Improvisational Behavior as A Strategic Tool: Examining Its Impact on Innovation and Performance in Resource-Constrained Environments

This study examines improvisational behavior as a strategic tool in SMEs, focusing on its capacity to transform resource constraints into innovation and improved firm performance in Northern Nigeria. The aim is to investigate how improvisation mediates the relationship between resource limitations, innovation, and organizational outcomes. Specifically, the study seeks to: (i) determine the relationship between resource constraints and improvisational behavior; (ii) assess the mediating role of improvisation between constraints and innovation; and (iii) evaluate its effect on firm performance. The research is anchored on Bricolage Theory, which emphasizes the creative recombination of available resources under constraints. A sequential mixed-methods design was adopted. Quantitative data were collected from 300 SME managers and employees across Kano, Kaduna, and Plateau States and analyzed using Structural Equation Modeling (SEM). This was complemented by qualitative case studies involving semi-structured interviews with 10 participants from five SMEs to enrich contextual understanding. Findings reveal a significant positive relationship between resource constraints and improvisational behavior. Improvisation fully mediates the link between constraints and innovation and directly enhances firm performance. Qualitative results further highlight leadership support, tolerance for failure, and effective internal communication as key enablers. The study concludes that improvisational behavior is not disorderly but a vital strategic capability that enables firms to convert limitations into competitive advantage. It is recommended that managers foster flexible cultures, encourage experimentation, and strengthen communication systems, while policymakers should support capacity-building initiatives for SMEs.