Effect of Strategic Entrepreneurial Orientation on Sales Growth of SMEs in Lagos State.
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Date
2018
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Abstract
The global competition faced by SMEs has brought about a growing pressure from their
customers. Economic development and growth all over the world rest upon SME contribution
especially in developing economy as Nigeria where this sector is seen as the ‘engine for
economic development. The achievement of economic development is made possible and
successful if entrepreneurial orientation is incorporated by SMEs in Nigeria where competition
is high. Small businesses are more exposed to the threat compared to large businesses, due to
their incapability to expand, insufficient capital to compete with the decline or loss of market
revenues, and higher operational costs per unit of revenue. But they can profit from the
advantages of being small businesses, as they are more flexible and they easily regulate to the
quality of changes due to their simple structure, owner dominance decision making and informal
planning and controlling activities. The main objective of the paper is to examine the effect of
strategic entrepreneurial orientation on sales growth of SMEs in Lagos State, Nigeria. This study
adopted the descriptive survey research design. The effect of strategic entrepreneurial
orientation and sales growth shows a positive and significant relationship with p < 0.05, R =
0.492, R2 = 0.242, B = 0.395and F = 130.155. A positive and significant effect was established
between entrepreneurial orientation and sales growth with R= 0.744, R2 = 0.553, p < 0.05, B =
0.717 and F value = 504.339. The paper concluded that strategic entrepreneurial orientation has
a statistically significant effect on Sales growth of SMEs development in Lagos State.
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Keywords
Market orientation strategy, Strategic entrepreneurial orientation, Sales growth, SME development