Effect of Result Authority on the Performance of Small and Medium Scale Enterprises (SMES) in Enugu State

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• April 14, 2024
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Mbah, Paulinus Chigozie, PhD^a & Nnadi, Chikezie Sunday Onoh PhD^b
abDepartment of Business Administration, Enugu State University of Science and Technology, Nigeria

­Citations – APA

Mbah, P. C. & Nnadi, C. S. O. (2024). Effect of Result Authority on the Performance of Small and Medium Scale Enterprises (SMES) in Enugu State. Contemporary Journal of Social Science and Humanities, 5(1), 1-14. DOI: https://doi.org/10.5281/zenodo.10969862

The study examined the effect of result authority on the performance of small and medium scale enterprises (SMEs) in Enugu State. The specific objectives of the study are to; examine the effect of decision-making targets on the output and evaluate the effect of objectives implementations on the profitability of SMEs in Enugu State. The area of the study comprised of selected small and medium Enterprises in Enugu state. The choice of the firms was due to high number of staff and capital base above 15 million naira. The study used the descriptive survey design approach. The primary source of data was the administration of questionnaire. A total population of 914 selected staff of the study organisations. The adequate sample size of two hundred and Seventy (270) using Freund and William’s statistic formula at 5 percent margin of error. Two hundred and sixty-one (261) employees returned the questionnaire and accurately filled it. Data was presented and analyzed by mean score and standard deviation using Sprint Likert Scale. The hypotheses were analyzed using the Pearson correlation coefficient (r). The findings indicated that decision-making targets had significant positive effect on the output Z (95, n = 261), 7.737 < 9.718, P.< .05 and Objectives implementation had significant positive effect on the profitability of SMEs in Enugu State Z (95, n = 261), 8.588 < 9.455, P.< .05. The study concluded that decision-making targets and objectives implementation had significant positive effect on the output and profitability of SMEs in Enugu State. Results authority is based on the ability to achieve certain targets and objectives. The study recommended that the management of Small and Medium Enterprises should be involved in choosing the best course of action among alternatives.

ABSTRACT

Keywords: Result Authority; Performance; Small and Medium Scale Enterprises; Decision-Making