Title: Investment In Research And Development And Growth Of Medium & Large-Scale Enterprises In Delta State, Nigeria
Authors: COLE Ronald Lionel; ALAKA Godswin; SALIFU Akoji Anthony; CHIEJINE Uzor; & ODITA Anthony Ogomegbunam
Volume: 9
Issue: 11
Pages: 66-78
Publication Date: 2025/11/28
Abstract:
This study investigated the impact of investment in research and development capability on organizational growth of medium and large-scale enterprises in Delta State, Nigeria. Research and development (R&D) capabilities, proxied by R&D Innovation Output (RDIO), and R&D Investment (RDI), on the growth of medium and large-scale enterprises in Delta State, Nigeria. Grounded in the Resource-Based View (RBV), Dynamic Capabilities Theory, and Innovation Systems Theory, the research aims to evaluate how these dimensions of R&D contribute to organizational growth (OG). Employing a survey research design, primary data were collected from key stakeholders across selected enterprises, using quantitative research methods, responses from the respondents were collected with the aid of five (5) likert scale questionnaire. A total of three hundred (300) questionnaires were administered to owners and manager of medium and large-scale enterprises in Delta State, Nigeria, however, two hundred and fifty (250) were retrieved and properly filled while 50(16.67%) were not properly filled. This two hundred and fifty (250) respondents represent 83.33 percent of the total questionnaire administered, which shows that two hundred and fifty (250) respondents is sufficient for the study. The research questions were analyzed with the aid of descriptive statistics and correlation matrix. The hypotheses of the study were tested using the multiple regression statistical tools with the aid of SPSS version 23 as the basis of testing hypotheses. The findings reveal that RDIO, with a coefficient of 0.017 and a significant p-value of 0.004, positively influences OG, indicating that a 1% increase in RDIO results in a 1.7% growth. Similarly, RDI exhibits a significant positive effect on OG, with a coefficient of 0.047 and a p-value of 0.012, suggesting that a 1% rise in RDI leads to a 4.7% increase in OG. The study concludes that R&D capabilities significantly enhance organizational growth, providing practical insights for managers and policymakers. Recommendations include prioritizing R&D investment, fostering strategic partnerships, and investing in talent development to sustain growth and competitiveness. This study contributes to the literature by offering empirical evidence on the relationship between R&D capabilities and organizational growth in the Nigerian context and highlights the need for supportive policies to enhance R&D activities.