MEDIATING ROLE OF ACCESS TO FINANCE ON THE RELATIONSHIP BETWEEN STRATEGIC ORIENTATION ATTRIBUTES AND SMEs PERFORMANCE IN NIGERIA
Abstract
In spite of recognized significant contribution of SMEs to nations’ economy, Nigerian SMEs
performance is below expectation. This is because SMEs in Nigeria today faces severe limitations
in financing, management skill, marketing, modern technology and technical expertise. The
objective of this study is to investigate the mediating role of access to finance on the positive
relationship between entrepreneurial orientation (EO), market orientation (MO), learning
orientation (LO), technology orientation (TO) and SMEs performance in Nigeria. A sample size
of 522 SMEs operating in Kano, Kaduna and Sokoto states of Nigeria were selected using
stratified simple random sampling techniques. Partial Least Squares-Structural Equation
Modelling was used to analyze the data. Hence, the data analysis was conducted using SmartPLS
3.0. The results of path analysis indicate that access to finance mediates the positive relationship
between MO, LO, TO and the performance of small and medium enterprises in Nigeria. This is
an important additional explanation for the existence of the relationship between these strategic
orientations and firm performance. The results further suggest that SMEs need to use their
strategic activities to improve their ability to obtain finances in order to perform well. Finally,
recommendations for further research are also discussed.
Keywords: SMEs; Strategic Orientation; Nigeria; Access to Finance; Firm Performance.
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