Effects of External Business Environment on SMEs Performance
1 Department of Business Administration, Faculty of Management Sciences, University of Maiduguri, Nigeria.
2 Department of Economics and Management Sciences Nigeria Police Academy, Wudil, Kano State, Nigeria
* Corresponding author: bubapulka@unimaid.edu.ng
2 Department of Economics and Management Sciences Nigeria Police Academy, Wudil, Kano State, Nigeria
* Corresponding author: bubapulka@unimaid.edu.ng
Abstract
This study is aimed at investigating the effects of external business environment which includes
complexity, dynamism, diversity and hostility on the SMEs performance. The study was conducted
on SMEs operating in northeastern Nigeria. SMEs owners/managers were the respondents for the
study. Survey method utilising self-administered and structured questionnaires was used to collect
data from the owners/managers of the SMEs. Multistage sampling technique was used in
selecting 470 SMEs from a population of 1,726. SPSS and PLS-SEM were used in the analysis of
data. The study found that Environmental complexity and dynamism have positive and significant
effects on SMEs performance. Unexpectedly, the study found insignificant relationship between
environmental diversity, hostility and SMEs performance. Therefore, it is recommended that the
SMEs owners/managers should pay more attention to the complexity and dynamism in the
external business environment in order to achieve superior performance.
Keywords
environmental complexity
environmental dynamism
environmental diversity
hostility
SMEs performance
How to Cite
Pulka, B. M., & Gawuna, M. S. (2023). Effects of External Business Environment on SMEs Performance. Bayero Business Review, 7(1), 38-58.
B. M. Pulka, and M. S. Gawuna, "Effects of External Business Environment on SMEs Performance," Bayero Business Review, vol. 7, no. 1, pp. 38-58, September 2023.
