MAXIMIZING MARKET VOLATILITY FOR ENTERPRISE INNOVATIVE CAPABILITIES IN MANUFACTURING INDUSTRY

Abstract

Purpose. The study examines the effect of market volatility on the innovation capabilities of the manufacturing industry. Specifically, it examined: the effect of price instability, unpredictable demand and regulatory stringency on innovation capabilities.

Design/Methodology/Approach. Survey design was adopted for the study. Sampled respondents includes middle-level and top-level staff of the selected manufacturing firm. The participants were administered a structured questionnaire. PLS-SEM had been employed to evaluate the collected data.

Findings. The findings revealed that unpredictable demand has the highest impact on innovation capability, followed by price instability, and regulatory stringency. It was revealed that market volatility is significantly vital for innovation capabilities in Nigeria manufacturing industry.

Originality. This study introduces an original framework that reconceptualizes market volatility not as a disruptive force to be mitigated, but as a dynamic resource for cultivating enterprise innovative capabilities in the manufacturing industry. By reframing volatility as a catalyst for adaptive experimentation, the research departs from conventional risk-avoidance models and proposes a novel approach where uncertainty becomes a structured driver of creativity, resilience, and competitive differentiation.

Keywords: Market Volatility, Innovative Capabilities, Price Instability, Unpredictable Demand, Regulatory Stringency