BUILDING BUSINESS SYSTEMS AND STRUCTURES FOR SUSTAINABLE GROWTH OF SMEs IN NIGERIA: A STRATEGIC MANAGEMENT PERSPECTIVE

BY

SIMON EGBUNU

DOCTOR OF STRATEGIC MANAGEMENT AND LEADERSHIP DEVELOPMENT

Abstract

Small and mediumsized enterprises (SMEs) are critical drivers of innovation, employment, and inclusive growth in Nigeria, yet their sustainability remains fragile due to weak internal systems and structures. This study examines how management systems, operational systems, innovation and knowledge systems, and corporate governance and leadership contribute to the sustainable growth of Nigerian SMEs from a strategic management perspective. Adopting a quantitative survey design, data were collected from 400 SMEs across diverse sectors using structured questionnaires. Reliability analysis confirmed strong internal consistency (Cronbach’s α > 0.83), while correlation and multiple regression analyses were conducted using Jamovi software. Diagnostic tests validated the robustness of the models. Results reveal that all four business systems significantly and positively influence SME sustainable growth, with management systems exerting the strongest effect (r = 0.804). The regression model explained 67.3% of the variance in sustainable growth outcomes, underscoring the importance of structured planning, operational efficiency, innovation capacity, and governance mechanisms. Findings highlight that Nigerian SMEs must move beyond informal practices and survivalist strategies to adopt integrated systems that align with longterm sustainability goals. The study concludes that strengthening internal business systems and structures is essential for resilience, competitiveness, and stakeholder trust in Nigeria’s volatile business environment. Recommendations include capacity building for SME managers, adoption of lean operational processes, investment in innovation and knowledge transfer, and formalization of governance practices to ensure sustainable growth trajectories.

Keywords: SMEs, sustainable growth, business systems, business structures, strategic management, Nigeria, governance, innovation

Download this journal here!