Cause-Effect Analysis of Strategic Planning and the Performance of Small and Medium-Size Enterprises in Kogi State

• Main Authors: Akeem Tunde Nafiu, Momoh I. Yalo, Hakeem Tomi Saliu
• Format: Article
• Language: English
• Published: Danubius University 2019-08-01
• Series: Acta Universitatis Danubius: Oeconomica
• Subjects: strategic planning; competitive edge; financial performance; tradition-based thinking; knowledge and skills
• Online Access: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/5892/5092

This study focused on the cause-effect analysis of strategic planning and the performance of Small and Medium-size Enterprises in Kogi State. The study covered SMEs’ cluster areas in three senatorial districts of Kogi State, and purposively selected 350 respondents. Data were analyzed using descriptive statistics, Logit and linear regression. Findings showed that SME owners lacked knowledge and skills on strategic planning, and that tradition-based thinking has significant and positive effect on strategic planning; while unavailability of resources has significantly negative effect on strategic planning of SMEs in Kogi State. Furthermore, finding showed that strategic planning has significantly positive effect on competitive edge and financial performance of SMEs in Kogi State. It was concluded that strategic planning is a crucial tool for firms’ competitive and market situation. The study therefore recommended that SME owners should invest in knowledge and skills regarding strategic planning, and those SME owners, including the economic stakeholders, should establish a social network where resources can be pooled and tradition-based thinking can be redirected to favour strategic planning of enterprises in Kogi State.