The Effect of Strategic Orientation Dimensions on Market Share of Selected SMEs in Lagos State, Nigeria

Abstract

The market share of SMEs is crucial for their growth and sustainability; however, SMEs in Lagos State are confronted with the challenge of inadequate market share, probably due to low strategic orientation. Though there has been a considerable amount of literature on the effect of strategic orientation on SMEs in developed countries, there is limited literature on the effects of strategic orientation on the market share of SMEs in developing countries such as Nigeria. Therefore, this study investigated the effect of strategic orientation on the market share of selected SMEs in Lagos State, Nigeria.
The study adopted a survey research design. The population size was 42,067, consisting of owners/managers of selected 419 SMEs in Lagos state, Nigeria. The study adopted a multistage sampling strategy, which included stratified, purposive, and random sample procedures. Data was collected through an adapted and validated questionnaire. The response rate was 93.8%. The Cronbach's alpha reliability coefficients of constructs ranged from 0.724 to 0.946. Data was analyzed using descriptive and inferential statistics.
The multiple regression analysis results revealed the effect of both dimensions of strategic orientation on market share. Specifically, customer focus had a positive and significant effect on market share. The findings further revealed that technological capability had a positive and statistically significant effect on market share.
The study concluded that strategic orientation improved the market share of selected SMEs in Lagos state. It, therefore, recommends that owners and managers be more customer-focused and acquire technological capabilities to increase their market share.