ABSTRACT
Over the years, there has been rapid and steady decline in strategic and creative thinking, decline in proper decision making by entrepreneurs and the absence of the capacity of small business owners to both exploit opportunities innovatively and create competitive advantage for business sustainability. Hence, the broad objective of this study focused on effect of strategic entrepreneurship management on development of sustainable agro-allied small businesses in South – South, Nigeria, from 2000 to 2017, being the period under review. To achieve this, the study adopted a population of 11,673 and derived a returned usable sample of 487, being SMEs registered with the Akwa Ibom, Delta and Rivers State governments and operating within the Agricultural value chain. The cross-sectional survey was employed; the content, construct, convergence and discriminant validity were employed to validate the research instrument, while a Cronbach’s alpha value of .84 showed reliability and internal consistency of the questionnaire. The study employed the Ordinary Least Square regression statistical tools to test the hypotheses. The findings revealed that, risk propensity, innovation and creativity, resource mobilisation capacity, knowledge management, strategic alliances and marketing strategy as indicators of strategic entrepreneurship management have significant effect on development of sustainable agro-allied small businesses in Nigeria. The study concluded that, the application of strategic entrepreneurship management practices and techniques will sustainably develop agro-allied small businesses in South-South Nigeria. It was therefore recommended that, small agro-allied businesses desirous of sustainable development should ensure effective business networking within the industry to enhance productivity, where they lack technological capacity; also for profitable product distribution and access to wider markets; and since the focus of the government is on agriculture as a viable means of diversifying the mono economic nature of Nigeria, concerted effort should be channelled towards incentivising participation to stimulate innovative and creative ideas to transform the agricultural sector into the theatre of technological innovations for sustainable development of small businesses.
TABLE OF CONTENTS
Cover Page i
Title Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgements vi
Table of Contents viii
List of Tables xiii
List of Figures xvi
List of Plates xvii
Abbreviations xviii
Abstract xix
CHAPTER 1: INTRODUCTION 1
1.1
Background to the Study 1
1.2 Statement of the Problem 6
1.3 Objectives of the Study 10
1.4 Research Questions 11
1.5 Research Hypotheses 11
1.6 Significance of the Study 12
1.7 Scope of the Study 14
1.8 Operational
Definition of Terms 16
CHAPTER 2: REVIEW OF RELATED LITERATURE 19
2.1 Conceptual
Framework 19
2.1.1 Strategic
entrepreneurship management 23
2.1.1.1 Risk taking propensity 25
2.1.1.2 Creativity and innovation 29
2.1.1.3 Resource mobilisation 33
2.1.1.4 Knowledge management 61
2.1.1.5 Strategic
alliances 68
2.1.1.6 Marketing strategies 75
2.1.2 Sustainable
development 77
2.1.2.1 Sustainable
technological advancement 81
2.1.3.2
Sustainable capacity utilisation 83
2.1.2.3 Sustainable
employment generation 86
2.1.2.4
Sustainable productivity level 88
2.1.2.5
Sustainable financial performance 93
2.1.2.6 Sustainable
business growth 94
2.1.3 Agro-allied
small and medium scale enterprises 97
2.1.3.1 Value
chain 101
2.1.3.2
Agricultural value chain 103
2.1.3.3 Value chain approach and sustainable
agricultural development 114
2.1.4 Relationship between strategic entrepreneurship management
and 116
sustainable development of agro-allied SMEs
2.1.4.1
Strategic entrepreneurship management and facilitation of sustainable 116
development of technological advancement of agro-allied SMEs
2.1.4.2
Strategic entrepreneurship management and sustainable capacity 119
utilisation of agro-allied SMEs
2.1.4.3 Strategic entrepreneurship management and
sustainable employment 122
generation of agro-allied SMEs
2.1.4.4 Strategic entrepreneurship management and development of
sustainable 124
productivity of agro-allied SMEs
2.1.4.5
Strategic entrepreneurship management and sustainable financial 129
performance and business growth of agro-allied SMEs
2.2 Theoretical
Framework 135
2.2.1 Theory of
entrepreneurship 135
2.2.2 Schumpeterian theory of economic development 138
2.2.3 Value
chain upgrading strategy theory 140
2.2.4 Theory of
dynamic capabilities 147
2.3 Empirical
Review 150
2.4 Summary
of Review of Related Literature 169
2.5 Gaps in
the Literature 171
CHAPTER 3: METHODOLOGY 172
3.1 Research Design 172
3.2 Area of the Study 173
3.3 Population for the Study 183
3.4
Sample and Sampling Techniques 183
3.5 Instrument for Data Collection 185
3.5.1 Structure of the instrument 185
3.6 Validation of the Research Instrument 186
3.7 Reliability of the Research Instrument 187
3.7.1 Pilot study 188
3.8 Method of Data Collection 189
3.9 Data Analysis Techniques 190
3.9.1 Multiple regression analysis 190
3.9.2 Components of independent variable 190
3.9.3 Components of dependent variable 192
3.9.4 Model specification 194
CHAPTER 4: RESULTS AND DISCUSSION 197
4.1 Data Analysis 197
4.1.1 Analysis of respondent’s demographic
information 197
4.2 Analysis of Research Objective 1: Risk
Propensity and Employment 207
Generation
4.2.1 Analysis of research question 1 211
4.2.2 Test of hypothesis 1 214
4.3 Analysis of Research Objective 2:
Innovation, Creativity and
215
Technological Advancement
4.3.1 Analysis of research question 2 220
4.3.2 Test of hypothesis 2 222
4.4 Analysis of Research Objective 3:
Resource Mobilisation Capacity 224
and Increased Productivity
4.4.1 Analysis of research question 3 232
4.4.2 Test of hypothesis 3
234
4.5 Analysis of Research Objective 4:
Knowledge Management and
236
Enhanced Capacity Utilisation
4.5.1 Analysis of research question 4
245
4.5.2 Test of hypothesis 4
247
4.6 Analysis of Research Objective 5:
Strategic Alliances and Business 249
Growth
4.6.1 Analysis of research question 5 257
4.6.2 Test of hypothesis 5 259
4.7 Analysis of Research Objective 6:
Marketing Strategy and Financial
261
Performance
4.7.1 Analysis of research question 6 266
4.7.2 Test of hypothesis 6 268
4.8 Discussion of findings
269
CHAPTER 5: SUMMARY, CONCLUSION AND
RECOMMENDATIONS 277
5.1 Summary of Findings 277
5.2 Conclusion 281
5.3 Implications of the Study 283
5.3.1 Educational implication 283
5.3.2 Policy implication 285
5.4 Recommendations 285
5.5 Suggestions for Further Research 290
5.6 Limitations of the Study 291
REFERENCES 293
APPENDICES 335
LIST
OF TABLES
Table Page
3.1: Population of Agro-Allied Value Chain
SMEs in Delta State 356
3.2:
Spatial Distribution of Sample Size of Registered Agro-Allied Value Chain 356
SMEs in Akwa Ibom, Delta &
Rivers States
3.3:
Spatial Distribution of Questionnaire 356
3.4:
Random Distribution of Questionnaire to Registered Agro-Allied Value 357
Chain SMEs in Akwa Ibom State
3.5:
Random Distribution of Questionnaire to Registered Agro-Allied Value 357
Chain SMEs in Delta State
3.6:
Random Distribution of Questionnaire to Registered Agro-Allied Value 357
Chain SMEs in Rivers State
3.7:
Reliability Test Result 189
4.1 Demographic Information of Respondents and
Characteristics of Small 198
Businesses
4.2
Respondent’s Business Characteristics 202
4.3
Analysis of Respondent’s Risk Propensity as a Strategic Entrepreneurship 208
Management Indicator
4.4
Analysis of Respondent’s View on Employment Generation as a Sustainable 211
Development Indicator for Agro-Allied
Small Businesses
4.5
How risk propensity sustains employment generation among agro-allied small 212
businesses
4.6
Regression Result on risk propensity and capacity to sustain employment 215
generation
4.7
Analysis of Respondent’s View on Innovative and Creative Disposition as a 216
Strategic Entrepreneurship Management
Indicator
Table Page
4.8
Analysis of Respondent’s View on Technological Advancement as a 219
Sustainable Development Indicator for
Agro-Allied Small Businesses
4.9
How innovation and creativity facilitate technological advancement of agro- 221
allied small businesses in Nigeria
4.10
Regression Result on innovation and creativity and capacity to facilitate
223
technological advancement
4.11
Analysis of Respondent’s View on Resource Mobilisation Capacity as a 225
Strategic Entrepreneurship Management
Indicator
4.12
Analysis of Respondent’s View on Productivity as a Sustainable Development 231
Indicator for Agro-Allied Small
Businesses
4.13
How resource mobilisation capacity increase productivity of agro-allied
small 233
businesses in Nigeria
4.14
Regression result on resource mobilisation capacity and effect on
sustainable 235
productivity
4.15
Analysis of Respondent’s View on Knowledge Management Practices as a 237
Strategic Entrepreneurship Management
Indicator
4.16
Analysis of Respondent’s View on Capacity Utilisation as a Sustainable 243
Development Indicator for Agro-Allied
Small Businesses
4.17 Knowledge management potency to enhance capacity
utilisation of agro-allied 246
small
businesses in Nigeria
4.18 Regression Result on knowledge management and potency
to sustain capacity 248
utilisation
4.19 Analysis of
Respondent’s View on Strategic Alliance Practices as a 250
Strategic
Entrepreneurship Management Indicator
4.20 Analysis of Respondent’s Business Growth as a
Sustainable Development 256
Indicator for
Agro-Allied Small Businesses
Table Page
4.21
How strategic alliances facilitate growth of agro-allied small businesses in
258
Nigeria
4.22
Regression Result on strategic alliances and effect on sustainable growth 260
4.23
Analysis of Respondent’s View on Marketing Strategies as a Strategic
262
Entrepreneurship Management Indicator
4.24
Analysis of Respondent’s View on Financial Performance as a Sustainable 265
Development Indicator for Agro-Allied
Small Businesses
4.25
How marketing strategy stimulates financial performance of agro-allied
small 267
businesses in South-South, Nigeria
4.26
Regression Result on marketing strategy and effect on sustainable financial 269
performance
LIST OF
FIGURES
Figure Page
2.1:
SEM model for sustainable development of agro-allied value chain small 134
businesses (SEM – SAS-SBS)
LIST OF
PLATES
Plate Page
3.1: Map of Delta State, Showing the Geographical Scope of
Study Area 182
ABBREVIATIONS
SME = Small and Medium Scale Enterprises
MB = Micro Business
SB = Small Business
BOI = Bank of Industry
DSMTDP = Delta state medium term development Plan 2016 –
2019:
DSMSMEDA = Delta State Micro, Small & Medium Enterprises
Development Agency
RIMA
= Rivers State Micro Finance Agency
AKMEDA
= Akwa Ibom Micro-Finance and Enterprise Development Agency
SEM
= Strategic Entrepreneurship Management
RPR
= Risk Propensity
INC
= Innovation and Creativity
FIC
= Financial Capacity
HCC
= Human Capital Capacity
PRC
= Production Capacity
RMS
= Raw Materials Sourcing Capacity
FOI
= Forward Integration
BAI
= Backward Integration
HOI
= Horizontal Integration
NWK
= Networking
KNT
= Knowledge Transfer
KNA
= Knowledge Adoption
KNC
= Knowledge Creation
KAP
= Knowledge Application
KUT
= Knowledge Utilization
EFM=
Effective Marketing
EPS
= Effective Promotion Strategy
SAS
= Sustainable Development of Agro-Allied Small Businesses
STA = Sustainable Technological Advancement
SCU
= Sustainable Capacity Utilization
SEG = Sustainable Employment Generation
SIP = Sustainable Productivity (Output and
Efficiency)
SFP = Sustainable Financial Performance
SBG = Sustainable Business Growth
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Globally,
entrepreneurship is recognized as an important component in the dynamics of all
economies and, therefore, regarded as the driving force in economic sustainable
development through employment generation. With the on-going plans of
diversifying the Nigerian economy away from its present mono-product base,
entrepreneurs through small scale enterprises are being positioned to make up a
greater percentage of economic activities in the country. The prolonged and
heightened interest in the field of entrepreneurship is prompted by several
factors, some of which include revitalizing stagnated economies; stimulating
less developed nations and managing unemployment difficulties by providing
innovative employment opportunities (Tende & Nimfa, 2015); hence, the need
for a strategic technique for its realisation.
Small
and medium enterprises (SMEs) possess entrepreneurial dynamism, internal
flexibility and alertness to changing situations (Verhees & Meulenberg,
2011), which stimulates development of competencies in networks in order to
overcome their limitations with regards to resources and strategic management
capabilities (Carson, Cromie, McGowan & Hill, 2013). The strategic
entrepreneurship field is a fairly recent one as averred by Foss and Lyngsie,
(2011). It is the combination of entrepreneurial opportunities and strategic
advantages for better organisation in a stormy environment. Literature suggests
that entrepreneurship goes beyond starting-up of an enterprise and maintaining
the status quo, to continuing and leading the organisation to grow (Kyrgidou,
2011; Singh, 2009).
Strategic
Entrepreneurship entails the integration of entrepreneurship and the strategic
management concept (Kyrgidou, 2011). The former consists of actions for and
behaviours conductive to identifying and exploiting profitable opportunities in
the environment (Shane, 2000). The latter involves the set of activities
designed to attain competitive advantage and realise above average results
through selection of alternatives based on intelligence and facts, leading to
such advantage. In essence, strategic entrepreneurship is a decision-making and
managerial effort guiding process for recognizing the best opportunities (with
the highest potential returns) and then for exploiting them through strategic
actions (Akande, 2012).
There
is an increasing interest in strategic entrepreneurship, mostly in conventional
businesses that endeavour to develop more entrepreneurial alignment in their
pursuit for sustained competitive advantage (Schiendel & Hitt 2007; Dyer
& Singh 2011). Strategy and entrepreneurship are two independent
constructs, but their combination helps create value for customers, gain and as
well maintain competitive advantage, as argued by Hitt, Ireland, Camp and
Sexton (2002). Strategic entrepreneurship denotes wide-ranging changes in
conventional operations, where the fusion of entrepreneurial opportunity
pursuit and competitive advantage seeking actions are key characteristics of
innovation enablers, business growth and wealth creation (Hitt, Ireland, Camp
& Sexton, 2001).
From
the foregoing, taking into cognisance the dynamic nature of the global and
local business environment, strategic entrepreneurship in this study focuses on
building capacity for creating value (Singh 2009) and encouraging innovation
(Hitt et al., 2001), business
development, corporate venturing, stimulating competitiveness (Verhees &
Meulenberg, 2011), strategic renewal, exploration and exploitation of firm
capabilities (Shane, 2000), organisational (re)design, forward and backward
integration (Dyer & Singh 2011), synergizing through consolidations
(Carson, et al, 2013), developing
value chain systems and the challenges that come with managing firm activities
(Kyrgidou, 2011) across different institutional contexts in which modern
business takes place, all geared towards developing sustainable small scale
enterprises (Schiendel & Hitt 2007).
Sustainable development touches on the importance of
intergenerational equity, ensured by conserving resources for future
generations, which Cerin (2006), aver is a major feature that distinguishes
sustainable development policy; hence, the overall goal is the long-term
stability of the economy and environment (Stoddart, 2011), which is achievable
via the integration of social and economic concerns all through the decision
making process (Emas, 2015).
In
this study, sustainable development primarily concerns the substitutability of
small scale enterprises involved in diverse sphere of Nigeria’s agro-allied
businesses and the absence of strategic entrepreneurship management techniques
to ensure access and efficient utilisation of capital and needed resources for
transforming creativity to innovative ventures, stimulate industry
competitiveness, develop local capacity utilisation through value chain systems
for economic development and intergenerational equity; which identifies the
long-term measure of sustainability to meet the needs of future generations
(Dernbach, 2003, Stoddart, 2011). Emas, (2015) explains that, sustainable
development is anchored on weak and strong sustainability concept; while the weak
sustainable development holds that the aggregate level of capital alone matters
and manufactured capital is sufficient alternative to natural capital; strong
sustainability recognizes the distinctive types of natural resources
irreplaceable by manufactured capital (Stoddart, 2011).
Globally, agriculture plays a dominant role in the growth and
development of every nation’s economy; hence, the importance is anchored on the
fact that it serves as the bedrock of survival of the human race, provides
variety of food for the world’s populace, earns foreign exchange revenue
through export of surplus produce (Elikwu & Adio, 2015); provides
raw materials for the industrial sector, promotes technological advancement and
employment for ever increasing population (Akpan, Okon & Udoka,
2014). However, much remains to be learned about the
inter-relationship between agriculture value chain and sustainable development
of small businesses in Nigeria.
Howbeit, Zubeiru (2018) states that, it is a widely recognized
fact that increased productivity in agriculture increases broad base
development capacity, especially in the less advanced countries. Corroborating
the above assertion, it is opined that in most developing countries,
agriculture is both the main traditional pursuit and the key to sustained
development of modern economy, as diversification of the economy; employment
and technological advancement have gone simultaneously with agricultural progress
(Abayomi, 1997,
Eze, 2010). Hence, any stagnation in agriculture translates to poor economic
performance, while rising agricultural productivity leads to
industrialization.
Nigeria, according to Onwualu (2009), is greatly endowed with
variety of agricultural produces capable of stimulating the growth of agro
processing industries. Agricultural value addition provides ample revenue
generation and employment creation opportunities. It is an intrinsic component
of the strategy towards addressing agricultural productivity, curbing
post-harvest losses and ensuring food security (Adama, Obasi & Onwualu,
2006; FAO, 2012). Processing agricultural produce into several new products
supports market acceptability and offers the products great economic value
(Onwualu, 2012) which increases productivity and contributes to economic
growth. Kaplinsky (2000) asserts that, value chains encompass range of
activities needed to conceptualise a product or service and take it through
intermediary stages of production and delivery to final consumers. The value
chain concept is no doubt revolutionizing the agriculture industry (Lyman,
2008), as there is a focus shift to consumers’ demands, marketing and products
flow coordination from producers to consumers, from mere agricultural
farming/production (Olagunju, Babatunde & Salimonu, 2012). Hence, value
chains according to Adewumi and Alonge (2008) resides at the centre of strong
impact and sustainable ingenuities concentrated on enhancing productivity,
competitive advantage and development of small businesses.
The
growing recognition of small businesses as instruments of economic growth and
development led to the pledge of the World Bank group to focus on the SME
sector (World Bank, 2001), premised on its action plan to foster sustainable
economic growth, development, employment generation and poverty mitigation in
economies of the world (Ayyagari, Beck & Demirguc-kunt, 2003; Narasimhan,
2009). Thus, entrepreneurial development is considered by successive
governments as a program of actions to improve the knowledge, skills, capacity,
behaviour and attitudes of individuals and groups to assume the role of opportunity
identifiers, risk takers, resource mobilizers, value creators, wealth and
employment creators.
Agro-allied
SMEs are strategic to the realisation of value chain objectives which includes,
increase in volume of input supply (agricultural produce), design and
production (processing), marketing and distribution with support services
(storage, wholesale, export and retailing) and consumption (Olagunju, 2013),
all geared towards the optimal use of agricultural resources to achieve
increased productivity and formation of standard stable food markets (Aremu,
2004), implementation of integrated agricultural development for sustainable
increase in employment creation.
Small
scale enterprises according to Ogbo and Nwachukwu (2012) epitomise a reliable
platform for the actualisation of national economic goals of poverty
eradication through employment creation at minimal investment costs, the
development of indigenous technologies and entrepreneurial capabilities. Other
core benefits of vibrant small businesses encompasses access to the
infrastructures elicited by the existence of such small businesses within the
environment, stimulation of economic activities, such as facilitating supplies
of diverse products and distributive trades for goods manufactured and or in
want by the Small businesses (Olagunju, 2013), emerging from rural-urban
migration (Ajayi, 2000), improvement of the living standards of small business
employees’ and their dependents (Fabunmi, 2004) and contribute to economic
diversification and social stability (Knight, 1998).
In both advanced and emerging economies, the participation of
small scale enterprises (SMEs) in promoting agricultural value chain is
perceived as strategic to the development of any economy. Thus, from the
foregoing, the need to develop SMEs in promoting sustainable development of the
various small business operators within the agricultural value chain cannot be
over-emphasized; hence, this dissertation empirically analyses strategic
entrepreneurship management and its’ effects on sustainable development of
agro-allied small businesses in South-South, Nigeria.
1.2 STATEMENT
OF THE PROBLEM
Over
the last two decades, owing to the rapid and steady decline in strategic and
creative thinking, decline in proper decision making by entrepreneurs and
policy makers, and the absence of the capacity of small business owners to
simultaneous exploit opportunities innovatively to create competitive advantage
for business sustainability, emphasis in entrepreneurship literature has
centred on basic managerial skills for entrepreneurs; later came the advocacy
for accounting skills needed to boost entrepreneurial competencies. However,
reports of high rate of business failures owned by entrepreneurs with adequate
funds, accounting and managerial abilities calls for further investigations.
Evidence from extant literature revealed that the inability of firms to develop
and shape effective knowledge base, inability to create new capabilities within
operational and organisational process have put the firms in difficult
situations.
A
review of extant literatures revealed that, there is the challenge of seeming
reluctance in financing agricultural related businesses owing to the high
investment risk involved, in spite of its high employment generation
potentials. Also, risk taking propensity being one of the virtues of successful
entrepreneurs has been proven to affect organisational performance (Wambugu,
Gichira, Wanjau & Mung’atu, (2015); investment decisions affecting
technological innovation strategies (Wiklund & Shepherd, 2003); promote an
enterprise's innovation and competitive advantage (Christensen, 2007); however,
there is dearth of literature on how risk propensity influences small
businesses to embark on employment generation.
The
advancement in global technological applications in businesses behoves on SMEs
to tap into the numerous advantages that comes with this evolution. As a
result, most SMEs are being left behind due to lack of strategic creativity and
innovation, which is the ability
to continuously transform knowledge and ideas into new products, processes and
systems for the benefit of the firm. However, the very few SMEs in agro-allied
businesses struggle to operate, manage and improve their businesses in order to
consistently deliver quality products and services. A review of extant
literatures showed, relationship between innovation and increase in profit
margins of small businesses (Onwumere & Eleodinmuo, 2015); technological
capabilities and firm innovation performance (Kalay
& Lynn, 2015), however, there is dearth of
literature on how creativity and innovation facilitates technological
advancement of SMEs operating within the various agricultural value chains.
A
review of extant literature showed relationship between production capabilities
and development of small-scale manufacturing enterprises (Unam & Unam,
2013); entrepreneurial skills in resource acquisition strategies and
profitability of SMEs (Mohammed & Nzelibe, 2014); however, there is no
available literature within the strategic entrepreneurship management
construct, focusing on resource mobilisation capacity as it affects
productivity of agro-allied small businesses in Nigeria.
The
understanding of what constitutes knowledge is central to its effective management;
however, knowledge itself has suffered from severe underutilisation, especially
by small business owners and managers. The inability of agro-allied businesses
to optimise knowledge management has resulted in managerial ineffectiveness,
dwindling employee and firm productivity, inappropriate utilisation of human
and material resources, stagnated growth, increasing operational cost and more
importantly resulting in poor capacity utilisation. Though extant literature
exists on relationship between capacity utilisation and foreign market
competition (Pidani & Mahmood, 2016), relationship between knowledge
management and performance (Kinyua, 2015), knowledge management infrastructure
and organisational performance of SMES, focusing on capacity utilisation of
resources, however, there is no literature available within the strategic
entrepreneurship management construct.
In
spite of the fact that ‘agriculture continues to be a fundamental instrument
for poverty reduction’ and sustainable development (World Bank, 2008); yet,
‘participatory constraints in agriculture remain pervasive, costly and
inequitably distributed, severely limiting SMEs’ ability to participate; hence,
there is a persistent challenge of untapped utilisation of strategic alliances
and networking, resulting in high cost of capital to invest in the diverse
agricultural value chain; further resulting in stagnation in exploration and
utilisation of new technology owned by competitors, inadequate storage and
preservative facilities for processed agricultural produce and knowledge of
process improvement, which has led to high mortality rate of agro-allied
businesses and stagnation of growth of surviving small businesses.
Marketing
strategy has been an important aspect in goals attainment of most
organisations, upon which decision making for increasing sales and
profitability are anchored, which are however not often achieved by small
businesses, owing to the dynamism and competition in the market. Various
empirical studies have been carried out (Keramati, Ardalan & Ashtiani,
2012; Muthengi, 2015), covering relationship between marketing strategies and
sales performance marketing mix strategy and performance of small scale
businesses (Bintu, 2017; Oktaviyanti, Masyhuri & Mulyo, 2015), however, extant
literature on marketing strategies as it affects the financial performance of
agro-allied small businesses in Nigeria is needed to broaden the subject from
the strategic entrepreneurship management construct perspective. Based on the aforementioned, this
thesis empirically analyses strategic entrepreneurship management and its’
effect on sustainable development of agro-allied small businesses in
south-south Nigeria.
1.3 OBJECTIVES
OF THE STUDY
Based on the above stated challenges, the broad objective of this
study empirically analysed strategic entrepreneurship management effect on
development of sustainable agro-allied small businesses in South-South Nigeria,
a study of small businesses engaged in the agricultural value chain. To achieve
this broad objective, the specific objectives were stated based on the
decomposed proxies of strategic entrepreneurship management, the independent variable (risk propensity,
innovation and creativity, resource mobilisation capacity, knowledge
management, strategic alliance and marketing strategy) and sustainable
development of agro-allied small businesses (technological advancement,
capacity utilisation, employment generation, productivity, financial performance
and growth) the dependent variable. Hence, the specific objectives of this
study were to:
i.
establish how risk propensity of strategic entrepreneurship
management can sustain employment generation among agro-allied small businesses
in South-South Nigeria;
ii. examine how innovation and
creativity can facilitate technological advancement of agro-allied small
businesses in South-South Nigeria;
iii. determine the effect of resource
mobilisation capacity on sustainable increase in productivity of agro-allied
small businesses in South-South Nigeria;
iv. establish the extent to which
knowledge management can enhance capacity utilisation of agro-allied small
businesses in South-South Nigeria;
v. determine the effect of strategic
alliances on sustainable growth of agro-allied small businesses in South-South
Nigeria; and
vi. determine the effect of marketing
strategy on sustainable financial performance of agro-allied small businesses
in South-South Nigeria;
1.4 RESEARCH
QUESTIONS
In order to achieve the broad and specific objectives of this
study, the following research questions were posited specifically to determine;
i.
To what extent can risk propensity of strategic
entrepreneurship management sustain employment generation among agro-allied
small businesses in South-South Nigeria?
ii. How can innovation and creativity
facilitate technological advancement of agro-allied small businesses in
South-South Nigeria?
iii. What is the effect of resource
mobilisation capacity on sustainable increase in productivity of agro-allied
small businesses in South-South Nigeria?
iv. To what extent can knowledge
management enhance capacity utilisation of agro-allied small businesses in
South-South Nigeria?
v. What is the effect of strategic
alliances on sustainable growth of agro-allied small businesses in South-South
Nigeria?
vi. What is the effect of marketing
strategy on sustainable financial performance of agro-allied small businesses
in South-South Nigeria?
1.5 RESEARCH
HYPOTHESES
In
order to achieve the specific objectives, the following hypotheses were
formulated in the null (H0) form for testing:
H01: Risk propensity of strategic
entrepreneurship management has no capacity to sustain employment generation
among agro-allied small businesses in South-South Nigeria;
H02: Innovation and creativity has no
capacity to facilitate technological advancement of agro-allied small
businesses in South-South Nigeria;
H03: Resource mobilisation capacity has
no significant effect on sustainable increase in productivity of agro-allied
small businesses in South-South Nigeria;
H04: Knowledge management has no potency
to enhance capacity utilisation of agro-allied small businesses in South-South
Nigeria;
H05: Strategic alliances have no
significant effect on sustainable growth of agro-allied small businesses in
South-South Nigeria;
H06: Marketing strategy has no
significant effect on sustainable financial performance of agro-allied small
businesses in Nigeria
1.6 SIGNIFICANCE
OF THE STUDY
The significance of this study was premised on two major pedestals
– first, that agriculture has remained the most crucial sector of the Nigerian
economy upon which nearly all other sectors depend for growth and development;
and secondly the contemporary nature of the study, since the government is
presently seeking ways to improve the productivity of the sector and diversify
the economy. Hence, the findings and recommendations of this study would be of
enormous benefits to academic works, as it is a significant and major
contribution to the body of knowledge, which fills the gap in contemporary
literature on the strategic entrepreneurship management and development of
sustainable agro-allied small businesses in Nigeria.
Students and researchers: The result of the study, therefore,
would serve as a reference point for students, researchers and scholars who
maybe desirous in carrying out further research to test and deepen the
strategic entrepreneurship management concept and model, and also extend the
research to areas not covered in this study.
Small Businesses: The recommendations of this study on
strategic entrepreneurship management would provide a basis for increased
participation by small businesses in the agro-allied value chain system to
increase employment, more staple foods, reduce high rate of perishable
agricultural products through technological advancement and stimulate
sustainable economic growth and development. The recommendations would also
serve as both theoretical and practical premise for entrepreneurship, strategic
management and agribusiness consultants, practitioners and professionals alike
to adopt a new approach to solving the challenges of business mortality,
improve their strategic thinking, knowledge and capacities to boost their
operational strategies for achieving sustainable development of small
businesses in the agricultural and other sectors of the economy.
Entrepreneurs:
The
knowledge obtained from this study would enlighten entrepreneurs to understand
the viability of agricultural business, the possibility of participating in any
of the agro-value chain to exploit the potentials and great wealth creation
opportunities inherent in agriculture. Also, the content, findings and
recommendations would serve as a roadmap towards reducing the increasing
wastages of agricultural produce, boost supply of variety of staple foods,
guarantee food security, reduce poverty through employment creation and wealth
redistribution in Nigeria and enhance the growth of small businesses in order
to increase productivity, enhance performance and profitability.
Institutional
Agencies: The
content, model, findings and recommendations of this study would aid the CBN,
SMEDAN, Bank of Industry, Bank of Agriculture, the Micro, Small and Medium
Scale Development Agencies of Akwa Ibom, Bayelsa, Cross River, Delta, Edo and
Rivers States, microfinance institutions and other relevant agencies established
to facilitate, regulate, supervise, support, promote and formulate policies to
increase participation of small businesses in promoting economic
diversification, optimally exploit the huge benefits in the agricultural value
chain, overcome challenges of access to finance, business mortality rates, to
enhance the overall growth and development of small businesses in South-South,
Nigeria.
Government: Finally,
the content, model, findings and recommendations of this study would help the
various tiers of government, put in place measures and legislations to help
small businesses reduce the effects of the volatile business environment,
unfair competition from multinational corporations and put in place enabling
environment needed to protect and stimulate small businesses, which are engines
of sustainable economic growth and development.
1.7 SCOPE
OF THE STUDY
The scope of this dissertation covered an empirical analysis
strategic entrepreneurship management and its’ effect on development of
sustainable agro-allied small businesses in South-South Nigeria, a study of
selected small businesses in the agro-allied value chain system in Akwa Ibom,
Bayelsa, Cross River, Delta, Edo and Rivers States of Nigeria, from 2000 to
2017, being the period under review. This period was considered based on the
concerted efforts of the Federal and State governments under the present
democratic dispensation through relevant agencies to diversify the mono
economic status of the country, through focused and purposeful investment in
the Agricultural sector and support for SMEs in the agribusiness and other
sectors.
The content scope of this dissertation focused on how the
integration of strategic entrepreneurship management can be greatly exploited
by entrepreneurs to develop the small businesses operating within the various
agricultural value chain (inputs, processing and production; storage and
packaging; market access and industry linkages) for technological advancement,
increased productivity and efficiency, capacity utilization, employment
generation, financial performance and growth of small businesses in Delta State
and by extension in Nigeria. The content scope also covered review of relevant
literature by erudite scholars and professionals on concepts of
entrepreneurship, strategic management, agriculture, sustainable development,
value chain and SMEs, theoretical framework and empirical review among others.
The geographical scope of this study covered the entire Six
South-South states of Akwa Ibom, Bayelsa, Cross River, Delta, Edo and Rivers,
all being oil, acquatic and agricultural producing states in Nigeria,
situated in the region known as the South-South geo-political zone. Though, oil
and gas accounts for the bulk of the various states’ accruable statutory
revenues, agriculture and the informal sector account for the bulk of
employment and livelihood of the people (DSMTDP 2015).
Finally, the methodological scope covered the use of primary and
secondary data to test the formulated hypotheses, stated in line with the
specific research objectives and questions. While the primary data was sourced
from small business owners operating within various agricultural value chains,
in the six South-South states of Akwa Ibom, Bayelsa, Cross River, Delta, Edo
and Rivers, the secondary data were sourced from various literatures, print and
online publications, magazines and newspapers, journals and text books alike.
The study was delimited to all sample techniques, inferential and
non-inferential statistical tools utilised in the analysis.
1.8 OPERATIONAL DEFINITION OF TERMS
Strategic Entrepreneurship
Management: Strategic
entrepreneurship management is the totality of entrepreneurial and strategic
actions needed for exploitation of future opportunities; which entails
risk-taking propensity, strategic networks and alliances, resources
(mobilisation capacity), innovation and creativity, organisational learning
(knowledge management) and marketing strategy, all combined to gain competitive
advantage and achieve business performance and sustainability.
Creativity: Creativity is the
ability to effectively generate novel solutions to relevant problems, can be a
source of significant competitive advantage, especially in rapidly changing
environments. Creativity is important to entrepreneurs because it is the first
stage in the process of innovation, providing the stimulus for opportunity
discovery and new venture creation.
Innovation is described as the
introduction of new or improved processes, products or services based on new
scientific or technology knowledge and/or organisational know-how. An invention
is the first occurrence of an idea for a new product or process whereas
innovation is the act of putting it into practice. Innovation is the process
that renews something that exist or not, the birth of something new.
Resource Mobilisation: This refers to the process and
capacity to source and obtain resources, which are inputs into the production
process, which include items of capital equipment, skills of individual
employees, patents, brand names and finance among others; of which only few
resources are productive on their own if left alone.
Knowledge Management encompasses variety of strategies
and practices used in a firm to identify, create, represent, distribute and
enable adoption of insights and experiences.
Marketing Strategies: Marketing strategies and tactics are
concerned with taking decisions on a number of variables to influence
mutually-satisfying exchange transactions and relationships.
Risk-taking propensity: This is the perceived
probability of receiving rewards associated with the success of a situation
that is required by the individual before he/she will subject himself/herself
to the consequences associated with failure, the alternative situation
providing less reward and less severe consequences than the proposed situation.
Strategic Alliance: Strategic alliances are partnerships
between firms whereby their resources, capabilities, and core competencies are
combined to pursuer mutual interests to develop, manufacture, or distribute
gods or services.
Sustainable development: From economic dimension, it is a
system able to produce goods and services on a continuous basis, in order to
maintain manageable levels of government and external debt and to avoid extreme
sector imbalances, which damage agricultural or industrial production.
Capacity Utilisation: Capacity utilization
refers to optimal usage and engagement of a firms factors of production to
achieve productivity improvements. Temporary increase in productivity may
suggest that firms simply take advantage of their underutilized capacity in the
new markets and it is not an actual change in total factor production. Capacity
utilisation, therefore, can be used as an indicator of elimination of wastages
of scarce resources (human, material and machinery).
Financial Performance: Financial performance is
a subjective measure of how well a firm can use its assets from its primary
role of conduction of business and its subsequent generation of revenues. This
term is also used as a general measure of a firm's overall financial status over
a given period of time and can be used to compare similar firms across the same
industry or to compare industries or sectors in totality.
Productivity: Productivity can be defined as the
index of the ratio of the value of total output to the value of the total
inputs used in the agro related production; while production efficiency means
the attainment of production goals without wastages. Efficiency is an important
factor of productivity growth specifically in developing economies where
resources are meagre and opportunities for developing and adopting better
technologies are limited.
Agricultural Value Chain encompass activities that take place
at the farm, rural settlements and urban areas which require input supplies
(seeds, fertilizers, pesticides, etc.), agricultural machinery, irrigation
equipment and manufacturing facilities, and continue with handling, storage,
processing, and packaging and distribution activities. Other elements, such as
power generation and logistics, among others, which form the chain environment,
are also important factors affecting the performance of value chains.
Business Growth: The concept of business growth has
been described as the expansion in a business resulting from use of its
internal resources and or merging or acquiring other businesses which may or
may not be within the same industry.
Value Chain describes the full range of
value-adding activities required to bring a product or service through the
different phases of production, including procurement of raw materials and
other inputs, assembly, physical transformation, acquisition of required services
such as transport or cooling, and ultimately response to consumer demand.
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