Moderating effect of Entrepreneurial Orientation on the Relationship between Strategic Marketing Innovation and Sustainable Competitive Advantage of SMEs in Northwest Nigeria

Abstract

The primary aim of this study is to investigate how strategic marketing innovation influences the sustainable competitive advantage of SMEs in Northwest Nigeria, with a focus on the moderating effect of entrepreneurial orientation. The study adopted cross-sectional survey research design with data collected at a single point in time. The population of the study consists of 4661 registered SMEs in Northwest Nigeria. A sample size of 368 SMEs was used to represent the entire population, through Yamane formula. The results suggest that only two of the three strategic market innovation measures (i.e. distribution innovation and product innovation) have positive effect on SMEs sustainable competitive advantage, while price innovation has insignificant effect on SMEs sustainable competitive advantage. Furthermore, entrepreneurial orientation has a positive significant effect on SMEs sustainable competitive advantage. Accordingly, the present study demonstrates that entrepreneurial orientation hasmoderating effect on the relationship between strategic market innovation (i.e. price innovation) and SMEs sustainable competitive advantage. It is therefore recommended that the managers need to be well orientated in anticipating and addressing customer needs and
preferences while reviewing and implementing their innovative price.