Impact of strategic planning on organisation performance of SMEs in Nigerian in the context of Michael Porter Five Forces Model

Background: Strategic planning plays a very important role in the growth and development of organizations. Strategy is crucial to the organization performance of SMEs given their nature, size, capacity, and services provided. Considering how important strategic planning is, so many SMEs still fail to adopt and adhere to strategic planning resulting in poor organizational performances. Purpose: The purpose of the study is to examine the relationship between strategic planning and organization performance of SMEs in Nigeria. Method: It adopted quantitative and qualitative methods through the use of standardized questionnaires and interviews. The study involved over 150 respondents, analyzed using appropriate statistics and analytical tools. Conclusion: The findings indicated that strategic planning has an impact on organization, and it contributes positively to organization performance. It also showed that there is a significant relationship between strategic planning and organization performances and other key elements of strategic planning such as organization mission, strategic objectives, and organization performances. The study revealed that several SMEs do have knowledge of Porter Five Model Forces but lack proper application of it to their organization activities. The study suggested that SMEs should employ strategy managers and ensure proper analysis and understanding of organization mission and strategic objective by employees. Keyword: Strategic Planning, Strategy, Organization performance, Organization mission, SMEs.