Firm productivity, profit and business goal satisfaction: an assessment of maintenance decision effects on small and medium scale enterprises (SME’s)

Daniel Owusu-Mensah, Evans K. Quaye, Lydia Brako


This study was carried out to identify which factors are most relevant to managers of SMEs in maintenance decision making, and to investigate how these factors influence the realization of business goals satisfactorily, using structural equation modelling, partial least square design (PLS-SEM) to establish significant relationships between manifest and latent variables. A study of maintenance cost vis a vis the number of maintenance works carried out and profits realized was conducted to ascertain correlations and identify which factors played key roles in profit maximization. Results showed that with increasing level of maintenance for SMEs, profit margins reduced significantly. Also, an R2 value of 0.83 showed that the latent variable, business goal satisfaction was explained to a high degree (83%) by the manifest variables. Rentals of equipment from third parties (0.27), halting production (0.11) and outsourcing (0.39) were less considered for business sustainability per correlation coefficients than funds (0.79), and the possibilities to carry out both corrective (0.64) and preventive (0.58) maintenance works.  F-square value greater than zero was realized (0.387) and this showed reliability of the both inner and outer models. These findings can be used in building a decision tool or framework that will best suit SMEs with high financial budget constraints.


maintenance decision making; funds availability; business goals satisfaction

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