INFRASTRUCTURE SERVICE AND THE PERFORMANCE OF AGRO-ALLIED SMES IN NORTH CENTRAL, NIGERIA
Keywords:
Entrepreneurial Ecosystem, Infrastructure Service, SME Performance, Institutional TheoryAbstract
This paper is a part of my thesis titled “Entrepreneurial Ecosystem Components and the Performance of Agro-allied SMEs in North Central Nigeria. It studies the effect of infrastructure service on the performance of agro-allied small and medium enterprises agro-allied (SMEs) in North Central Nigeria. Adopting a quantitative research approach, the study employed a descriptive cross-sectional design and collected primary data through structured questionnaires administered to agro-allied SME operators and employees across six States and the Federal Capital Territory. A total of 713 valid responses were analysed using descriptive statistics, regression analysis, and partial least squares structural equation modelling (PLS-SEM). Infrastructure was operationalised in terms of power supply service, transportation service, logistics service, road quality service, and digital connectivity service, while agro-allied SME performance was measured using competitive advantage as a key non-financial indicator. The findings reveal that infrastructure-related services exert a strong and statistically significant negative effect on agro-allied SME performance (β = −0.77, p < .001), indicating that increases in infrastructural challenges substantially reduce enterprise performance. The structural model further shows that infrastructure explains approximately 69.2% of the variance in SME performance, highlighting its dominant role within the entrepreneurial ecosystem. Descriptive results indicate persistent weaknesses in transportation efficiency, logistics costs, and digital infrastructure despite improvements in electricity supply. The study concludes that improving integrated infrastructure particularly transport systems, logistics efficiency, and digital connectivity is essential for enhancing the productivity, competitiveness, and performance of agro-allied SMEs. The findings provide empirical evidence to inform infrastructure-focused policies and targeted interventions aimed at strengthening agro-allied SME performance in North Central Nigeria.
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