript.
- Adegoriola, A. (2021). Effect of innovation on Small and Medium Enterprises (SMEs) performance in Abuja Municipal Area Council, FCT-Abuja. Journal of Business and Entrepreneurship, *12*(3), 45-60.
- Adeoye, A. O., & Epemolu, T. O. (2021). Innovation and operational efficiency in the Nigerian food and beverage industry. African Journal of Management Research, *9*(2), 112-128.
- Bosire, J. (2021). Effect of operation strategies on performance of automotive industry in Kenya. International Journal of Business and Management, *16*(4), 78-92.
- Campbell, R., Fowles, E., & Weber, M. (2020). Operational structure and job specification in public health nursing. Journal of Nursing Management, *28*(5), 1023-1035. https://doi.org/10.1111/jonm.13045
- Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern Methods for Business Research, *295*(2), 295-336.
- Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates.
- Duarte, P., & Amaro, S. (2018). Methods for modelling reflective-formative higher order constructs in PLS-SEM: An application to tourism research. Tourism Review, *73*(2), 211-227. https://doi.org/10.1108/TR-05-2017-0090
- Efini, J. (2019). Challenges and opportunities in the Nigerian food and beverage industry. Lagos: Prime Publishers.
- Eshiett, T. (2022). Effect of new product development on organizational performance. Journal of Product Innovation Management, *39*(1), 34-50. https://doi.org/10.1111/jpim.12567
- Gratton, L. (2013). The key: How corporations succeed by solving the world's toughest problems. New York, NY: HarperCollins.
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks, CA: Sage.
- Heinemann, S. (2019). Operations management: Principles and practices for strategic impact. New York, NY: Routledge.
- James, A. (2019). Operations management: A practical introduction. London: Palgrave Macmillan.
- James-Moore, S. (2016). Inventory management for competitive advantage. London: Kogan Page.
- Mohammed, A., Ibrahim, B., & Embat, M. (2021). Innovation and business growth in emerging markets. Journal of Business Innovation, *7*(2), 89-104.
- Musa, A., Abdu, M., & Jimoh, L. (2022). Moderating effects of innovation on microcredit and financial performance of microenterprises in Kaduna metropolis. Journal of Small Business and Entrepreneurship, *14*(1), 55-70.
- Nwosu, C., & Chidozie, F. (2022). Technological adoption and operational efficiency in Nigerian manufacturing. African Journal of Industrial Research, *10*(1), 22-38.
- Ogaboh, A., Udo, E., & Okon, S. (2020). Challenges of food and beverage firms in Nigeria: A strategic analysis. International Journal of Business and Economic Development, *8*(2), 1-15.
- Parker, R. (2021). Operations management for dummies. Hoboken, NJ: Wiley.
- Prabhala, N. (2021). Global operations management in the digital age. New York, NY: Springer.
- Robbins, S. P. (1990). Organization theory: Structure, design, and applications (3rd ed.). Englewood Cliffs, NJ: Prentice-Hall.
- Sadri, G. (2020). Measuring organizational performance: A comprehensive guide. Thousand Oaks, CA: Sage.
- Schroeder, R. (2018). Operations management in the supply chain (7th ed.). New York, NY: McGraw-Hill.
- Teece, D. J. (2014). The foundations of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of firms. Academy of Management Perspectives, *28*(4), 328-352. https://doi.org/10.5465/amp.2013.0116
- Wade, M., & Hulland, J. (2004). Review: The resource-based view and information systems research: Review, extension, and suggestions for future research. MIS Quarterly, *28*(1), 107-142. https://doi.org/10.2307/25148626
- Yusuf, A. (2023). Organizational performance in the Nigerian food and beverage sector: Trends and challenges. Kaduna: Greenfield Press.
How to Cite
Barau, M. I., Abdu, M., & Hashim, Y. A. (2025). MODERATING EFFECT OF INNOVATION ON OPERATIONAL MANAGEMENT AND ORGANIZATIONAL PERFORMANCE OF FOOD AND BEVERAGE COMPANIES IN KADUNA METROPOLIS.. Kaduna Business and Management Reviews, 6(1), 163-180. https://doi.org/10.68022/kbmr.2025.5wo0sbor
M. I. Barau, M. Abdu, and Y. A. Hashim, "MODERATING EFFECT OF INNOVATION ON OPERATIONAL MANAGEMENT AND ORGANIZATIONAL PERFORMANCE OF FOOD AND BEVERAGE COMPANIES IN KADUNA METROPOLIS.," Kaduna Business and Management Reviews, vol. 6, no. 1, pp. 163-180, June 2025. doi: 10.68022/kbmr.2025.5wo0sbor