Effect of Internal Business Environment on Marketing Performance of Small and Medium Enterprises in South-South Nigeria

Abstract

This study assessed the effect of internal business environment on marketing performance of small and medium enterprises in South-South Nigeria; it specifically examined the effect of organizational structure and leadership styles on SMEs marketing performance in South-South Nigeria. The study was anchored on systems theory. Survey research design was adopted, the population of the study consists of Two hundred and twenty thousand, seven hundred and sixty-five (220,765) small and medium enterprises registered with Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as at (2021) operating in South-South Nigeria. Primary data was collected through the use of five-point likert scale questionnaire from the sampled four hundred (400) owner/managers of the SMEs in South-South Nigeria. The data collected was analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The structural results reveal that both organizational structure and leadership styles has a significant positive effect on the marketing performance of SMEs in South-South Nigeria. Based on the findings, the study recommended that SMEs owners and managers South-South Nigeria should adopt more participative and transformational leadership approaches that encourage employee involvement in decision-making, motivation, and innovation. This will strengthen employee commitment and improve responsiveness to market opportunities, thereby enhancing overall marketing performance. They should also establish clearer and more flexible organizational structures with well-defined roles, responsibilities, and communication channels. This will reduce operational ambiguity, improve coordination, and enhance efficiency in delivering products and services to the market.