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Rapid investment in inventory has drastically changed the working and business environment of the agriculture industry, especially agricultural based institutions. The purpose of this study is to evaluate the role of inventory investment practices to explain on innovation performance of a selected agricultural based institution in Nigeria. This study evaluates the components of inventory costs as determinants of inventory investment in the selected agricultural based institution in Nigeria. The study contributes to knowledge by employing the use of survey research and simple random sampling technique to collect data from 98 agricultural students. The results of the regression analysis shows that the components of this model have an effect on inventory investment practices and innovation performance.  This study found that inventory investment practices account for 38% of innovation performance. The study recommends that proper inventory investment practices be employed by these institutions to improve innovation performance.  Keywords: Investment, inventory, innovation, performance, institutions, agriculture

THE ROLE OF INVENTORY INVESTMENT PRACTICES ON INNOVATION PERFORMANCE OF AGRICULTURAL BASED INSTITUTIONS