Impact of Electricity Service Quality on the Performance of Manufacturing SMEs in Nigeria

Abstract

Purpose: The objective of this paper is to determine the impact of electricity service quality on both financial and non-financial performance of manufacturing Small and Medium Enterprises SMEs in Nigeria. Design/Methodology/Approach: Survey questionnaire was used to collect data from 201 Managers, Chief executive officers and owner managers of SMEs that are members of Manufacturers Association of Nigeria MAN. Simple regression analysis was done with the use of SPSS version 22.0. Findings: The results indicate that quality of electricity tends to account for more than 50% of the variances in the financial and non-financial performance of manufacturing SMEs in Nigeria. Implications/Originality/Value: This paper contributes to the existing literature on the empirical investigation into the use of service quality as a measure of electricity service and also emphasizes the importance of electricity to the performance of manufacturing SMEs in the developing countries. It recommends that future research may consider collecting longitudinal data to eliminate bias related to time.