Efficient Resource Management and Value Creation of Smes in Gas Sub-Sector in Lagos State, Nigeria

Efficient Resource Management and Value Creation of Smes in Gas Sub-Sector in Lagos State, Nigeria

Author by Dr. Olive Egbuta

Journal/Publisher: International Journal Of Business And Management Invention (ijbmi)

Volume/Edition: 8

Language: English

Pages: 20 - 28

Abstract

ABSTRACT: Efficient (ERM) and Value Creation (VC) are emerging tools imbibed by Small Medium
Enterprises (SMEs) to combat inefficiency, financial leakages, stagnancy and enhance competitiveness and
sustainability in the business world especially in Nigeria where competition is so high. However, some
owner/managers of Small and Medium Scale Enterprises in oil and gas sub- sector do not imbibe ERM to add
value to their businesses given room to poor performances and early collapse of such enterprises. This study
determined the influence of efficient resource management on value creation by SMEs in gas sub-sector in
Lagos State. The study adopted survey research design. The target population comprised 1,043 owner/managers
and heads of units of all SMEs in liquefied Petroleum gas sub-sector that were registered with the Nigerian
Association of Liquefied Petroleum gas Marketers (NALPGAM). Stratified random sampling techniques were
used to select the sample of 495adopting Cochram’s formula. A structured questionnaire was validated and
adopted for data collection with a response rate of 82%. Data were analysed using descriptive and
inferential(Regression) statistics. Result indicated that efficient utilization of resources had significant positive
influence on value creation of SMEs (? = .551, t = 15.163,R2 = .355, p?0.05). The study therefore
recommended that SMEs in gas sub-sector in Lagos State as hob of economic activities, should imbibe efficient
resource management and knowledge sharing which consequently, will enhance adequate value creation and
sustainability.
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