The Nexus between Industrial Parks and the Sustainability of Small and Medium-Scaled Ventures

Robert O. Ngwu, Vincent A. Onodugo, Francis E. Monyei, Wilfred I. Ukpere (), Phina N. Onyekwelu and Uche Gerald Mmamel
Additional contact information
Robert O. Ngwu: Department of Management, University of Nigeria, Nsukka 410105, Nigeria
Vincent A. Onodugo: Department of Management, University of Nigeria, Nsukka 410105, Nigeria
Francis E. Monyei: Department of Management, University of Nigeria, Nsukka 410105, Nigeria
Wilfred I. Ukpere: Department of Industrial Psychology & People Management, University of Johannesburg, Johannesburg 2006, South Africa
Phina N. Onyekwelu: Department of Business Administration, Nnamdi Azikiwe University, Awka 420110, Nigeria
Uche Gerald Mmamel: Department of Management, University of Nigeria, Nsukka 410105, Nigeria

Sustainability, 2023, vol. 15, issue 12, 1-19

Abstract: Investigations on industrial parks appear to be slim with inadequate statistical data in spite of their growing connectedness with sustainability and the importance of their establishment. They were required to curb the overarching challenges of small and medium-scaled ventures (SMVs). To revert the status quo and justify the call for the timeliness of empiricism in this regard, the study investigated the extent to which industrial parks (IPs) impact the sustainability of SMVs. Specifically, it hypothesizes that competition among IP firms affects innovativeness and that government tax incentives impact the cost efficiency of SMVs in Enugu State in Nigeria. Empirical data for the study’s analyses were gathered from the distributive trade, manufacturing, agriculture and allied products, and commerce and tourism sub-sectors of SMVs in the Enugu metropolis, Enugu State, Nigeria. Adopting a descriptive survey design, 711 staff members from the aforementioned SMV sub-sectors in Enugu State, Nigeria were included as the research population. The regression analytics tool was used to analyze the data, following collection, using a structured questionnaire. The study’s results indicate that competition had a significant positive impact on SMVs’ innovativeness in the Enugu metropolis (R = 0.575, β = 0.283, t = 6.794, p = 0.000 < 0.05), while the government’s tax incentive had a significant positive impact on SMVs’ cost-effectiveness (R = 0.267, β = 0.213, t = 6.472, p = 0.000 < 0.05). Therefore, the study concluded that the pursuit of sustainability stimulated competition, resulting in higher levels of innovativeness, while government support in the form of tax incentives helped to lower SMVs’ costs of operating in the parks. As a result, SMVs can maintain viability through a well-planned structure of the industrial park.

Keywords: competition; government; industrial parks; Nigeria; sustainability; ventures (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/12/9529/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/12/9529/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:12:p:9529-:d:1170558

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().