EFFECT OF STRATEGIC AGILITY, ORGANIZATIONAL RESILIENCE ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN EMERGING ECONOMIES: EVIDENCE FROM WEST AFRICA 2004 – 2024

Abstract

This study examined the effect of strategic agility and organizational resilience on the performance of Small and Medium Enterprises in African using secondary data from 2004 to 2024. Anchored on dynamic capability theory, the research employed a panel research design and drew data from the NBS-SMEDAN MSME Survey and CAC Annual Returns. Strategic agility was measured using revenue diversification, asset reconfiguration speed, and product/service innovation intensity, while organizational resilience was proxied by financial slack, leverage stability and liquidity buffer, all extracted from audited annual reports and survey financials. With E-view software, the regression tools were used for data analysis and the findings revealed that strategic agility dimensions and organizational resilience indicators have significant positive effects on SME performance measured by return on assets. The study concludes that combining agility and resilience capabilities significantly enhances SME survival, growth and performance in volatile contexts. The paper recommended that SMEs owners must develop the adaptive capacity and financial stability to respond quickly to changes while also building the strength to withstand disruptions and also develop environmental scanning habits and flexible decision-making processes to enable quick response to market and policy changes.