ABSTRACT
The purpose of this chapter is to examine the effect of generic strategies on the performance of SMEs in Nigeria. A total of 160 firms were surveyed from listed companies in Nigeria. Of the 160 firms surveyed, 158 questionnaires were returned, 136 of which were usable for analysis. Results show that the business strategies of cost leadership, differentiation, and combination strategies were positively and significantly related to performance. Results also show that combination strategy was associated with higher profitability and overall performance than were cost leadership and differentiation strategies. Our findings also show that firms pursuing any of the generic strategies achieved higher performance levels for profitability and overall performance than firms with no coherent strategy. The study provides practical implications for small business owners and managers. Suggestions for future research are also provided for those who want to further pursue this line of inquiry.
