Abstract

Small and Medium Enterprises (SMEs) are central to economic growth, employment, and innovation, yet many face operational inefficiencies and competitive challenges, particularly in South–South Nigeria. This study examines process optimization as a tool for enhancing competitive advantage among SMEs in the region. Specifically, it investigates the level of process optimization adoption, its impact on operational performance, and its influence on competitive positioning and market outcomes. A cross-sectional survey design was employed, collecting data from 200 SME ownermanagers across Rivers, Akwa Ibom, Delta, Edo, Bayelsa, and Cross River States. Data were gathered through a structured questionnaire measuring process optimization practices, operational performance, and competitive advantage indicators, using a five-point Likert scale. Descriptive statistics and regression analysis were conducted using SPSS to assess relationships between variables. Findings reveal that SMEs exhibit moderate to high adoption of process optimization practices, including workflow standardization, quality management systems, and digital tool integration. Regression results show that process optimization positively and significantly affects operational efficiency, market outcomes, and overall competitive advantage. The study concludes that process optimization is a strategic enabler for SMEs, enhancing performance, efficiency, and market competitiveness. It recommends adoption of structured processes, technology integration, continuous improvement, and supportive policies to strengthen SME sustainability in South–South Nigeria.