STRATEGIC MANAGEMENT AND ENTERPRISE PERFORMANCE IN SMALL AND MEDIUM ENTERPRISES: A STUDY OF SELECTED SMES IN NIGERIA

Abstract

Management strategy and enterprise performance in small and medium enterprises is the topic of this empirical study. The paper sought to investigate how strategic management can help SMEs enhance enterprise performance. Descriptive survey method was used for the study. The primary source of data was the use of questionnaire while the secondary source consisted of textbooks, professional journals, periodicals and data base of relevant web sites. The population of the study was 118 (one hundred and eighteen) of the owner managers/operators of Small and Medium Enterprises. The major instrument for data collection was questionnaire structured using 5-point Likert scale. Objectives 1, 2 and 3 were analysed using frequencies and percentages to answer the research questions, while Chi-square tested the hypotheses. Spearman rank order correlation was used to establish relationship between strategic management and enterprise performance. The responses were analyzed using simple percentage and tables for the research questions while the hypotheses were tested using chi-square. Spearman rank order correlation was used to establish relationship between strategic management techniques and enterprise performance of Small and Medium Enterprises. The major findings included that: Strategic management techniques are well suited for Small and Medium Enterprises to surmount environmental challenges and threats. In addition, strategic management techniques such as multiple product line, copycat/trialand- error techniques and business-strategy-thinking enabled some sampled SMEs to enhance their enterprise performance.