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ISSN: 2616-8472 Lean Human Resource Initiatives and Employee Performance of Sel

ISSN: 2616-8472 Lean Human Resource Initiatives and Employee Performance of Selected Small and Medium Scale Enterprises in Nigeria Egbuta, O. U., Omosigho, A. A., Akinlabi, H. B., & Ajike, E.O. 88 https://doi.org/10.53819/81018102t4051 Stratford Peer Reviewed Journals and Book Publishing Journal of Strategic Management Volume 6||Issue 3||Page 88-106||June||2022|| Email: info@stratfordjournals.org ISSN: 2616-8472 1Egbuta, O. U., 2Omosigho, A. A., *3Akinlabi, H. B., & 4Ajike, E.O. Department of Business Administration and Marketing, School of Management Sciences, Babcock University, Ilishan-Remo, Ogun State, Nigeria. *Corresponding Author Email: Akinlabib@babcock.edu.ng Abstract Small and medium scale enterprises (SMEs) play an important role in terms of growth and development of an economy. Despite this ostensible relevance of small and medium scale enterprises, it is observed that employee performance level especially in Nigeria is low compared to that of other nations. This is evident in declining workforce productivity, inefficiency, and decreased commitment. These challenges have been attributed to a variety of factors, including poor hiring approach, irregular improvement, and poor teamwork. The impact of lean human resource initiatives on employee performance in selected SMEs in Lagos State, Nigeria, was explored in this research. The survey research design was used in this study. In Lagos State, Nigeria, there were 8,396 small and medium-sized businesses. Sample size of 481 was ascertained using the Research Advisory Table. The participants were identified using a simple random sampling approach. Data was collected from the participants using an adapted and validated questionnaire. Construct ranged from 0.74 to 0.89 for Cronbach’s Alpha reliability coefficients and study found that 85% of participants responded. The data was analyzed using descriptive and inferential statistics (multiple regression). According to the findings, lean human resource initiatives had a significant impact on employee performance in Lagos, Nigeria.. Employee performance was significantly affected by lean human resource initiatives (Adj.R2 = 0.095; F (5,401) = 9.509, p 0.05). The study concludes that lean human resource initiatives had significant effect on employee performance of SMEs in Lagos Nigeria. The study recommends that small and medium scale enterprise owner/managers should embrace Lean Human Resource initiatives such as selective hiring, continuous improvement, mentoring, cross-functional team, and flexible information system which is geared towards human capital development to improve employee performance and boost their contribution to the organization. Keywords: Continuous Improvement, Employee Performance, Lean Human resource initiative, Mentoring, Selective Hiring. Lean Human Resource Initiatives and Employee Performance of Selected Small and Medium Scale Enterprises in Nigeria How to cite this article: Egbuta, O. U., Omosigho, A. A., Akinlabi, H. B. & Ajike, E. O. (2022). Lean Human Resource Initiatives and Employee Performance of Selected Small and Medium Scale Enterprises in Nigeria, Journal of Strategic Management, 6(3), 88-106. https://doi.org/10.53819/81018102t4051 89 https://doi.org/10.53819/81018102t4051 Stratford Peer Reviewed Journals and Book Publishing Journal of Strategic Management Volume 6||Issue 3||Page 88-106||June||2022|| Email: info@stratfordjournals.org ISSN: 2616-8472 1.0 Introduction Increasing organizational performance is a goal every business enterprise is pursuing at every point in time. These has made different organizations, managers and academics to regularly source for and adopt diverse strategies and varied action plans to improve business performance. Small and medium-sized businesses (SMEs) are essential for the growth and development of any economy. This is due to their significance in terms of job creation, economic development, and sustenance. As a result, SMEs are seen as major elements in the deployment of the local industrial sector, particularly in developing economies like Nigeria. It is not surprising given the importance of SMEs in fostering economic growth and development through a variety of channels, including job creation, income redistribution, poverty reduction, and the maintenance of a healthy economy. However, performance has declined, particularly in the areas of employee performance. Globally, Small and medium businesses play an important role in local, national, and international economies, as well as in the creation of economic opportunities. (Chatterjee, Gupta & Upadhyay, 2020; Chowdhury & Ahmed, 2011; OECD 2014). SMEs account for at least 90% of businesses in both developed and developing countries (Mbuyisa & Leonard, 2017). They represent 40–60% of GDP (Igwe, Ogundana, Egere & Anigbo, 2018) and contribute around 40% of global industrial production and 35% of global exports (Mbuyisa & Leonard, 2017; Sharma & Bhagwat, 2006). In the United States of America (USA), Europe, Asia, the United Kingdom (UK), and Middle East countries, SMEs firms are regarded to play a key role in growing economy, job creation and poverty alleviation. As a result, they are crucial in the growth of nations (Zimon, 2018). Despite this, SMEs around the world continue to face a number of issues due to the outbreak of COVID-19 and other economic challenges, including high levels of competitiveness, poor quality management, loss of market share, and decreased profitability. In Malaysia SMEs are important drivers of the country's economic development. However, they face enormous pressure along with multidimensional obstacles as an emerging country in the twenty-first century's latest competition. According to researchers, as a result of the financial crisis, Malaysia's economy has stagnated in recent years. The economic performance is deteriorating due to a steady increase in labor productivity and the loss of its attractiveness as an investment destination (Halim et al., 2015). In Africa SMEs displayed a high degree of adaptability, as evidence by their ability to build jobs in a difficult environment and a significant contribution to GDP. However, more than 30% of Kenya's SMEs still encounter serious challenges hindering their growth (Viffa, 2019). Reports from Kenya show that SMEs, accounting for over 70 per cent of GDP, are key drivers of Kenya's economy (Osano, 2019). SMEs are increasingly seen as the engines of the economic growth of Kenya (Ogunode, Abereola & Oloyede, 2020). The Kenyan government has taken the following steps to help SMEs by providing liquidity assistance through different tax and non-tax interventions: decreased turnover tax from 3% to 1%; lowered corporate tax from 30% to 25%; and reduced VAT from 16% to 14%, among other things. (Chege & Wang, 2020). Despite these efforts, Kenyan SMEs continue to struggle with access to improved business results, as it is evident that around 2 out of 5 SMEs had to wound up due to pressure to keep up. (Noor & Simiyu, 2020). In Nigeria, as a result of rapid technological advances, increased competition, and unpredictable economy, the global production system is underperforming. SMEs experience difficulties in their day-to-day operations. (Donati & Sarno, 2015; Kafigi, 2015). The situation is deteriorating because of the global energy shortage, as they are being threatened by rising 90 https://doi.org/10.53819/81018102t4051 Stratford Peer Reviewed Journals and Book Publishing Journal of Strategic Management Volume 6||Issue 3||Page 88-106||June||2022|| Email: info@stratfordjournals.org ISSN: 2616-8472 input costs and shrinking profit margins; among other things, the performance of SMEs is becoming increasingly difficult (SMEDA, 2019). This is because these businesses use their limited resources to cover operating costs that cannot be fulfilled by businesses whose production horizon is hampered by resource constraints. (Adoyi, Agu, Adoli, & Inalegwu, 2015; Kafigi, 2015). This has left SMEs in Nigeria with production and operational constraints. According to Ebitu, Basil and Ufot (2016) Small and medium-sized firms account for over 50% of employment and 30% of manufacturing production, and they account for roughly 97% of all businesses in the sector. SMEs currently provide 48% of Nigeria's gross domestic product (GDP), account for 96% of businesses, and employ 84% of the country's workforce. It also accounts for 7.27% of Nigeria's exports of products and services. (Akpan, Udo, & Okon, 2020). Lagos had the most micro-enterprises (8,395), followed by Oyo as well as Osun States (6,131 and 3,007, respectively), and Yobe State seemed to have the least (102). The concept of Lean Human Resource initiatives has attracted various studies (Martínez Sánchez & Pérez Pérez, 2019; Rymaszewska, 2018) that have led to the adoption of various ways to dig deep into the concept's implementation and learn more about it. Lean human resource initiatives are now practiced in business organizations across different industries where its implementation was first mentioned (Pearce & Pons, 2019). The concept of Lean Human Resource initiatives are primarily about identifying methods in an organization's process to minimize or eliminate waste, improve on-time delivery, lower overall costs, and improve the quality of the organization's output that benefit both the organization and its customer. (Fullerton, Kennedy, & Widener, 2014; Jackson & Mullarkey, 2020). There has been a number of studies on lean human resource initiatives and performance of businesses in different areas with diverse results and outcomes (Honda, Bernardoa, Gerolamoa, & Davis, 2018; Sinha, & Matharu, 2019; Niewiadomski, Pawlak & Tsimayeu, 2018). However, there is observed a paucity of research on the extent to which Lean Human Resource initiatives affect the performance of SMEs in Nigeria with keen respect to small and medium scale enterprises (Afunwa, Agbaeze, Ike & Isichei, 2020; Nwanya & Oko, 2019; Maware & Adetunji, 2019). Therefore, a gap is observed between the idea of Lean Human Resource initiatives and the performance of SMEs in Nigeria. Some SMEs in Nigeria fail to adopt different measures of lean such as continuous improvement, waste minimization or elimination, adoption of a flexible information system, and enforcement of uploads/Management/ egbuta-et-al-2022.pdf