ASSESSMENT OF OPERATIONAL RISK AND PERFORMANCE: A FOCUS ON HUMAN ERRORS AMONG SMALL AND MEDIUM ENTERPRISES IN OYO STATE, NIGERIA

Authors

  • OYEDOKUN, Akintunde Jonathan Department of Business Administration, Faculty of Management Sciences, Ladoke Akintola University of Technology, Oyo State, Nigeria
  • OGUNDELE, John Oluwayinka Department of Business Administration, Faculty of Management Sciences

Keywords:

Human errors, SMEs performance, Operational risks, Slips and lapses, Mistakes, Risk management

Abstract

Small and Medium Enterprises (SMEs) experience performance challenges caused by operational risk, which include human errors. This study investigates the impact of these errors on SME performance. The study was carried out in Oyo North Senatorial District with agricultural SMEs as the target. Purposive sampling was used to selected 280 agricultural SMEs within the study area. Structured questionnaires were used to collect primary data and the data were analyzed using Pearson Product Moment Correlation Coefficient (PPMC). The results showed that human errors had a significant negative effect on SME performance with slips showing the strongest correlation (r = .820, p < .001), lapses (r = .647, p < .001), and mistakes (r = .481, p < .001). The findings show that routine task errors impede operations, reduce productivity, and disturb decision-making. Automated workflows and staff training with real time monitoring are the suggested ways of reducing human errors. Initiatives that support SMEs to be more operational efficient and long term resilient are called upon by policymakers.

Downloads

Published

2025-02-01

How to Cite

OYEDOKUN, Akintunde Jonathan, & OGUNDELE, John Oluwayinka. (2025). ASSESSMENT OF OPERATIONAL RISK AND PERFORMANCE: A FOCUS ON HUMAN ERRORS AMONG SMALL AND MEDIUM ENTERPRISES IN OYO STATE, NIGERIA. Journal of Accounting, Finance, and Contemporary Management Research , 1(2), 84–95. Retrieved from https://jafacomar.lautech.edu.ng/index.php/jafacomar/article/view/22

Issue

Vol. 1 No. 2 (2024): LAUTECH Journal of Accounting, Finance and Contemporary Management Research (JAFACOMAR)

Section

Articles