Unveiling the Impact of Strategic Sensitivity and Strategic Response on SME Performance Amidst COVID-19: Examining the Mediating Role of Innovation Capacity

Authors

  • Ademola Samuel Sajuyigbe Precious Cornerstone University
  • Isaac Olujide Ladokun Department of Marketing, The Polytechnic,Ibadan,
  • Nwoye James Obi Department of Business Administration, Caleb University, Lagos
  • Alaba Adesola Oladeji Department of Business Administration and Management Studies, The Polytechnic, Ibadan, Nigeria
  • Mariam Adebisi Adeyemi

Keywords:

Strategic sensitivity, Strategic response, Innovation capacity, SMEs performance

Abstract

Scholars recognize that Small and Medium Enterprises (SMEs) play a crucial role in promoting economic sustainable development for nations. Nevertheless, the SME sector has faced significant challenges due to the impact of the COVID-19 pandemic and the changes in the global competitive environment, leading to a decline in their profits. Top of Form

Bottom of Form

This study, therefore, investigates the mediating influence of innovation capacity on strategic sensitivity, strategic response, and the performance of SMEs. A structured questionnaire was used to collect data from 405 participants. Data analysis was performed with the aid of Path Analysis- Structured Equation Modelling (PA-SEM). The study establishes that strategic sensitivity has a significant and positive impact on SME performance, as well as on innovation capacity. Strategic response also demonstrates a positive and significant relationship with SME performance. Innovation capacity emerges as the variable with the strongest positive relationship with SMEs performance. The study further reveals that innovation capacity partially mediates the relationships between strategic sensitivity and SME performance, as well as between strategic response and SME performance. This suggests that the positive impact of strategic sensitivity and strategic response on SME performance is partly driven by their influence on innovation capacity. The study advocates for investments in research and development, the cultivation of creativity, and the embrace of new technologies as key strategies for SMEs to achieve sustainable success.

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Published

08-07-2024

Issue

Section

Articles

How to Cite

Sajuyigbe, A. S., Ladokun, I. O., Obi, N. J., Oladeji, A. A., & Adeyemi, M. A. (2024). Unveiling the Impact of Strategic Sensitivity and Strategic Response on SME Performance Amidst COVID-19: Examining the Mediating Role of Innovation Capacity. Journal of Technology Management and Business, 11(1), 147-159. https://publisher.uthm.edu.my/ojs/index.php/jtmb/article/view/16768