STRATEGIC MANAGEMENT PRACTICES AND COMPETITIVE ADVANTAGE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN NIGERIA

Abstract

This study investigates the influence of strategic management practices on the competitive advantage of Small and Medium-Sized Enterprises (SMEs) in Nigeria. Anchored on the Resource-Based View (RBV) of the firm (Barney, 1991), the research examines how strategic planning, environmental scanning, strategy implementation, strategic control, and innovation strategy collectively and individually affect the competitive advantage of SMEs. A quantitative research design was adopted, employing a structured questionnaire administered to 384 owner-managers and senior executives of SMEs across Lagos, Abuja (FCT), Rivers, and Kano states. Data were analysed using descriptive statistics, Pearson correlation, and multiple linear regression via Ordinary Least Squares (OLS). The results indicate that strategic planning (β = 0.287, p < 0.001), environmental scanning (β = 0.198, p < 0.01), strategy implementation (β = 0.243, p < 0.001), strategic control (β = 0.164, p < 0.01), and innovation strategy (β = 0.221, p < 0.001) all exert statistically significant positive effects on the competitive advantage of SMEs. The model explains 68.3% of the variance in competitive advantage (Adjusted R² = 0.683, F = 163.42, p < 0.001). The study concludes that strategic management practices are critical determinants of competitive advantage for Nigerian SMEs and recommends that SME owner-managers institutionalise formal strategic planning processes, invest in environmental intelligence, strengthen implementation capabilities, adopt robust performance monitoring systems, and embed innovation into their strategic orientation. Policymakers are urged to provide capacity-building support and create an enabling regulatory environment that facilitates strategic management adoption among SMEs.