QUALITY MANAGEMENT AND PROFITABILITY OF SELECTED MANUFACTURING SMEs IN PORT HARCOURT AND ABA, NIGERIA
Abstract
Quality management practices are essential for improving the quality of goods and services provided by manufacturing firms. SMEs contribute to the growth of Nigeria economy, yet their performance decline from 15% in 2017 to 13% in 2018. The adduced reason was the failure to implement quality management practices. The study examined the effect of quality management on profitability of selected manufacturing SMEs in Port Harcourt and Aba, Nigeria. The study employed cross sectional survey research design where eight hundred and forty-four copies of the research instruments were administered to selected respondents who were top-level senior officers, supervisors and managers from selected indigenous SMEs manufacturing companies located in Port Harcourt, Rivers and Aba in Abia states, Nigeria. The result of multiple regression analysis revealed that employee commitment (β = 0.422, t = 12.389, p = 0.000) have positive and significant effects on profitability of the selected manufacturing SMEs in Port Harcourt and Aba, Nigeria. But leadership commitment (β = 0.012, t = 0.263, p = 0.793) and research and development (β = 0.052, t = 1.459, p = 0.145) have a positive but insignificant effect on profitability of selected manufacturing SMEs in Port Harcourt and Aba, Nigeria. While continuous improvement (β = -0.036, t = -1.079, p = 0.281<0.05) and customer focus (B = -0.039, t = -1.311, p = 0.190<0.05) have negative and insignificant effect on profitability of the selected manufacturing SMEs in Port Harcourt and Aba. The study concluded that quality management practices affect profitability of selected manufacturing SMEs in Port Harcourt and Aba, Nigeria. It was recommended that manufacturing SMEs and owners managers should key on to the enormous benefits associated with implementation of quality management practices as it was discovered that full utilization of quality management practices improve firm profitability inflow.
Keywords: Quality management, Continuous improvement, Customer focus, Leadership commitment, Employee commitment, Research and development, Profitability
CITATION: Aigboje, P. O., Akpa, V. O., & Egwakhe, J. A. (2021). Quality management and profitability of selected manufacturing SMEs in Port Harcourt and Aba, Nigeria. The Strategic Journal of Business & Change Management, 8 (2), 45 – 57.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i2.1967
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