EFFECT OF ENVIRONMENTAL SCANNING ON PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN MAKURDI METROPOLIS, BENUE STATE NIGERIA
DOI:
https://doi.org/10.61841/jbrkgn22Keywords:
Environmental Scanning, Small and Medium Enterprises (SMEs), Market Share, Sales Growth, Logit Regression AnalysisAbstract
The study examined the effect of environmental scanning on performance of Small and Medium Enterprises in Makurdi Metropolis, Benue State, Nigeria. The population consisted of 502 SMEs, and a sample of 223 SMEs was selected using simple random sampling. Data were collected through a structured questionnaire, with reliability confirmed through Cronbach's Alpha values ranging from 0.797 to 0.863. Logit regression analysis was applied to evaluate the effects of environmental scanning. The results indicated that political and legal scanning (PLS) positively influenced market share with an odds ratio of 3.645, but had a weak, statistically insignificant relationship with sales growth (Exp(B) = 0.736). Competitive scanning (CPS) had a minor positive effect on market share (Exp(B) = 1.128) but a significant negative impact on sales growth (Exp(B) = 0.177). Technology scanning (TCS) showed a positive and significant relationship with market share (Exp(B) = 2.738) and a moderate positive effect on sales growth (Exp(B) = 1.383). Societal scanning (SOS) had a significant positive relationship with sales growth (Exp(B) = 5.216) but no significant effect on market share (Exp(B) = 0.922). The study concludes that while political, legal, and technological scanning are important for improving market share and sales growth, societal scanning contributes more significantly to sales growth than to market share. It recommends integrating technological and societal insights into strategies, minimizing overemphasis on competitors, and investing in managerial training for better strategic decision-making.
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