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Effect of Supply Chain Management on Performance of Small and Medium Scale Enterprises’s in Bwari Area Council of Abuja
- Keyna Marie Chizoma Eshika (Phd)
- Kennedy Ololo (PhD)
- 257-269
- Sep 27, 2024
- Management
Effect of Supply Chain Management on Performance of Small and Medium Scale Enterprises’s in Bwari Area Council of Abuja
Keyna Marie Chizoma Eshika (Phd)1 and Kennedy Ololo (PhD)2
1Department of Public Administration Ahmadu Bello University Zaria-Kaduna State
2Department of Sociology, Alex Ekwueme Federal University, Ndufu, Alike Ebonyi State, Nigeria.
DOI: https://dx.doi.org/10.47772/IJRISS.2024.809022
Received: 31 August 2024; Accepted: 10 September 2024; Published: 27 September 2024
ABSTRACT
This study investigated how supply chain management techniques affected Nigerian Small and Medium sized Enterprises’ (SMEs’) financial performance in Bwari Area Council of Abuja. Primary data from a sample of 164 respondents were used by the researcher and the research design of the study was survey design because questionnaire administration was used to collect primary data from respondents. Regression technique of data analysis was employed to analyze the gathered data sets and the result shows that all the independent variables examined (information sharing, information quality and strategic supplier partnership had positive and significant effect on SMEs’ financial performance of SMEs in Bwari Area Council of Abuja. Based on the findings of the study, it was recommended among others that in order to boost the financial performance of SMEs in Bwari Area Council of Abuja, the management of these SMEs should be making decisions based on sharing of information, quality of information, and strategic suppliers partnership because they have been found to have significant effect on financial performance of the firms.
Key terms: Financial performance, information sharing, information quality and strategic supplier partnership and Small and Medium sized Enterprises.
INTRODUCTION
Scholars and industry professionals view the Small and Medium-Sized Enterprises (SMEs) sector as a driver of economic growth and a way to combat poverty and unemployment because it improves the economy, creates jobs, and gives businesses a competitive edge. Research has shown a substantial correlation between the performance of SMEs and a country’s wealth as well as the growth and development of its economy (Mahamat & Yanya, 2020). SMEs are the engine room for economic growth and development since they provide open doors for the generation of wealth, jobs, and innovations (Offiong, Udoka, & Bassey, 2019; Aremu & Adeyemi, 2011). Furthermore, SMEs are in charge of delivering high-quality goods and services because they support the modernization of global economies and serve as the backbone of growth for developing nations like Nigeria. Also, they are recognized for having enormous potential to further progress in an economy (Okafor, 2020).
SMEs make up a sizable share of the labor force in most nations since they provide jobs for the growing population. Organization for Economic Cooperation and Development (OECD, 2017) revealed that SMEs account for 98% of businesses in OECD nations, producing 70% of employment opportunities, 45% of net total employment, and 33% of GDP in developing nations. About 80% of Nigeria’s industries are small and medium-sized enterprises (SMEs), constituting 75% of the country’s workers (2020 PwC MSMEs survey). As a result of the world’s rapid technological advancements and heightened global competition, business academics, experts, governments, and the general public around the world are becoming increasingly concerned about the performance of small and medium-sized enterprises (SMEs) (Ombi, Ambad & Bujang, 2018).
It has been known that any developing country’s ability to achieve sustained growth and development depends heavily on the performance of its SMEs. In essence, the (SMEs) industry plays a major role in the financial stability of any country whether developed or developing. Nigeria and other developing nations around the world are well known for having developed and put into action plans, policies, and initiatives to support the expansion of SMEs (OECD, 2017). Supply chain management (SCM) has become important and is now acknowledged as a crucial component of corporate performance and competitive advantage in today’s cutthroat global market (Sukati, Sanyal & Awaain 2020).
Since numerous features of SCMPs have been covered in a variety of previous research, it is suggested that SCM practices are a multi-dimensional concept (Susanto, Septina, & Pratama, 2019). In the meantime, Li, Ragu-Nathan, Ragu-Nathan, and Rao (2006) asserted that there are five unique components of SCMPs: delay, level of information sharing, quality of information sharing, customer relationship, and strategic supplier partnership. Afande et al. (2015) stated that these five components address information flow across a supply chain (amount and quality of information exchange), as well as the upstream (strategic supplier partnership) and downstream (customer relationship) sides of a supply chain. In the context of SMEs in developing nations like Nigeria, this study takes three dimensions of information sharing, strategic supply partnership and quality of information sharing into consideration to assess the degree of relationship with financial performance of SMEs in Federal Capital Territory (FCT) Abuja.
It is clear that low profit margins, long lead times, high operational costs, poor product and service quality and quantity, inadequate information, and often stagnant or declining sales are all significant factors are affecting the performance of small and medium-sized enterprises in Nigeria. Nigeria’s position in the World Bank Business Index was 131st out of 190 nations. And this denotes incomplete items, inadequate communication strategies, improper marketing materials, and a lack of information (Okon, 2018). A failure to satisfy client wants stems from a lack of tracking of customer information, and this swiftly results in the loss of numerous prospective sales. The extraordinarily low survival rate of many small firms makes it impossible for them to grow or even just break even (Fatoki & Dzomonda, 2019).
According to the aforementioned issues, academics have linked a number of difficulties such as the inadequate implementation of supply chain management practices (SCMP), to the low GDP contributions and poor performance of SMEs in Nigeria (Ogunlela, 2018). Therefore, the performance of SMEs could be improved by sound supply chain management practices. In order to provide the right product to the right customers at the right cost, right time, right quality, and right quantity, SCMP is centered on the effective flow of goods, services, information, and money to the business (Okon, 2018). In a dispersed, multi-tiered supply chain, SMEs are finding it more and more challenging to manage sustainable practices throughout the entire chain because small and medium-sized enterprises (SMEs) are often held accountable if any of its suppliers do not adopt sustainable practices. The ability to create a more sustainable supply chain is limited as a result of these intricate relationships. Stated differently, the supply-side activities yield negligible results. Consequently, it is crucial to understand how the supply chains of SMEs interact with one another because removing one barrier can have varying effect on another. Despite the greatest efforts of the Nigerian government, small and medium-sized businesses (SMEs) maintain their unbelievable rate of poor development (Gumel, 2019). The three supply chain management approach that may be influencing small firms in Bwari Area Council FCT, Abuja, Nigeria, are information sharing levels, strategic supplier partnerships and quality of information sharing which require investigation.
Research Hypotheses
H01: There is no significant effect of information sharing on financial performance of SMEs in Bwari Area Council FCT, Abuja
H02: There is no significant effect of Strategic Supplier Partnership on financial performance of SMEs in Bwari Area Council FCT, Abuja
H03: There is no significant effect of quality of information sharing on financial performance of SMEs in Bwari Area Council FCT, Abuja
LITERATURE AND CONCEPTUAL REVIEWS
Concept of SME Performance
Performance is the degree to which an organization’s goods and services live up to the expectations of its clients. It gives a hint as to how well-suited the supply chain is to offer goods and services to the consumer. Within the fields of work and organizational psychology, performance is fundamental. In the last ten or fifteen years, scholars have made strides toward elucidating and expanding the concept of performance (Campbell, 1990). Furthermore, there has been progress in identifying the key variables and mechanisms linked to both individual and organizational performance (Qorri, Mujkić & Kraslawski, 2018). Performance concepts and SME performance standards are changing in tandem with the continuous changes that SMEs are facing in today’s businesses (Asamoah, et al., 2021).
In order to accomplish their objectives, provide the goods and services they specialize in, and ultimately gain a competitive edge, SMEs require high-performing personnel (Rojas-Lema, et al., 2021). An individual’s performance is crucial when it comes to carrying out supply chain procedures. One can experience sentiments of mastery and pride when they complete activities and perform at a high level. It is possible to view poor performance and goal failure as disappointing or even as a failure (Rojas-Lema, et al., 2021). Furthermore, performance that is acknowledged by other SMEs members is frequently rewarded with cash and other advantages. Performance is a crucial requirement for future career development and success in the SMEs market, but it’s not the only one. High SMEs performers have easier access to raw materials and within the supply chain, and they generally have better chances than poor performers, though there may be exceptions (Rojas-Lema, et al., 2021).
Accordingly, judging and evaluative processes define performance and not the action itself (Taouab & Issor, 2019). Additionally, only acts that are measurable and scalable are regarded as performance (Ravelomanantsoa, Ducq & Vallespi, 2019). The consequence or outcome of the person’s conduct is referred to as the outcome element and the aforementioned behaviors could lead to many outcomes, such the quantity of engines manufactured, the reading competence of students, sales numbers, or the amount of heart procedures that are successful. The behavioral and result aspects do not entirely overlap, yet they are experimentally related in many cases. Performance outcomes are dependent on variables beyond an individual’s actions. Consider a teacher who teaches a flawless reading lesson (behavioral component of performance) but, due to intellectual deficiencies in one or two of his students, they are unable to develop their reading abilities (outcome element of performance). Also, when we consider a telecom salesperson who performs mediocrely when interacting directly with potential customers (behavioral aspect of performance), but nevertheless achieves high sales figures for mobile phones (outcome aspect of performance) due to the widespread high demand for mobile phone equipment.
Concept of Supply Chain Management
Mentzer et al. (2001) define supply chain as a network that consists of all parties directly or indirectly (manufacturer, supplier, retailer, customer, etc.) involved in going upstream and downstream in the physical distribution, information flow, and financial aspects of delivering high-quality goods or services to final consumers. As to Chopra and Meindl (2010), a standard supply chain comprises five distinct stages, namely: suppliers of ingredient materials, manufacturers, retailers, wholesalers/distributors, and customers. The product, information, and financial flows connect these five stages. Chandra and Kumar (2000) note that managing a supply chain network is challenging and complex due to the large number of subsystems, relationships, activities, and operations involved. Consequently, in order to reduce supply chain difficulties, an integrated supply chain framework is needed to connect the entire network (Thoo, et al., 2017). Supply chain management is referred to as SCM (Mentzer et al., 2001).
In the business sector, SCM has become a buzzword (Li, 2002). Supply chain management (SCM) is the management and planning process that includes all activities from sourcing and procurement to raw material transformation and logistics, according to the Council of Supply Chain Management Professionals (CSCMP). The aim of supply chain management is to integrate supply and demand management. It includes all of an organization’s internal and external channel partners, such as suppliers, intermediaries, customers, and third-party service providers. (Thoo, et al., 2017).
This concept, according to which SCM comprises managing network relationships both within and between enterprises, is supported by the study. In order to deliver final products from the original producer to the end customer, these entities—which include marketing, logistical support, production capacity, purchasing, material suppliers, and related systems—are connected by forward and reverse flows of information, materials, services, and finances. This enhanced customer satisfaction, adds value, and increases profitability through efficiency.
Review of Empirical Studies
In the Kingdom of Saudi Arabia, Alahmad (2021) investigated the connection between supply chain performance (SC performance) and supply chain management practices (SCMPs) in a variety of businesses. An empirical study was carried out on a sample of 196 businesses; data was gathered from supply chain managers and upper management in various Saudi Arabian industries. A theoretical model illustrating the connection between SCMPs and supply chain performance (SC performance) was created in addition to a number of interviews with supply chain managers. The method of data analysis used to test this model was multiple regression analysis and the study found that, supply chain effectiveness is favorably correlated with supply chain management practices (SCMPs), such as supply chain planning (SC planning), information sharing (IS) level, customer relationship management (CRM), quality of information sharing (QIS) and supplier relationship management (SRM). Furthermore, SCMP and SC performance have a positive relationship. Perceptual performance metrics were used in the study to measure sales, revenue, and return on investment. The study recommended that in order to more accurately measure the advantages in this situation, future research could make use of hard data.
Al-Madi, Alfalah, Shraah, and Abu-Rumman (2021) assessed the degree to which supply chain methods were embraced by Jordanian medical device companies and investigated how those practices affected the companies’ organizational performance. In order to achieve the goal, a cross-sectional technique was adopted. Furthermore, in order to gather first-hand information from the study sample, a comprehensive questionnaire was created and employed. The participants filled up and returned 200 questionnaires. The study methodology was validated and the acquired data was analyzed and explained using AMOS:21 in conjunction with SPSS version 21 and SEM. The findings showed that Jordanian medical device companies have implemented supply chain best practices and that these procedures had a major effect on the devices’ performance in Jordanian context.
Sukati, Sanyal, and Awaain (2020) assess the relationship between the performance of businesses in the tourism service industry and the aspects of supply chain management (SCM) practices, such as employee training, information technology, supply chain partnerships, company relationships with customers, and information sharing in supply chains. The data collection tool was a questionnaire that was given to 85 managers working in the hospitality sector (hotel, restaurant, and transportation companies). The study’s findings led to the following conclusions: (1) Strategic supply chain partnerships and organizational performance were positively and significantly correlated. (2) The performance of a business is greatly impacted by its relationships with its customers. (3) Information and organizational performance were related distribution (4) Performance inside enterprises was significantly impacted by information technology. (5) The study’s findings also shown a high degree of agreement between internal operations and organizational effectiveness.
In order to gain a competitive edge, Yanya and Mahamat (2020) examined the impact of supply chain management techniques, such as organizational learning and logistical integration. The study focused on the pharmaceutical business in Thailand, gathering data from firms via questionnaires and analyzing it using Partial Least Squares (PLS). The study’s findings showed a strong positive relationship between logistical integration and competitive advantages as well as organizational learning and competitive advantage. The study also investigated the function of total quality management (TQM) in moderating the relationship between the study’s endogenous and external dimensions. The study found a strong correlation between logistical integration and competitive advantage, indicating the importance of TQM. However, there was no discernible moderating influence between organizational learning and competitive advantage.
Theoretical Review
This study is anchord on Resource-Based View (RBV) propounded by (Barney, 1991), it helps businesses become more flexible, agile, and aligned with reference to SCM. The development of distinct capabilities to improve corporate performance highlights the importance of the resources of heterogeneity, allocation, independence, utilization, and imitability. Companies have focused their efforts on building connections and working with partners upstream and downstream to provide advantages throughout the supply chain (SC) in order to increase performance and survive in a market that is becoming more and more competitive. In this case, the RBV adds value to its goods and services by utilizing its resources, which include all human and non-human tangible and intangible assets (Wernerfelt, 1984).
METHODOLOGY
The research design of this study is survey design and population of this study is three hundred and four (304) SMEs in Bwari Area Council of FCT. This is the total number of registered Small and Medium-scale Enterprises operating in in Bwari Area Council of FCT as at 31st December 2022. The sample size was arrived at using sampling technique of Taro Yamane’s formula to determine the sample size of SMEs which was demonstrated as follows;
Formula: Sample size n = (N)
1+N (e) 2
where N = Population (304, n = sample size (Unknown), e = level of significance (5%), 1 = constant,
Therefore, Sample size n = (304) = 304 =173
1+304 (0.05)2 1.76
Therefore, the sample size of this study is 173 respondents but 200 questionnaires were distributed to accommodate for those that may not be returned or improperly filled. The data collected for this study were analyzed using different statistical procedures. The Bio-data of the respondents were subjected to simple percentages. This was because it could easily be understood with simple percentages than with any other statistical tools. For the purpose of finding the strength of the relationship between financial performance as the dependent variable and information sharing, strategic supplier partnership and quality of information sharing as independent variables, multiple regression analysis was adopted for analyzing the null hypothesis of the study.
Osamuota (2007) noted that it has the advantage of being used to determine the relationship existing between dependent and independent variables, besides the technique is also useful in making prediction because of the linearity that exists between two or more variables.
The functional relationship is given as follows.
FPA=f(ISH, SSP, QIS)…………. ..…………….……………….…………………….(1)
With the aid of this equation the study arrived at a model which is presented as follows
FPA it = β0 + β1ISHit + β2SSPit + β3QISit + +Uit ,…………….……….…….……(2)
Where,
FPA = Financial performance of SMEs
ISH= Information Sharing
SSP= Strategic Supplier Partnership
QIS= Quality of Information Sharing
α = Intercept
Constant , β1, β2, β3 = Coefficients of the independent variables
ε = Error term
RESULTS AND DISCUSSION
Table 1 displays the questionnaire that was given to SMEs’ owners and managers; it reveals that 82% of the questionnaires were good for analysis purposes.
Table 1 Administered Questionnaires
Questionnaire | Number | Percentage |
Distributed Questionnaire | 200 | 100 |
Received Questionnaire | 173 | 86.5 |
Unreturned Questionnaire | 27 | 13.5 |
Questionnaire with defect | 9 | 0.45 |
Valid Questionnaire | 164 | 82 |
Sources: Field Survey 2023
The 82% response rate is considered to be an appropriate representation of the research population. Out of the administered questionnaire, 27 copies, or 13.5%, were not returned while 9 copies (0.45%) had some errors, therefore they were discarded and were not used in the analysis.
Table 2 Gender of the Respondents.
Gender | Number | Percentage |
Male | 124 | 76 |
Female | 40 | 24 |
Total | 164 | 100 |
Sources: Field Survey 2023
The table 2 above showed the gender of the respondents, a total of 124 Males (76%) and 40 Females (24%) owners and managers of SMEs out of 164 respondents, this indicate that the majority of the respondents are males.
Table 3 Business Age of the Respondent Firms
Business Age | Number | Percentage |
0 to 2years | 56 | 34.3 |
3years to 5years | 94 | 57.2 |
6years to 8years | 10 | 5.8 |
8years and above | 4 | 2.7 |
Total | 164 | 100 |
Sources: Field Survey 2023
Table 3 shows the years of the business. The result show that 56 (34%) were less than 2years, and 94(57%) were between 3 to 5 years. Further, the table revealed that 10(6%) and 4(3%) were 6 to 8 years and above 8years respectively.
Table 4 Marital Status of the Respondents
Marital Status | Number | Percentage |
Married | 71 | 43.1 |
Single | 80 | 49.5 |
Divorced | 7 | 4.0 |
Separated | 6 | 3.7 |
Total | 164 | 100 |
Sources: Field Survey 2023
The table above shows that; the business has 71(43%) married respondents while 80(50%) respondents are single. Divorced and separated have 7(4%) and 6 (4%) respondents each respectively.
Table 5 Education Qualification of the Respondents
Education Qualification | Number | Percentage |
NCE/ ND/HND | 114 | 69.7 |
BSc Degree | 29 | 17.4 |
Masters Degree | 8 | 4.6 |
Others | 13 | 8.3 |
Total | 164 | 100 |
Source: Field Survey 2023
The respondents’ educational backgrounds are displayed in the table above, with 114 (or 70%) having a National Certificate in Education or diploma or HND, 29 (17%) having a bachelor’s degree, 8 (5%) having a master’s degree, and 13 others (8%), having no formal education. According to the respondents’ academic backgrounds, most people in the workforce have a formal education. The company firm will likely find that owners and managers who possess extensive prior understanding of a certain duty or set of tasks can pick up new supply chain information quickly and effectively.
Descriptive Statistics of the Study
The summary statistics for the independent and dependent variables are displayed in Table 6 together with their mean, standard deviation, lowest and highest values. The utilization of financial performance by SMEs in Bwari Area Council, Abuja, on capacity building exhibits a wide range, with a minimum of 12 and a maximum of 32. The average utilization of capacity building by these SMEs is 25.20, with a standard deviation of 3.856. This suggests that the use of capacity building in capacity building is limited among the respondents.
Table 6 Descriptive statistics of variables
Variables | Obs | Minimum | Maximum | Mean | Std. Deviation | |
FPEF | 164 | 12 | 32 | 25.20 | 3.856 | |
ISH | 164 | 9 | 20 | 16.79 | 1.979 | |
SSP | 164 | 8 | 20 | 14.41 | 2.737 | |
QIS | 164 | 5 | 20 | 14.04 | 4.015 | |
Source: SPSS (Version 23) Outputs
Information sharing (ISH) has a minimum value of 9 and a maximum value of 20, with a mean of 16.79 and a standard deviation of 1.979. This implies that information sharing provided by SMEs in Bwari Area Council, Abuja, is widely distributed. This is due to the fact that while some responders have information sharing, others do not. Addionally, the mean and standard deviation of the use of strategic supply partnership help were 2.737 and 14.41, respectively, suggesting that there is a significant variation in the use of strategic supply partnership assistance by SMEs in Bwari Area Council, Abuja. This is as a result of the fact that a smaller percentage of respondents use strategic supply partnership aid.
The mean value of quality of information sharing was 14.04, with a standard deviation of 4.015. This suggests that there is a significant variation in the use of quality of information sharing by SMEs in Bwari Area Council, Abuja, as some respondents utilize it more than others for enhancing SMEs performance.
Correlation Matrix of Dependent and Independent variables
Table 7 displays the correlation between the independent and dependent variables and demonstrates that all of the study’s independent variables and the dependent variable (FPEF) had a positive association.
Table 7 Correlation Matrix of Dependent and Independent variables
Variables | FPEF | ISH | SSP | QIS | VIF |
FPEF | 1.000 | ||||
ISH | 0.437 | 1.000 | 1.277 | ||
SSP | 0.685 | 0.459 | 1.000 | 1.710 | |
QIS | 0.790 | 0.238 | 0.371 | 1.000 | 1.303 |
Source: SPSS (Version 23) Outputs
This suggests that the amount financial performance by SMEs in Bwari Area Council, Abuja will rise in tandem with the degree of information sharing, strategic supplier partnership, and quality of information sharing. Emory (1982) asserted that multicolinearity greater than 0.80 was problematic, Kaplain (1982), as reported in Hussain, Islam, and Andrew (2006), proposed that multicolinearity may be an issue when the correlation between independent variables is 0.9 and above. Since the maximum correlation coefficient in the study is 0.79 between FPEF and QIS, it is clear from the above table that the degree of the correlation among the explanatory variables generally suggests no serious multicolinearity problems.
Also, a Variance Inflation Factor (VIF) test was performed to ascertain whether a collinearity problem existed. The test’s results, which varied from a minimum of 1.277 to a maximum of 1.710, demonstrated the lack of collinearity. Even though a VIF of 5.00, collinearity can still be proven to be absence of multicolinearity problems (Neter, Kutner, Nachtsheim & Wasserman, 1996). Additionally, the Durbin Watson statistic of 1.552 shows that the variables inside the model’s error term do not exhibit first-order serial correlation.
Table 8 Regression Result (OLS)
Ind. Variables | Coefficients OLS | T- Values OLS | P-Values OLS |
Constants | 2.274 | 2.292 | 0.023 |
ISH | 0.111 | 3.519 | 0.001 |
SSP | 0.252 | 6.886 | 0.000 |
QIS | 0.509 | 15.916 | 0.000 |
R-Squared | 0.889 | ||
Adjusted R-Squared | 0.886 | ||
F-Value | 283.345 | ||
P- Value F | 0.000 | ||
Durbin Watson | 1.613 |
Source: SPSS (Version 23) Outputs
Based on the regression analysis, the explanatory variables collectively account for almost 89% of the variances in capacity building in SMEs in Abuja, as indicated by the coefficient of determination (R-Square) of 0.889. Even after accounting for the degree of freedom, the adjusted R-Square demonstrates that the model could account for roughly 88.6% of the variation in financial performance by SMEs in Abuja; the remaining 11.4% was explained by additional characteristics not included in the model.
Based on the regression analysis’s empirical results and the model’s overall statistical significance as demonstrated by the F-statistics, it was determined that the model was statistically significant as evidenced by the F-Change of 283.345. Additionally, the fact that the F-change’s p-value of 0.000 was less than the 5% level of significance suggests that the explanatory variables (information sharing, strategic supplier partnership and quality of information sharing) and the dependent variable financial performance had a positive and significant linear relationship.
The study’s hypotheses were tested, and the findings are displayed in the regression table 8 above.
Table 8 shows that information sharing has a significant and positive impact on financial performance, with a positive coefficient and p-values of 0.111 and 0.001, respectively. This implies that the financial performance by SMEs in Abuja rises in tandem with information sharing. This result aligns with research by Alahmad (2021) who found that the beneficial and noteworthy impact of information sharing on financial performance of firms in Saudi Arabia. The OLS indicates that strategic supplier partnership support has a positive and significant impact on financial performance by Abuja SMEs, with coefficients and p-values of 0.252 and 0.000, respectively.
This suggests that financial performance by SMEs in Bwari Area Council, Abuja increases in tandem with the growth in strategic supplier partnership. Given that the probability value of 0.000% is less than the level of significance of 0.05% (0.000% 0.05%), as shown in the table, the research rejects the null hypothesis. This result is consistent with the findings of Sukati, Sanyal, and Awaain (2020) who discovered that strategic supplier partnership had a good and noteworthy impact on financial performance.
At a 1% confidence level, the OLS confirms that quality of information sharing by Abuja SMEs has a positive and significant impact on financial performance, with coefficient and p-values of 0.509 and 0.000, respectively. This implies that the financial performance rises in tandem with improvements in quality of information sharing. According to the table, the probability value of 0.000% is less than the significance threshold of 0.05% (0.000%<0.05%), and in light of this finding, the research rejects the null hypothesis. This result is consistent with the findings of Arabia, Alahmad (2021) who found that quality of information sharing had a positive and significant effect on financial performance.
CONCLUSION AND RECOMMENDATION
This study examined the effect of supply chain management on performance of small and medium Scale Enterprises in Bwari Area Council of Abuja. The study found a positive and significant effect of information sharing, quality of information, and strategic suppliers’ partnership on financial performance, which implied that they influence financial. Based on the findings of the study, it was recommended among others that in order to boost the financial performance of SMEs in Bwari Area Council of Abuja, the management of these SMEs should be making decisions based on sharing of information, quality of information, and strategic suppliers partnership because they were found to have significant effect on financial performance of the firms.
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APPENDIX A QUESTIONNAIRE
Study Questionnaire
S/N | Strategic Supplier Partnership (SSP) | 1 | 2 | 3 | 4 | 5 |
SSP1 | Our organization has a group business relationship with other related firms | |||||
SSP2 | We have a forum for individual firm contribution to the general performance of the industry | |||||
SSP3 | Employers of all the related firms have a cordial relationship that helps individual to develop its sales performance | |||||
SSP4 | All the firms in the industry has a general platform where agreements are made on any general supply issues | |||||
SSP5 | Meetings are frequently held to agree on the latest mode of supply chain | |||||
Questions on Information sharing (IS) | ||||||
IS1 | Our trading partners share proprietary information with us. | |||||
IS2 | Our trading partners keep us fully informed about the issues that affect our business. | |||||
IS3 | Our trading partners share business knowledge of core business processes with us. | |||||
IS4 | Information sharing brings innovation in the business | |||||
IS5 | There is Information sharing at both internal and external levels. | |||||
Questions on Quality of information sharing (IQ) | ||||||
IQ1 | Information exchange between our trading partners and us is timely. | |||||
IQ2 | Information exchange between our trading partners and us is accurate. | |||||
IQ3 | Information exchange between our trading partners and us is complete. | |||||
IQ4 | Information exchange between our trading partners and us is adequate. | |||||
IQ5 | Information exchange between our trading partners and us is reliable. | |||||
Questions on SME Performance | ||||||
Perf1 | My company achieve sales growth | |||||
Perf2 | My company achieve revenue growth | |||||
Perf3 | We have growth in number of employees | |||||
Perf4 | Adoption of new technology lead to growth and survival | |||||
Perf5 | We are able to compete based on quality | |||||
Perf6 | We offer products that are highly reliable | |||||
Perf7 | Using supply chain characteristics enhances financial performance of your firm. |
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