Innovations and innovation capability in palm kernel processing industry in southwestern Nigeria
Authors: Ilori Ayodeji Bolaji , Lawal Akinloye , Simeon-Oke Olayemi Oladehinde 
Published: February 2017

Purpose

This study aims to examine the innovations available in the small-scale palm kernel processing firms in southwestern Nigeria. The sample population of 265 respondents was obtained through respondent-driven sampling tools. The research tools used were questionnaire, personal observations, interviews and secondary data collection approach. The questionnaire was administered to palm kernel processors and elicited information on innovations available in the firms. Both descriptive and inferential statistical techniques were used for data analysis.

Design/methodology/approach

The study area consisted of Oyo, Ogun, Osun and Ondo states in the southwestern Nigeria, because of the abundant supply of palm kernel as well as the presence of small and medium palm kernel oil (PKO) processing firms. The study population consists of all small palm kernel processing enterprises in these states. A total of 265 firms were purposively selected for the study. The sampling procedure involved the initial purposive selection of a palm kernel processing firm in a location, from where other firms within the locality were then identified. The primary data were collected through the use of questionnaire, interview and personal observation.

Findings

The results of the study showed that only process, organisational and market innovations were recorded by the palm kernel processing firms. Apart from the sieving operation where majority of the firms (91.30 per cent) used manual method, other unit operations were done mechanically. There was evidence of one or two innovation(s) available in the unit operations of these firms. Also, improvements were carried out occasionally in the process and marketing operations; the major sources of ideas for innovation were from related firms and customers. The organisations where majority of these firms had linkage with were Nigeria Palm Kernel Processing Association, government agencies and customer/suppliers.

Research limitations/implications

The findings are limited to the south-western part of Nigeria, there is need to extend the study to other states in the southern part where palm produce is the major cash crop. This will assist in making better generalisation on the innovation and innovation capability of the processors in Nigeria.

Practical implications

The study showed that the palm kernel processing firms experienced low innovation capability which could be due to their weak interactions with the knowledge institutions. Hence, there is need for these palm kernel processing firms to establish strong linkage with the knowledge institutions where their innovation capability can be enhanced.

Social implications

The findings in this paper can serve as an input to the design of policies that can enhance the innovation capability of the various actors in the value chain. This will assist in preventing wastages, increasing the quantity and quality of products and creating job opportunities. This is because the quality of PKO depends on the processing method; hence, better process innovation will improve the characteristics of the oil and widen its application.

Originality/value

Much has been written about palm kernel processing in medium and large enterprises, but information is still scanty on the small-scale processing enterprises. This paper contributed to knowledge by examining the innovations existing in the palm kernel processing enterprises in the south-western part of Nigeria and the innovation capability possessed by these enterprises.