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South Asian Research Journal of Business and Management (SARJBM)
Volume-1 | Issue-4
Original Research Article
Effect of Networking on Performance of Small and Medium Scale Enterprises in Benue State, Nigeria
EKEH Loveday Ojotu, TSETIM James Tersoo, OGUCHE Michael Kenneth
Published : Dec. 25, 2019
DOI : 10.36346/sarjbm.2019.v01i04.002
Abstract
This study was carried out to examine the effect of networking on the performance of Small and Medium Scale Enterprises (SMEs). The study focused on SMEs in Makurdi metropolis. The study specifically examined the effect of network structure, network governance and network content on the performance of SMEs in Makurdi, Benue State. The study adopted the survey research design due to its ease of application and the speed with which its results are ready. The target population for this study consists of 708 owners/senior management staff of SMEs in Makurdi metropolis in Benue State, Nigeria. These consisted of different sectors like food processing (24), livestock rearing (32), schools (86) trading (164), art/craft (42), baking (34), table water (17), fashion and designing/ hair dressing (97), ICT (92), health (65) and transportation (55). 256 respondents were sampled. The questionnaire was used as the research tool for data collection. The research tool consists of two 4-point Likert questionnaires. The 256 questionnaires administered met a 0.83 response rate and 213 questionnaires were used for statistical analysis. With the aid of SPSS version 21, multiple regression analysis was used to test the strength of the effect of network dimensions on performance of SMEs. Findings of the study revealed that network structure has significant effect on the performance of SMEs in Benue State and network governance has significant effect on the performance of SMEs in Benue State. Also, the result indicated that network content has significant effect on the performance of SMEs in Benue State. The study concluded that the structure, governance and content of networks maintained by SMEs have significant effect on their performances. Recommendations were made among others that, management of SMEs should be mindful of the content of their networks since the network content has significant effect on the performance of SMEs.

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