Open Access Original Research Article

Institutional Financial Support and SMEs Growth. A Case Study on Selected SMEs in Ghana

Forkuoh Solomon Kwarteng, Li Yao, Osei Michael Aboagye, Ampadu Mavis Boatemaa

Journal of Economics, Management and Trade, Page 1-19
DOI: 10.9734/BJEMT/2016/23456

Governments in both developed and developing countries rely heavily on their SMEs for economic development and social justice, it is therefore not strange to see these governments and other organizations marshalling support in the form of finance to the course of these SMEs, since financial constraints have been cited as one of the major challenges of SMEs that undermines economic prosperity. Notably some SMEs in the developing countries might not be able to access finance from local banks at all, or face strongly unfavorable lending conditions, even more so following the recent financial crisis. Banks in developing countries are in turn hampered by the lack of lender information and regulatory support to engage in SME lending.

This study as part of a thesis research (institutional support and SMEs Growth), seek to assess the effectiveness of government support programs in the area of SMEs finance on the growth of SMEs. The financial support were grouped into provision of Subsidies, Loans, and credit guarantees as against the level of each contribution to the SMEs growth was determined using a Covariance Based Method (CBM) specifically a Structural Equation Model (SEM). It was discernible from the study that, the variance in SME Growth is significantly attributable to Subsidies, Loans, and credit guarantees. Such that, Subsidies has greatest effect in explaining SME Growth than does Loans and guarantee. Also, the Loan explains greater effect on SME Growth compared to guarantee as arranged by the order of effect size.

 

Open Access Original Research Article

Trade Openness and Government Expenditure Nexus in Nigeria: A Bounds Test Cointegration Approach

Olusola Joel Oyeleke, Taiwo Akinlo

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2016/20202

This study examined the trade openness and government Expenditure nexus in Nigeria over the period 1980-2013. To analyze the relationship among openness, recurrent expenditure, capital expenditure, total expenditure and exchange rate we adopted ARDL modelling approach to cointegration which is most appropriate technique over some other techniques of integration after examined the stationarity of data through ADF and KPSS tests. The bound testing procedure is used to determine the existence of long run relationships among variables. The results show that there is no cointegration among the variables. Capital expenditure and recurrent expenditure have negative and significant effect on openness while total expenditure and exchange rate on the other hand are positive and significant.

 

Open Access Original Research Article

Determinants of Job Satisfaction as an Imperative for Performance Enhancement in Profit Oriented Firms; A Survey of Dangote Conglomerates Quoted on the Nigeria Stock Exchange Market

Sev Joseph Teryima, Emakwu John, Dewua Philip

Journal of Economics, Management and Trade, Page 1-16
DOI: 10.9734/BJEMT/2016/22996

The objective of the study is to investigate the impact of job satisfaction determinants such as reward packages, good working conditions, personnel policies and procedures, nature of work environment, leadership styles, management systems amongst others in enhancing productivity in profit – oriented organization in this case quoted on the Nigerian Stock Exchange Market. The surveyed organizations are Dangote Salt Plc. Both primary and secondary sources of data collection were employed. The primary sources of data instrument – questionnaire was used mainly in data acquisition using 5-point likert rating scale of strongly agreed, -5, agreed -4, undecided -3, disagreed – 2 and strongly disagreed.  Quasi – experimental research design method (i.e survey research design method) was used. Yamanes formula was adopted in the determination of sample size which was 371 from a population of 5060 in four surveyed firms. Two hypotheses were formulated and tested using the Multiple Regression Analysis Test in determining the impact of job satisfaction determinants in enhancing productivity and job dissatisfaction symptoms effect on employee turnover in the four surveyed organizations. The findings from the study revealed that job satisfaction determinants have a significant impact on the organization productivity if they are applied as required and it will also lead to positive attitude of employee to work. Another finding also revealed that with relevant application of determinants of job satisfaction will moderate the behavior of the turnover of employee as warranted Dangote group of companies quoted on the Nigeria Stock Exchange market. The study recommends that executive management should ensure the provision of good condition of services, good reward packages, good working atmosphere, good management system, good leadership styles policies that will guarantee employee satisfaction in order to attain high productivity and forestall employee turnover. Again the study recommends that formation of employee care unit within the human resource management Department specifically responsible for ensuring with the compliance of job satisfaction determinants provision to facilitate high productivity by the organizations is pertinent.

 

Open Access Original Research Article

Integrational Interaction Synergy Effects in Export Distributional Channels of Enterprise

T. Shtal, N. Hurzhii

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2016/20708

Aims: In modern conditions on international market, there are tends of strengthening the relations between manufacturers and members of distribution network, which allows enterprises to adapt more flexibly to the changing demand in the foreign market, to optimize transaction costs in the sales channels and to become more competitive. The main aim of the research is to investigate kinds of synergetic effects that arise during deepening the integrational interaction in export distributional channels of enterprise.

Place and Duration of Study: Kuznets Kharkiv National University of Economics, Department of International Economics and International Management, between April 2015 and July 2015.

Methodology: Game theory has been used as the main method of research which allowed to prove the emergence of self-organization effect during deepening the interaction between the distribution channel participants in international markets.

Results: The system of indicators which represent the synergistic effect of deepening integration into export channels in conditions of variable and dynamic environment, and the fuzziness of information that directly affects the process of integration, was substantiated. Taking into account the determinate types of synergy effects that arise in integrated export channel, namely the operating, financial, optimization and self-organizational synergies, such indicators include: total transaction costs per sold unit reducing; sales increasing; profitability of export operations rising; rate of receivables turnover reducing; logistics costs reducing; current assets increasing as a result of pricing mechanism within the channel, that takes into account the value of receivables; entropy reduction.

The investigation of synergistic managerial effect showed the appearance of export system’s self-organizational effect due to deepening the integrational interactions, and thus the reducing of entropy level with the appearance of these trends in structural transformations, that result in increasing its adaptability to the environment, more predictive management solutions, sustainability of functioning and development of competitive competence in international market.

Conclusion: The obtained research results allow to catch out the indicators of synergetic effects due to deepening the integrational interactions in export channels. The strong correlation between the stage of integration and the level of entropy in international sales system was proved.

 

Open Access Original Research Article

Linking Intangible Structural Capital and Competitiveness’ Enhancement among Telecommunication Companies in Rwanda

Irechukwu Eugenia Nkechi, Fred Mugambi Mwirigi, Jaya Shukla

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/BJEMT/2016/23234

This paper measures the relationship between intangible structural capital variables (systems and programs, research and development and corporate reputation) and competitiveness’ enhancement among telecommunication companies in Rwanda. Factor and multiple linear regression analysis were employed for the data analysis. The results indicate that the combination of systems and programs; research and development; and corporate reputation has a high statistical significant effect on competitiveness’s enhancement among telecommunication companies in Rwanda. The study concludes that intangible structural capital plays an important role in enhancing competitiveness among telecommunication companies in Rwanda.

 

Open Access Original Research Article

The 2008/2009 Banking Crisis in Nigeria: The Hidden Trigger of the Financial Crash

Edwin M. Egboro

Journal of Economics, Management and Trade, Page 1-16
DOI: 10.9734/BJEMT/2016/23656

It is observed that, while existing literature on the 2008/2009 Nigerian banking crisis has emphasised causal factors, which can be classified as remote causes, it is silent on the immediate cause of the financial crash. Therefore, this study seeks to identify the trigger of events that culminated to the 2008/2009 banking crisis in Nigeria. The paper makes a conjecture that the trigger, lies hidden in the remote causes which, although regarded as causes of the banking crisis, do not make a definite specification of the trigger. Thus, this study sets out to examine the data of FDI and FPI inflows to Nigeria during the years of financial liberalisation. Using the applicable logic in Minsky’s financial instability hypothesis, it concludes that the sudden divestment of FPI in 2009 from the Nigerian economy, was the trigger of the financial crash.    

 

Open Access Short Communications

A New Economic Theory for Space Exploration

M. M. Khoshyaran

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2016/24191

The objective of this paper is to discuss the consequences of space industrialization. Initially, the purpose of space industrialization is to find new sources of energy. If, this quest is successful, there will be an unlimited supply of energy for the planet at prices equivalent to taxes. All aspects of economic activities will be impacted. Supply-demand equilibrium prices, production, labour, wage and capital will be formulated very differently from their conventional definitions.