ABSTRACT

The study focused on the effect of product innovation on corporate performance of selected consumer goods firms in Lagos state, Nigeria, with special emphasis on 27 Quoted consumer companies. The overall objective of the study was to examine the effects of product innovation on corporate performance of selected consumer goods firms in Lagos state, Nigeria; while the specific objectives were to determine the effect of research and development cost on profitability of consumer goods firms;    ascertain the effect of product modified version (PMV) on consumption experience; assess if product modified version affects customer patronage; examine the effect of product modified version on firm’s competitiveness and to determine the effect of research and development cost on market share of consumer goods firms in Lagos State, Nigeria. Primary and secondary data were used for the study, questionnaire and annual reports of various issues of firms under study (2008-2017) respectively. The mixed research design was adopted for the study. All hypotheses were tested at 0.05% significance level, all analyses; both descriptive and inferential statistics were done via STATA 13.0 statistical software. In view of the above, multiple and simple regression models were formulated based on the dependent and independent variables. The F-calculated of 5.43 is found to be higher than that of the table value (F-tabulated). The P-value of 0.0005 is less than the degree of freedom (0.05%) which indicates that there is a significant effect of product modified version (PMV) on consumption experience. Hence, the null hypothesis is rejected and the alternative is accepted that product modified version (PMV) has significant effect on consumption experience of consumers of the selected firms. The study therefore concludes that product innovation components significantly affect corporate performance indicators of the selected consumer goods firms. Therefore, the researcher recommends that the firms in the consumer goods sector should focus on product innovation with the aim of improving overall corporate performance.