Strategy Orientation and Performance of Small and Medium Enterprises in North Central Nigeria: The Mediating Role of Organizational Learning

This study ascertained the relationship between strategic orientation and performance of SMEs in North Central Region of Nigeria. Additionally, the study also examined the mediation effect of organizational learning on the relationship between strategic orientation and performance of SMEs. The study a multivariate approach to performance assessment. Specifically, a multiple constructs of entrepreneurial orientation, technology> orientation, market orientation, organizational learning and SMEs Performance are considered. Data was collected through hand delivery method by sending questionnaire to 440 SMEs managers/owners. Partial Least Squares (PLS) algorithm and bootstrap techniques were used to test the study's hypotheses. The results revealed that 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. 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.