Collaborative Strategies and the Development of Small and Medium Scale Industries in Nigeria: An Assessment of the Benefits and Constraints of Strategic Alliance

The Nigerian industrial sector, which is largely made up of micro, small, and medium-scale industries (SMIs), has remained the bedrock of Nigeria’s development. However, given that many of these industries find it difficult to cope with the present global economic downturn, it has become expedient for SMIs to adopt collaborative strategies, such as strategic alliances, as a flexible and efficient option for their survival in the long run. The adoption of this strategy, however, comes with limitations that hinder its effectiveness. This paper assessed the benefits and limitations of strategic alliances on SMIs. The paper adopted a survey research design based on a quantitative approach and questionnaire survey of 103 SMIs in Enugu State, Nigeria. Simple mean and standard deviation statistics were used to analyze the data. The result of the study indicated that risk sharing, technology acquisition, and competitive advantage were the common benefits of strategic alliance, while trust issues and cross-cultural issues, as well as dishonesty and abandonment of agreement, were the major limitations of strategic alliance. Given the benefits and limitations of strategic alliances, policymakers are encouraged to design frameworks such as legal institutions (courts), awareness/training, and institutional policies that would model the principles and use of this strategy by these enterprises. The goal is to protect SMIs and ensure they operate fairly. Received: 23 July 2026 / Accepted: 28 October 2026 / Published: November 2026