| Peer-Reviewed

Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy

Received: 20 January 2019    Accepted: 20 March 2019    Published: 29 April 2019
Views:       Downloads:
Abstract

Small and medium enterprises (SMEs) play a significant social and economic role in both developed and developing nations. Despite the relevance and important of SMEs, the literature indicates there are very few studies that attempted to investigate the factors that influence the performance of SMEs in Nigeria, particularly the relationship between entrepreneurial orientation (EO), contemporary marketing (CM) and government support policyand the performance of small and medium enterprises (SMEs). The study used structured questionnaires; data was collected from 240 SMEs in northeast Nigeria. The findings of the study indicate a significant positive relationship between EO and CM on the Performance of SMEs. In addition, the results of the study validate that government support policy moderates the relationship between EO and CM on the performance of SMEs in Nigeria. The study implications for policy makers, government, regulators and SMEs owner-managers is to look at government support policy as it affects SMEs performance by providing conducive environment for business operation.

Published in International Journal of Business and Economics Research (Volume 8, Issue 2)
DOI 10.11648/j.ijber.20190802.11
Page(s) 41-49
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Entrepreneurial Orientation, Contemporary Marketing, Government Support, Performance, Nigeria

References
[1] Al-Dhaafri, H.., Al-Swidi, A.., & Yusoff, R. Z.. (2016). The mediating role of total quality management between the entrepreneurial orientation and the organizational performancermation. The TQM Journa, 28(1), 89–111. http://doi.org/DOI 10.1108/TQM-03-2014-0033
[2] Alegre, J., & Chiva, R. (2013). Linking Entrepreneurial Orientation and Firm Performance: The Role of Organizational Learning Capability and Innovation Performance. Journal of Small Business Management, 51(4), 491–507. http://doi.org/10.1111/jsbm.12005
[3] Barney, J. B. (1986). Strategic Factor Market: Expectations, Luck and Business Strategy. Journal of Management Sciences., 32(10), 1231–1241.
[4] Brodie, R. J., Coviello, N. E., & Winklhofer, H. (2008). Contemporary Marketing Practices research program : a review of the first decade. Journal of Business & Industrial Marketing, 23(2), 84–94. http://doi.org/10.1108/08858620810850191
[5] Brodie, R., Winklhofer, H., Coviello, N. E., & Johnston, W. J. (2007). Is E-marketing Coming of Age? An Examination of the Penetration of E-marketing and Firm Performance. Journal of Interactive Marketing, 21(1), 1–21. http://doi.org/0.1002/dir.20071
[6] Chin, W. W. (1998). The Partial Least Squares Approach to Structural Equation Modeling: Modern Metod for Business Research (3rd Ed.). New Jersey: Lawrence Erlbaum Association, Publishers.
[7] Coviello, N. E., & Joseph, R. M. (2012). Creating Major Innovations with Customers : Insights from Small and Young Technology Firms. Journal of Marketing, 76, 87–104.
[8] Coviello, N., Milley, R., & Marcolin, B. (2001). Understanding IT-Enabled Interactivity in Contemporary Marketing. Journal of Interactive Marketing, 15(4), 18–33.
[9] Coviello, N., Winklhofer, H., & Hamilton, K. (2006). Marketing Practices and Performance of Small Service Firms: An Examination in the Tourism Accommodation Sector. Journal of Service Research, 9(1), 38–58. http://doi.org/10.1177/1094670506289533
[10] Covin, J. G., & Wales, W. J. (2011). The Measurement of Entrepreneurial Orientation. Entrepreneurship Theory and Practice, 1-6.
[11] Dauda, Y. A., & Akinbade, W. A. (2010). Employee ’ s Market Orientation and Business Performance in Nigeria : Analysis of Small Business Enterprises in Lagos State. International Journal of Marketing Studies, 2(2), 134–143.
[12] Dess, G. G., Lumpkin, G. T., & Covin, J. G. (1997). Entrepreneurial Strategy Making and Firm Performance : Tests of Con. Strategic Management Journal, 18(6), 677–695. http://doi.org/10.1002/(SICI)1097-0266(199710)18:9<677.
[13] Dillman, D. A. (2007). Mail and Internet Survey: The tailored Design Method (Second Edi). New York: John Wiley & Sons, Inc.
[14] Finney, R. Z., Lueg, J.., & Campbell, N.. (2008). Market Pioneers, Late Movers and the Resource-Based View (RBV): A Concptual Model. Journal of Business Research, 61(9), 925–932.
[15] Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. Journal of Marketing Theory and Practice, 19(2), 139–153.
[16] Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012). The use of partial least squares structural equation Modeling in strategic management research: a review of past practices and recommendations for future application. Long Range Planning, 45(5/6), 320–340.
[17] Hair jr, j. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM (5th ed.). USA: SAGA Publication Incorporated.
[18] Hair, J. F., Sarstedt, M., Hopkin, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation Modeling (PLS-SEM): An emergin tool in business research review, 26(2), 106–121.
[19] Hapenciuc, C. V., Pinzaru, F., Vatamanescu, E.-M., & Stanciu, P. (2015). Converging sustainable entrepreneurship and the contemporary marketing practices. An insight into Romanian start-ups. Amfiteatru Economic, 17(40), 938–954. Retrieved from http://www.researchgate.net/publication/280565770
[20] Hernández-Perlines, F., Moreno-García, J., & Yañez-Araque, B. (2016). The mediating role of competitive strategy in international entrepreneurial orientation. Journal of Business Research. http://doi.org/10.1016/j.jbusres.2016.04.142
[21] Hooley, G. J., Greenley, G. E., Cadogan, J. W., & Fahy, J. (2005). The performance impact of marketing resources. Journal of Business Research, 58(1), 18–27. http://doi.org/10.1016/S0148-2963(03)00109-7
[22] Ibrahim, M. I., Keat, O. Y., & Abdul-Rani, S. H. B. (2016). Moderating effect of government supports policy on the relationship between entrepreneurial orientation and SMEs performance in Nigeria: A framework. International Journal of Management Research & Review, 6(12), 1716–1729.
[23] Imeokparia, P. O., & Ediagbonya, K. (2014). Small and Medium Scale Enterprises (SMEs): A Catalyst in Promoting Economic Development in Nigeria. Journal of Education and Practice, 5(33), 92–99.
[24] Ionita, D. (2012). ENTREPRENEURIAL MARKETING : A NEW APPROACH FOR CHALLENGING TIMES. Academy of Economic Studies, 7(1), 131–150.
[25] Iweka, H., Babajide, A., & Olokoyo, F. O. (2016). Dynamics of Small Business in an Emerging Market : Challenges and Opportunities. In 3rd International Conference on African Development Issues (pp. 91–99).
[26] Iyalla, A. J. (2015). Contemporary Marketing Practices in Nigerian Financial Services: The 7ps, Drivers, Enablers and Inhibitors. British Journal of Marketing Studies, 3(2), 26–47.
[27] Kale, Y. (2012). The Nigeria Poverty Profile 2010 Report. In National Bureau of Statistics annual Conference. Abuja, Nigeria: National Bureau of Statistics.
[28] Kantur, D. (2016). Strategic Entrepreneurship: Mediating the Entrepreneurial Orientation-performance Link. Management Decision, 54(1), 24–43. http://doi.org/10.1108/MD-11-2014-0660
[29] Kreiser, P. M., & Davis, J. (2012). Entrepreneurial Orientation and Firm Performance: The Unique Impact of Innovativeness, Proactivenessand Risk-taking. Journal of Small Business & Entrepreneurship, 23(1), 39–51. http://doi.org/10.1080/08276331.2010.10593472
[30] Kreiser, P. M., Marino, L. D., Kuratko, D. F., & Weaver, K. M. (2013). Disaggregating entrepreneurial orientation : the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance. Journal of Small Business and Economics, 40, 273–291. http://doi.org/10.1007/s11187-012-9460-x
[31] Lechner, C., & Gudmundsson, S. V. (2012). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), 36–60. http://doi.org/10.1177/0266242612455034
[32] Lumpkin, G. T., & Dess, G. G. (2001). LINKING TWO DIMENSIONS OF ENTREPRENEURIAL ORIENTATION TO FIRM PERFORMANCE : THE MODERATING ROLE OF ENVIRONMENT AND INDUSTRY LIFE CYCLE. Journal of Business Venturing, 16, 429–451.
[33] Madhoushi, M., Sadati, A., & Delavari, H. (2011). Entrepreneurial Orientation and Innovation Performance : The Mediating Role of Knowledge Management. Asian Journal of Business Management 3(4), 310–316.
[34] Maritz, A., De Waal, A., & Verhoeven, B. (2011). Entrepreneurial and innovative marketing : a systematic review of the literature. Innovative Marketing, 7(4), 28–37.
[35] Naranjo-Valencia, J. C., Jimenez-Jimenez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicologia, 48(1), 30–41. http://doi.org/10.1016/j.rlp.2015.09.009
[36] NBS, & SMEDAN. (2010). Survey Report on Micro, Small and Medium Enterprises (MSMEs) in Nigeria. Abuja, Nigeria.
[37] NBS, & SMEDAN. (2013). Smedan and National Bureau of Statistics Collaborative Survey : Selected Findings. Abuja, Nigeria.
[38] Okeke, M. N., Onuorah, A. N., & Jakpa, U. G. (2016). Impact of Strategic Management on the Performance of Small and Medium Enterprises.Global Journal of Applied, Management and Social Sciences, 11(2), 57–66.
[39] Omonobi, K., & Bivbere, G. (2016). Customs Re-imposed Ban on Rice Importation. Retrieved May 6, 2016, from http://www.vanguardngr.com/2016/03/customs-re-imposes-ban-rice-importation/
[40] Osinbajo, Y. (2015). Buhari offer Concessionary Funding to SMEs. Retrieved April 24, 2015, from http://thenewsnigeria.com.ng/2015/09/buhari-to-offer-concessionary-funding-to-smes/
[41] Osotimehin, K. O., Jegede, Charles. A, Akinlabi, Babatunde. H, Olajide, O. T. (2012). An Evaluation of the Challenges and Prospects of Micro and Small Scale Enterprises Development in Nigeria. American International Journal of Contemporary Research, 2(4), 174–185.
[42] Penrose, E. T. (1959). Profit Sharing Between Producing Countries and Oil Companies in the Middle East. The Economic Journal, 69(274), 238–254.
[43] Ray, G., Barney, J. B., & Muhanna, W. A. (2004). Capabilities, business processes, and competitive advantage: Choosing the dependent variable in empirical tests of the resource-based view. Strategic Management Journal, 25(1), 23–37. http://doi.org/10.1002/smj.366
[44] Shariff, M. N. M., Peou, C., & Ali, J. (2010) Moderating effect of Government Policy on Entrepreneurship and growth Performance of Small-Medium Enterprises in Cambodia. International Journal of Business and Management Science 3(1), 57-72.
[45] SMEDAN. (2012). Survey Report on Micro, Small and Medium Enterprises (MSME) in Nigeria. Abuja, Nigeria.
[46] Sotubo, J. (2016). Full Text of the President’s Speech at the Opening Ceremony of National EconomicCouncil Retreat. Retrieved July 16, 2016, from http://pulse.ng/local/buhari-read-full-text-of-president-s-speech-at-opening-ceremony-of, national-economic-council-retreat-id4830400.html
[47] Staniewski, M. W., Nowacki, R., & Awruk, K. (2016). Entrepreneurship and innovativeness of small and medium-sized construction enterprises. International Entrepreneurship and Management Journal, 1–17. http://doi.org/10.1007/s11365-016-0385-8
[48] Suliyanto, (2011), Effect of entrepreneurship orientation and marketing based reward system towards marketing performance. International Journal of Business and Social Science 2(6) 168-174.
[49] Tende, S. B. a. (2014). Government initiatives toward entrepreneurship development in Nigeria. Global Journal ofBusiness Research, 8(1), 109–120.
[50] Trainor, K. J., Rapp, A., Beitelspacher, L. S., & Schillewaert, N. (2011). Integrating information technology and marketing: An examination of the drivers and outcomes of e-Marketing capability. Industrial Marketing Management, 40(1), 162–174. http://doi.org/10.1016/j.indmarman.2010.05.001
[51] Wakili, I. (2016). Nigeria Can Survive without Oil. Retrieved June 28, 2016, from http://www.dailytrust.com.ng/news/general/nigeria-can-survive-without-oil-osinbajo/131850.html
[52] Wiklund, J. (1999). The Sustainability of the Entrepreneurial Orientation-Performance Relationship. Entrepreneurship Theory and Practice, 24(1), 37–48.
[53] World Bank. (2013). Doing Business 2013 Smarter Regulations for Small and Medium-Size Enterprises (10TH EDITI). Washington, DC: World Bank IFC 2013. http://doi.org/10.1596/978-0-8213-9615-5
[54] Yaacob, N. M., Mahmood, R., Zin, S. M., & Puteh, M. (2016). Factors Affecting the Performance of Small Business Start-up under Tunas Mekar Programme. In Asian Entrepreneurship Conference. Singapore: Springer Singapore.
[55] Zahra, S. a., & Covin, J. G. (1995). Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis. Journal of Business Venturing, 10(1), 43–58. http://doi.org/10.1016/0883-9026(94)00004-E
Cite This Article
  • APA Style

    Maryam Imam Ibrahim, Bintu Mustapha. (2019). Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy. International Journal of Business and Economics Research, 8(2), 41-49. https://doi.org/10.11648/j.ijber.20190802.11

    Copy | Download

    ACS Style

    Maryam Imam Ibrahim; Bintu Mustapha. Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy. Int. J. Bus. Econ. Res. 2019, 8(2), 41-49. doi: 10.11648/j.ijber.20190802.11

    Copy | Download

    AMA Style

    Maryam Imam Ibrahim, Bintu Mustapha. Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy. Int J Bus Econ Res. 2019;8(2):41-49. doi: 10.11648/j.ijber.20190802.11

    Copy | Download

  • @article{10.11648/j.ijber.20190802.11,
      author = {Maryam Imam Ibrahim and Bintu Mustapha},
      title = {Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy},
      journal = {International Journal of Business and Economics Research},
      volume = {8},
      number = {2},
      pages = {41-49},
      doi = {10.11648/j.ijber.20190802.11},
      url = {https://doi.org/10.11648/j.ijber.20190802.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190802.11},
      abstract = {Small and medium enterprises (SMEs) play a significant social and economic role in both developed and developing nations. Despite the relevance and important of SMEs, the literature indicates there are very few studies that attempted to investigate the factors that influence the performance of SMEs in Nigeria, particularly the relationship between entrepreneurial orientation (EO), contemporary marketing (CM) and government support policyand the performance of small and medium enterprises (SMEs). The study used structured questionnaires; data was collected from 240 SMEs in northeast Nigeria. The findings of the study indicate a significant positive relationship between EO and CM on the Performance of SMEs. In addition, the results of the study validate that government support policy moderates the relationship between EO and CM on the performance of SMEs in Nigeria. The study implications for policy makers, government, regulators and SMEs owner-managers is to look at government support policy as it affects SMEs performance by providing conducive environment for business operation.},
     year = {2019}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy
    AU  - Maryam Imam Ibrahim
    AU  - Bintu Mustapha
    Y1  - 2019/04/29
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijber.20190802.11
    DO  - 10.11648/j.ijber.20190802.11
    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
    SP  - 41
    EP  - 49
    PB  - Science Publishing Group
    SN  - 2328-756X
    UR  - https://doi.org/10.11648/j.ijber.20190802.11
    AB  - Small and medium enterprises (SMEs) play a significant social and economic role in both developed and developing nations. Despite the relevance and important of SMEs, the literature indicates there are very few studies that attempted to investigate the factors that influence the performance of SMEs in Nigeria, particularly the relationship between entrepreneurial orientation (EO), contemporary marketing (CM) and government support policyand the performance of small and medium enterprises (SMEs). The study used structured questionnaires; data was collected from 240 SMEs in northeast Nigeria. The findings of the study indicate a significant positive relationship between EO and CM on the Performance of SMEs. In addition, the results of the study validate that government support policy moderates the relationship between EO and CM on the performance of SMEs in Nigeria. The study implications for policy makers, government, regulators and SMEs owner-managers is to look at government support policy as it affects SMEs performance by providing conducive environment for business operation.
    VL  - 8
    IS  - 2
    ER  - 

    Copy | Download

Author Information
  • Department of Business Administration, Ramat Polytechnic Maiduguri, Maiduguri, Nigeria

  • Department of Marketing, University of Maiduguri, Maiduguri, Nigeria

  • Sections