Influence of Competitive Strategy on the Performance of Small-Scale Enterprise in Nasarawa State

Abstract

The study investigated the influence of competitive strategy on the performance of small scale enterprise (SSEs) in Nasarawa State. Three aspect of porter’s generic competitive strategies which included cost leadership strategy, differentiation strategy and combination strategies where examined and their influence on financial performance of small scale enterprise (SSEs) Nasarawa state. The study used a descriptive research design. The population of study were youth owned SMEes in the 13 Local Government council in Nasarawa State that are operational. This consisted of 135 respondents who were the proprietors of the enterprises. A Census was carried out for all the SSEs since the population was small. The primary data was collected by use of self-administered semi-structured questionnaire. Data analysis was done by use of descriptive statistics such as frequencies, percentages, mean scores and standard deviation with the aid of SPSS and presented through tables, frequencies and percentages. The study realized that three of Michael Porter’s generic strategies used have significantly influenced in the organizational performance of SSEs in Nasarawa state. The variables explained 85.11% of the changes in organizational performance of the SSEs. A unit increase competitive strategy adoption by SSEs led to a 0.655 increase in organizational performance of the SSEs, a unit increase in differentiation strategy adoption led to a 0.876 increase in performance of the enterprises while a unit increase in application of combination strategy by the SSEs led to a 0.860 increment in their overall performance. The study therefore concludes that the strategies need to be intertwined for excellent results. Thus recommended improved capacity building among the SSEs and participation of stakeholders in the growth of the small enterprises.