Assessment of the moderating effects of Nigerian market environment on the relationship between management success determinants and SMEs’ performance

  • 912 Views
  • 177 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

A reported eighty-five percentage failure rate of SMEs in Nigeria before five years of operation was ascribed to a lack of knowledge of the market environment. Hence, this study investigated the moderating effects of the Nigerian market environment on the relationship between management success determinants and SMEs’ performance to see how the environment has affected SMEs’ performance. The study employed a survey research design, the population of the study comprised chief executive officers (CEOs) of registered SMEs, and a sample size of 1,102 was used. Probability sampling methods of stratified, proportionate, and random sampling were adopted. Responses were collected through a predetermined set of questions and a self-administered questionnaire. Data were analyzed using descriptive and inferential statistics. The study found that the Nigerian market environment had moderating effects on the relationship between management success determinants and SMEs’ performance (R = 0.817, R2 adjusted = 0.664, R2 change = 0.041, and Fchange = 19.694 at ρ = 0.000), most of the Nigerian market environment’s components have significant moderating effects on all the management success determinants relationship with SMEs’ performance; management skills (β = 0.220, 0.182; ρ < 0.05), innovation (β = 0.147, 0.135; ρ < 0.05), operating system (β = 0.083, 0.061; ρ < 0.05), organizational structure (β = 0.290, 0.303; ρ < 0.05), business reporting system (β = 0.142, 0.137; ρ < 0.05), system flexibility (β = 0.110, 0.107; ρ < 0.05), environmental scanning (β = 0.091, 0.062; ρ < 0.05). Only decision-making is not statistically significant (β = 0.037, 0.004; ρ > 0.05). These imply that Nigerian SMEs’ decisions under intense environmental turbulence are mostly ineffective, and the effects of management success determinants in facilitating performance were also drastically reduced as well as firms’ system flexibility. The study has a practical value of identifying the effect of the Nigerian market environment on the relationship between management success determinants and SMEs’ performance, thus revealing the gaps in the Nigerian SMEs’ management factors.

Acknowledgment(s)
To Small and Medium Enterprises Development Agency of Nigeria and Small Scale Enterprises Association of Nigeria for their support in ensuring participation of their members.

view full abstract hide full abstract
    • Figure 1. Path analysis diagram of the moderating effects of Nigerian market environment on the relationship between the management success factors and SMEs’ performance
    • Table 1. Regression model summary of moderating effects of selected Nigerian market environment on the relationship between the management success determinants and SMEs’ performance
    • Table 2. Analysis of Variance (ANOVA) of moderating effects of selected Nigerian market environment on the relationship between the management success factors and SMEs’ performance
    • Table 3. Results of moderating effects of selected Nigerian market environment on the relationship between the individual management success factors and SMEs’ performance
    • Table 4. Path analysis of the moderating effects of Nigerian market environment on the relationship between the management success factors and SMEs’ performance
    • Conceptualization
      Olalekan Asikhia
    • Data curation
      Olalekan Asikhia
    • Formal Analysis
      Olalekan Asikhia
    • Investigation
      Olalekan Asikhia
    • Methodology
      Olalekan Asikhia
    • Project administration
      Olalekan Asikhia, Vannie Naidoo
    • Writing – original draft
      Olalekan Asikhia
    • Supervision
      Vannie Naidoo
    • Validation
      Vannie Naidoo
    • Visualization
      Vannie Naidoo
    • Writing – review & editing
      Vannie Naidoo
Related Articles

  • Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam

    Trung Kien PhanORCID Researcher ID, Thi Hong Thuy NguyenORCID , Thu Ha DangORCID , Van Thuan TranORCID , Kim Ngoc LeORCID doi: http://dx.doi.org/10.21511/ppm.19(4).2021.05
    Problems and Perspectives in Management Volume 19, 2021         Issue #4         pp. 48-62 Views: 9059 Downloads: 1408 TO CITE АНОТАЦІЯ

    Non-financial factors including quality of services, the flexibility of a company, utilization of resources, and market orientation are regarded as significant determinants that enhance the profitability-based performance of a service company or a hotel. The study investigated the interaction between these factors and hotel operating performance measured by the hospitality performance and results indicators. Data on 346 executives of Vietnam’s hospitality companies were collected. A structural equation modeling (SEM) method was utilized to examine the positive-direct and moderating effects of non-financial factors on hotel performance in terms of occupancy rate (OCR), average daily rate (ADR), and the revenue per available room (RevPAR). The findings showed that service quality ( = 0.118, p < 0.05), flexibility ( = 0.173, p < 0.05) and resource utilization (= 0.172, p < 0.05) positively affected the performance of Vietnam’s hospitality companies. Meanwhile, innovation showed no direct influence (p = 0.068) but an indirect impact on the performance through service quality ( = 0.311, p < 0.05). Market orientation did not impact the performance (p = 0.076) but it positively affected both innovation ( = 0.322, p < 0.05) and service quality ( = 0.146, p < 0.05). The study contributed to a theoretical enhancement of the current level of knowledge on the factors that affect the performance and developed a reliable scale for measuring the performance of hotels in Vietnam.

  • Exploring fast moving consumer goods (FMCG) small, medium and micro enterprises manufacturers’ need for innovation to achieve growth

    Lawrence Mpele LekhanyaORCID , Nze Grace Olajumoke , Dorasamy Nirmala doi: http://dx.doi.org/10.21511/ee.08(2).2017.01
    Environmental Economics Volume 8, 2017         Issue #2         pp. 8-16 Views: 5443 Downloads: 1158 TO CITE АНОТАЦІЯ

    The purpose of this paper is to investigate the problems of the sustainable development, to explore the level of innovation in the fast moving consumer goods (FMCG) manufacturing SMMEs sectors, which most affects on the state of the environment, to identify the causes of low innovation in the industry and to examine these factors influence on the effectiveness of SMMEs manufacturers innovation strategies, as well as to invent a new innovation strategic approach to overcome innovation problems in the economic growth of fast moving consumer goods SMMEs manufacturers. The study is aimed to determine the level of innovation and factors contributing to low innovation in fast moving consumer goods (FMCG) SMMEs manufacturers, which hinder their economic performance. Mixed approach of quantitative and qualitative questionnaire is used for primary data collection. Sample consists of 120 SMMEs. Statistical Package for Social Sciences (SPSS) (23.0) was employed for data analysis. The study results are presented with figures and diagrams. This study will be a useful tool for general public and relevant stakeholders in this sector.

  • Holacracy and Obliquity: contingency management approaches in organizing companies

    Emil VelinovORCID , Vasko Vassilev , Igor Denisov doi: http://dx.doi.org/10.21511/ppm.16(1).2018.32
    Problems and Perspectives in Management Volume 16, 2018         Issue #1         pp. 330-335 Views: 3570 Downloads: 1147 TO CITE АНОТАЦІЯ

    The paper aims to examine the development of modern innovative management methods and practices such as Holacracy, Obliquity, Adhocracy and Sociocracy, which are novelty in the Management science and practice. The study illustrates contingency approaches in designing, managing and developing agile companies from wide varieties of industries. The paper sheds light on contemporary methods in organizing, planning and setting goals of companies in a post-knowledge era. It is like an operating system for business that requires the installation of different applications as applications for hiring employees, for setting salaries, for planning or logistics. In the paper, literature review on management innovations is conducted and subsequently statistical operationalization through STATA software has been employed to examine how particular organizations design and set up their organizational structures such as lean, agile or scrum. Paper results show that smaller companies are more agile and they tend to acquire Holacratic Management models thanks to the fact that self-managing teams exist internally and their organizational structures are flatter and more adaptive in comparison to the multinational corporations. Consequently, the paper concludes with suggestions on innovative management implementations for future development of companies and emphasizes the need for further research on what is the impact of Holacracy and Obliquity on shaping the organizational culture of companies.

Download Preview
Close
Problems and Perspectives in Management
Problems and Perspectives in Management