Strategic Distribution Capability and SME Innovation Performance: The Roles of Employee Innovative Behaviour, Open Innovation, and Digital Adoption

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Abstract

This study examines the effect of strategic distribution capability on SME innovation performance, considering the mediating roles of employee innovative behavior and open innovation, and the moderating role of digital technology adoption. Drawing on dynamic capability theory, we analyze multisource survey data from 320 SMEs in Niger State, Nigeria using partial least squares structural equation modeling. Results reveal that strategic distribution capability positively influences innovation performance both directly and indirectly through employee innovative behavior and open innovation. The sequential mediation pathway from strategic distribution capability through employee innovative behavior and open innovation to innovation performance is significant. However, contrary to expectations, digital technology adoption does not moderate the open innovation-performance relationship, revealing important boundary conditions in resource-constrained contexts. Our findings extend dynamic capability theory by elucidating the microfoundations of capability-driven innovation and provide practical guidance for SME managers and policymakers.

Keywords

Distribution capability,innovation performance,employee innovative behavior,open innovation,digital technology adoption

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How to Cite

Musa Usman; Mohammed Usman Ndayebo; Suleiman Abdullahl; Isah Nda Isah; Lawal Sani. (2026). "Strategic Distribution Capability and SME Innovation Performance: The Roles of Employee Innovative Behaviour, Open Innovation, and Digital Adoption." ESUI Business and Management Journal, 3(1), 118-126.

Publication Timeline

  • Received: May 12, 2026
  • Accepted: May 12, 2026
  • Published: May 12, 2026
  • Last Updated: May 14, 2026