Strategic Competency the Silver Bullet for SME Performance in South West, Nigeria

Abstract

Strategic competency plays a major significant role in the economic development, survival, and sustainability of every nation. The inability of Small and medium enterprises to work with strategic plans in achieving their desired objectives has become a phenomenon in South west, Nigeria. The purpose of this study is therefore to establish the relationship between strategic competencies and performance of SMEs in South west, Nigeria. In view of the above statement this study examines strategic competency and performance of small and medium enterprises in South-Western Nigeria. Quantitative method was adopted as research design. The population size is 23,294 SMEs in Lagos, Ogun, Osun, Oyo, Ekiti and Ondo State. Taro Yamani sampling formula was adopted to get 393 as sample size. Multi-stage sampling technique and structured self-administered questionnaire was used to collect the primary data. Cronbach’s alpha coefficients for the variables ranged from 0.73 and 0.88. Standard multiple regression (SPSS version 22) was used to analyze the quantitative data. Findings from the tested hypothesis show that the variables have significant impact on the performance of SMEs in South west, Nigeria. The study findings revealed that strategic competencies are positively and statistically significant to performance in SME’s. The recommendations from the research are that Small and Medium Enterprise in South west State of Nigeria that want to have a competitive advantage over others must adopt in their own unique ways, strategic competency.