EFFECT OF GROWTH STRATEGIES ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN NORTH CENTRAL NIGERIA
Keywords:
Growth Strategies, Market Development Strategy, Diversification Strategy, SMEs, North Central NigeriaAbstract
This study examines the effect of growth strategies on the performance of small and medium enterprises (SMEs) in North Central Nigeria. The objectives of the study were to examine the effect of market development strategy on the performance of SMEs in North Central Nigeria, and examine the effect of diversification strategy on the performance of SMEs in North Central Nigeria. The study used survey causal research design. The study population encompasses a total SME of 193,236 across six states and FCT, with a sample size of 517 SMEs. Data were collected through closed-ended questions on a 5-point Likert scale and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that both Market Development Strategy and Diversification Strategy significantly and positively affect SME performance. Specifically, Market Development Strategy has a path coefficient of 0.270 and Diversification Strategy has a path coefficient of 0.625, with both showing strong statistical significance. The study concludes that both Market Development Strategy and Diversification Strategy have a significant and positive effect on the performance of SMEs in North Central Nigeria, with market expansion efforts and diversification initiatives substantially contributing to improved SME outcomes and overall success in the region. The study recommends that SMEs in North Central Nigeria should prioritize developing and implementing strategies such as geographic expansion, product adaptation, etc. to enter new markets, as this approach has been shown to significantly enhance their performance. Also, SMEs should adopt diversification strategies such as product diversification, market diversification, etc. to broaden their product lines or explore new business areas.Downloads
Published
2024-12-29
How to Cite
MOHAMMED, K. A., SHAMMAH, Y., & ADIGIZEY, J. D. (2024). EFFECT OF GROWTH STRATEGIES ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN NORTH CENTRAL NIGERIA. FULafia International Journal of Business and Allied Studies, 2(4), 21–40. Retrieved from http://fijbas.org/index.php/FIJBAS/article/view/129
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