The role of strategic alliance as a coping strategy for climate change by SMEs in Nigeria

The challenges faced by SMEs, such as limited financial resources, expertise, and scale, have been exacerbated by climate change. As a result, SMEs increasingly need to adopt collaborative strategies, such as strategic alliances, to navigate these challenges. This study examines the role of strategic alliances as a coping strategy for climate change adaptation among SMEs in Nigeria. A mixed-method approach was employed, combining a quantitative survey with qualitative interviews. Data were collected through questionnaires returned from 70 SMEs, supplemented by interviews with selected respondents to provide deeper insights and interpretations of the survey findings. The results indicated that adopting strategic alliances allowed SMEs to increase their climate awareness, share risks, build capacity, facilitate technology transfer, achieve synergy and competitive advantage, and reduce costs. The study also identified key barriers to forming strategic alliances, including lack of trust, misappropriation of partner skills, dishonesty, and abandonment of agreements. Despite these challenges, the findings suggested that strategic alliances can serve as a valuable tool for SMEs in mitigating and adapting to climate change. Therefore, policymakers should support and promote this strategy to ensure the sustainability of SME operations in Nigeria.