Understanding the Effects of Strategic Business Management on Small and Medium Scale Enterprises for Enhanced Productivity in Nigeria

Adekunle Oluwatosin Alade¹ , Joy Ofure Ehigbochie²

Section:Research Paper, Product Type: Journal-Paper
Vol.7 , Issue.2 , pp.60-67, Dec-2019

Online published on Dec 31, 2019

Copyright © Adekunle Oluwatosin Alade, Joy Ofure Ehigbochie . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

View this paper at   Google Scholar | DPI Digital Library

XML View     PDF Download

How to Cite this Paper

Abstract :
It is suitable to value the extent of the effects strategic management has brought into the life of productivity, lately, modern organizations have attached more importance to strategic management. The employment of strategic business units as entitles for the formulation of strategic plans and implementation which provides strategic business management a particular character of its own has been the backbone of most economies which in turn will result in increased productivity for businesses particularly small to medium scale business (SMEs) in developing countries notably in Nigeria. This work will analyze the importance of strategic management in Small and Medium Scale Enterprises and the way it enhances firm performance, and the way it is understood and adopted. This analysis utilized the case study style on 10 purposively sampled SMEs in Lagos, Nigeria. The likelihood sampling technique of purposeful sampling was utilized to choose two hundred respondents from SME owners and workers for the study. Questionnaires were utilized in the collection of data, and the Statistical Package for Social Sciences (SPSS) was used in analyzing the data. The outcome investigated the understanding of strategic business management practices on small to medium scale businesses (SMEs) for firm performance and productivity. The findings showed that strategic management and the implementation of organizations was practiced to some extent in SMEs precisely in Lagos, Nigeria. Moreover, the findings within the study conjointly uncovered that the strategic management implementation in developing countries still faces challenges like the inability to manage amendment and high managers` not supporting strategy. Going by these findings among others, it had been deduced that the strategy of a company ought to be aligned with the goals of, and incentives for, the manpower per the allocation of resources.

Key-Words / Index Term :
strategic management, productivity, small and medium scale enterprises (SMEs), planning, implementation

References :
[1]. Acemoglu, Daron, “Root Causes: A historical approach to the role of institutions in economic development”, Finance and Development, June, p. 27-30, 2003.
[2]. Adelaja A.O. The Importance of Small and Medium Scale Industries in a Developing/Underdeveloped Economy: Nigeria Case Study. Mechanical Engineering Department, University of Lagos, Nigeria. 2002.
[3]. Aremu M. A. & Adeyemi, S. L. Small and medium scale enterprises as a survival strategy for employment generation in Nigeria. Journal of Sustainable Development, 4(1), 200-215, 2011.
[4]. Asaolu T.O, O. Oyesanmi, P.O. Oladele, and A.M. Oladoyin 2005; Privatization and commercialization in Nigeria: Implications and prospects for good governance
[5]. Beaver G. Management and the Small Firm, Strategic Change, vol. 12, pp. 63-68, 2003.
[6]. Berman, Gordon & Sussman 1997, a Study to Determine the Benefits Small Business Firms Derive from Sophisticated Planning Versus Less Sophisticated Types of Planning‘, the Journal of Business and Economic Studies, vol. 3 (3), pp. 1-11.
[7]. Dossani, Rafiq and Martin F. Kennedy, “Providing Financing for Technology-based SMEs”, background paper presented at UNCTAD Expert Meeting on Improving Competitiveness of SMEs through Enhancing Productive Capacity: Financing Technology, UNCTAD/ITE/TEB/Misc.8, Geneva, 28-30 October, 2002.
[8]. Herrington, M., Kew, J. & Kew, P. Global Entrepreneurship Monitor: 2010. Graduate School of Business, Centre for Innovation and Entrepreneurship, University of Cape Town, 2010.
[9]. Meyer D.F., Local government’s role in the creation of an enabling developmental environment, “Administratio Publica”, 22(1), 2014.
[10]. Nkechi, A., Emeh Ikechukwu, E. J. & Okechukwu, U. F. Entrepreneurship development and employment generation in Nigeria: problems and prospects. Universal Journal of Education and General Studies, 1(4), 88-102, 2012
[11]. OECD, "Enhancing the Competitiveness of SMEs through Innovation." Organization for Economic Cooperation and Development, 2000.
[12]. Orser, Hogarth-Scott & Riding 2000 ‘Performance, Firm Size and Management Problem Solving’, Journal of Small Business Management, 38 (4), 42-58.
[13]. Pearce and Robinson. Strategic Management: Formulation, Implementation, and Control, 2002
[14]. Pearce, J. A. & Robinson, R. B. (2007). Strategic Management: Planning for Domestic and Global Competition (13th Ed.). New York: McGraw-Hill Irwin.
[15]. R.M. Grant “Knowledge and Organization,” in D.J. Teece and I. Nonaka (eds.), Managing Industrial Knowledge, Sage, Thousand Oaks, pp. 145-169, 2001
.[16]. Robinson & Pearce 1984 Research Thrusts in Small Firm Strategic Planning. Academy of Management, vol. 9(1), pp.128-137.
[17]. Rogerson, C. M.. Developing SMMEs in peripheral spaces: the experience of Free State province, South Africa. South African Geographical Journal, 2006.
[18]. RSA (Republic of South Africa), National Small Business Act, Pretoria: Government Printer, 1996.
[19]. Sandberg, Robinson & Pearce 2001, Why Small Businesses Need a Strategic Plan, Business and Economic Review, vol. 48(1), pp.12-15.
[20]. Sexton & van Auken 1985, ‘A Longitudinal Study of Small Business Strategic Planning’, Journal of Small Business Management, 23, 7-15.
[21]. Sriram & Mersha, Stimulating Entrepreneurship in Africa. World Journal of Entrepreneurship, Management, and Sustainable Development, 6(4), 257 – 27, 2010.
[22]. Udechukwu, F.N. Survey of Small and Medium Scale Industries and Others Potential in Nigeria, 2003.
[23]. Wheelen T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. Strategic Management and Business Policy: Globalization, Innovation, and Sustainability (14th Ed.). New York: Prentice Hall Inc, 2014.