Strategic Management Controls and Operational Performance of Small and Medium Enterprises in South-west Nigeria
Year: 2024
Type: article
Abstract: Small and Medium Enterprises (SMEs) in South-West Nigeria often face performance challengesdue to inadequate strategic formulation, ineffective implementation, and insufficient evaluation,leading to resource underutilization and growth obstacles. This study investigated the impact ofstrategic management controls on SMEs' operational performance in the region. This studyadopted a quantitative survey research design and collected primary data from 399 SMEs inSouth-West, Nigeria, selected through stratified random sampling. Partial Least SquaresStructural Equation Modeling was used for data analysis. The findings revealed a significantpositive relationship between strategic planning and operational performance (β = 0.233, p =0.010), indicating the importance of strategic planning in enhancing performance. Additionally,strategic planning had a substantial impact on operational performance (β = 0.373, p = 0.000),demonstrating its effectiveness in driving improvements. Strategic evaluation also had a positiveand significant influence on operational performance (β = 0.243, p = 0.000), highlighting its rolein performance enhancement. The study concluded that strategic management controls are strongpredictors of SMEs' operational performance. The study recommended that SMEs focus onimproving their strategic planning processes and invest in robust evaluation processes to assessthe effectiveness of implemented strategies and make informed decisions for future endeavors.
Author: Yusuf Alabi Olumoh
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W6987259496
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