Financial Management and Organizational Culture as a Hybrid for SMEs' Performance in Nigeria

Abstract

Purpose: This study jointly examines the impact of financial management and organizational culture on the performance of SMEs in Nigeria with particular reference to Oyo State. Methods Purposive sampling techniques were employed to select a total of 658 SME operators/managers engaging in trading, manufacturing, services, Agro-allied, and construction. Mean, and least square method of estimation was used to analyze the data. Results: The result reveals that financial management and organizational culture jointly and independently influence SMEs’ performance. The study further reveals that SMEs are ready to imbibe financial management culture if adequate training on financial skills is provided for the sector by the government, accounting professional bodies, and the tertiary institution of learning, which will foster the growth of entrepreneurship and prudently manage their finances. Implications: The implication of this study is that for the sector to swimming in prosperity, SMEDAN should make the certificate in financial management culture as of the prerequisites for the registration. Also, the Federal Ministry of Education should introduce financial management culture into curricula for all tertiary institutions of learning as well as accounting professional bodies in Nigeria.