Cost Leadership, Market Orientation and Business Performance:An Empirical Investigation

Abstract

The study aimed at examining the relationship between cost leadership strategy, market orientation and business performance of manufacturing, Small and Medium Enterprise performance (SMEs). A quantitative survey method was employed, using a cross-sectional research design. The data were collected through self-administered questionnaires from a sample of 287 respondents. The study indicated that SMEs are essential to the economic growth of Nigeria; because they serve as an indispensable source of employment generation. SMEs contribute immensely towards the formation of industries, enhanced capital accumulation, served as an intermediary for goods, and assist in the uplifting the living standard through the provision of variety of products and services. The research model used in this survey was designed in line with the theoretical evidence which in turn lead to the correlation between the research variables. The study employed the Multiple regression method; the findings indicated that cost leadership strategy and market orientation has a significant positive relationship with the performance of SMEs. The discussion provided some limitations and offer suggestions for future research directions.