EFFECT OF DYNAMIC CAPABILITIES ON BUSINESS PERFORMANCE IN MACRO, SMALL AND MEDIUM ENTERPRISES IN NIGERIA

Abstract

The aim of this study is to investigate the effect of dynamic capabilities on business performance in Micro, small and medium enterprises (MSMEs) in Nigeria. This was achieved by examining and assessing the effect of adaptability and leadership on the business performance of MSMEs in Nigeria The study was conducted in metropolitan towns of Abuja, Bauchi, Kaduna, Lagos, Enugu, and Pot-Hacourt representing all the geographical regions of Nigeria. A survey design method was used. A total of 422 questionnaires were sent out and administered to the respondents; 395 of the questionnaires were returned and considered useable representing a 93.6% response rate. Data was analyzed using both descriptive and inferential Statistics to establish findings. The finding showed that adaptability does not have a statistically significant effect on business performance of MSMEs in Nigeria. On the other hand, leadership was found to have a highly significant effect on MSMEs business performance in Nigeria. The study concluded that adaptability did not contribute significantly to business performance of MSMEs in Nigeria. The study also concluded that leadership emerged as a significant factor in driving MSMEs business performance in Nigeria. The study recommended that policy makers of MSMEs should focus on providing practical support in areas that directly have effect in business operations. MSMEs owners should be encouraged to take leadership courses that focus on decision-making, team management and strategic plannings.