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This paper aims to investigate the mediating effect of employee engagement on the relationship between generic business strategies and the competitiveness of Small and Medium-Scale Enterprises (SMEs) in the Federal Capital Territory, Abuja (FCT).

The research design used a cross-sectional survey approach, focusing on SMEs registered with the SMEDAN in FCT-Abuja. A total of 349 SMEs were used. Data collection relied on a questionnaire-based survey instrument. The data were analysed using Partial Least Square Structural Equation Model (SmartPLSv3.1).

The results revealed several significant findings. Firstly, the study confirmed a direct and positive relationship between the cost leadership strategy and SME competitiveness, indicating that cost leadership significantly enhances competitiveness. Secondly, a significant and positive relationship was identified between the focus strategy and SME competitiveness, suggesting its significant contribution. However, the relationship between the differentiation strategy and SME competitiveness was found to be non-significant. Moreover, the research established that employee engagement has a significant positive effect on SME competitiveness. The study also confirmed the mediating effect of employee engagement on the relationship between cost leadership strategy and competitiveness, as well as between focus strategy and competitiveness. Lastly, employee engagement significantly mediated the relationship between differentiation strategy and SME competitiveness.

The paper advances a new perspective by linking internal resource’s role in strategic management effort towards ensuring increased firm competitiveness especially in SMEs. The paper offers scholars a new area of research, as it draws scholarly attention to internal behaviour mechanisms that drives top managements activities through lower-level employee participation towards ensuring improved competitiveness.

This paper addresses the mediating effect of structural infrastructure capability on the relationship between entrepreneurial orientation (EO) and SMEs performance in emerging economies, focusing on Nigeria. It addresses the need to ensure that small and medium-sized enterprises (SMEs) are able to overcome the inherent challenges in their external environment actively and, thus, contribute to economic growth through internal management variables.

The study adopted a survey design, utilising a sample of 377 SMEs covering the six geopolitical zones in Nigeria. A questionnaire was used for data collection, and data analysis was conducted using partial least squares structural equation modelling (PLS-SEM) with the aid of SmartPLSv3.

The study found that innovativeness and proactiveness, as dimensions of EO, have a significant effect on SMEs' performance. Risking-taking, however, showed no significant effect on performance. The study found that structural infrastructure capability significantly mediates the EO–performance relationship.

The paper provides practical implications for society, as managers and SMEs' support agencies in emerging markets can be encouraged to focus more on internal management activities to support knowledge sharing within the organisation, given its relevance to improving performance, rather than focusing only on EO.

The study further strengthens and validates the resource-based view (RBV) theory and contributes to expanding knowledge on the relevance of internal management variables (knowledge sharing) in managing small and medium-scale enterprises. The study further advances theories regarding knowledge management's role, as a function of internal management system in the EO–performance relationship, thus helping to close the research gap related to these relationships from an emerging-economy perspective.