Acta Universitatis Danubius. Œconomica, Vol 15, No 5 (2019)

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

Akeem Tunde Nafiu, Momoh I. Yalo, Hakeem Tomi Saliu

Abstract


This study focused on cause-effect analysis of strategic planning and the performance of small and medium-size enterprises in Kogi State. The study covers SMEs’ cluster areas in three senatorial districts of Kogi State, and purposively selected the sample size of 350. Data were analyzed using descriptive statistics, Logit and linear regression. Findings show that SME owners majorly lack knowledge and skills on strategic planning, and that tradition-based thinking has significantly positive effect on strategic planning; while unavailability of resources has significantly negative effect on strategic planning of SMEs in Kogi State. Furthermore, finding shows that strategic planning has significantly positive effect on competitive edge and financial performance of SMEs in Kogi State. It is concluded that strategic planning is a crucial tool for firms’ competitive and market situation today. The study therefore recommends 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.


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