Competitive Strategy of Intellectual Capital on Small and Medium Enterprises’ Performance: a Study of Selected Smes in Ilorin Metropolis.

Small and medium enterprises are one of the major contributors to a country’s GDP. They provide employment opportunities for the labour force of any country. These are the reasons why the study of small and medium enterprise is very important especially in the aspect of their performance. Thus, the purpose of this study is to analyze the competitive strategy of intellectual capital on small and medium enterprises’ performance in Ilorin, Kwara State. The study used simple random sampling techniques to select three hundred and fifty-four (354) SME operators in Ilorin, Kwara State. Primary data were collected using a structured questionnaire which was administered electronically to the SME operators. Data obtained were analyzed and presented using descriptive statistics. The hypotheses formulated in accordance with the research questions were tested using simple regression analysis with the aid of SPSS. The findings revealed that formal education, cost leadership and e-commerce have positive (weak) significant effect on SMEs' performance in Ilorin, Kwara State, while hard/soft skills have positive (moderate) significant influence on SMEs’ performance in Ilorin, Kwara state. The study concluded that intellectual capital has an impact on small and medium enterprises’ performance in Ilorin, Kwara State and it can be used to formulate and implement competitive strategy to gain an edge over rivals in the market and to boost and sustain business performance. The study recommended that small and medium enterprise operators should advance their level of education. They can opt to attend business schools in order to improve their business wise competencies and to stand out among their rivals. They should also provide training to their employees. SME owners should leverage the use of e-commerce and social media platforms to increase their online visibility. Also, the government (federal, state, and local level) should provide training to SME owners on hard and soft skills that are required to boost their businesses performance and the use of different e-commerce platforms and social media.