THE EFFECT OF PRODUCT-MARKET STRATEGY ON DIFFERENTIATION STRATEGY OF SMEs
The main purpose of this study is to investigate the relationship between market penetration strategy, market development strategy and differentiation strategy of SMEs in Nigeria. The study employed questionnaire survey of 453 manufacturing based SMEs operating in North-west region states, 277 valid questionnaires representing 61% response rate, were used for the final analyses using PLS-SEM to test the hypotheses. The finding indicates that market penetration strategy has a significant positive impact on differentiation strategy. Similarly, the study found that market development strategy had a significant positive influence on differentiation strategy of SMEs in Nigeria. In addition, the study assessed the effect size of the constructs and the predictive relevance of the model. The findings of this study will support owners and manager to improve their competency toward creating competitiveness, increase market share, and sustain competitive advantage. The proposed model will serve as a blueprint manufacturing and for the government agencies to educate SMEs on the importance of strategic alignment between firm’s strategies toward increasing competitiveness and competitive advantage. Finally, based on the limitations highlighted, the study suggested for further research to increase our understanding.
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