EVALUATING THE FACTORS AFFECTING STRATEGIC MANAGEMENT PRACTICES IN SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA: A STUDY OF SELECTED SMES IN LAGOS STATE

Abstract

The study investigated the internal and external factors affecting strategic management practices in Nigeria, using Lagos State as case study. The study adopted survey design and purposive sampling technique to select 200 Small and Medium Scale Enterprises (SMEs) operating in Ikeja, Badagry, Ikorodu, Lagos and Epe administrative areas of Lagos State, in which 178 SMEs responded. Self-administered questionnaires were used to generate data for the study, and the data collected were analysed with the use of survey design and purposive sampling technique. The findings showed that the leading internal factors are size of firm, technical and managerial expertise, competitive advantage, finance and quality of staff (m>3.00) as against the benchmark mean pegged as (m=2.50). In addition, the frontline external factors include industrial and economic policy of government, macroeconomic environment, nature of business environment, political conditions and influence of market leader(s). The study recommended that SMEs should form strategic partnership with large and multinational firms. Furthermore, they should separate personal affairs from business affairs and stop putting friends and family members in key positions. This will enable them to take necessary actions to improve managerial practices in their businesses.