Journal VOL. 2 NO. 2, September. 2021, ISSN: 2811 - 2628
Strategic Management and Performance of Small and Medium Enterprises in Lagos, Nigeria
Eyanuku Julius Paul
ABSTRACT
The current economic downturn, occasioned by the Covid-19 Pandemic has created high levels of turbulence for many businesses, requiring only the ability to turn strategies into action. The presence of good strategic plans can help businesses become less vulnerable to the volatile business environment. The objective of this study was to assess the impact of Strategic Management variables on the performance of Small and Medium Scale Enterprises (SMEs) in Nigeria in order to improve their sustainability. The study used a survey setting with questionnaire administration to collect data on factors related to business structure, orientation, and performance. The information was gathered from a sample of small and medium-sized businesses in Lagos. A total of 270 questionnaires were distributed, with 240 collected using the early and late response technique. This equates to an 89 percent response rate. The collected data was analyzed using regression analysis at a 5% level of significance. The findings revealed that strategic management and organisation structure have positive and significant effect on SMEs performance, with coefficient and probability values of: Strategic management (β1 = 0.6412, P-value<0.05) and organisation structure (β2 = 0.3201, P-value <0.05). The F-stat (32.971, P-value<0.05) shows the fitness and overall significance of the regression model. It implies that strategic management and organisation structure are good predictors of SMEs performance. The Adjusted R2 suggested that 37.5% change in SMEs performance is accounted for by strategic management and organisation structure. Since strategic management and organisation structure are key determinants of SMEs performance, it is recommended that SMEs should be proactive, innovative, and strategic in order to improve performance. They should recognize that ability to adapt to external environmental changes is only one of several factors that contribute to performance. So, relevant skills should be honed to spot growth opportunities among other development initiatives.
Keywords: Enterprise, Entrepreneurship, Performance, Strategic, Management
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