Generic Competitive Strategies and the Performance of Small and Medium Enterprises in Yobe State, Nigeria: A Resource-Based View of Firms’ Internal Capability
DOI:
https://doi.org/10.56919/jbam.2621.022Keywords:
Generic Competitive Strategies, Resource-Based View, Enterprises Performance, Cost Leadership, Differentiation, Focus, Managerial CapabilityAbstract
The performance of small and medium-sized enterprises (SMEs) is inextricably linked to the competitive strategies they adopt in a dynamic and challenging business environment globally. Therefore, this study explored the nexus between generic competitive strategies and both financial and non-financial performance of enterprises in Yobe state, Nigeria. The research is anchored on resource-based view (managerial capability) to test the relationship between the variables using a cross-sectional survey data collected through mailed questionnaire administered to one hundred and ninety-nine (199) sampled enterprises operating in the sub-sector selected by two stage sampling techniques: quotas and simple random sampling methods. A multiple linear regression model is applied to primary data collected via SPSS version 23. Results show evidence of statistically significant relationships between generic competitive strategies (cost leadership, differentiation and focus) and SMEs financial and non-financial performance through existence of managerial capability. The link between the variables suggests the significance of managerial capability and generic competitive strategies in achieving sustainable performance. On the basis of these findings, SMEs executives and entrepreneurs should develop flexible strategies and dynamic capabilities that can be adapted and respond quickly to changes in the business environment. Ultimately, SMEs should implement differentiation strategy through customer intimacy. Enterprises owners should build loyalty programs around credit terms and personal relationship. And train frontline staff on complaint resolution.
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