The effects of subcontracting forms on the sustenance of SMEs

Abstract

Purpose Despite the potential of SMEs in economic development, their activities have remained largely unsustainable in Nigeria. These enterprises are constrained by a number of challenges- high cost of production, poor power supply, high infrastructural deficit etc. which have made there operations largely unproductive. The purpose of this paper is to examine the effects of production subcontracting forms on the sustenance of small and medium enterprises as a panacea for achieving the targets of goal 8 of sustainable development goals (SDGs) in Enugu State, Nigeria. Design/methodology/approach The paper adopted a number of methods comprising of field observations, a reference to relevant literature and a questionnaire survey of 96 SMEs. The paper also adopted a quantitative approach comprising of simple descriptive statistics of mean and standard deviation as well as regression analysis to analyze the data. Findings This paper found that the three forms of production subcontracting (supplier, specialized and capacity subcontracting) identified in the paper were used by SMEs to achieve sustenance (cost reduction, risk reduction and access to resources) in their operations. The paper suggests that the sustenance of SMEs through the utilisation of the different forms of subcontracting can become a strategy towards achieving the targets of SDG 8 in Nigeria. Practical implications This paper has shown that the prevalent high cost of production and ever-increasing production risks, which are the common features of SMEs in Nigeria, can be mitigated through the various forms of production subcontracting analysed in this paper. SMEs, through seminars, workshops, entrepreneurship and business fares, can be encouraged to take up this strategy, considering its ability to address their various operational bottlenecks. Originality/value This study adds to the limited available evidence concerning the effects of subcontracting forms on the sustenance of SMEs in Nigeria. This study is the first to consider subcontracting forms and how they have led to sustenance SMEs in Nigeria.

Redefining responsible consumption decent work: Insights from the second-hand industry in Uzbekistan

“…These questions seek to fill the gap in the literature about SDG 8 (Cammarano et al, 2022;Chatzistamoulou, 2023;Govindan et al, 2020;Hsu, 2023;McDonald et al, 2021;Mozas-Moral et al, 2021;Nwokocha & Nwankwo, 2019;Okolo et al, 2023;Opoku et al, 2022;Stauropoulou et al, 2023;Soegoto et al, 2022;Vinuesa et al, 2020;Walker & Pekmezovic, 2018) and SDG 12 (Bjelle et al, 2021;Ivanova et al, 2016;Magda et al, 2019;Palakshappa & Dodds, 2020) where Sustainable Development Goals are treated as requirements to comply with, sometimes almost as a regulation, rather than as a base on which to build a more sustainable world. On the contrary, we look at SDGs as elements that could become part of the identity of business, which could lead to systemic change.…”

Moderating Effect of Dominant Logic on the Relationship between Innovation Capability and SMEs Performance in Abuja

“…The correlation outcome reveals that product, process, marketing and management innovation has a positive and significant effect on the performance of SMEs in Mexico. In Onitsha, Nigeria, Nwokocha and Nwankwo (2019) examined the effect of outsourcing on innovation and the performance of small and medium-sized enterprises (SMEs). Innovation in the areas of products, procedures, business, and organizational innovation has a significant effect on SMEs' performance.…”

Perceived organisational support and performance of small and medium scale enterprises in Nigeria.

“…A lack of reputation, deteriorating market trends, growth hurdles, and a high death rate are among the challenges that cause death and restrict the growth and development of SMEs in Nigeria (PwC, 2020) [76] . Small and medium-sized businesses in Nigeria have been labeled as having barriers to success and bankruptcy as a result of a number of dangerous issues, including poor human capacity, a decline in profitability ratio combined with poor management, a lack of training, and low-demand products and services (Audu, [10,25,42,76,67] Small and medium-sized firms in Nigeria have yet to contribute significantly to the nation's economy due to lower productivity, making it difficult to compete and sustain their market position (Nwokocha & Nwankwo, 2019) [65] . Many of these SMEs have closed due to their incapacity to grow and sustain their market position, while others are struggling to survive (Isichei et al, 2020;Nwokocha & Nwankwo, 2019;Olaore et al, 2021) [44,65,68] .…”

“…Small and medium-sized businesses in Nigeria have been labeled as having barriers to success and bankruptcy as a result of a number of dangerous issues, including poor human capacity, a decline in profitability ratio combined with poor management, a lack of training, and low-demand products and services (Audu, [10,25,42,76,67] Small and medium-sized firms in Nigeria have yet to contribute significantly to the nation's economy due to lower productivity, making it difficult to compete and sustain their market position (Nwokocha & Nwankwo, 2019) [65] . Many of these SMEs have closed due to their incapacity to grow and sustain their market position, while others are struggling to survive (Isichei et al, 2020;Nwokocha & Nwankwo, 2019;Olaore et al, 2021) [44,65,68] . As a result, they have lost propositional value; rather than creating a tantalizing anticipation and perception among present and potential customers, which would have resulted in proper positioning and reputation, it is otherwise (Isichei et al, 2020) [44] .…”