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Analysis Of Factors Influencing Adoption Of Human Resource Practices By Small And Medium Scale Enterprises In Nigeria

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  • RABIU, Rukayat Oloruntoyin

    (C/O, Department of Business Administration, Faculty of Management Sciences, Al-Hikmah University, Ilorin, Nigeria)

  • OLANIPEKUN, Wahid Damilola (PhD)

    (Department of Management and Accounting, College of Management and Social Sciences, Summit University, Offa, Nigeria)

  • BAMIDELE, Ayodeji Gbenga (PhD)

    (Department of Business & Entrepreneurship, School of Business and Governance, Kwara State University, Malete)

  • AWE, Olasehinde Israel

    (Department of Business Administration & Management, Kwara State Polytechnic, Ilorin)

Abstract

In the 21st century, the human resources is the most important resources an organization can boast of since it ensures the efficient and effective utilization of other resources. Overcoming the deficiencies associated with SMEs failure has required firm to embrace and develop the value of their human resources practices in order to be more competitive. This study investigated the factors influencing adoption of human resource practices by small and medium scale enterprises in Kwara State, Nigeria. The survey strategy was employed. The study has a population of 200 SMEs whose businesses are situated in Kwara Central Senatorial District and who are registered with the National Association of Small and Medium Enterprises (NASMEs). Primary data with the aid of a structured questionnaire was used. Multiple regression analysis was used to test the hypothesis at 5% level of significance. Findings from the multiple regression analysis showed an overall p-value of 0.000 and R2 of 0.8128. Furthermore, financial availability with (β=0.76; t = 8.63; p ) was found to the highest influence on the adoption of HRM practices by SMEs in Kwara State. This was followed by firm size, (β=0.46; t = 4.66; p ). The study concluded that SMEs in Kwara State, Nigeria adopt HRM practices and these are influenced by some factors. This study recommends that sustainable efforts be placed on the identified variables such as availability of funding and firm size and ownership type in order to continually improve business performance.

Suggested Citation

  • RABIU, Rukayat Oloruntoyin & OLANIPEKUN, Wahid Damilola (PhD) & BAMIDELE, Ayodeji Gbenga (PhD) & AWE, Olasehinde Israel, 2020. "Analysis Of Factors Influencing Adoption Of Human Resource Practices By Small And Medium Scale Enterprises In Nigeria," Management Strategies Journal, Constantin Brancoveanu University, vol. 47(1), pages 42-50.
    • Handle: RePEc:brc:journl:v:47:y:2020:i:1:p:42-50
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    1. Luc Sels & Sophie Winne & Jeroen Delmotte & Johan Maes & Dries Faems & Anneleen Forrier, 2006. "Linking HRM and Small Business Performance: An Examination of the Impact of HRM Intensity on the Productivity and Financial Performance of Small Businesses," Small Business Economics, Springer, vol. 26(1), pages 83-101, February.
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