The relationship between managerial capability and the innovative prowess of entrepreneurs in the Nigeria plastic industry was examined to determine the extent to which management tactics stimulate the creativity of innovation in the industry. Two dimensional construct with six variables were advance for the study to capture the relationship between the identified capability and the innovative prowess of entrepreneurs. Structural equation model was used to analyze the data collected this was based on equation ability to validate propounded theory and show the multiple relationship among construct following their reliability and validation. The confirmatory factor analysis model displayed good fit following their assessment using three indices ndash absolute, incremental, parsimony. The result confirmed the test that managerial tactics displayed by management actually encouraged the stimulation of innovation that drive the creativity in the plastic industry.nbsp Individual were not afraid to develop ideas and demonstrate such ideas since management promote and reward successful ideas that is sustainable. Managers were therefore recommended to identify and promote capabilities that can stimulate entrepreneurial innovation and healthy competition among employees in the industry.