Effect of Strategic Management Practices on the Performance of Small and Medium Enterprises (SMEs) in Lagos State, Nigeria
DOI:
https://doi.org/10.56919/jbam.2621.011Keywords:
Strategic Management, Strategic Planning, Strategic Formulation, SME Performance, Sustainable Business GrowthAbstract
This study examines the effect of strategic management practices on the performance of Small and Medium Enterprises (SMEs) in Lagos State, Nigeria. Specifically, the study focuses on strategic planning and strategic formulation, and measures their influence on SME performance. A descriptive survey research design was adopted, and the population comprised 42,076 registered SMEs in Lagos State as obtained from the Ministry of Commerce and Industry (2023). Using a multistage sampling technique, a sample size of 399 SMEs was selected. Data were collected using a structured questionnaire, and the instrument's validity and reliability were ensured. The data were analysed using descriptive statistics and multiple linear regression techniques. The findings revealed that strategic planning has a significant positive effect on SME performance. Similarly, Strategy formulation was found to enhance SME performance significantly. These results indicated that SMEs that adopt strategic planning and strategy formulation practicesare more likely to achieve improved competitive positioning and revenue growth. The study concludes that Strategic Planning and Strategy formulation Practices have a statistically significant influence on SME performance in Lagos State. It is therefore recommended that SME operators should institutionalise regular review and updating of Strategic Planning and Strategy formulation Practices to remain responsive to environmental changes and sustain business growth.
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