Clusters, Networks, and Innovation in Small and Medium Scale Enterprises (SMEs)
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1 Osmund Osinachi Uzor Clusters, Networks, and Innovation in Small and Medium Scale Enterprises (SMEs) The Role of Productive Investment in the Development of SMEs in Nigeria PETER LANG Internationaler Verlag der Wissenschaften
2 Tables xiv Figures xviii Acknowledgement xxi Dedication ; xxiii Preface xxv Chapter 1: Introduction.'...: Research Problem The Research objectives Motivation of the study Theoretical Assumptions and Hypotheses Methodology The Analytical Steps Data collection and field survey challenges Design of Sample Representative The Sample Procedure Selected Sample of clustered and dispersed Enterprises Methods of Data Analyses The Study Plan 17 Chapter 2: The Nigeria's Economic and Social Performance Introduction The Geography and Nigeria's Political Economy Geographical Facts and the People of Nigeria Overview of Nigeria's Political Economy Nigeria's Economic Performance and Problems The Structure of Production and Economic Growth The Structure of External Transactions Exports of Oil and Non-Oil Commodities Import of Oil and Non-Oil Commodities Balance of Payment Current Account The Structure of Demand and Federal Government Finance The Structure of Demand Federal Government Finance Macroeconomic Performance Nigerian International Liquidity and Aid Dependency Nigeria's External Reserve and Debt Problems ; 37
3 Nigeria's External Debt External Assistance and Aid Dependency Relative Prices Changes and Interest Rate in Nigerian Economy Inflation Rate in Nigeria's Economy Food Price Index in Nigeria Interest Rate Labour Force and Unemployment in Nigeria Structure of Nigeria's Industrial Output and Manufacturing Activities in Nigeria The Poverty and Income Inequality in Nigeria Poverty in Nigeria Income Inequality in Nigeria Health care and Economic Development in Nigeria Interdependency of Education and Economic Development in Nigeria Nigeria's Education Outcome Primary school enrolment Federal Government Commitment to Education Environment and Economic Development in Nigeria Trends and Inplications of Environmental Problems in Nigerian Economy The Role of SMEs in the Environmental Management Poverty Reduction Strategies in Nigeria and Industrial 67 Development Summary and Conclusion 71 Chapter 3: SMEs in Economic Development and Growth Discourse Introduction Definitions and theoretical conceptual of small enterprises Literature review on SMEs in Developing Countries The political economic weaknesses in the promotion of SMEs in Africa Market failure and small enterprises development problems Institutional failure and small enterprises development problems in Africa ; Good governance and small enterprises development Mobilisation of domestic capital for the promotion of SMEs Foreign direct investment (FDI) and Small Enterprises Development FDI in economic development discourse FDI and SME development 96
4 FDI and SME development through linkages FDI and SME development through franchising and joint ventures The determinants of FDI inflow Economic Performance and Micro-determinants of FDI Macro management as determinants of FDI Human capital development as a determinant of FDI FDI and SMEs in Nigeria's Economic Development SMEs in Nigeria's economy Review of some studies on Nigerian SMEs Definition of SME in Nigeria ' : Ill Structure and geographical distribution of Nigeria's industrial establishments Distribution of Industries in Nigeria Constraints surrounding Nigeria's small enterprises Business Environment for SME development Government Access to Financial Capital and Limitations Capacity building and the need for capacity building programme for SME development Summary and Conclusion 121 Chapter 4: SME Clusters in Nigeria: Performance and Constraints Introduction The theoretical framework on SME Clusters Definitions Terminologies and classification of the term enterprise clusters Determinants of cluster growth-paths Size of the market and nature of products The stock of economies of scale and scope The rate of upgrading The nature of collective efficiency existing in the cluster The nature of institutions supporting the cluster The role of the state SME Clusters and Poverty Reduction Arguments against firm clustering Literature review on SME Clusters in developed and developing countries Small scale enterprise clusters performance in Nigeria Introduction Aba small scale footwear Enterprises Cluster Introduction 142
5 Methodology Informality Characteristics Competitive factors Firm Performances in Clustered and Dispersed Aba Small Scale Footwear Enterprises Constraints faced by Aba Small Scale Footwear Enterprises Cluster Remarks...: Aba small and medium scale garment enterprises cluster Introduction Methodology ':...,..r..v Informality characteristics Competitive Factors in Aba small and medium scale garment enterprises cluster Average monthly cash earnings in Aba small and medium scale garment enterprises cluster Factors Affecting the Growth of Aba Small and Medium Scale Garment Enterprises Cluster Remarks Enugu Small Scale Wood and Furniture Enterprises Cluster Introduction Methodology Sample structure Informality Characteristics Linkages in Enugu small scale wood and furniture enterprises clusters Competitive factors in Enugu small scale wood construction and furniture enterprises clusters Constraints in Enugu small scale wood construction and furniture enterprises Clusters Remarks Nnewi small and medium scale light engineering enterprises cluster Introduction Methodology 170, Informality characteristics Competitive factors in Nnewi small and medium scale light engineering cluster Constraints Identified in the Cluster Remarks Enugu small scale palm kernel extraction enterprises cluster Introduction Methodology 178
6 Informality characteristics The competitive factors in Enugu small scale PKO extraction, enterprises Small firm performance in Enugu small scale PKO extraction industries Constraints identified in PKO extraction enterprises Remarks Comparative Analysis of the clusters Comparative analysis of the clusters Competitiveness problems across the clusters by sector Summary and Conclusion 192 Chapter 5: Networks in Small and Medium Scale Enterprises in Nigeria Introduction Theoretical Conception Definitions Forms of Networks Network structures Functions of networks Networks and Economic Development Review of literatures on SME networks in developed and developing countries Networks in small and medium scale enterprises in Nigeria: Empirical Evidence Methodology The structure of business related associations the entrepreneurs belong Network functions and their effect on firm performance Comparative analysis of Networks effects Summary and Conclusions 227 Chapter 6: Innovation in Nigerian Small and Medium scale Enterprises Introduction Theoretical concepts Definitions and theoretical explanation of innovation Innovation in small enterprises and poverty alleviation Factors influencing innovative milieu in Africa Review of literature on innovation in SME in developing countries Empirical analysis of innovative activities in small enterprises in Nigeria Methodology 241
7 6.4.2 The incentives small enterprises face Innovative activity in footwear small scale enterprises in Nigeria as survival strategy The innovative activity and the growth of small enterprises Endogenous growth model and small enterprises development Model and Data Specification Descriptive analysis Pearson linear correlation of output and the explanatory variables Result of Regression Analysis ': The Lead Equation and Results Summary and conclusion 266 Chapter 7: The Synthesis of the Study Introduction Investment and SME Development (ISMED) Model The motivation of the ISMED model The ISMED Model Decomposition of the empirical results and the ISMED -Model Capability factor Investment in Social Infrastructures Investment in physical capital Performance enhancement factor Productivity per worker enhancement Openness and Trade The political governance and performance enhancement Growth enhancement factor Risk and uncertainty reduction Capacity building Remarks 290 Chapter 8: Industrial Policies and SME Development in Nigeria Introduction Review of Nigerian Industrial and Technological Policies Nigerian Industrial Policies from 1900 to Nigerian Industrial Policies from 1954 to Nigerian Industrial Policies from 1958 to Nigerian Industrial Policies from 1972 to Nigerian Industrial Policies from 1985 to Nigerian Industrial Policies from 1988 to Nigerian Industrial Policies from 1999 to
8 xi 8.3 Nigerian Technology Development Lessons from Nigerian industrial and technology policies The Dynamic Policy for SME Development in Nigeria Policy on Promoting SMEs Clusters in Nigeria General Policies on Promoting SME Clusters in Nigeria Specific policies for Promotion of SME Clusters in Nigeria Policy on SME Networks in Nigeria General Policy Measures on SME Networks in Nigeria Sector Specific Measures on SME Networks in Nigeria Policy on Innovation and SMEs Capability Development in Nigeria Policy Matrix for SME Development in Nigeria 320 Chapter 9: General Conclusion The Resume of the Research Concept The Empirical Conclusion SME Clusters in Nigeria SME Networks in Nigeria Innovative Activities in Small Enterprises in Nigeria Challenges and Prospects 328 Abbreviations 331 References 337 Appendix 373 Appendix 1: Map of Nigeria 373 Appendix 2: Map of Research Area 374 Appendix 3: Governance and Development 375 Appendix 4: Evalutation of Cluster Performance 376 Appendix 4.1: Calculation of arithmetic mean for monthly production output per worker and enterprises employment potential (EEP) in Clustered small scale footwear industry 376 Appendix 4.1a: Calculation of Standard Deviation (SD) of the production output per worker in clustered small scale footwear industry Appendix 4.2: Calculation of arithmetic mean for the gross sales per worker in Clustered small scale footwear industry 378 Appendix 4.2a: Calculation Standard Deviation (SD) of the monthly sales per worker 379 Appendix 4.3: Calculation of arithmetic mean for monthly production output per worker and enterprises employment potential (EEP) in dispersed small scale footwear industry 380
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