IIARD International Institute of Academic Research and Development

Journal of Business and African Economy (JBAE )

E-ISSN 2545-5281
P-ISSN 2695-2238
VOL. 11 NO. 2 2025
DOI: 10.56201/jbae.v11.no2.2025.pg27.47

---

Cost Leader Strategies on Competitive Advantage of Entrepreneurial Firms in Delta State, Nigeria

ODITA, AO, EFE Andrew, EBOH ME

---

Abstract

The study investigates the impact of cost leader strategies on the competitive advantage of entrepreneurial firms in Delta State, Nigeria, with a focused analysis on three local government areas: Ukwani LGA, Oshimili LGA, and Aniocha LGA. The research examines how strategic outsourcing, logistical optimization, and operational efficiency—identified as critical proxies— contribute to achieving and sustaining a competitive advantage. Therefore, a sample size of Sixty three (63) respondents from a population of seventy five (75) members of the selected entrepreneurial firms from the three local Government areas in Delta State. The result shows that: Strategic Outsourcing has a significant effect on the competitive advantage of Entrepreneurial firms in Delta State, (Coef. = 0.15015, p = 0.000). Operational Efficiency has a significant effect on competitive advantage of selected Entrepreneurial firms in Delta state, (Coef. = 0.21453, p = 0.000). And that Logistical Optimization has a significant effect on competitive advantage of selected Entrepreneurial firms in Delta state (Coef. = 0.23681, p = 0.000). The study concludes that by strategically deploying outsourcing, enhancing operational efficiency, and optimizing logistics, these firms can effectively navigate competitive pressure, capitalize on market opportunities, and sustain long-term growth in their respective industries. The study recommends that Entrepreneurial firms should conduct regular assessments to identify non-core functions suitable for outsourcing to specialized vendors. Emphasis should be placed on selecting partners aligned with strategic objectives and maintaining collaborative relationships. Continuous monitoring and performance evaluations are essential to ensure outsourcing arrangements contribute effectively to cost reduction, operational agility, and overall competitive advantage.

keywords:

Cost leader strategy, Competitive advantage, Entrepreneurial firms, strategic outsourcing, operational efficiency

---

Al-alak B.A., Tarabieh S., Gaining Competitive Advantage and Organizational Performance
Through Customer Orientation, Innovation Differentiation and Market Differentiation,
International Journal of Economics and Management Science 1(5) (2011), 80-91.
Antony, J., Kumar, M., & Tiwari, M. K. (2019). Impact of lean manufacturing practices on
competitive advantage of SMEs: Role of operational capabilities. Journal of
Manufacturing Technology Management, 30(5), 798-815. doi:10.1108/JMTM-06-2018-
0198).
Barney, J .B.(2014). Firms resources and sustained competitive advantage. Journal of
Management, 27(6), 643-650.
Barney, J. B., KetchenJr, D. J., & Wright, M. (2011). The future of resource-based theory:
revitalization or decline?. Journal of management, 37(5), 1299-1315.
Barney, J. B., KetchenJr, D. J., & Wright, M. (2011). The future of resource-based theory:
revitalization or decline?. Journal of management, 37(5), 1299-1315.
Blanchard, K. (2022). Leading at a higher level: Blanchard on leadership and creating high
performing organizations. FT Press.
Bounds, M., Mbombo, K. P., &Rossouw, D. (2018). Corporate strategy implementation within
small and medium consulting businesses. In 30th Annual Conference Of The Southern
African Institute Of Management Scientists (Saims) (P. 110).
Breznik L., Can Information Technology be a Source of Competitive Advantage?, Economic and
business review 14(3) (2012), 251–269.
Brynjolfsson, E., &McElheran, K. (2021). The Digitization of the Economy: A Review and
Research Agenda. National Bureau of Economic Research.
Chen, J., & Liu, L. (2019). Profiting from Green Innovation: The moderating effect of competitive
strategy. Sustainability, 11(1), 15.
Chen, J., & Liu, L. (2019). Profiting from Green Innovation: The moderating effect of competitive
strategy. Sustainability, 11(1), 15.
Dess, G. G., McNamara, G., Eisner, A. B., & Lee, S. H. (2019). Strategic Management: Creating
Competitive Advantages. McGraw-Hill Education.
Dess, G. G., McNamara, G., Eisner, A. B., & Lee, S. H. (2019). Strategic Management: Creating
Competitive Advantages. McGraw-Hill Education.
Desyllas, P., Miozzo, M., Lee, H. F., & Miles, I. (2018). Capturing Value from Innovation in
Knowledge?Intensive Business Service Firms: The Role of Competitive Strategy. British
Journal of Management, 29(4), 769-795
Desyllas, P., Miozzo, M., Lee, H. F., & Miles, I. (2021). Capturing Value from Innovation in
Knowledge?Intensive Business Service Firms: The Role of Competitive Strategy. British
Journal of Management, 29(4), 769-795.
Dutse, A. H. G., &Aliyu, M. S. (2021). Cost Leadership, Market Orientation and Business
Performance: An Empirical Investigation. Journal of Quantitative Methods Volume, 2, 2
Galpin, T., &Hebard, J. (2021). 10 Strategic management and sustainability. Business Strategies
for Sustainability.
Gure, A. K., &Karugu, J. (2018). Strategic management practices and performance of small and
micro enterprises in Nairobi City County, Kenya. Int. Acad. J. Hum. Resource. Bus. Adm,
3, 1-26.
Harrison, A., Van Hoek, R., & Hill, S. (2022). Logistics Management and Strategy: Competing
Through the Supply Chain. Pearson Education.
Hay M., Williamson P., Strategic Staircases: Planning the Capabilities Required for Success, Long
Range Planning 24(4) (1991), 36-43.
Herman, H., Hady, H., &Arafah, W. (2018). The Influence of Market Orientation and Product
Innovation on the Competitive Advantage and Its Implication toward Small and Medium
Enterprises (UKM) Performance. International Journal of Science and Engineering
Invention, 4(08), 08-to
Ifekwem, N. &Ademola, O. (2016). Survival strategies and sustainability of SMEs in Oshodi –
Osolo Local Government Area of Lagos State.Acta University Sapientiae, Economics and
Business Journal , 4(1), 118-138
Iyadi, R. C. (2023). Niche marketing technique and firms survival in the Nigeria telecommunication
sector. Journal of Emerging Trends in Management Sciences and Entrepreneurship, 5(1),
154–176.
Iyadi, R.C & Itimi, L. (2023). Sustainability: A focus on fast consumer moving goods firms in
Nigeria. British Journal of Business and Marketing Research, 6(5), 1-17.
Iyadi, R.C & Ojumude, M. J. (2023). Product positioning strategies and customer patronage.
Advance Journal of Economics and Marketing Research, 8(9), 1–16.
Iyadi, R.C & Oruakpor, J. (2023). Services uniqueness and sales force creativity in the Nigeria
Telecommunication Sector. European Journal of Marketing and Management Sciences,
6(5), 1- 12.
Iyadi, R.C. & Sado, P. (2023). Marketing strategies and consumer purchase behaviour: A focus on
manufacturing firms. Advance Journal of Business and Entrepreneurship Development,
7(5), 1- 24.
Iyadi, R.C. (2023). Customer complain handling strategies and customer retention: evidence from
bakery sub-sector of food processing industry in Nigeria. Journal of Management and
Entrepreneurship Research, 5(6), 1036-1053.
Kareh M.S., Ahmadi H., Hashemi A., Achieving competitive advantage through empowering
employees: An empirical study, Far East Research Center, (2011).
Khan, M. S. (2021). Apple Inc.: Strategic Analysis and Marketing Strategy. Journal of Business
Research, 134, 159-168.
Kiprotich, E., Gachunga, H., &Bonuke, R. (2018). Influence of cost leadership procurement
strategy on performance of manufacturing firms in Kenya. European Journal of Business
and Strategic Management, 3(1), 32-51.
Klima, V. (2018). It's IKEA's World. A Growth Strategy Based on Cost Leadership. GRIN Verlag.
Knoke, D. (2020). Changing organizations: Business networks in the new political economy.
Routledge.
Kotabe, M., Martin, X., &Domoto, H. (2017). Glocalization and outsourcing strategies of
Japanese multinationals: An exploratory study. Journal of International Management,
23(1), 62-74. doi:10.1016/j.intman.2016.12.004).
Lacity, M., &Willcocks, L. (2013). Service automation: Robots and the future of work.
Butterworth-Heinemann; Quinn, J. B., &Hilmer, F. G. (1994). Strategic outsourcing. Sloan
Management Review, 35(4), 43-55).
Lewin, P., & Phelan, S. E. (2002). 11. Rent and resources: a market process perspective.
Entrepreneurship and the firm: Austrian perspectives on economic organization, 221
Li, C. B., & Li, J. J. (2017). Achieving superior financial performance in China: differentiation,
cost leadership, or both?. Journal of International Marketing, 16(3), 1-22.
Li, Y., & Shi, C. (2020). Logistics performance, market orientation, and firm performance: The
role of dynamic capabilities. Transportation Research Part E: Logistics and
Transportation Review, 137, 101870.
Lu, L. H., & Huang, Y. F. (2019). Manufacturing strategy, organizational slack, and the formation
of interfirm linkages. Chinese Management Studies, 13(1), 70-92.
Mahmood, R. &Hanafi, N.(2013).Entrepreneurial orientation and business performance of
women- owned small and medium enterprises in Malaysia: Competitive advantage as a
mediator. International Journal of business,4(1), 82-90.
Martinette, L.A. &Leeson, A.O.(2012). The relationship between learning orientation and business
performance and the moderation effect of competitive advantage : A service organization
perspective Journal, 5,43-58.
Mohamed, M. B., Ndinya, A., &Ogada, M. (2019). Influence of cost leadership strategy on
performance of medium scale miners in TaitaTaveta County, Kenya. International Journal
of Development and Management Review, 14(1), 151-163.
Mol, M. J., Pauwels, P., &Matthyssens, P. (2011). A supplier perspective on outsourcing success
factors.
Journal
of
Operations
Management,
29(4),
303-313.
doi:10.1016/j.jom.2010.10.003;
Muema, P. K. (2014). Strategies Adopted by Oil Marketing Firms in Kenya to Remain
Competitive. Unpublished MBA Project, School of Business, University of Nairobi.
Noe, R.

DOWNLOAD PDF

---

Back