International Journal of Scientific Research and Engineering Development

Innovation remains a critical driver of competitiveness in emerging markets, where institutional weaknesses heighten the importance of firm-level structures and internal capabilities. This study examines how ownership structure, corporate governance, and internal capabilities influence innovation performance within the context of emerging economies. Using a quantitative, cross-sectional survey design, primary data were collected from 61 respondents using a structured questionnaire measuring four constructs: Ownership Structure, Corporate Governance, Internal Capabilities, and Innovation Performance. Descriptive statistics, reliability testing, correlation analysis, exploratory factor analysis, multiple regression, and standardized path estimates were used to test the proposed relationships. Results indicate that corporate governance is the strongest predictor of innovation performance (β = .45, p = .001), followed by ownership structure (β = .27, p = .023). Internal capabilities, while positively related to innovation, were not statistically significant (β = .19, p = .168). The model explained 54.6% of the variance in innovation performance (R² = .546). Findings suggest that governance mechanisms play a central role in shaping innovation outcomes and act as a conduit through which ownership structure influences innovation. The study offers implications for strengthening governance systems, aligning ownership decisions with innovation strategies, and enhancing internal capability development. Directions for future research include sector-specific analyses, longitudinal models, and advanced structural equation modelling techniques.