Small and Medium Scale Enterprises and the Utilization of Strategic Alliance: The Effect of Spatiality in Emerging Markets Economy

Abstract

ABSTRACT This study examined the effects of spatiality in the utilization of strategic alliance by SMEs in an emerging market economy such as Nigeria. A case study approach, survey research design and a questionnaire survey of 233 SMEs were adopted for the study. Data for this study were analysed using descriptive statistics and nearest neighbour analysis, while maps and tables were used to illustrate the results. The result of the study showed that SMEs had three distribution patterns in cluster, regular and random distribution in the study. SMEs in these distribution patterns had a total mean score of 3.93, 3.58 and 3.05 as well as an average mean score of 2.00 in cost reduction, risk reduction, resource and knowledge accessibility in the use of strategic alliance. This signified that engaging in strategic alliance is not determined by the spatial distribution of SMEs but the need to achieve cost reduction, risk reduction and resource accessibility.