LEAN HUMAN RESOURCE INITIATIVES AND CUSTOMER PATRONAGE OF SELECTED SMALL AND MEDIUM SCALE ENTERPRISES IN LAGOS STATE, NIGERIA

OMOSIGHO A. A., EGBUTA O. U., AJIKE E. O.

Abstract


The death of SMEs in Nigeria, within a short period of commencing operations, calls for concern. Customer patronage for products have been low as some of the products rolled out by these SMEs are defective, expensive and fail to have a long shelf life. In addition, it is observed that employees are not properly mentored and there is no cohesion among existing teams in some Nigerian SMEs. This thus has become a huge challenge for their growth as employee performance is not adequate, no clear-cut competitive advantage and it is observed that customer patronage is on a decline, product quality is poor, firm size is shrinking and the level of skills acquisition and development is not encouraging at all. Therefore, this study examined the effect of lean human resource initiatives on employee performance of selected SMEs in Lagos State, Nigeria. The study adopted the survey research design. The population comprised 8,396 SMEs in Lagos State, Nigeria. Sample size of 481 was determined using the Research Advisory Table. The study adopted simple random sampling technique in selecting the respondents. Adapted and validated questionnaire was used to collect data from the respondents. Cronbach’s Alpha reliability coefficients for the constructs ranged from 0.74 to 0.89. The response rate was 85%. Data collected were analysed using descriptive and inferential (multiple regression) statistics. The study findings revealed that lean human resource initiatives had significant effect on customer patronage of SMEs in Lagos Nigeria. Specifically, lean human resource initiatives had significant effect on customer patronage (Adj.R2 = 0.090; F (5,401) = 9.041, p < 0.05). The study concluded that lean human resource initiatives had significant effect on customer patronage of SMEs in Lagos Nigeria. The study recommended that small and medium scale enterprise owner/managers should. 

Keywords: Continuous improvement, Customer Patronage, Lean human resource initiative, Mentoring, Selective hiring. 

CITATION:  Omosigho, A. A., Egbuta, O. U., & Ajike, E. O. (2021). Lean human resource initiatives and customer patronage of selected small and medium scale enterprises in Lagos State, Nigeria. The Strategic Journal of Business & Change Management, 8 (4), 934 – 952.


Full Text:

PDF

References


Adiele, K. C., & Etuk, E. J. (2017). Determinants of airline patronage in Nigeria: A path analytical approach. International Journal of Marketing and Communication Studies, 2(1), 46-70.

Adiele, K. C., & Gabriel, J. M. (2013). Customer relationship management and bank performance in Nigeria: An empirical validation Study. International journal of Science and Research, 2(1), 416-419.

Ahmad, F., Ghazali, H. & Othman, M. (2013). Consumers Preference Between Fast Food Restaurant and Casual Dining Restaurant: A Conceptual Paper. 3rd International Conference on Management (3rd ICM 2013) Proceeding, Penang, Malaysia. 10-11 June 2013. Retrieved from: www.internationalconference.com.my

Almarri, K., & Gardiner, P. (2014). Application of resource-based view to project management research: supporters and opponents. Procedia-Social and Behavioral Sciences, 119, 437-445.

Apulu, I., Latham A., & Moreton. R. (2011). “Factors affecting the effective utilization and adoption of sophicticated ICT solutions: Case studies of SMEs in Lagos, Nigeria”. Journal of Systems and Information Technology, 2(13), 125-143.

Awah, F. E. (2019). Leadership Behaviours: Sources of Trust and Job Satisfaction. International Journal of Social Sciences, 13(2), 33-47.

Baker, A., Lewin, T., Reichler, H., Clancy, R., Carr, V., Garrett, R., & Terry, M. (2002). Evaluation of a motivational interview for substance use within psychiatric in‐patient services. Addiction, 97(10), 1329-1337.

Bamber, G. J., Stanton, P., Bartram, T., & Ballardie, R. (2014). Human resource management, Lean processes and outcomes for employees: towards a research agenda. The International Journal of Human Resource Management, 25(21), 2926-2940.

Barney, J. B., & Clark, D. N. (2007). Resource-based theory: Creating and sustaining competitive advantage. Oxford University Press on Demand.

Becker, G. S. (1993). Nobel lecture: The economic way of looking at behavior. Journal of political economy, 101(3), 385-409.

Berrahal, W., & Marghoubi, R. (2016). Lean continuous improvement to information technology service management implementation: Projection of ITIL framework. In 2016 International Conference on Information Technology for Organisations Development (IT4OD) (pp. 1-6). IEEE.

Bhuiyan, N., & Baghel, A. (2005). An overview of continuous improvement: from the past to the present. Management decision. 1(8), 23-39.

Boell, S. K., & Cecez-Kecmanovic, D. (2015). On being ‘systematic’in literature reviews. Formulating research methods for information systems, 48-78.

Bohari, A. M., Hin, C. W., & Fuad, N. (2017). The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and Space, 9(1), 14-32.

Bolton, R. N., & Drew, J. H. (1991). A multistage model of customers' assessments of service quality and value. Journal of consumer research, 17(4), 375-384.

Bunduchi, R. (2009). Implementing best practices to support creativity in NPD cross-functional teams. International Journal of Innovation Management, 13(04), 537-554.

Burnett, J. J. (1996). Comparing the patronage selection criteria of the elderly: chronological age versus dependency. International Review of Retail, Distribution and Consumer Research, 6(3), 243-257.

Cardona-Mora, J. N. C. (2014). Continuous improvement strategy. European Scientific Journal, 10(34), 117-126

Caroly, S., Coutarel, F., Landry, A., & Mary-Cheray, I. (2010). Sustainable MSD prevention: Management for continuous improvement between prevention and production. Ergonomic intervention in two assembly line companies. Applied Ergonomics, 41(4), 591-599.

Caudill, E. M., & Murphy, P. E. (2000). Consumer online privacy: Legal and ethical issues. Journal of Public Policy & Marketing, 19(1), 7-19.

Chaudhari, T., & Raut, N. (2017). Waste elimination by lean manufacturing. International Journal of Innovative Science Engineering & Technology, 4 (5), 168-170.

Collins, C. J., & Clark, K. D. (2003). Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage. Academy of management Journal, 46(6), 740-751.

Collis, D. J. (1994). Research note: how valuable are organizational capabilities? Strategic management journal, 15(S1), 143-152.

Darmayanti, D., & Cahyono, H. (2014). The influence of perceived service quality, attitudinal loyalty and corporate social responsibility on repeat patronage intention in retail banking in Indonesia. Journal of Business and Retail Management Research, 8(2).

Daspit, J., Tillman, C. J., Boyd, N. G., & Mckee, V. (2013). Cross‐functional team effectiveness: An examination of internal team environment, shared leadership, and cohesion influences. Team Performance Management: An International Journal. 6(2), 14-32.

De Oliveira, E. A., Pimenta, M. L., Hilletofth, P., & Eriksson, D. (2016). Integration through cross-functional teams in a service company. European Business Review, 3(6), 54-74.

Domazet, I., Zubović, J., & Lazić, M. (2018). Driving factors of Serbian competitiveness: Digital economy and ICT. Strategic management, 23(1), 20-28.

Ejedafiru, E. F. (2010). Lack of ICT infrastructure as a barrier to resource sharing in Nigerian libraries. Library Philosophy and Practice, 1.

Fofie, G. A. (2016). What influence customer patronage of insurance policies: An empirical assessment of socio-economic and demographic determinants of insurance patronage in Ghana. International Review of Management and Marketing, 6(1).

Galeazzo, A., Furlan, A., & Vinelli, A. (2017). The organizational infrastructure of continuous improvement–an empirical analysis. Operations Management Research, 10(1-2), 33-46.

Garga, E., & Bambale, A. J. A. (2016). The Impact of Service Quality on Customer Patronage: Mediating Effects of Switching Cost and Customer Satisfaction. International Journal of Global Business, 9(1), 1-14.

Garvey, R., Garvey, B., Stokes, P., & Megginson, D. (2017). Coaching and mentoring: Theory and practice. Sage.

Gillies, D. (2017). Human capital theory in education. Encyclopedia of educational philosophy and theory, 1-5.

Gonzalez, R. V. D., & Martins, M. F. (2016). Capability for continuous improvement. The TQM Journal, 28(2), 250-274.

Gremler, D. D., & Brown, S. W. (1996). Service loyalty: its nature, importance, and implications. Advancing service quality: A global perspective, 5(1), 171-181.

Grewal, D., Krishnan, R., Levy, M., & Munger, J. (2010). Retail success and key drivers. In Retailing in the 21st Century (pp. 15-30). Springer, Berlin, Heidelberg.

Haq, M. A., Khan, N. R., Parkash, R., & Jabeen, A. (2016). Impact of JIT, Waste Minimization, and Flow Management on Operational Performance of Manufacturing Companies. Calitatea, 17(153), 48-61.

Ifeanyichukwu, C., & Peter, A. (2018). The role of sensory marketing in achieving customer patronage in fast food restaurants in Awka. International Research Journal of Management, IT & Social Sciences, 5(2), 155-163.

Janoski, T., & Lepadatu, D. (2019). Framing and managing lean organizations. London: Routledge.

Jekiel, C. (2011). Lean Human Resources. USA: Taylor & Francis Group.

Johnstone, L. (2020). A systematic analysis of environmental management systems in SMEs: Possible research directions from a management accounting and control stance. Journal of Cleaner Production, 244, 118802.

Jurburg, D., Viles, E., Tanco, M., Mateo, R., & Lleó, A. (2016). Measure to succeed: How to improve employee participation in continuous improvement. Journal of Industrial Engineering and Management, 9(5), 1059-1077.

Karunakaran, M. S. (2018). Customer engagement-the co creation of value in the marketing process. Journal of Information Technology Management, 11(1), 60-75.

Khan, H. U., Ali, S., & Hongqi, L. (2018). Impact of continuous improvement on organization performance insight from Pakistan: an empirical study. International Journal of Innovation, Management and Technology, 9(1), 7-14.

Kosiba, J. P., Acheampong, A., Adeola, O., & Hinson, R. E. (2020). The moderating role of demographic variables on customer expectations in airport retail patronage intentions of travellers. Journal of Retailing and Consumer Services, 54, 102033.

Kumar, S., Dhingra, A. K., & Singh, B. (2018). Process improvement through Lean-Kaizen using value stream map: a case study in India. The International Journal of Advanced Manufacturing Technology, 96(5), 2687-2698.

Laudon, K. C., & Laudon, J. P. (2015). Management information systems. Upper Saddle River: Pearson.

Laureani, A., & Antony, J. (2012). Critical success factors for the effective implementation of Lean Sigma: Results from an empirical study and agenda for future research. International Journal of Lean Six Sigma. 24(1), 35–58.

Laurent, J., & Leicht, R. M. (2019). Practices for designing cross-functional teams for integrated project delivery. Journal of Construction Engineering and Management, 145(3), 05019001.

Lim, W. M., Jee, T. W., Loh, K. S., & Chai, E. G. C. F. (2020). Ambience and social interaction effects on customer patronage of traditional coffeehouses: Insights from kopitiams. Journal of Hospitality Marketing & Management, 29(2), 182-201.

Majava, J., & Ojanperä, T. (2017). Lean production development in SMEs: a case study. Management and Production Engineering Review, 8(3), 74-86.

Makhamara, F.H., Waiganjo, E.W. & Kwasira,J. (2016).Influence of strategic recruitment and selection on employee performance in the health sector in Kenya. Strategic Journal of Business and Change Management, 3 (21), 347-361.

Marginson, S. (2019). Limitations of human capital theory. Studies in Higher Education, 44(2), 287-301.

Martínez-Jurado, P. J., & Moyano-Fuentes, J. (2014). Lean management, supply chain management and sustainability: a literature review. Journal of Cleaner Production, 85, 134-150.

McKinsey, E. (2016). Faculty mentoring undergraduates: The nature, development, and benefits of mentoring relationships. Teaching & Learning Inquiry, 4(1), 25-39.

McLean, R. S., Antony, J., & Dahlgaard, J. J. (2017). Failure of Continuous Improvement initiatives in manufacturing environments: a systematic review of the evidence. Total Quality Management & Business Excellence, 28(3-4), 219-237.

Merkl, C., & Van Rens, T. (2019). Selective hiring and welfare analysis in labor market models. Labour Economics, 57, 117-130.

Mhlanga, O. (2018). Customer experiences and return patronage in airport hotels: Evidence from OR Tambo International Airport, South Africa. Acta Commercii, 18(1), 1-11.

Minh, N. D., Nguyen, N. D., & Cuong, P. K. (2018). Applying lean tools and principles to improve sustainability of waste management: A Case Study. Sustainability, 12(4), 1498.

Mullen, C. A., & Klimaitis, C. C. (2021). Defining mentoring: a literature review of issues, types, and applications. Annals of the New York Academy of Sciences, 1483(1), 19-35.

Mustapha, A. M., Ilesanmi, O.A. & Aremu, M. (2013). The Impacts of well Planned Recruitmentand Selection Process on Corporate Performance in Nigerian Banking Industry (A Case Study of First Bank Plc 2004-2011). International Journal of Academic Research in Business and Social Sciences, 3 (9), 1-14.

Nadarajah, S., Kadiresan, V., Kumar, R., Kamil, N. N. A., & Yusoff, Y. M. (2012). The relationship of HR practices and job performance of academicians towards career development in Malaysian private higher institutions. Procedia-Social and Behavioral Sciences, 57, 102-118.

Nadarajah, S., Kadiresan, V., Kumar, R., Kamil, N. N. A., & Yusoff, Y. M. (2012). The relationship of HR practices and job performance of academicians towards career development in Malaysian private higher institutions. Procedia-Social and Behavioral Sciences, 57, 102-118.

Nadube, P. M., & Akahome, J. E. (2017). Challenges facing customer patronage of tourism destinations in South-South Region of Nigeria. African Research Review, 11(1), 100-114.

Njite, D., Njoroge, J., Parsa, H., Parsa, R., & van der Rest, J. P. (2015). Consumer patronage and willingness-to-pay at different levels of restaurant attributes: A study from Kenya. Research in Hospitality Management, 5(2), 171-180.

Nkpurukwe, O. I., Amangala, E. A., & Wali, A. F. (2020). Mobile Marketing Strategies and Customer Patronage of Mobile Telecommunication Services. International Journal of Marketing Research Innovation, 4(2), 1-8.

Nwanya, S. C., & Oko, A. (2019). The limitations and opportunities to use lean based continuous process management techniques in Nigerian manufacturing industries–a review. In Journal of Physics: Conference Series 1378 (2), p. 022086). IOP Publishing.

Nwokah, N. G., & Adiele, K. (2018). Predictory effect of food quality on patronage of quick-service restaurants in Port-Harcourt, Nigeria. African Journal of Hospitality, Tourism and Leisure, 7(1), 1-11.

Nwulu, C. S., & Asiegbu, I. F. (2015). Advancement inclination behaviors and university academic staff patronage of deposit money banks in Port Harcourt. International Journal of Business and & Entrepreneurship Research, 9(4), 17-32.

Nyakweba, J. A., Justus, N. W., & Bosire, B. E. (2015). An analysis of factors influencing consumer patronage of bars: A survey of bars in Kisii Town’s central business district, Kenya. Journal of Marketing and Consumer Research, 11, 190-202.

Ofobruku, S. A., & Nwakoby, N. P. (2015). Effects of mentoring on employees' performance in selected family business in Abuja, Nigeria. Singaporean Journal of Business, Economics and Management Studies, 51(2681), 1-22.

Ogbuji, C. N., Onuoha, O. A., & Abdul, U. (2016). Spatial layout and customer patronage of cinema firms in Port Harcourt, Nigeria. International Journal, 4(4), 17-39.

Oliver, C. (1997). Sustainable competitive advantage: combining institutional and resource‐based views. Strategic Management Journal, 18(9), 697-713.

Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63(4_suppl1), 33-44.

Ombui, K., Elegwa, M. and Gichuhi, A.W. (2014). The Influence of recruitment and selection on the performance of employees in research institutes in Kenya. International Journal of Social Science Research, 3(5). 132-138.

Omolo, J. W., Oginda, M. N., & Oso, W. Y. (2012). Effect of Recruitment and Selection of Employees on the Performance of Small and Medium Enterprises in Kisumu Municipality, Kenya. International Journal of Human Resource Studies, 3(5). 132-138.

Onuoha, A. O. & Nnenaya, D. (2017). Doris, N. Impact of Servicescape on Customer Patronage of Fuel Stations in Abia State, Nigeria. International Journal of Managerial Studies and Research (IJMSR), 5(3), 14-19.

Parker, C. P., Baltes, B. B., Young, S. A., Huff, J. W., Altmann, R. A., Lacost, H. A., & Roberts, J. E. (2003). Relationships between psychological climate perceptions and work outcomes: a meta‐analytic review. The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 24(4), 389-416.

Patrick, O. O., Afolabi, Y. A., Emmanuel, A. T., & Monsurat, A. O. (2019). Influence of facilities on Customer patronage among selected Hotels in Southwest, Nigeria. Academy of Strategic Management Journal, 18(1), 1-9.

Paul, A. K., & Anantharaman, R. N. (2003). Impact of people management practices on organizational performance: analysis of a causal model. The International Journal of Human Resource Management, 14(7), 1246-1266.

Pennanen, M., Bristol, L., Wilkinson, J., & Heikkinen, H. L. (2016). What is ‘good’mentoring? Understanding mentoring practices of teacher induction through case studies of Finland and Australia. Pedagogy, Culture & Society, 24(1), 27-53.

Priem, R. L., & Butler, J. E. (2001). Is the resource-based “view” a useful perspective for strategic management research?. Academy of management review, 26(1), 22-40.

Rumelt, R. P. (1991). How much does industry matter?. Strategic management journal, 12(3), 167-185.

Sari, Y. K., Shaari, Z. H., & Amar, A. B. (2017). Measurement development of customer patronage of petrol station with convenience store. Global Business and Management Research, 9(1s), 52.

Seo, Y., Lee, C., & Moon, H. (2016). An organisational learning perspective of knowledge creation and the activities of the quality circle. Total Quality Management & Business Excellence, 27(3-4), 432-446.

Shah, R., & Ward, P. T. (2007). Defining and developing measures of lean production. Journal of operations management, 25(4), 785-805.

Shokri, A., Waring, T. S., & Nabhani, F. (2016). Investigating the readiness of people in manufacturing SMEs to embark on Lean Six Sigma projects. International Journal of Operations & Production Management, 11(3), 56-67.

Signoretti, A., & Sacchetti, S. (2020). Lean HRM practices in work integration social enterprises: Moving towards social lean production. Evidence from Italian case studies. Annals of Public and Cooperative Economics, 91(4), 545–563.

Stinchcombe, A. L. (2000). Social structure and organizations. Emerald Group Publishing Limited.

Stipp, D. M., Pimenta, M. L., & Jugend, D. (2018). Innovation and cross-functional teams: Analysis of innovative initiatives in a Brazilian public organization. Team Performance Management: An International Journal. 33(5467), 1-11.

Stokes, P. B. (2019). Selective Hiring and employee performance. Management Learning, 37(2), 215-239.

Tortorella, G. L., Fogliatto, F. S., Mac Cawley Vergara, A., Luis Gonçalves Quelhas, O., & Sawhney, R. (2019). Influence of team members’ characteristics on the sustainability of continuous improvement initiatives. Total Quality Management & Business Excellence, 1-17.

Uchea, D. B., & Otika, U. S. (2021). Influence of Promotional Tools on Customer Patronage of Telecommunication Services in Nigeria. Journal homepage: www. ijrpr. com ISSN, 2582, 7421.

Ufuaa, D. E., Romanus, A. O., Imhonopic, D., Olusola, J., Olujobid, M., & Ogbarie, E. (2020). Change management and capacity utilisation: A critical requirement for business sustainability among small and medium-sized enterprises (SMEs) in Nigeria. Change, 14(10), 438-458.

Webber, S. S. (2002). Leadership and trust facilitating cross‐functional team success. Journal of management development. 2(5), 32-47.

Wirtz, J., & Lwin, M. O. (2009). Regulatory focus theory, trust, and privacy concern. Journal of Service Research, 12(2), 190-207.

Wolugbom, R. K., & Samuel, J. (2020). Honesty in business: A panacea for business sustainability among small and medium scale enterprises. Nigerian Journal of Business Education (NIGJBED), 7(1), 367-379.

Yuen, K. F., Thai, V. V., & Wong, Y. D. (2016). The effect of continuous improvement capacity on the relationship between of corporate social performance and business performance in maritime transport in Singapore. Transportation Research Part E: Logistics and Transportation Review, 9(5), 62-75.




DOI: http://dx.doi.org/10.61426/sjbcm.v8i4.2150

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.