Exploring the role of digital innovation in enhancing small business competitiveness in manufacturing firms Owerri North, Imo state

In developing economies, small businesses must embrace digital innovation if they are to compete effectively with larger and more established firms. This study examines the impact of digital innovation on the competitive advantage of small-scale manufacturing enterprises in Owerri, Imo State, Nigeria. Specifically, the study focuses on the roles of e-commerce platforms, organizational agility, employee engagement, and resource optimization, while also considering operational innovation and customer satisfaction as key indicators of business performance. The study adopted a survey research design and utilized a structured questionnaire to gather data from 37 unregistered small-scale manufacturing firms located in Owerri North Local Government Area. Data collected were analysed using Pearson correlation and regression analysis techniques. The findings revealed a strong positive relationship between operational innovation and customer satisfaction (r = 0.883, p < 0.01). In addition, e-commerce platforms were found to significantly influence organizational agility (β = 0.739, p < 0.01), while employee engagement showed a very strong positive correlation with resource optimization (r = 0.910, p < 0.01). These results indicate that digital innovation contributes meaningfully to improved efficiency, responsiveness, and overall business competitiveness among small manufacturing firms. The study concludes that the strategic adoption of digital technologies significantly enhances the competitive position of manufacturing enterprises through better operational efficiency, improved market responsiveness, and more effective utilization of resources. Furthermore, the findings provide empirical support for the Resource-Based View, the Technology Acceptance Model, and Competitive Advantage Theory. The study is also practically relevant to entrepreneurs and policymakers seeking sustainable ways to strengthen the competitiveness of small businesses in emerging market environments such as Nigeria.