Mallami, Keffi MuhammadAgu, Monica NnennaDaboh, Odadiah Ayok2023-12-102023-12-102022-05-04Mallami, K.M. et. al. (2022). Innovation Capacity and Internationalization of Small and Medium Scale Enterprises (SMEs) In Nigeriahttps://keffi.nsuk.edu.ng/handle/20.500.14448/1032Overtime the involvement of SMEs in product innovation capability and process innovation capability has been inadequate in Nigeria, where our products and services especially on export have been inadequate in terms of participation in the global markets which have made us a dumping ground for imported goods and services leading to the failure of most businesses, which have become an impediment to internationalization in Nigeria. Therefore, this study examined the effects of innovation capability and internationalization of SMEs in Nigeria. The study also focused on export-oriented SMEs in Nigeria. Descriptive research design was used. A stratified sample size of 228 was drawn from the population of 529 performing exporters in Nigeria using a structured questionnaire formulated for the purpose of the study. Multiple regressions were used to analyze data and the existing relationship between selected variables. The findings of the study> reveal that Product Innovation Capability exerted significant positive effect on the internationalization of SMEs in Nigeria; on the other hand Process innovation capability had negative, but insignificant effect on internationalization of SMEs in Nigeria. The study therefore concluded that innovations in product development, results in new and improved offerings to their market base, as they strive towards increasing market share across borders, consequently, process innovation capability practices, as improving methods of production, did not lead to an increase in the level of internationalization in the market performance of SMEs in Nigeria. The study therefore recommended that SMEs imbibe product improvement innovation processes practices to adapt with the ever-changing business environment.enInnovation Capability, Internationalization, SMEs, Product Innovation Capability, Process Innovation CapabilitArticle