Current Volume 9
Strategic Decision-Making and Firm Performance in Pharmaceutical Smes: Examining The Mediating Effect of Entrepreneurial Orientation
Abstract
This study investigated the relationship between strategic decision-making and firm performance in pharmaceutical small and medium-sized enterprises (SMEs) in Southwest Nigeria, focusing on the mediating role of entrepreneurial orientation. It examined how entrepreneurial orientation enhances the effectiveness of decision-making processes in improving performance outcomes. A mixed-methods design was employed, combining quantitative survey data with qualitative insights. Primary data were collected via structured questionnaires administered to owners, managers, and key decision-makers across six states: Ekiti, Lagos, Ogun, Ondo, Osun, and Oyo. The study population comprised 1,510 registered pharmaceutical SMEs operating in manufacturing, distribution, wholesale, and retail segments. Using Yamane’s formula, a sample of 316 firms was determined, with 305 valid responses analyzed. Data were analyzed through descriptive statistics and mediation analysis using PROCESS Macro (Model 4) in SPSS, supported by bootstrapping. Findings revealed that strategic decision-making positively influences entrepreneurial orientation (β = 0.482, p < 0.001), with firms exhibiting higher innovativeness, proactiveness, and risk-taking. Entrepreneurial orientation also significantly improved firm performance (β = 0.515, p < 0.001). Mediation analysis confirmed that entrepreneurial orientation partially mediates the decision-making–performance relationship, with a significant bootstrapped indirect effect (0.248, 95% CI excluding zero). The study concludes that entrepreneurial orientation is a critical mechanism through which structured decision-making enhances firm performance, reinforcing innovation, proactive strategies, and calculated risk-taking as drivers of competitive advantage.
Keywords
Strategic Decision-Making, Entrepreneurial Orientation, Firm Performance, Pharmaceutical SMEs, Mediation Analysis, Southwest Nigeria.
Citations
IRE Journals:
Ayeni, Olayemi Selimot PhD, Akeredolu, Adebisi Gabriel PhD "Strategic Decision-Making and Firm Performance in Pharmaceutical Smes: Examining The Mediating Effect of Entrepreneurial Orientation" Iconic Research And Engineering Journals Volume 9 Issue 12 2026 Page 271-292 https://doi.org/10.64388/IREV9I12-1718546
IEEE:
Ayeni, Olayemi Selimot PhD, Akeredolu, Adebisi Gabriel PhD
"Strategic Decision-Making and Firm Performance in Pharmaceutical Smes: Examining The Mediating Effect of Entrepreneurial Orientation" Iconic Research And Engineering Journals, 9(12) https://doi.org/10.64388/IREV9I12-1718546
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
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