Factors Influencing Innovation and Competitiveness in the Service Sector in Nigeria: a Sub-Sectoral Approach

This study examined the factors that influence innovation and competiveness in the indigenous Nigeria’s oil and gas servicing firms. This was done with a view to making appropriate strategic recommendations to enhance firm-level innovativeness so as to increase indigenous participation in the sub-sector. The study, which used primary and secondary data sources, was based on a sample of the indigenous oil and gas servicing firms in Nigeria. Four types of questionnaire were administered in each firm. A total of 400 questionnaires were administered on heads of Production, Engineering, Finance and Administration in the firms out of which 70% were returned and found suitable for analysis. This was supplemented with field observations and interviews. Secondary data were sourced from the internet and other published sources. The data so obtained were analysed using descriptive and inferential statistics.The technological factors that accounted for the innovation performance included the educational qualifications, training and prior work experience of the heads of technical department, number of r&d staff and training, innovation, and, r&d investment. The important non-technological factors included interaction with competitors, consumers, suppliers and training institution. In conclusion, our study found out that the most important factors that influence innovation in the sub-sector are r&d expenditure and training.