International Journal of Social Science & Economic Research
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Title:
EFFECT OF DIFFERENTIATION STRATEGY ON PERFORMANCE OF SELECTED SMALL SCALE MANUFACTURING FIRMS IN NIGERIA

Authors:
ELIKWU, Michael Ikechukwu and Mohammed, Munirat Nma

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1ELIKWU, Michael Ikechukwu and 2Mohammed, Munirat Nma
1. Department of Entrepreneurial Studies, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria
2. Department of Business Administration & Management, Federal Polytechnic Nasarawa, Nasarawa State

MLA 8
Ikechukwu, ELIKWU, Michael, and Mohammed, Munirat Nma. "EFFECT OF DIFFERENTIATION STRATEGY ON PERFORMANCE OF SELECTED SMALL SCALE MANUFACTURING FIRMS IN NIGERIA." Int. j. of Social Science and Economic Research, vol. 5, no. 8, Aug. 2020, pp. 2116-2144, ijsser.org/more2020.php?id=149. Accessed Aug. 2020.
APA 6
Ikechukwu, E., & Nma, M. (2020, August). EFFECT OF DIFFERENTIATION STRATEGY ON PERFORMANCE OF SELECTED SMALL SCALE MANUFACTURING FIRMS IN NIGERIA. Int. j. of Social Science and Economic Research, 5(8), 2116-2144. Retrieved from ijsser.org/more2020.php?id=149
Chicago
Ikechukwu, ELIKWU, Michael, and Mohammed, Munirat Nma. "EFFECT OF DIFFERENTIATION STRATEGY ON PERFORMANCE OF SELECTED SMALL SCALE MANUFACTURING FIRMS IN NIGERIA." Int. j. of Social Science and Economic Research 5, no. 8 (August 2020), 2116-2144. Accessed August, 2020. ijsser.org/more2020.php?id=149.

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Abstract:
Currently, most manufacturing firms in Nigeria are operating within a highly dynamic business environment considered harsh and fiercely competitive, owing to diverse factors such as saturated market for consumable goods, unfair competitive advantage in favour of multinational manufacturing firms with enormous resources and increasing industry competition. This implies that small manufacturing firms are in dire need of innovative strategies to enhance their competitiveness and performance; hence, the need to determine the effect of differentiation strategy on performance of selected small manufacturing firms in Nigeria, with specific objectives on effect of product, package and channel differentiation on sales performance, product acceptability and product availability. This study employed the cross-sectional survey research design to collect primary data from a sample size of 193 respondents. The purposivestratified sampling was adopted to select indigenous small manufacturing firms, while the random sampling was used to administer the research instrument. The research instrument was subjected to content and construct validity, while the reliability of the instrument was tested using the Cronbach Alpha, which gave a value of 0.78. Using the simple frequency tables to analyse data and single regression to test postulated hypotheses; the findings showed that, with a consistent result of 0.413, product differentiation has a positive relationship and significant effect on sales performance; product package differentiation has a positive relationship and significant effect on customer acceptability based on a consistent result of 0.437, while channel differentiation has a positive relationship and a significant effect on product availability based on a consistent result of 0.423. The study recommended that, management of small manufacturing should make efforts to enhance the quality of their products to global standard; should enhance the present quality, durability, design and features of the product packages to influence consumers' acceptability; and strengthen the product supplies to target markets through the differentiated channels.

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