Cognitive Adaptability and Sales Growth of Selected Small and Medium Scale Enterprises in Lagos States, Nigeria

Abstract

Stament of the Problem: Small and Medium Enterprises (SMEs) contribute immensely to the development of any nation’s GDP, of which Nigeria is not exempt. However, the survival rate has become very low, and the reason for the high mortality rate has been attributed to the volatility, uncertainty, complexity, and ambiguity of the dynamic operating environment. Responding with strategic decisions to changing environmental factors is a function of how cognitively adaptable the decision-makers are. Objective: Hence, the study investigated the effect of cognitive adaptability and business survival on selected small-scale enterprises in Lagos State, Nigeria. Methodology: The study adopted a survey research design. and simple ransampling technique. . The study population was 42,067 owners/managers of the registered SMEs in Lagos State, Nigeria. The sample size was 770 respondents, and this was determined using the Cochran sample size formula. A structured, adapted and validated questionnaire was administered. Cronbach’s alpha coefficient for the construct ranged from 0.725 to 0.923. Data were analysed using the descriptive and inferential (Multiple linear and hierarchical regression) statistics Findings: The regression model indicates that if cognitive adaptability factors were held constant at zero, the sales growth of the selected Small and Medium Scale Enterprises in Lagos State, Nigeria would be 8.479. In the predictive model it is seen that one of the variables of cognitive adaptability is insignificant, therefore the management of small and medium scale enterprises can downplay the variable that is why it is not included in the prescriptive model. From the analysis, the prescriptive models show that dimensions of cognitive adaptability (goal orientation, metacognitive knowledge, metacognitive control, and monitoring) except metacognitive experience have a significant effect on sales growth. This means that companies in the SMEs in Lagos State should pay close attention to the three components of cognitive adaptability in order to enhance sales growth. Conclusion: The study concluded that the owner and manager should take cognizance of cognitive adaptability, which is tutorial in nature, to enable them to acquire needed skills and plan their tasks creatively. Primarily to develop the capacity to respond with effective and strategic decisions that will aid their survival in the disruptive and dynamic business environment.