IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 11 2024
DOI: 10.56201/ijssmr.v10.no11.2024.pg.340.355

---

Cost Reduction Techniques and the Productivity of listed manufacturing firms in Nigeria

Ayeni-Agbaje, Rafiat Abiodun (Ph.D)

---

Abstract

The study investigated the effect of cost reduction techniques on productivity of listed manufacturing firms in Nigeria. The study specifically aimed to assess the effect of waste reduction on the productivity of listed firms in Nigeria and also assessed the effect of inventory management on the productivity of listed firms in Nigeria. The population for this study was hundred and seventy-nine (179) existing listed manufacturing firms on the Nigerian Exchange Group as at 30th May, 2023. This study used purposive sample technique to select twenty (20) listed manufacturing firms from the population of this study. Panel data which consists of cross-sectional and time series of the 20 sampled listed manufacturing firms and a ten (10) years’ time series (2014–2023) were sourced from the published annual financial statements of the selected firms. The study made use of descriptive and inferential analysis. Panel estimation regression technique was used to analyze the Data. Hausman test as well as other diagnostic test were also conducted in this study. The findings in this study showed that waste reduction exerted a positive and significant effect on the productivity of listed manufacturing firms in Nigeria with coefficient value of 120.362 (p=0.0421<0.05), the result also showed that inventory management exerted a positive and significant effect on the productivity of listed manufacturing firms in Nigeria with coefficient value of 154.965 (p=0.0390<0.05). The study concludes that waste reduction has a positive and significant effect on the productivity (PMG) of listed manufacturing firms in Nigeria, the study also conclude that inventory management has a positive and significant effect on the productivity (PMG) of listed manufacturing firms in Nigeria.

keywords:

cost reduction, cost reduction techniques, inventory management, productivity, waste

---

Adam, A. J. (2015). Public policy and industrialization in Nigeria. Publication of Central Bank of
Nigeria, 9(2), 142-155.
Adebayo, I. S., & Onyeiwu, C. (2018). The determinants of profitability of manufacturing firms
in Nigeria. International Journal of Economics, Commerce and Management, 6(6), 10–16.
Adeniyi, A. A. (2017). An insight into: Management Accounting, 3rd Edition. El-Toda Ventures
Limited.
Adeniji, A. A. (2011). Cost accounting: A managerial approach (5th ed.). El-Toda Ventures Ltd,
Lagos, Nigeria
Akenbor, C. O., & Agwor, T. C. (2015). Standard costing and cost control in Nigerian oil and gas
industry. Journal of Modern Accounting and Auditing, 11(4), 185–193.
Akeem, L. B. (2017). Effect of cost control and cost reduction techniques in organizational
performance. International Business and Management, 14(3), 19–26
Brown, S. (2022). Financial implications of inventory turnover ratio: A comparative study. Journal
of Financial Management, 18(1), 89–102.
Bailey, R. (2021). Maximizing throughput rates in manufacturing: A case study analysis.
International Journal of Production Economics, 28(4), 567–581.
Brooks, M. (2019). Analyzing customer usage metrics in online services: A data-driven approach.
Journal of Marketing Research, 35(4), 567–581.
Carter, E. (2020). Analyzing financial reports for cost reduction strategies: A comparative study.
Journal of Financial Analysis, 15(4), 567–582.
Egbide, B. Adegbola, O. Bamidele, R. Adewara. S., Oladipo, O. (2019), Cost reduction strategies
and the growth of selected manufacturing companies in Nigeria. International Journal of
Mechanical Engineering and Technology (IJMET), 10(3), 305–312.
Garcia, M. (2019). Analyzing key performance indicators for process efficiency improvement in
healthcare. International Journal of Healthcare Management, 24(3), 321–335.
Johnson, A. (2019). Analyzing process improvement through before and after task completion
times. International Journal of Business Process Integration and Management, 11(2),
123–137
Lasisi, I. O., & Nuhu, F. T. (2015). Cost control and its impact on the survival of Nigerian firms.
International Journal of Management, Accounting and Economics, 2(4), 10–23.
Lawal, B. A. (2017). Effect of cost control and cost reduction techniques in organizational
performance. International Business and Management, 14(3), 19–26.



Lawyer, C. O. (2014). Cost control and accountability for effective budget implementation.
Research Journal of Finance and Accounting, 5(21), 199–202.
Lee, H. (2019). Analyzing lead time reduction in project management: A case study approach.
Project Management Journal, 2(3), 409–423.
Ogundele, O. J. (2004). Introduction to Business Organization: A book of readings. Molofin
Nominees.
Olagunju, A., Imeokparia, L., & Afolabi, T. S. (2014). Budgetary control: A tool for cost control
in manufacturing companies in Nigeria. European Journal of Business and Management,
6(37), 98–108.
Oyadongba, K. J., & Ramond, L. (2014). Cost management practices and firm's performance of
manufacturing organizations. British Journal of Market Studies, 2(1), 12–26.
Oyerogba, E. O., Olaleye, M. O., & Solomon, A. Z. (2014). Cost management practices and firm’s
performance of manufacturing organizations. International Journal of Economics and
Finance, 6(6), 234–239.
Powell, M. (2021). Measuring customer satisfaction with e-commerce platforms: A longitudinal
analysis. Journal of Electronic Commerce Research, 15(4), 567–582.
Prempeh, K. B. (2015). The impact of efficient inventory management on profitability: Evidence
from selected manufacturing firms in Ghana. Munich Personal RePEc Archive MPRA,
6(2), 1–6.
Reed, G. (2020). Post-implementation reviews of integration projects: Lessons learned and best
practices. Journal of Enterprise Architecture, 22(1), 78–92.
Rof, M. L. (2012). Kaizen costing method and its role in the management of an entity. The Young
Economists Journal, 1(2), 104–109.
Rosli, M. A., & Abdul, B. A. (2017). The relationship between research & development
expenditure and firm’s performance of American companies listed in technology sector.
International Journal of Accounting & Business Management, 2(4), 148–165.
Sekeroglu, G., & Altan, M. (2014). The relationship between inventory management and
profitability: A comparative research on Turkish firms operated in weaving industry,
eatables industry, wholesale and retail industry. International Journal of Social.
Behavioral, Economic, Business and Industrial Engineering, 8(6), 1698–1703.
Siyanbola, T. T., & Raji, G. M. (2013). The impact of cost control on manufacturing industries’
profitability. International Journal of Management and Social Sciences Research
(IJMSSR), 2(4), 1–7.
White, S. (2019). Customer feedback analysis for identifying defects in service delivery. Journal
of Service Management, 22(1), 78–92.

DOWNLOAD PDF

---

Back