Transformational Leadership and Product Innovation Among MSMES in South East, Nigeria

The study examined the influence of transformational leadership on product innovation among Micro, Small, and Medium Enterprises (MSMEs) in South East Nigeria. A survey research design was adopted, using a structured questionnaire administered to MSME owners and managers drawn from a population of 5,283,034 enterprises, with a sample size of 400 determined using Taro Yamane’s formula and proportionally distributed across the five South East states. Primary data were collected using a 5-point Likert scale questionnaire, and both descriptive statistics (mean scores) and inferential statistics were applied, while hypotheses were tested using regression analysis at a 5% level of significance. The reliability of the instrument was established using Cronbach’s alpha (0.767 for transformational leadership and 0.755 for product innovation), and validity was ensured through expert review covering face and content validity. The findings revealed that transformational leadership is positively associated with product innovation among MSMEs in South East Nigeria (β = 0.572, p = 0.000). The study concluded that transformational leadership plays a significant role in enhancing product innovation, and it recommended that owners and managers of MSMEs should actively foster a culture that encourages creative thinking, shared vision, and motivation among employees, as these behaviours significantly enhance incremental product innovation.