Operations Research Approach to Enhancing Enterprise through Alliances: A case study of Mowe Town, Ogun State, Nigeria

Abstract

Small firm sub-sector has the potential to reduce poverty and unemployment in Nigeria. However, in the face of global competition, market uncertainties and rapid technological changes, it is necessary to assist firms, particularly small enterprise to access information that can build their business competencies to create income and employment generation opportunities. Through in-depth recourse to existing theories and empirical literature on factors that explain firm growth, the study identifies business competencies, derived through inter-firm alliances, as determinants of enterprise performance. The study establishes that the size of the firm influences the choice of business association among manufacturing enterprises in Nigeria. It is further noted that the decision to join a business association is positively related to the ages of the entrepreneur and enterprise. The study recommends incentive mechanisms that encourage business associations among small enterprise.