Business Strategy Alignment and Performance of Manufacturing SMEs (Published)
The effect of business strategy alignment on the performance of Small and medium sized manufacturing firms in North-West Nigeria was examined. Specifically, the study examined the impact of strategic goals alignment, organizational structure alignment, resource allocation alignment and operational process alignment on firm performance. The descriptive survey research design was used and data were collected from 298 owner-managers and senior workers of manufacturing SMEs selected from Kano, Kaduna and Katsina States, using a structured questionnaire. Data were analysed with descriptive statistics and multiple regression analysis using SPSS version 26. The results indicated that business strategy alignment in all four dimensions had a significant and positive relationship with firm performance. Strategic goals alignment (β = 0.298, p < 0.05), organizational structure alignment (β = 0.231, p < 0.05), operational process alignment (β = 0.214, p < 0.05) and resource allocation alignment (β = 0.189, p < 0.05) were the strongest determinants of performance. The regression model accounted for 67.4% of the variance in firm performance, which suggests that there is a strong relationship between business strategy alignment and organizational performance. The study findings have shown that good alignment of strategic goals, structures, resources and operational processes is essential in improving the profitability, productivity, customer satisfaction and competitiveness of manufacturing SMEs in North-West Nigeria. The study suggests that SMEs’ managers should improve strategic communication and review mechanisms, and adopt flexible organizational structures, align resource allocation with strategic priorities and continuously enhance operational processes in order to obtain sustainable business performance.
Keywords: Business Strategy Alignment, Operational Process Alignment, Organizational Structure Alignment, Resource Allocation Alignment, SME Performance, Strategic Goals Alignment