UNLOCKING COMPETITIVE ADVANTAGE: EXPLORING THE ROLE OF ENTREPRENEURIAL ORIENTATION ON SMALL AND MEDIUM ENTERPRISES IN KOGI STATEPages 79-94
Abstract
This study focused on the effect of entrepreneurial orientation on the competitive advantage of SMEs in Kogi State. SMEs are confronted with numerous obstacles that impede their growth and sustainability. One of the primary concerns is the intensifying competition from larger firms that have expanded their operations in the state. Implementing entrepreneurial orientation can be an effective approach to addressing the problems faced by SMEs in Kogi State. Thus, the study ascertained the effect of entrepreneurial risk-taking on SMEs’ market responsiveness, examined the influence of innovativeness on the cost-based advantage of SMEs, and assessed the influence of proactiveness on the product-based advantage of SMEs, among others. A descriptive research design was applied. Samples were chosen in phases using a multi-stage sampling technique. The sample size of the study was 373. The study used primary data, which was sourced through a well-structured questionnaire. Content validity was used to ascertain the validity of the instrument. For reliability, a pilot study was carried out, and data were gathered and analysed using Cronbach's alpha (ὰ). Data was gathered for the study and analyzed using both descriptive and inferential statistics, with multiple regression analysis employed as the chosen statistical tool. The findings showed that entrepreneurial risk-taking has a significant positive effect on competitive advantage and that innovativeness has a significant positive relationship with competitive advantage. Further findings revealed that proactiveness has a significant effect on the competitive advantage in Kogi State. The study concluded that entrepreneurial orientation has an important and beneficial effect on competitive advantage. The study recommended that the government and SME owners should encourage a culture of calculated risk-taking within the enterprise and that SME owners and managers should dedicate resources to research and development (R&D) or establish innovation teams tasked with exploring new concepts and solutions.
Keywords: Entrepreneurial Risk-Taking, Innovativeness, Proactiveness, Competitive Aggressiveness, Autonomy, Competitive Advantage.
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