STRATEGIC THINKING AND COMPETITIVE ADVANTAGE OF SMALL AND MEDIUM SCALE ENTERPRISES (SME’s) IN SOUTHEAST NIGERIA

Abstract

The broad objective of the study was to ascertain the nature of relationship existing between Strategic Thinking and the Competitive Advantage of SMEs in South-East Nigeria. The study deployed survey research design, with a population of three hundred and eleven (311) selected SMEs in Anambra and Abia State of southeast Nigeria, and a sample size of 172 arrived at using Krejcie and Morgan (1970) formula. Pearson’s Product Moment Correlation Coefficient was used to analyze the data, and hypothesis was tested at 5% level of significance. The findings revealed that a statistically significant relationship exists between Innovative Thinking and Value Creation of SMEs in South-East Nigeria (r = .972, p-value < 0.05). Sequel to this, it was concluded that the continuous existence of firms in a changing business environment require more than having resources of whatever kind; it transcends owning finance, equipment or even personnel. It was recommended among other things that owners of SMEs need to give other people, like family members and employees the opportunity to contribute to the innovative processes of their organization, as it will help them to create more value for their customers. Keywords: Strategic Thinking, Competitive Advantage, SME’s, Innovative Thinking and Value Creation.