IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v10y2020i3p2158244020941001.html
   My bibliography  Save this article

An Appraisal of Production Subcontracting Toward Small and Medium Scale Enterprises Development in the Nigeria Industrial Sector: A Review Approach

Author

Listed:
  • Victor Chukwunweike Nwokocha
  • Christopher Emmanuel Nwankwo
  • Ijeoma Gladys Nwosu
  • Ignatius Ani Madu

Abstract

This paper is an appraisal of production subcontracting and how it stimulates the survival of small and medium scale enterprises (SMEs) in the Nigeria industrial sector. The aim of this article is to extend the debate on the desirability of production subcontracting between SMEs and its relevance to industrial development policy in Nigeria. The analysis in this paper was based on a desktop review of 15 articles published in Nigeria on production subcontracting and SMEs within a 19-year period (2001–2019). These articles were drawn from peer-reviewed journal articles. This paper found that on the basis of a critical review of literature, research on production subcontracting has apparently enjoyed a smidgen of global acceptance as was shown by its high quality of publications. This paper also found that production subcontracting strategy has been instrumental in the survival of SMEs in the Nigerian industrial sector through its abilities to guarantee reduction in operational cost, risk reduction, and resources accessibility. The found an emerging area of research in production subcontracting which suggests that production subcontracting increases firm performance in the areas of profit growth, market share, and organizational profit. This paper suggested that given the significant contributions of production subcontracting in the SMEs sector, the strategy deserves development and policy support in the country.

Suggested Citation

  • Victor Chukwunweike Nwokocha & Christopher Emmanuel Nwankwo & Ijeoma Gladys Nwosu & Ignatius Ani Madu, 2020. "An Appraisal of Production Subcontracting Toward Small and Medium Scale Enterprises Development in the Nigeria Industrial Sector: A Review Approach," SAGE Open, , vol. 10(3), pages 21582440209, July.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:3:p:2158244020941001
    DOI: 10.1177/2158244020941001
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2158244020941001
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2158244020941001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Holl, Adelheid, 2008. "Production subcontracting and location," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 299-309, May.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    3. John I. Agburu & Nyianshima Calvin Anza & Akuraun Shadrach Iyortsuun, 2017. "Effect of outsourcing strategies on the performance of small and medium scale enterprises (SMEs)," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-34, December.
    4. Muritala Taiwo A & Awolaja Ayodeji M & Bako Yusuf A, 2012. "Small and Medium Enterprises and Economic Growth in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 45-53, June.
    5. Charles M. Rambo, 2012. "Risk Factors Influencing The Survival Of Strategic Alliances: Evidence From Kenya," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 5(2), pages 77-88.
    6. Musibau Akintunde Ajagbe & Kamariah Ismail, 2014. "Factors influencing venture capital assessment of high growth companies in Malaysia," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 21(4), pages 457-494.
    7. Oyelaran-Oyeyinka, Banji, 2001. "Networks and Linkages in African Manufacturing Cluster: A Nigerian Case Study," UNU-INTECH Discussion Paper Series 2001-05, United Nations University - INTECH.
    8. Charles Jabani Mambula & Frank E. Sawyer, 2004. "Acts of entrepreneurial creativity for business growth and survival in a constrained economy: Case study of a small manufacturing firm (SMF)," International Journal of Social Economics, Emerald Group Publishing, vol. 31(1/2), pages 30-55, January.
    9. Yifei Sun & Yu Zhou & George C. S. Lin & Y. H. Dennis Wei, 2013. "Subcontracting and Supplier Innovativeness in a Developing Economy: Evidence from China's Information and Communication Technology Industry," Regional Studies, Taylor & Francis Journals, vol. 47(10), pages 1766-1784, November.
    10. Ben Arimah, 2001. "Nature and Determinants of the Linkages between Informal and Formal Sector Enterprises in Nigeria," African Development Review, African Development Bank, vol. 13(1), pages 114-144.
    11. Takehiko Yasuda, 2005. "Firm Growth, Size, Age and Behavior in Japanese Manufacturing," Small Business Economics, Springer, vol. 24(1), pages 1-15, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sirengo Samwel Edmond & Dr Abraham Malenya & Dr Edwin Jairus Simiyu, 2023. "Risk Identification Practices and Revenue Collection in County Governments in Kenya: A Case of The County Government of Bungoma," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 980-991, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kafigi Jeje, 2020. "Risk-Taking and Performance of Small and Medium-Sized Enterprises: Lessons from Tanzanian Bakeries," Journal of Economics and Behavioral Studies, AMH International, vol. 12(3), pages 1-22.
    2. Megha Mukim, 2015. "Coagglomeration of formal and informal industry: evidence from India," Journal of Economic Geography, Oxford University Press, vol. 15(2), pages 329-351.
    3. Musibau Akintunde Ajagbe & Olatunji Fadeyi & Abimbola Adegbuyi & Adunola Oluremi Oke & David T. Isiavwe, 2015. "Building Sustainable Future for Nigeria through Entrepreneurship," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(3), pages 42-49, July.
    4. Myint Moe Chit, 2018. "Political openness and the growth of small and medium enterprises: empirical evidence from transition economies," Empirical Economics, Springer, vol. 55(2), pages 781-804, September.
    5. Hsuan-Yu Lin & Chih-Hai Yang, 2016. "Uncertainty, specific investment, and contract duration: evidence from the MLB player market," Empirical Economics, Springer, vol. 50(3), pages 1009-1028, May.
    6. Sharon Novak & Scott Stern, 2009. "Complementarity Among Vertical Integration Decisions: Evidence from Automobile Product Development," Management Science, INFORMS, vol. 55(2), pages 311-332, February.
    7. Colombo, Massimo G. & Garrone, Paola, 1998. "Common carriers' entry into multimedia services," Information Economics and Policy, Elsevier, vol. 10(1), pages 77-105, March.
    8. Amrit Amirapu, 2021. "Justice Delayed Is Growth Denied: The Effect of Slow Courts on Relationship-Specific Industries in India," Economic Development and Cultural Change, University of Chicago Press, vol. 70(1), pages 415-451.
    9. Banterle, Alessandro & Stranieri, Stefanella, 2008. "The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics," Food Policy, Elsevier, vol. 33(6), pages 560-569, December.
    10. Elert, Niklas & Henrekson, Magnus, 2017. "Entrepreneurship and Institutions: A Bidirectional Relationship," Working Paper Series 1153, Research Institute of Industrial Economics, revised 05 May 2017.
    11. Houngbonon, Georges Vivien & Ivaldi, Marc & Palikot, Emil & Strusani, Davide, 2023. "The Impact of Shared Telecom Infrastructure on Digital Connectivity and Inclusion," TSE Working Papers 23-1427, Toulouse School of Economics (TSE).
    12. Hahn, Robert & Evans, Lewis, 2010. "Regulating Dynamic Markets: Progress in Theory and Practice," Working Paper Series 4052, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    13. López Zapata, Esteban & García Muiña, Fernando Enrique & García, Susana María, 2019. "Analysing the relationship between diversification strategy and firm performance: the role of the economic cycle," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    14. Ersahin, Nuri & Giannetti, Mariassunta & Huang, Ruidi, 2024. "Trade credit and the stability of supply chains," Journal of Financial Economics, Elsevier, vol. 155(C).
    15. Yahui Wang, 2019. "What Affects Participation in the Farmland Rental Market in Rural China? Evidence from CHARLS," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    16. Göller, Daniel & Stremitzer, Alexander, 2014. "Breach remedies inducing hybrid investments," International Review of Law and Economics, Elsevier, vol. 37(C), pages 26-38.
    17. Lurdes Martins & Jorge Cerdeira & Aurora A.C. Teixeira, 2020. "Does corruption boost or harm firms’ performance in developing and emerging economies? A firm‐level study," The World Economy, Wiley Blackwell, vol. 43(8), pages 2119-2152, August.
    18. Luc Baumstark & Claude Ménard & William Roy & Anne Yvrande-Billon, 2005. "Modes de gestion et efficience des opérateurs dans le secteur des transports urbains de personnes," Post-Print halshs-00103116, HAL.
    19. Lydia Bals & Jon F. Kirchoff & Kai Foerstl, 2016. "Exploring the reshoring and insourcing decision making process: toward an agenda for future research," Operations Management Research, Springer, vol. 9(3), pages 102-116, December.
    20. Allen, Darcy W.E. & Berg, Chris & Markey-Towler, Brendan & Novak, Mikayla & Potts, Jason, 2020. "Blockchain and the evolution of institutional technologies: Implications for innovation policy," Research Policy, Elsevier, vol. 49(1).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:10:y:2020:i:3:p:2158244020941001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.