Abstract
The declined customer loyalty and low competitive spirit confronting Nigerian owned SMEs when compared to their foreign counterparts operating under the same business environment have been an issue of concern for scholars and practitioners. The main thrust of this study is to evaluate the role of organizational cultural intelligence and corporate reputation on customer loyalty. A survey questionnaire was retrieved from 250 businesses owned by Nigerian (other than the natives of the place of operation) and Non-Nigerians operating in Plateau State Nigeria, and from 335 customers of these businesses as well. The data collected was analyzed using Smart-PLS 3.2.7 Software to determine the direct relationship between Organisational Cultural Intelligence and Customer loyalty and the indirect relationship through the intervening role of corporate reputation. The results revealed the relationship between organizational cultural intelligence and customer loyalty as positive but insignificant. While corporate reputation mediates the relationship between organizational cultural intelligence and customer loyalty. We further discussed the theoretical and practical implications as well as a recommendation for future studies. We inferred that Organisational CQ and Corporate reputations are important predictors and mechanisms to understanding customer loyalty among SMEs in Nigeria.
Highlights
Small and Medium Enterprises (SMEs) are agents of economic growth (Tom, Glory, & Alfred, 2016), it is impossible for any country that is desirous of development to ignore their contribution
The Measurement Model was assessed which is similar to Confirmatory Factor Analysis CFA in CB-SEM (Wai Yee, Hassan, & Ramayah, 2016), which involves the assessment of Composite reliability, Convergent validity and Discriminant validity (Hair Jr, Hult, Ringle, & Sarstedt, 2016; Hair, Ringle, & Sarstedt, 2011)
Convergent Validity was determined through its proxy, Average Variance Extracted (Hair Jr, Hult, Ringle, & Sarstedt, 2016; Hair, Ringle, & Sarstedt, 2011), while discriminant validity was analyzed based on Heterotrait and Monotrait criteria
Summary
Small and Medium Enterprises (SMEs) are agents of economic growth (Tom, Glory, & Alfred, 2016), it is impossible for any country that is desirous of development to ignore their contribution. This is evident in their response to societal needs and wellbeing, through the production of goods and services, resulting in enhancing employment opportunities. A cursory survey on the contribution of SMEs in developed clime like the UK reveals that they accounted for 99% of all private sector businesses with a turnover of 47%. Though SMEs are potential agents of economic growth and development, their survival and contribution have been unimpressive in Nigeria. The mortality rate of SMEs in Nigeria is as high as 70% within the first five years of their establishment
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