Firm-Specific Determinants and Marketing Investment as Predictors of Business Performance: Evidence From SMEs in Asaba, Delta State

Abstract

This research examines the impact of firm-specific factors and marketing investments on the performance of small and medium firms (SMEs) in Asaba, Delta State, Nigeria. The study is driven by increasing apprehension regarding the sustainability and competitiveness of SMEs, despite their essential contributions to job creation, innovation, and regional development. The study was directed by the Resource-Based View (RBV) and Dynamic Capability Theory, focussing on the impacts of firm determinants such as age, size, ownership structure, managerial experience, access to finance, and technology adoption, in conjunction with marketing investment variables including advertising, digital marketing, sales promotion, customer relationship management (CRM) activities, and market research. A descriptive survey research design was utilised, and data were gathered from 200 managers, supervisors, and operational staff of SMEs via structured questionnaires.  Stratified random sampling ensured representation across industries, including retail, hotel, manufacturing, and services.  Descriptive statistics, Pearson correlation, and regression analysis were used to look at the data.  The results show that factors that are distinctive to a company have a big beneficial effect on SME success. Access to funding, firm size, and managerial experience are the three most important factors. Investing in marketing was also shown to greatly improve performance, especially through digital marketing and CRM operations. Moreover, the combined impact of company drivers and marketing investment demonstrated a more significant effect on SME performance than either variable independently. The study demonstrated that marketing investment partially mediates the relationship between firm-specific factors and performance, indicating that internal resources must be strategically transformed into market-oriented actions to get superior outcomes. The research indicates that the performance of SMEs in Asaba is influenced by both internal organisational characteristics and strategic marketing initiatives. It suggests that businesses should make it easier for people to get loans, employ more digital tools, train their managers, and spend money on marketing, especially on tactics that focus on customers and are driven by digital tools. The study adds to the knowledge on small and medium-sized enterprises (SMEs) in emerging economies and gives policymakers and managers ideas on how to encourage competitive and long-term SME growth in Nigeria.