Abstract

This study examines the impact of technological innovation on the performance and competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. Using a descriptive survey design, data were collected from 600 MSMEs across Nigeria’s six geopolitical zones. The study focused on digital transformation, process automation, and the adoption of technological tools as key drivers. Descriptive statistics, Pearson correlation, and regression analysis were employed to assess the relationship between technological innovation, business performance, and competitiveness. The findings reveal that while MSMEs have adopted technology, its impact on business performance and competitiveness is minimal. Weak correlations and low R-squared values suggest that factors such as access to finance, infrastructure, and managerial capabilities play a more significant role. The study recommends improving infrastructure, providing financial support, and offering capacity-building initiatives to enhance the adoption and effectiveness of technological innovations in MSMEs.