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Effect of Strategic Repositioning on the Performance of Selected Small and Medium Enterprises (SMES) in Rivers State, Nigeria

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Abstract

This work examined how strategic repositioning related with the performance of Small and Medium Enterprises (SMES) in Rivers State, Nigeria. A cross sectional survey was adopted because the variable were not under the control of the researcher. The population of 1200 SMEs were identified. However, a total sample size of 291 was derived. Thus, questionnaire was distributed to 291 owner – managers of the selected SMEs in Rivers State. The systematic sampling technique was used in this study, from the questionnaire administered, only 254 copies which represented 87.3% were correctly filled and retrieved. The data was analyzed using the Pearson product moment correlation statistical tool in order to ascertain the relationship between the variables. The result revealed that cost leadership strategy, product differentiation strategy and focus strategy significantly positively relate with the performance of SMEs. Thus, it was concluded that a more intensified strategic repositioning will help boost the performance of SMEs. Among other, the study recommended that the managers of SMEs should add some level of innovation to their product in order to create a perceived differentiation in the mind of customers so as to boost their performance.


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