ABSTRACT

This study examines the relationship between competitive strategies and performance of small and medium-scale enterprises (SMEs) in Benin City, Edo State.

It specifically analysizes the effect of competitive strategy on the performance of small and medium scale enterprises in Benin City, Edo state.  it is imperative to investigate how competitive strategies affect the performance of SMEs specifically in Benin City, considering its distinct economic and cultural landscape.

A survey of 388 SMEs was conducted, 388 questionnaires  were distributed, retrieved and found usable for the study. Stratified random sampling procedure was used in administering the copies of questionnaire to selected respondents in the University of Benin. The data collected through questionnaire administration were analysed using descriptive statistics such as frequency distribution, mean and standard deviation. Multiple regression analysis was used to estimate the research models using the Ordinary Least Squares (OLS) technique through the use of Statistical Package for Social Sciences (SPSS) Version 24. The results show that cost leadership, differentiation, and defensive strategies are positively correlated with performance. Specifically, SMEs that adopt cost leadership strategies tend to focus on specific markets or customer segments, while those that adopt differentiation strategies are more likely to adopt defensive strategies. The study concludes that SMEs can improve their performance by adopting competitive strategies that align with their market conditions, customer needs, and resources. The findings have implications for entrepreneurs, policymakers, and stakeholders seeking to promote the growth and development of SMEs in Nigeria.

Keywords: Competitive Strategy, Performance, small and medium scale enterprises (SMEs).