Effect of Competitive Aggressiveness on Competitive Advantage of Selected Small and Medium Scale Enterprises in Ogun State, Nigeria

Abstract

Small and Medium Scale Enterprises (SMEs) are frequently under pressure at the local or domestic markets because of cheap importation and high level of competition. The inability of top management of SMEs to properly analyse the market is one of the leading causes of their not been able to enjoy competitive advantage  Therefore, this study aimed to examine the effect of competitive aggressiveness on competitive advantage of small and medium scale enterprises (SMEs) in Ogun State, Nigeria. Survey research design was employed for this study. Set of structured questionnaire on competitive aggressiveness and competitive advantage of SMEs were self- administered for the collection of the primary data. In order to get a valid sample, a group of 386 firms were analyzed.  A pilot study was carried out to test the validity and reliability of the research instrument using Cronbach Alpha reliability test. The data collected were analyzed using both descriptive and inferential statistics. The findings of this study revealed that competitive aggressiveness has positive significant effect on competitive advantage of SMEs. (β=0.973; R²=0.294; t₍₃₈₅₎= 12.636; p>0.05). It was concluded that competitive aggressiveness affected competitive advantage of SMEs in Ogun State, Nigeria, and recommended that entrepreneurs should employ appropriate price control mechanisms, invest heavily in marketing, advertisement, sales promotion and aggressive growth to enhance their competitive advantage which is critical for organizational performance, and that maintaining good relationships with clients is an important factor to be considered

Key-Words: Competition, Competitive advantage, Competitive aggressiveness, Entrepreneurship, Small and Medium Enterprises.