Empirical Investigation on the Relationship Between Strategic Orientations and SMEs Performance in Nigeria

Abstract

This study examines the relationship between strategic orientations and SMEs performance in Nigeria. The debate on entrepreneurial orientation and market orientation to firm performance will for a long time remain area of research. The population of this paper consists of 3,723 of all the SMEs operating in Kaduna and Sokoto state North West Nigeria. Out of which 351 sample questionnaires were administered to respondents concerning the entrepreneurial orientation and market orientation to SMEs performance. 218 questionnaires were returned. The number of valid questionnaires is 213. The data were analyzed using Partial Least Square Structural Equation Modelling (PLS-SEM) to determine the effect of the variables of the study. The findings of the paper indicated that entrepreneurial orientation promoting SMEs performance in Kaduna and Sokoto state North West Nigeria. Similarly, the result shows a statistically significant positive influence of entrepreneurial orientation to SMEs performance. While market orientation has no relationship with SMEs’ performance in Kaduna and Sokoto state North West Nigeria. The findings will provide the government, policy maker(s) and other SMEs’ stakeholders with the important variables of these entrepreneurial orientation and market orientation to SMEs performance in Nigeria. Implications and Suggestions for future research direction were discussed

Keywords: Strategic orientation, entrepreneurial orientation and market orientation, Small and Medium Performance,