Browsing by Author "Oyedele Matthew OYEKU"

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    Entrepreneurial Competency, Social Capital and Success of Small and Medium Enterprises (SMEs) in Food Processing Industry in Lagos State, Nigeria
    (Lead City University, Ibadan, 2023-12) Oyedele Matthew OYEKU
    By nature small and medium enterprises (SMEs) are more vulnerable to failure compared to large enterprises. Though this trend existed before Covid-19 but Covid-19 did not make SMEs success rate better but rather made it worst. Just after Covid-19 when SMEs began to recover gradually came the global inflation. All these are external factors outside the control of the entrepreneurs. To ensure success, entrepreneurs need to look inward to see how personal resource could be harnessed and deployed to ensure enterprise success. The objective of this study is therefore, to investigate the effect of entrepreneurial competency (EC) and social capital (SC) on entrepreneurial success (ES) and to examine the moderating effect of environmental munificence (EM) on the EC-ES and SC-ES relationships within the Food Processing Industry (FPI) in Lagos State. This study adopted a cross-sectional survey research design, and the population is 7000 SMEs operating under FPI in Lagos State. Sample of 282 respondents were computed using National Education Association’s formula. The study adopted a stratified-random sampling technique. A validated questionnaire was used to collect data. The Cronbach’s alpha reliability coefficients for the constructs ranged from 0.73 to 0.92; Average Variable Extracted (AVE) value above 0.5 and Heterotrait- Monotrait (HTMT) values below 1 for all the construct confirmed convergent and discriminant validity of the questionnaire respectively. The response rate of administered questionnaire is 79.1%. The underpinning theories for the study are the Resource Based and Rock Star theories. The hypotheses are tested with the aid of structural equation modeling (SEM) using Smart PLS-SEM and Statistical Package for Social Sciences i.e. SPSS 26. Findings revealed that EC and SC has positive and significant effect on SMEs success (R 2=0.518, p=0.000, Q2 =0.160). EC (Adj.R 2=0.325, p=0.000, Q2 =0.206) and SC (Adj.R 2=0.372, p=0.000, Q2 =0.231) have positive and significant effect on profitability. EC (Adj.R 2=0.317, p=0.000, Q2 =0.131) and SC (Adj.R 2=0.367, p=0.000, Q2 =0.228) have positive and significant effect on sales growth. EC (Adj.R 2=0.304, p=0.000, Q2 =0.155) and SC (Adj.R 2=0.337, p=0.000, Q2 =0.228) have positive and significant effect on customers satisfaction. EC (Adj R 2 =0.320, p=0.000, Q2 =0.213) and SC (Adj.R 2=0.389, p=0.000, Q2=0.263) have positive and significant effect on competitiveness. EM has positive and significant moderating effect on the interactions between EC and Success of SMEs (β =0.321; p< 0.006, Q2 =0.235) and between SC and succsess of SMEs (β =0.301; p< 0.024, Q2 =0.243) in FPI in Lagos State. This study concludes that EC and SC affect SMEs in FPI in Lagos State. EM plays a significant moderating role. The study recommended that managers oversee FPI in Lagos State need to re-evaluate their commitment to each of the EC and SC assessed given their moderate contributions to SMEs success. Keywords: Entrepreneurial competency, Social capital, Environmental munificence, Small and Medium Enterprises (SMEs), SMEssuccess Word Count: 443