Just in Time Strategy and Financial Performance of Small Scale Industry in Ogun State: A Study of ADO-ODO/OTA Local Government

Abstract

Many manufacturing firms have decided to implement just in time technique as a strategic cost management to survive and remain competitive in their business environment. The study examines how just in time technique has assisted in reducing inventory cost management and improve the firm profit level. The specific objective is to ascertain the influence of purchases and sales on return on equity of small scale manufacturing industry. Survey design was used for the study. Sample frame was purposively selected for convenience sake. Data was collected though secondary source. Regression analysis was employed to analyze the data. The study found positive relationship between just in time implementation and profit level of small scale business industry. We recommend other small scale businesses that have not started implementing just in time strategy to start the strategy. We encourage future researcher to examine the efficiency of just in time strategy among petty small scale trader in our urban centers.

Keywords

• Just in time strategy
• profitability
• competitive environment