Strategic resource allocation and competitiveness of agro-allied SMES: the moderating role of environmental dynamism

Purpose This study examined the effect of strategic resource allocation on competitiveness of SMEs, accounting for the moderating role of environmental dynamism. Design/methodology/approach Using a two-stage sampling approach, this study used a dataset of 219 respondents from across the six geopolitical zones country. Primary data was employed using structured questionnaire. Partial least square structural equation model was used to analyse the data with the aid of SmartPLS 3.3. Findings The study found that strategic resource allocation has significant effect on agro-allied firms' competitiveness, and environmental dynamism also showed a significant effect on competitiveness. The study also found that environmental dynamism moderates the direct link between strategic resource allocation and agro-allied firms' competitiveness. The study concludes that agro-allied SMEs that desire improved competitiveness should ensure that resources are strategically allocated irrespective of the dynamic nature of their operating environment. Originality/value This study adds a new layer to the resource-based view theory as it validates it and also extends that possession of resources should be balanced with effective resource orchestration to achieve competitive advantage. This study addressed the question of how strategic resource allocation can drive competitiveness in firms while also answering the question of whether environmental dynamism is a major boundary condition that can affect this relation. Contrary to the norm in most studies that environmental dynamism could affect performance negatively, the study extends the literature on how a firm can gain competitive performance through environmental dynamism.