SUPPLY CHAIN MANAGEMENT PRACTICES AND THE PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN NASARAWA STATE, NIGERIA

Abstract

The number of rival companies expanding both locally and globally, companies not only have to reestablish themselves to produce higher-quality products and services, decrease waste and are able to respond to the market but also to handle their supply chain management efficiently. The main objective of this paper is to examine the relationship between supply chain management practices and the performance MSMEs in Nasarawa State, Nigeria. The study adopted survey research design in order to collect relevant data from respondents in the field comprising the target respondents who are employees of MSMEs in Nasarawa State, Nigeria. The population of this study comprised of 1,120 MSMEs in Nasarawa State and sample size of 354 MSMEs. Purposive sampling technique was utilized to administer the questionnaire to the respondents. 354 structured questionnaires were distributed but 321 were returned representing 91% retrieval rate. This study adopted multiple linear regression analysis facilitated SmartPLS version (v) 4.1.1.6. The results of this study revealed that strategic supplier partnership had a significant effect on the performance of MSMEs. The findings showed that customer relationship management has a significant effect on the performance of MSMEs. MSMEs should identify their top 3-5 critical suppliers and establish formal partnership agreements that include quarterly joint planning sessions, shared performance metrics, collaborative cost reduction initiatives, and joint innovation projects. MSMEs should invest in an affordable CRM platform (such as HubSpot, Zoho, or Salesforce Essentials) and establish systematic customer engagement practices including monthly check-in calls with key accounts, quarterly satisfaction surveys, personalized communication based on purchase history, and a formal customer feedback loop that informs product/service improvements.