Innovation as a Mediator on the Relationship Between Competitor Orientation and SME’s Performance

Abstract

The perspective of literature concerning the relationship existing between the concept of competitor orientation and performance as it relates to Small and Medium Scale Enterprises (SMEs) is indirect; though supported by limited empiricism, despite the literature's mention of the potential for an indirect association. This has caused a notable knowledge gap in the literature and would be addressed by this study, seeking its significance in mediating the relationship. In order to do this, the study developed two assumptions, in which SMEs in Kaduna state were sampled for the study. Respondents to the data questionnaire are owners and managers of SMEs sampled with proportionate stratified and systematic selection technique. For the final analysis, 424 questionnaires were analysed using the statistical program SmartPls. Competition orientation was identified as a significant and positive predictor of SMEs' performance based on empirical data. Additionally, innovation is important in mediating between firm performance and competitor orientation. Thus; based on the findings of this study; managers and SMEs' owners should make sure that their staff members constantly exchange competition information with one another. Employees that receive competition information are better able to stay informed about developments and trends in the sector, which helps with strategic decision-making.