June 2025 Edition

STRATEGIC ORIENTATIONS, DIGITAL OPENNESS, AND SME PERFORMANCE IN NIGERIA: A CONCEPTUAL REVIEW OF THE MODERATED MEDIATION EFFECT OF DIGITAL LITERACY

Mustapha Badamasi, Dantsoho, M. Aliyu, PhD, Kabiru Tsoho, PhD

Abstract

Small- and medium-sized enterprises (SMEs) play a crucial role in driving economic growth in emerging markets. However, Nigeria’s SMEs performance is hindered by limited market access, inadequate digital skills, and low digital openness. This conceptual review critically explores how strategic orientations, specifically Market Orientation (MO) and Entrepreneurial Orientation (EO), affect SME performance, with Digital Openness (DO) serving as a mediating mechanism and Digital Literacy (DL) acting as a moderating factor. Drawing on the Resource-Based View (RBV), Digital Transformation Theory (DTT), and Dynamic Capabilities View (DCV), this study synthesises the recent literature (2020–2025). It proposes a framework to address theoretical and practical gaps in the Nigerian context. The analysis highlights that DO and DL are crucial for translating strategic orientations into improved SME performance, particularly in resource-constrained environments. The article concludes with recommendations for practitioners and policymakers and outlines directions for future empirical research.

Keywords

Digital Literacy, Digital Openness, Entrepreneurial Orientation, Market Orientation, Moderated Mediation, Nigeria, SME Performance

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