EFFECT OF MARKET DEVELOPMENT AND PRODUCT DIVERSIFACTION STRATEGIES ON PERFORMANCE OF MEDIUM ENTERPRISES IN NORTH CENTRAL NIGERIA
DOI:
https://doi.org/10.53555/eijbms.v9i3.147Keywords:
Market Development, Performance, Product Diversification, Medium Enterprises, North Central, NigeriaAbstract
This study examined the impact of market expansion and product diversification on the performance of medium-sized businesses in North Central Nigeria. The study utilised primary data from a sample of three hundred eighty four (384) respondents from the selected medium enterprises who are managers or proprietors. The collected data were analyzed using multiple linear regression. Using the probability value of regression estimates, the study hypotheses were examined.. The result of the study shows that Market development (MDVP) has a positive impact on the performance of Medium Enterprises (PFRM) in North Central Nigeria, and the effect is statistically significant (p<0.05) and consistent with a priori expectations. Product diversification (PDIV) has a negative effect on the performance of Medium Enterprises (PFRM) in North Central Nigeria and the effect is not statistically significant (p>0.05) and also not in line with a priori expectation. It was concluded that developing new markets and expanding product lines are two of the most prevalent company expansion tactics that organisations employ. It was recommended among others that before embarking on product diversification, thorough market research is essential. This involves analyzing customer needs, preferences, and purchasing behaviors in the target market segments.
References
Aga et al (2015). SMEs, Age, and Jobs: A Review of the Literature, Metrics, and Evidence, World Bank Group, November 2015
Al-Dosari, N. A. (2010). The impact of growth strategy on marketing performance with the insurance companies and the role of the Kuwaiti market orientation as a mediator variable. Master Thesis, University of the Middle East, Jordan.
Aliyu, M. S. and Mahmood, R. (2014). An Empirical Analysis of Market Orientation and Business Performance Relationship in the Context of Developing Economy. International Journal of Academic Research in Business and Social Sciences, 3(4):55-69.
Ansoff, H. I. (1957). Corporate Strategy: An Analytic Approach to Business Policy for Penetration and Expansion, New York: McGraw Hill.
Barney, J. (2011). Company Resources and Sustained Competitive Advantage, Journal of Management. 17(11), 99-119.
Bougherra, M., Rabeh, K. and Nabila, G. (2010). The impact of the diversification strategy on CONDOR firm competitive. Fourth International Meeting on: competition and competitive strategies of industrial enterprises outside the hydrocarbon sector in the Arab countries, University of Almaseelah.
Bourley, D (1964). Measurements of precision attained in sampling. Bull. Int. Stat. Inst., Amsterdam, 22: 1-62.
Castanis, R. and Helfat, C. (2011). Managerial resources and rents. Journal of Small Business Management, 24(4): 19-29.
Day, G. (2008), Strategic Marketing Planning. Journal of Management Inquiry, 16(3):256-273.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic management: concepts and cases: competitiveness and globalization. Nelson Education.
Hofer, C. W. (2013). Advances in Strategic Management, A New Measure for Assessing Organizational Performance. In R. Lamb (Ed.), New York: JAI Press.
Jain, S. (2009). Symbiosis vs. Crowding-Out: the Interaction of Formal And Informal Credit Markets in Developing Countries. Journal of Dev. Econ. 59(2):419–444.
Johnson, G., Scholes, K. and Whittington, R. (2005). Exploring Corporate Strategy, (8th edn.). FT Prentice Hall, Essex, pp. 89-90. ISBN 978-0-273-71192.
Lambin, J. (2016). Strategic Marketing Management. Journal of Management Inquiry, 16(3):256-273.
Lawton, R. (2016). What factors influence customer loyalty?. Available at: https://www.arrkgroup.com/though-leadership/what-factors-influence-customer- loyalty. Accessed 18th April, 2023.
Muga, L. and Santamaría, R. (2008) Market penetration strategies and the Fee-performance relationship: The case of Spanish Money Mutual Funds. Online @ https://www.researchgate.net/publication/228292416.
Murray, J. and O'Driscoll, A. (2006). Strategy and Process in Marketing. Journal of Targeting , Measurement and Analysis for Marketing,16:108-114.
Onibalusi, A. (2016). 4 Strategies to Boost Customer Loyalty. Available at: https://www.entrepreneur.com/article/284973. Accessed 4th December, 2019.
Polanyi, M. (2016). The tacit dimension, Gloucester. MA: Peter Smith. London.
Porter, M. (2005). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. ISBN 00-2925-360-8.
Powell, T. C. (2012). Strategic marketing planning as competitive advantage, Strategic Management Journal, 13(4): 551-558.
Robert, B. (2014). Measuring Organizational Performance: an Exploratory Study. Market Information Journal, 15 (1): 61 – 77.
Rumelt, R.P (2011). Evaluation of strategy: Theory and Models. Strategic management a view of business policy and planning. Little brown, pages 196-212.
Slater, S. F., & Narver, J. C. (2018). Does competitive environment moderate the market orientation-performance relationship?. Journal of Marketing, 58(1), 46-55.
Ulrike M. (2017). Management stratégique. (1st edn.), Bréal-France, Sage Publishers, pp. 44-45.
Varadarajan, P., & Jayachandran, S. (2019). Marketing strategy: An assessment of the state of the field and outlook. Journal of the Academy of Marketing Science, 27(2), 120-143.
Wakwoma, W. (2007). A survey of the product diversification strategies adopted by firms in the banking industry in Kenya. A Management research project submitted to School of Business, University of Nairobi.
Wernerfelt, B. (1984). A resource based view of the firm. Strategic Management Journal, 5(2), 171-180.
Wilson, R. & Gilligan, C. (2013). Strategic Marketing Management. Strategic Management Journal, 5(2):71-79.
Yamane, T. (1967). Statistics: An Introductory Analysis, 2nd Ed. New York; Harper and Ro.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 EPH-International Journal of Business & Management Science
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
