MANAGERS’ STRATEGIC MANAGEMENT PRACTICES AS PREDICTORS OF GROWTH AND DEVELOPMENT OF SMES IN BENUE STATE, NIGERIA

Abstract

 Small and medium enterprises (SMEs) are widely recognized as engines of socio-economic development in developing economies. Despite their acknowledged role, many SMEs in Nigeria remain stunted due to deficiencies in strategic management practices at the managerial level. This study investigated the extent to which managers’ strategic management practices predict the growth and development of SMEs in Benue State, Nigeria. Guided by four research questions and four null hypotheses, the study adopted a correlational research design. The population comprised 390 participants—100 managers and 290 employees of registered SMEs in Benue State. A sample of 150 respondents, consisting of 50 managers and 100 employees, was selected using proportionate stratified random sampling. Data were collected using two validated, researcher-developed instruments: the Managers’ Strategic Management Practices Questionnaire (MSMPQ) and the Growth and Development Questionnaire (GDQ). Reliability coefficients obtained via Cronbach’s alpha were .71 for MSMPQ and .83 for GDQ. Data analysis was conducted using linear regression and ANOVA at a 0.05 level of significance. Findings revealed that managers’ environmental scanning practice had a high and significant predictive power on SME growth and development (R = .813, R² = .661, p < .001). Strategy formulation practice demonstrated a moderate but significant predictive effect (R = .694, R² = .482, p < .001), while strategy implementation practice also showed a high and significant effect (R = .752, R² = .348, p < .001). Collectively, the three practices jointly predicted SME growth and development to a very high extent, F (6, 547) = 740.11, p < .001. The study concludes that strategic management practices are critical determinants of SME performance in Benue State. It recommends regular capacity-building programs for SME managers in environmental scanning, strategy formulation, and implementation to foster sustainable growth and competitiveness