This study provides empirical evidence on the type of incentives available to firms in Nigeria’s special economic zones (SEZs), their effects (or otherwise) on innovation activities at the firm-level, and the extent to which the incentives at SEZs have affected innovation capacity and export performance of firms. Primary data, which were analysed through descriptive statistics, logistic regression and two-stage least square estimator, was collected using a semi-structured questionnaire and interview guides administered to firms and other key stakeholders involved in the implementation of industrial policy affecting SEZs. The results of the study suggest that the number of incentives offered to SEZ firms does not really matter for improved firm-level innovation and export performance. Firms in the SEZs are driven by economic imperatives that are not necessarily determined by the strength of the SEZ incentives. The implementation of the SEZ incentives is perceived to be weak and ineffective by firms both within and outside the SEZs. Export performance of firms in the SEZs is poor because firms do not comply with the basic tenet of SEZ as an area dedicated to free trade and mandatory export of manufactures from the free trade enclave. Whereas the SEZs initiative has notably attracted FDI to Nigeria and fairly improved innovation capacity of firms, the SEZ incentives have no significant influence on export performance of firms in the SEZs.

Purpose –The study aims to examine the level of effectiveness of specific innovation capability strategies in enhancing small enterprises survival during crisis period and the interaction effect of environmental uncertainty.

Design/methodology/approach– The research design adopted an interpretivism epistemological orientation and a quantitative method study approach. The units of analysis are individual-level data from business owners and managers of small businesses. Employing a non-probability random sampling technique, primary data from 390 small enterprise owners in Lagos State were collected using a structured questionnaire and analyzed statistically through descriptive statistics, linear regression model, and inferential analysis.

Findings – The study reveal that innovation capability, product innovation, organizational innovation, and marketing innovation have significant effect on enterprise survival whilst process innovation, innovation culture, and innovation resource were found not significant. Also, the study suggests that environmental uncertainty does not moderate the effect of innovation capability on enterprise survival.

Research limitations– Exploration of the influence of organizational climate, sectoral study, and wider boundaries may provide more insights into the specific dynamics of the relationship between innovation capability and enterprise survival.

Practical and social implications– Enterprises can leverage technology and innovation capability strategies to enhance growth and survival during crises. They should review business models, transform traditional approaches to tech-driven, foster an innovation-supportive climate, and utilize artificial intelligence. The study highlights the need for policy reforms to improve business capacity and access to R&D and digital initiatives. Collaboration among policymakers, developmental agencies, and donors is crucial for establishing innovation hubs and providing grants to support MSMEs' resilience and growth.

Originality/value – This study provides insights into the significance of innovation capabilities and its product innovation, organizational innovation, marketing innovation, process innovation, innovation culture, and innovation strategies in enhancing small enterprise survival during crisis period.

Keywords Crisis, Environmental Uncertainty, Innovation capability, MSMEs, Resilience.

Paper type Research paper

The world seeks alternative and sustainable paths that would not only ameliorate the negative effects of climate change but also improve global economic production. One clear suggestion in the body of knowledge is the adoption of circular economy, away from the usual linear economic system (LES). Despite immense benefits of circular economy model of production and its adoption in the developed countries, its prevalent in Africa, particularly in Nigeria appears slow. This study therefore seeks to empirically assess the influence of circular economy strategy implementation on financial performance of micro, small and medium scale enterprises (MSMEs) in Nigeria. Primary data were collected from 206 enterprises in Lagos State through a cross-sectional survey. The main instrument for data collection was a validated questionnaire. The results showed that the implementation of circular economy at the strategic level is highly likely to improve financial performance by a factor of 36%. Reduce and reuse strategies also showed the likelihood of improving financial performance by factors of 8% and 34% respectively. Another variable with significant contribution to financial performance is the deployment of digital technologies. The Pseudo R-Square of 0.21 shows that the model is moderately fit as per logit regression. However, it also indicates that there are other external factors that are responsible for financial performance beyond circularity. Practical implications of the results are drawn and appropriate recommendations formulated.