Small Firms’ Strategy Adoption and Business Outcomes in Business Games: An Empirical Investigation from Nigeria

Abstract

The study aimed at determining the effect of adopted competitive strategy on the outcomes of SMEs in Nigeria. The sample size of the study comprised of 1231 owner-managers from selected Small and Medium scale Enterprises within four sectors in Nigeria. The instrument used was structured questionnaire. Strategies adopted by SMEs are superior design, high quality, low prices and new product introduction among others. The study measured SMEs’ outcomes with product/service profitability, market share and customer satisfaction. Data obtained were analyzed using descriptive statistics and multiple regressions model. Findings showed that superior design strategy has negative effect on market share of SMEs; high quality strategy has positive effect on market share and negative effect on customer satisfaction; low prices strategy has positive effect on market share; and new product introduction strategy has positive effect on product/service profitability and customer satisfaction. The study concludes that in the pursuit of the desired SMEs’ outcome, owner-managers need not to be traditional about strategy adoption. It was recommended that SME owner-managers adopt low price strategy and new product introduction strategy in the Nigerian market.