Tag Archives: Manufacturing sector

Competitive Strategies on Firm Growth. A Survey of Medium Enterprises in the Manufacturing Sector in Kigali City (Published)

This study entitled “An evaluation of the effect of competitive strategies on firm growth. A survey of medium enterprises in the manufacturing sector in Kigali city” aimed at evaluating competitive strategies within Medium companies and their effect on firm growth. The objectives of the study were to: evaluate the effect of cost leadership strategy practices on Medium companies’ growth, assess the influence of differentiated strategy on firm growth, examine the impact of innovative strategies on the firm growth and establish the relationship between customer service practices and growth of the Medium companies. The study used descriptive survey through correlation design and sampled 57 medium manufacturing companies located in Kigali City province by distributing questionnaires to either their owner or a manger. The data collected was analysed mainly through multiple regression and presented tables and charts. The relationships under investigation were regressed and the Pearson correlation coefficients calculated. The findings showed that Cost leadership affected growth at 62.3%, differentiation at 62.6% and innovation at 33.4%. However the effect of customer service on growth was very weak and not significant. It was recommended that more emphasis be put on improving these strategies by creatively combining them for better results. There is also need to strengthen customer care practices so as to reap from its strength. Suggestions for further studies were forwarded by the author.

Keywords: Competitive Strategies, Cost Leadership, Firm Growth, Innovative Strategy, Leadership Strategy, Manufacturing sector, SMEs

Implications of Government Capital Expenditure on the Manufacturing Sector in Nigeria (Published)

Theoretically, both Keynesian and neoclassical economists provided tools for government’s intervention, particularly with regard to government capital expenditure. The aim of this project work is to investigate the effect of government capital expenditure on the manufacturing sector output in Nigeria. The study used quantitative time series data and multiple regression techniques in the analysis. The result of the co-integration test indicates long run relationship between dependent and independent variables. It also reveals that capital expenditure on road infrastructure (CEXR) and telecommunication (CEXT) affects the manufacturing sector output in Nigeria significantly while government capital expenditure on power has insignificant effect on manufacturing sector in Nigeria. The implication of this is that manufacturing sector output is clearly affected by factors both exogenous and endogenous to the government capital expenditure in Nigeria. We therefore recommend that, there is need for government to reduce its budgetary allocation to recurrent expenditure on power sector and place more emphasis on the capital expenditures so as accelerate economic growth in Nigeria through manufacturing sector output and that government should also increase spending on road infrastructure, particularly on capital budgeting. As our results showed, road infrastructure capital expenditure has the greatest impact on the long-run with manufacturing sector output in Nigeria

Keywords: Manufacturing sector, Nigeria, Output, Power Sector, Road Infrastructure, Telecommunication

Impact of Fiscal Policy on the Manufacturing Sector Output in Nigeria: An Error Correction Analysis (Published)

There has been a growing concern on the role of fiscal policy on the output and input of manufacturing industry in Nigeria, despite the fact that the government had embarked on several policies aimed at improving the growth of Nigerian economy through the contribution of manufacturing industry to the economy and capacity utilization of the sector. The aim of this study is to examine the impact of fiscal policy on the manufacturing sector output in Nigeria. Empirical evidence from the developed and developing economies has shown that fiscal and monetary policies have the capacity to influence the entire economy if it is well managed. An ex-post facto design (quantitative research design) was used to carry out this study. The results of the study indicate that government expenditure significantly affect manufacturing sector output based on the magnitude and the level of significance of the coefficient and p-value and there is a long-run relationship between fiscal policy and manufacturing sector output. The implication of this finding is that if government did not increase public expenditure and its implementation, Nigerian manufacturing sector output will not generate a corresponding increase in the growth of Nigerian economy. It is the recommendation of researcher that the expansionary fiscal policies should be encouraged as they play vital role for the growth of the manufacturing sector output in Nigeria; that fiscal policy should be given more priority attention towards the manufacturing sector by increasing the level of budget implementation, which will enhance aggregate spending in the economy; and consistent government implementation will contribute to the increase performance of manufacturing sector.

Keywords: Capacity Utilization, Co-integration, Error Correction Model, Government Expenditure, Government Tax Revenue, Manufacturing sector, Output