45 Amity Journal of Entrepreneurship ADMAA
Volume 4 Issue 2 2019 AJE
Amity Journal of Entrepreneurship
4 (2), (45-57)
©2019 ADMAA
Effect of Strategy Implementation Practices and Market
Turbulence on SMEs’ Performance in the Nigerian Context
Thomas Oyetunde Oladele, Jimoh Bolaji Akeem & Marcus Garvey Orji
Veritas University, Abuja, Nigeria
Abstract
The turbulence of the market in which an organisation operates significantly influences its performance.
This study, therefore, investigates the effect of strategy implementation practices and market turbulence
on SMEs’ performance in the Nigerian context. Data collected from the sample of 200 employees of SMEs’
in Abuja was analysed with hierarchical moderated regression. The results show that there is a positive
relationship between strategy implementation practices and SMEs’ performance in Abuja. The study
also reviewed a positive relationship between strategy implementation practices and market turbulence.
Besides, the study found a moderating effect of market turbulence on the relationship between strategy
implementation practices and SMEs’ performance in Abuja. Therefore, the positive relationship between
strategy implementation practices and SMEs’ performance in Abuja was stronger when market turbulence
is high than the situation of low market turbulence. The study recommends that organisations should
focus adequately on developing their strategic implementation capacity. Such capacity would enable
the organisation to adapt to changes in customers’ tastes and preferences, which in turn will improve its
organisational performance in the industry.
Keywords: Strategic Implementation, Market Turbulence, SMEs’ Performance
JEL Classification: M13
Paper Classification: Research Paper
Introduction
Small and medium enterprises (SMEs’) play an essential role in the maintenance of a stable
and viable economy, such as continuous employment creation. Besides, by cooperation, SMEs act
as factors of production to large organisations by providing raw materials for a smooth production
cycle (Jeong & Shin, 2020). However, in developing countries such as Nigeria, SMEs’ are struggling
for growth and survival. In 2017, the Small and Medium Scale Enterprises Development Agency
of Nigeria (SMEDAN) research show that the number of SMEs’ in Nigeria declined by 61 per cent
between 2013 and 2017. This declining trend depicts decreasing SMEs’ Performance and spells doom
to the economic growth of the country.
This unfortunate situation could be a result of many challenges including, inadequate and
inefficient infrastructural facilities, lack of adequate credit, bureaucratic bottlenecks and inefficiency,