EFFECT OF STRATEGIC ORIENTATION ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NORTH-CENTRAL REGION OF NIGERIA

Small and Medium Enterprises (SMEs) in Nigeria are faced with a lot of problems which includes, among others, inadequate marketing skills, low entrepreneurial spirit, and poor strategic orientation which may deter effective performance of the SMEs. This study examined the effects of strategic orientation on performance of SMEs in north central region of Nigeria. Additionally, this study also examined the mediation effect of organizational learning on the relationship between strategic orientation and performance of SMEs. This study thus, considering the Nigerian market assesses the performance of SMEs using a multivariate approach to performance assessment. Specifically, a multiple constructs of entrepreneurial orientation, technology orientation, market orientation, organisational learning and SMEs Performance are considered. Data was collected through hand delivery method by sending questionnaires to 440 SMEs managers/owners. Partial Least Squares (PLS) algorithm and bootstrap techniques were used to test the study's hypotheses. The results provide support for most of the hypothesized relationships for the study. Specifically, entrepreneurial orientation, market orientation and organizational learning are significantly and positively related to performance of SMEs. On the other hand, technological orientation is insignificantly and negatively related to performance of SMEs. Additionally, entrepreneurial orientation, technology orientation and market orientation are significantly and positively related to organizational learning. Furthermore, the results of mediation indicate that all the three hypotheses are significant. The outcome of this study provides significant contributions to both managers and researchers for further understanding on the effect of strategic orientation and organizational learning on performance of SMEs. As such, the study principally recommended that organizations should be encouraged to exhibit these strategic orientations for better performance. Managers/entrepreneurs of SMEs should acquire and put into reality sound entrepreneurial orientation and market orientation skills to be able to engage in a more innovative activity in the markets and to place the customers in the center of a firm’s strategy and operations.