A PHENOMENOLOGICAL EVALUATION OF ORGANISATIONAL HEALTH AND GROWTH OF SMEs IN NIGERIA​

The focus of this study is to investigate the influence of Organisational Health as non- financial indices on SMEs’ growth in Nigeria. Research results revealed that SMEs in Nigeria suffer stagnation and high mortality rates despite financial factors. This suggests that these financial factors have not sufficiently impacted on SMEs’ growth in Nigeria. This study is important because it is intended to fill the gap in previous research done by Jaja (2009) and Mezera and Spicka (2013) on financial indices by performing an in-depth analysis of the non- financial indices of selected Nigerian manufacturing firms.

The conceptual framework of the study includes dimensions of Organisational Health classified as soft and hard factors. Soft factors are the behavioural aspects of management which are; perceived leadership and managerial capability. While the hard factors are work processes and control techniques; accountability and reporting structure. The non-financial elements of growth include success and survival.

This interpretive phenomenological study adopted an inductive approach using the philosophical paradigm of constructivism to increase general understanding of situations. Consequently from the rich data gathered, ideas were induced but did not necessarily create new theories. This approach was used to inductively and holistically understand human experiences using case studies. Data collection methods included general observations and in-depth semi-structured interviews with a sample size of thirty respondents from ten manufacturing SMEs. Non-probability and stratified (strategic, tactical, operational) sampling techniques were used. The data analysis involved the use of Nvivo software.

Key findings reveal that connectivity and relationship exist between dimensions of Organisational Health with capability and leadership on one hand and accountability and reporting structure on the other. All of which have influences on the survival and success of SMEs. It must be said however that capability and accountability have stronger influences on the growth of SMEs compared to leadership and reporting structure. This study revealed that the successes of SMEs are closely tied to socio-psychological processes and not merely to financing support.

Contributing to knowledge, capability encompassing HR skills and accountability seem to be the ultimate foundation of Organisational Health. Entrepreneurs should be aware of industry conditions to improve their non-financing strategies and policy makers should understand the dimensions of Organisational Health in order to provide adequate training for them.