Unveiling Specific Business Strategy for Improvement in Enterprise’s Performance in Sokoto State: Evidence from Small and Medium Enterprises


  • Akeem Tunde Nafiu Kogi State University, Anyigba
  • Ogamenyi Iga Ogamenyi
  • Ozovehe Otohinoyi


Business Strategy; Enterprise’s Performance; Cost-Leadership Strategy; Differentiation Strategy; Market Share


This study aimed at unveiling specific business strategy for improvement in enterprise’s performance in Sokoto State. The survey research design was applied. A multi-stage sampling technique was used to choose the sample of 206. The data generated for the study was analyzed using both descriptive statistics and regression analysis. Finding revealed that cost-leadership strategy has significant effect on the profitability of SMEs in Sokoto State, and that differentiation strategy has significant effects on the market share of SMEs in Sokoto State. The study concluded that cost-leadership strategy and differentiation strategy are keys to strategic management. The study recommended that SME owner/managers should commit less resource to cost-leadership strategy so as to achieve increased profitability in Sokoto State, and they should increase their effort towards the adoption of effective differentiation strategy as it will increase their market share at the long run in Sokoto State.


Agwu, M.E. (2018). Analysis of the impact of strategic management on the business performance of SMEs in Nigeria. Academy of Strategic Management Journal, 17(1), 1-10.

Akande, O.O. (2012). Performance Analysis Of Micro-Finance Banks On Women Entrepreneurs In Oyo State, Nigeria. Research Journal in Organizational Psychology & Educational Studies. 1(3), 168-173

Al-Ansaari, Y., Bederr, H. and Chen, C. (2015). Strategic Orientation and Business Performance. Management Decision, 53, 2287-2302.

Alkasim, S.B. & Mujitaba, A. (2021). The Relationship between Compatitive Strategies and Performance of Manufacturing-Based Smes In North-West Of Nigeria. Journal of Research in Business and Management, 9(8), 65-75

Cavusgil, S.T., Ghauri, P.N. & Akcal, A.A. (2013), Doing Business in Emerging Markets, 2nd ed., London: SAGE.

Chalchissa, A.K. and Bertrand, S.B. (2017). Competitive Strategy Orientation and Innovative Success: Mediating Market Orientation a Study of Small-Medium Enterprises. Global Journal of Management and Business Research: E Marketing. 17(3), 75-89.

Chandler, A.D. (1962), Strategy and Structure: Chapters in the History of the Industrial Enterprise. MIT Press: Cambridge, MA.

Chen, G.Z., & Keung, E.C. (2019). The impact of business strategy on insider trading profitability. Pac. Basin Finance J. 55, 270–282.

Chen, M. & Liu, B. (2012). Strategic Management in Chinese Manufacturing SMEs. A Master Thesis within Business Administration, Jönköping International Business School, Jönköping University Eine praxisorientierte Anleitung. In S. Kraus, S.B. Reiche, and C.H. Resche, (eds.), Implications Of Strategic Planning In SMEs For International Entrepreneurship Research And Practice, London, Routledge.

Corte, V. & Aria, M. (2016). Competition and sustainable competitive advantage. The case of tourist destinations. Tourism Management, 54, 524-540.

Dereli, D. (2015). Innovation management in global competition and competitive advantage, Social and Behavioral Sciences, 195, 1365–1370.

Gorondutse, A.H. & Gawuna, M.S. (2017). Cost-leadership strategy and performance of hotels in Nigerian context. Journal of Applied Structural Equation Modeling, 1(1), 1-12,

Gorondutse, A.H. & Hilman, H. (2017). Influence of differentiation strategy on performance of hotels: the moderating role of environmental munificence. Journal of Business and Retail Management Research. 11(4), 150-161.

Handoko, B., Aryanto, R. & So, I. (2015). The impact of enterprise resources system and supply chain practices on competitive advantage and firm performance: case of Indonesian companies. Pricedia Computer Sciences, 72, 122-128.

Hhary, E.J. & Mboma, L.M. (2020), Effects of Cost-leadership Strategy on Performance of Pharmaceutical Industry: A Case of Zenufa Laboratories (T) Limited. International Journal of Research and Analytical Reviews, 7(3), 136-149.

Hilman, H. and Kaliappen, N. (2014) Market Orientation Practices and Effects on Organizational Performance: Empirical Insight from Malaysian Hotel Industry. SAGE Open, 4, 1-8.

Hofer, C.W. and Schendel, D. (1978). Strategy Formulation: Analytical Concepts. West: St. Paul, MN.

Islami, X., Topuzovska Latkovikj, M., Drakulevski, L. & Borota Popovska, M. (2020), Does differentiation strategy model matter? Designation of organizational performance using differentiation strategy instruments: An empirical analysis, Verslas: Teorija ir praktika / Business: Theory and Practice, 21(1), 158-177. Retrieved from http://dx.doi.org/10.3846/btp.2020.11648

Izuchukwu, O., Long, W., Shehu, A. and Olfemi, E. (2014). Employee's perception of change effect as a competitive advantage on Nigeria banking industry: An empirical analysis. Procedia Social and Behavioral Sciences, 150, 281-290.

Kahan, D. (2012). Entrepreneurship in Processing. Farm Management Extension Guide: Food And Agriculture Organization Of The United Nations.

Kraidy Jassmy, B.A. and Abbas Bhaya, Z.M. (2016). Strategic Orientation And Effects On Organizational Performance- Analytical Study In Real Estate Banks In Al–Dewaniya Province. Proceedings Of The 10 Th International Management Conference, November 3rd-4Th, Bucharest, Romania, 200-212.

Kumar, B. S. (2021). Effect of Strategic Management Practices on Performance of pharmaceutical companies in India. Journal of Strategic Management, 5(3), 44-54.

Masa’deh, R., Tarhini, A., Al-Dmour, R.H. and Obeidat, B.Y. (2015) Strategic IT-Business Alignment as Managers’ Explorative and Exploitative Strategies. European Scientific Journal, 11, 437-457.

Mtaturu, J.Z. & Mbailuka, J.J. (2020). Product differentiation and SMEs market participation: implications for Tanzanian agro processing industry. African Journal of Applied Research, 6(2), 1-15. Retrieved from http://doi.org/10.26437/ajar.11.2020.01

Nafiu, A.T., Sule, J.G and Orugun, J.J. (2014). The Imperatives of Strategy In Business Games Among Nigerians’ Small Scale Businesses. Business and Management Quarterly Review, University of Technology, Mara Malaysia. 5(3).

Nafiu, I.O., Hassan, O.M. and Nafiu, A.T. (2021), adoptable strategies in marketing and market outcomes: examining the performance of Small and Medium Enterprises in Kogi State. KIU Interdisciplinary Journal of Humanities and Social Sciences, 2(2), 65-78

Nandakumar, M. K., Ghobadian, A., & Regan, N.O. (2011). Business-level strategy and performance: The moderating affect of environment and structure. Management Decision, 48(6), 907-939.

Neirotti, P. & Raguseo, E. (2017). On the contingent value of IT-based capabilities for the competitive advantage of SMEs: Mechanisms and empirical evidence, Information & Management, 54(2), 139-153, Retrieved from https://doi.org/10.1016/j.im.2016.05.004.

Oyedijo, A. (2012). Competitive Strategy Orientations of Small and Medium Business Owners and their Performance Impacts: The Case of Paint Manufacturing SMEs in South-Western Nigeria. Business and Management Review. 1(12), 10–18.

Pehrsson, A. (2016). How does a foreign subsidiary’s differentiation strategy fit competitive dynamics and mandate?, European Business Review, 28( 6), 690 – 708

Phina, O.N. (2020). Effects of Strategic Management on Organizational Performance in Manufacturing Firms in South-East Nigeria. Asian Journal of Economics, Business and Accounting, 15(2), 24-31. DOI: 10.9734/AJEBA/2020/v15i230211

Porter, M. (1980). Competitive Strategy - Techniques for Analyzing Industries and Competitors, New York: Free Press.

Porter, M.E. (1985). Competitive Advantage. New York: The Free Press. pp 11-15.

Quinn, J.B. (1980). Strategies for change: Logical Incrementalism. United Kingdom: Prentice Hall

Scott Rader, C., Subhan, Z., D. Lanier, C., Brooksbank, R., Yankah, S., & Spears, K. (2014). CyberRx: Emerging social media marketing strategy for pharmaceuticals. International Journal of Pharmaceutical and Healthcare Marketing, 8(2), 193–225. doi:10.1108/ijphm-05-2013-0027

Shannak, R. (2013), Key Issues in E-Banking Strengths and Weaknesses: The Case of Two Jordanian Banks. European Scientific Research, 9(7), 239-263.

Thaher, Y.A.Y. & Jaaron, A.A.M. (2022). The impact of sustainability strategic planning and management on the organizational sustainable performance: A developing-country perspective, Journal of Environmental Management, 305, 114381, Retrieved from https://doi.org/10.1016/j.jenvman.2021.114381.

Theodosiou, M., Kehagias, J. and Katsikea, J. (2012) Strategic Orientations, Marketing Capabilities and Firm Performance: An Empirical Investigation in the Context of Frontline Managers in Service Organizations. Industrial Marketing Management, 41(7), 1058-1070. Retrieved from http://dx.doi.org/10.1016/j.indmarman.2012.01.001

Tourani, N. (2021). Thriving in a shifting landscape: Role of social media in support of business strategy, Asia Pacific Management Review, 1-6. Retrieved from https://doi.org/10.1016/j.apmrv.2021.11.001

Tutar, H., Nart, S. & Bingöl, D. (2015). The effects of strategic orientations on innovation capabilities and market performance: the case of ASE orientation of airports in Europe's peripheral areas. Journal of Air Transport Management, 13(6). 709-719.

Uchegbulam, P., Akinyele, S. and lbidunni, A. (2015). Competitive Strategy and Performance of Selected SMEs in Nigeria. International Conference on African Development Issues (ClJ-ICA DI): Social and Economic Models for Development Track. Pp. 326-333. Retrieved from https://www.researchgate.net/publication/325700149_Competitive_Strategy_and_Performance_of_Selected_SMEs_in_Nigeria

Valdez-Juárez, L.E., Solano-Rodríguez, O.J.& Martin, D.P.(2018), Modes of learning and profitability in Colombian and Mexican SMEs. The Journal of High Technology Management Research, 29(2), 193-203, Retrieved from https://doi.org/10.1016/j.hitech.2018.09.007.

Ylvijo, K. and Osomani, E. (2013). Competitive Advantage and its Impact in Small and Medium Enterprise. In P. Uchegbulam, S. Akinyele and A. lbidunni (eds). Competitive Strategy and Performance of Selected SMEs in Nigeria. International Conference on African Development Issues (ClJ-ICA DI): Social and Economic Models for Development Track. Pp. 326-333.

Yuliansah, Y., Rammal, H.G., & Rose, E. (2016). Business strategy and performance in Indonesia’s service sector. Journal of Asia Business Studies, 10(2), 164 – 182.

Zikmund, W.G., Babin, J., Carr. J.C & Griffin, M. (2010). Business Research Methods. 8th Ed. South-Western: Cengage Learning






Business Administration and Business Economics