Competitive Aggressiveness and Market Share of Selected Small and Medium Scale Enterprises in Lagos State Nigeria

Abstract

The performance of small and medium scale enterprises (SMEs) plays a key role in the growth and development of any economy. Competitive Aggressiveness (CA) has been identified as instrumental to enhancing the control of sizable market share. However, lack of adoption of this important tool has been a challenge for these SMEs leading to decline in performances. The study hence, examined the effect of competitive aggressiveness on the market share of SMEs in Lagos, Nigeria. The study adopted cross-sectional survey research design. The population comprised 8,396 owner/managers of SMEs. The Research Advisors table was used to determine a sample size of 481. A validated questionnaire was administered to 481 respondents for data collection purpose but 430 came back correctly and were used for the study. The Cronbach’s alpha reliability coefficients of the constructs ranged from 0.71 to 0.84. The response rate was 89%. Data were analyzed using descriptive and inferential statistics. Findings revealed that Competitive aggressiveness does not have a significant effect on the market share of selected small and medium scale enterprises in Lagos state (β = 0.009, R = 0.015 R2, = 0.000, F(1, 428) = 0.100, p >0.05). The study concluded that Competitive aggressiveness does not have a significant effect on market share of small and medium scale enterprises in Lagos State, Nigeria. The study recommended that firms should intensify aggressive competitive effort by working smart, carrying employees along, effective bench marketing, and proper monitoring of operational activities by regulatory bodies. These activities if well executed will increase level of market share of the SMEs in Lagos State, Nigeria.