Al-Hikmah University Journal

The themes of entrepreneurship and agribusinesses have continued to echo with a wide range of initiatives around the country. Additionally, the economic instability, resource limitations and environmental uncertainties call for entrepreneurial initiatives as the option for agribusinesses to attain synergy. More so, the innovative prowess in the agricultural sector in Nigeria raises concerns about low attempt at salvaging agricultural sector from its present status. Hence, the study examined the relationship between entrepreneurship and innovative capacity among agribusiness clusters in Kogi, Kwara and Niger States of Nigeria. The study samples were selected using multistage sampling techniques and 342 copies of questionnaire were administered. The data was analyzed using Smart PLS-Structural Equation Modeling (SEM) technique. The results revealed that entrepreneurial initiatives have significant relationship with innovative capacity among
agribusinesses. From the study, it was established that networking initiative (T statistics =5. 628), technological adoption (T statistics = 4.478), and entrepreneurial orientation (T statistics =5.912) were essential elements in ensuring innovative capacity. The study thus concluded that entrepreneurial initiatives have strong positive relationship with innovative capacity. The study recommended that technological advancement through research and development and conscious
collaboration with relevant institutions should be encouraged.