Proactive Management and Performance of Small and Medium-Sized Enterprises (SMEs) In South-East Nigeria
Abstract
This study investigated the impact of proactive management on the performance of small and medium-sized enterprises (SMEs) in South-East Nigeria. The study specifically examined: the effect of strategic foresight on the innovation capacity of SMEs; the extent to which competitive intelligence affects market expansion; the effect of risk management on operational efficiency among SMEs in the region. A cross-sectional survey research design was adopted, employing a quantitative approach with structured questionnaires to collect data from SME owners and managers across five South-East states, Abia, Anambra, Ebonyi, Enugu, and Imo. The study population consisted of 2,159 staff drawn from 25 registered SMEs, and a sample size of 326 was determined using Cochran’s (1977) formula. Stratified sampling with Bowley’s proportional allocation was used to ensure fair representation. Data were analyzed using descriptive statistics and ordinal logistic regression analysis at a 5% level of significance, with reliability confirmed through Cronbach’s Alpha coefficient of 0.86 and validity ensured through expert review and principal component analysis. The findings revealed that strategic foresight significantly enhances the innovation capacity of SMEs (β = 3.755; p = 0.00< 0.05); Competitive intelligence had a strong and significant effect on market expansion (β = 47.218; p = 0.035); Risk management was found to have a significant positive effect on operational efficiency (β = 3.12; p = 0.024). The study recommended that SMEs should adopt strategic foresight, competitive intelligence practices, and risk management, which result in innovation capacity, market expansion, and operational efficiency. The study concluded that implementing proactive management measures, such as strategic foresight, competitive intelligence, and risk management, improves SMEs' performance through innovation capacity, market expansion, and operational efficiency