Impact of Business Efficiency, Market Expansion, and Quality Services on SMEs Performance: Moderating Role of Perceived Risk in Katsina State
Keywords:
Business Efficiency, Market Expansion, Quality Services, SME Performance, KatsinaAbstract
This study explores the determinants of SME performance in Katsina State, Nigeria, with a focus on the roles of market expansion, business efficiency, quality services, and perceived risk as a moderating variable. The analysis of a sample of 396SMEs, conducted using SPSS version 23 and SmartPLS 3 to test the proposed structural model, yields significant findings. The study uses a quantitative method.It is found that both market expansion and business efficiency significantly boost SME performance, with Beta Values of 0.296 and 0.328, respectively, indicating strong positive effects. In contrast, quality services do not show a significant direct impact on performance. The study also highlights the significant moderating effect of perceived risk in the relationship between market expansion and SME performance, suggesting that effective risk management can amplify the benefits of market expansion strategies. This research extends the Resource-based View (RBV) and the Unified Theory of Acceptance and Use of Technology (UTAUT) by integrating perceived risk as a critical factor influencing SME performance. From a managerial perspective, the study offers actionable recommendations for SME managers in Katsina State, highlighting the importance of leveraging digital platforms for market expansion, enhancing operational efficiency through technology adoption, and developing robust risk management strategies. These practical insights are designed to empower SME managers, equipping them with the tools to enhance SME performance.
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