Influence of strategic orientation on SMEs access to finance in Nigeria

• Main Authors: Murtala Aminu, Ibrahim, Mohd Shariff, Mohd Noor
• Format: Article
• Language: English
• Published: Canadian Center of Science and Education 2015
• Subjects: HB Economic Theory
• Online Access: http://repo.uum.edu.my/18095/1/ASS%2011%20%204%202015%20298-309.pdf; http://repo.uum.edu.my/18095/; http://doi.org/10.5539/ass.v11n4p298

The paper examined the influence of EO, MO, LO, and TO on SMEs financial capital accessibility in Nigeria.The purpose of this paper is to establish the role of firm strategic orientation in helping SMEs improve their financial access. A total of 362 questionnaires from SMEs in North Western Nigeria were used in this study.Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the study hypotheses.Using SmartPLS 3.0 the findings indicates that strategic orientations are important drivers of firm success to finance.The result further suggests that SMEs who configured and utilized their strategic activities are more likely to get more cash flow, profit and retained earnings and will obtain a loan from external sources.To get an adequate financial capital SMEs need to improve their marketing activities, learn more from their experience and environment and lastly produce product with high technological improvement.At the same time they should avoid too much emphasis on taking risky business decision and investments.