Strategic Environmental Scanning and Performance of SMES in Oyo State, Nigeria: The Mediating Role of Strategic Agility
Abstract
This paper examined the relationship between strategic environmental scanning and performance of SMES in Oyo state Nigeria, with strategic agility acting as the moderating variable. It notes that despite the obvious growth in size and numbers of SMEs in Nigeria, little or none empirical evidence exists on how SMEs relies on strategic environmental scanning to achieve performance, and mechanism through which it occurs. The study adopted quantitative survey design. Data were collected from 576 SME owners/Management in Oyo State using a structured questionnaire. Partial Least Squares-SEM was used for analysis. Results reveal that technological scanning [β=0.31, p<0.01] and competitive scanning [β=0.28, p<0.01] significantly influence SME performance. Strategic agility significantly mediates the relationship between environmental scanning and SME performance [β=0.19, p<0.01]. The study extended the Resource-Based View by positioning strategic agility as the key dynamic machinery capability that converts external information into competitive advantage for SMEs in a developing economy context. Small Medium Entrepreneur pioneers should institutionalize consistent scanning of technology and competitor environments and affirm organizational agility that must efficiently translate information into performance.
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