Research Article

Effects of External Business Environment on SMEs Performance

Buba Musa Pulka1*, Muhammad Sani Gawuna2
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
Published: Sep, 2023
DOI: 10.67894/bbr.2023.nbnv3mpv
Pages: 38-58
Views: 11
Downloads: 4

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

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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. https://doi.org/10.67894/bbr.2023.nbnv3mpv

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. doi: 10.67894/bbr.2023.nbnv3mpv

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