CENTRALIZED STRUCTURE AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NIGERIA; MODERATING ROLE OF SHARED VISION

Centralized structures are often linked with poor performance in literature and SMEs by their basic characteristics such as size, nature and mode of operation maintain centralized structures. Basing the study on the assumptions of contingency organizational structure theory, this study sought to examine if the centralized structures of SMEs have a significant effect on their performance and if shared vision moderates the effect of these centralized structures on SMEs performance. Utilising a cross-sectional survey research design, structured questionnaires adapted for the study was used to collect data from a sample of 458 SMEs across the country. Analysis of the data was done using hierarchal regression and the results revealed that centralized structures significantly affect SME performance and a share vision moderates this relationship. Consequently, the study concluded that though bigger firms maybe averse to centralized structures, SMEs can benefit from them and shared vision can help alleviate negative tendencies of a centralized structure. The study recommended that SMEs and their operators should ensure that employees are trained, empowered with the right knowledge, and encouraged to take initiative when need arises.