Vol: 5, Issue: 3 2015

Page: 34-43

Effect of Corporate Strategy and Corporate Resources on Performance of Nigerian SMEs

Abdullahi Hassan Gorondutse

Received Date: 2015-07-12

Accepted Date: 2015-08-01

Published Date: 2015-08-12

The existence of SMEs has an imperative role for the communities’ welfare. On the other hand, there is the biggest challenge, such as how to increase the value of business which is shown by Financial Performance that keeps on declining. Regarding to this matter, the objectives of this study are to get assessment related to (1) correlations of corporate resources with corporate strategy, and (2) whether corporate resources and corporate strategy are affecting business performance, partially or simultaneously, to the Nigerian SMEs. For this research, units of analyze were SMEs from four different industry sectors and the samples are 320 SMEs owner manager. Data was gathered by questionnaires. The finding shows that there are correlations between corporate resources and corporate strategy. Corporate resources and corporate strategy are significantly affect corporate performance directly. Moreover, the implications and necessary suggestions regarding future research were also recommended.

References

• Anderson, J. C., & Gerbing, D. W. (1988), Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach, Psychological Bulletin, 103 (3), 411� 423.
• Aras, G., Aybars, A., & Kutlu, O. (2010). Managing corporate performance: Investigating the relationship between corporate social responsibility and financial performance in emerging markets. International Journal of Productivity and Performance Management, 59 (3), 229-254.
• Appiah-Adu, Kwaku. (1997). Marketing and Performance: A Thematic Study of Firms In The UK And Ghana (PhD thesis). Middlesex University, London.
• Bramhandkar, A., Erickson, S. & Applebee, I. (2007). Intellectual Capital and Organizational Performance: An Empirical Study of the Pharmaceutical Industry. The Electronic Journal of Knowledge Management, 5 (4), 357-362.
• Caldart, A. A. & Ricart, J. E. (2006). "Corporate strategy in turbulent environments: Key roles of the corporate level,". IESE Research Papers D/623. IESE Business School.
• Chathoth, P. K. (2002) . Co-alignment between environment risk, corporate strategy, capital structure, and firm performance: An empirical investigation of restaurant firms�.
• Cohen, J. (1988). Statistical power analysis for the behavioral sciences. Hillsdale, New Jersey: Lawrence Erlbaum Associates.
• Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139�151.
• Haenlein, M., & Kaplan, A. M. (2004). A beginner�s guide to partial least squares analysis. Understanding Statistics, 3(4), 283�297.
• Harris, L.C. (2001). Market orientation and performance: objective and subjective empirical evidence from UK companies. Journal of Management Studies 38 (1), 17�43.
• Heng, Michael. (2006). Research Note : Modern Commerce, Modern Banking, and eCommerce. Working Paper. U21 Global.
• Henseler, J., Fassott, G., Dijkstra, TK., & Wilson, B. (2012). Analysing quadratic effects of formative constructs by means of variance-based structural equation modelling. European Journal of Information Systems, 21(1), 99�112.
• Hosseini , M. H., Shakhsian, F., Moezzi , H. (2011). Top Management's Role in Coordinating Human Resources with Corporate Strategy. International Journal of Business and Social Science, 2(12).
• Horne, J. C. V., & Wachowicz, J. M. (2005). Fundamentals of Financial Management; PrinsipPrinsip Manajemen Keuangan (D. Fitriasari & D. A. Kwary, Trans.). Jakarta: Salemba Empat: Jakarta.
• Kohli, A., Jaworski, B., and Kumar, A. (1993). MARKOR: A Measure of Market Orientation. Journal of Marketing Research, 30 (4), 467-477.
• Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30, 607-610.
• Krosnick, J. A., & Fabrigar, L.R. (1997). Designing rating scales for effective measurement in surveys. In L. Lyberg, P. Biemer, M. Collins, E. De Leeuw, C. Liu, Ligan, Timothy,
• Liu, Yu. (2009). Three essays on corporate growth strategy and firm performance: A contingency perspective. Rensselaer Polytechnic Institute, ProQuest, UMI Dissertations Publishing.
• Luo, W., Stravers, J., & Duffin, K. (2005). Lessons Learned from Using a Web-based Interactive Landform Simulation Model (WILSIM) in a General Education Physical Geography Course. Journal of Geoscience Education, 53, 489-493
• Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-35.
• Pearce, John A. II, & Richard B. Robinson, Jr. (2009). Strategic Management: Formulation, Implementation, and Control. Boston: McGraw Hill Irwin
• Pelham, A. M., & Wilson, D.T. (1996). A longitudinal study of the impact of market structure, firm structure, strategy, and market orientation culture on dimensions of small-firm performance. Journal of the Academy of Marketing Science 24 (1), 27�43.
• Peters, T. P., & Waterman, R. H. (1986). Auf der Suche nach Spitzenleistung: Was man von den bestgefu�hrten US-Unternehmen lernen kann [In Search of Excellence: Lessons from America�s Best-Run Companies]. Landsberg am Lech, Germany: Verlag Moderne Industrie.
• Prahalad, C.K., and Hamel, G.. (1994). Strategy as a Field of Study: Why Search for a New Paradigm? Strategic Management Journal, 15, 5-16.
• Reinartz, W. J., Haenlein, M., & Henseler, J. (2009). An empirical comparison of the efficacy of covariance-based and variancebased SEM. International Journal of Market Research, 26(4), 332�344.
• Schonborn, G. (2010). Value Performance On the Relation Between Corporate Culture and Corporate Success, Journal of Psychology, 218(4), 234�242.
• Shih, Hsi-An & Chiang, Yun-Hwa. (2005). Similarities of Human Resource Management Systems between Taiwanese MNC Headquarters and Subsidiaries in China. Asia Pacific Management Review , 10 (3).
• SMEDAN. (2012). Survey report on Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. Abuja: Small and Medium Enterprises Development Agency of Nigeria.
• Vedastus, & Gao, Yang. (2011). Resource-based determinants of performance in the Tanzanian commercial banking subsector. African Journal of Business Management 5(15), 6640- 6647.
• Waddock, S.A., & Graves, S.B.. (1994). Industry Performance and Investment in R&D and Capital Goods. Strategic Management Journal, 18(4), 303-319.
• Wheelen , T. L., & Hunger, J. D. (2012). Strategic management and business policy: Concepts (13th ed.). Pearson/Prentice Hall.
• Wo�he, G. (2008). Einfu�hrung in die Allgemeine Betriebswirtschaftslehre (Introduction to general business economics) (23rd ed.). Munich, Germany: Vahlen.
• Wong, Kee-Luen, Kuek, Thiam-Yong, & Ong, Seng-Fook. (2011). An structural equation modeling (SEM) evaluation of the statistical adequacy of the strategic management model. African Journal of Business Management, 5 (15), 6591-6.