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Alignment Between Business Strategies and Performance of Small and Medium-Sized Manufacturing Companies in Africa
Abstract
Strategy can play a key role in achieving competitive advantage and for business continuity, but the role of strategy is very often misdirected in small businesses. Therefore, this chapter examined the role of business strategies on the performance of small and medium enterprise manufacturing companies in Nigeria, the most populous and one of the largest economies in Africa. The authors conducted a survey with 110 respondents using simple random sampling technique and analyzed the data with linear regression. Results of the study showed that all the selected business strategic capabilities (Cost leadership, differentiation, and focus strategies) are positively associated with the performance of the small and medium sized manufacturing companies in Nigeria. It is recommended that small and medium enterprises should adopt and review regularly their business strategies for proper use and adapting to the continuous changes in the business environments in order to improve performance.
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