CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
This chapter outlines the research methodology adopted for this study on management
accounting practices (MAPs) and the performance of small and medium scale enterprises
(SMEs) in Nigeria. The methodology include the research design, population, sampling
technique, data collection methods, and data analysis techniques. The aim is to provide a
clear, systematic approach to investigating the relationship between management accounting
practices and the performance of SMEs in Nigeria.
3.2. RESEARCH DESIGN
Research design is both a plan and a structure. As a plan it maps out the stage-by-stage pattern
of investigations to be able to obtain answers to the research questions. As a structure, it lays
down the framework, organization, o configuration of the relations among variables of a study
(Kerlinger, 19:279). ICAN (2014) defined research design as “a blue print or scheme that is used
by the researcher for specific structure and strategy in investigating the relationships that exist
among variables of study so as to enable the researcher collate data which will be used for the
study”. Unlike physical sciences, which involve pure experimental research where properties
such as chemical and machine are used. This study adopts a quantitative research design to
examine the impact of management accounting practices on SME performance. A survey
approach will be used to collect primary data from SME owners, managers, and accountants.
The design is appropriate because it allows for the systematic collection of numerical data that
can be analyzed statistically to identify patterns and relationships.
3.3. METHOD OF DATA COLLECTION
The ultimate of every research is to find a solution to the identified problem of the subject of
study. They can only be achieved through the collection of reliable data. In this research study,
the researcher collected her data through both primary and secondary sources.
3.3.1. PRIMARY SOURCE
Primary data for the purpose of this study will be sourced from online questionnaires.
Questionnaire will be administered to SME owners, staff, managers and accountants. The
choice of questionnaire is due to the fact that it is cheap and can get to all the targeted level of
staff in a research study.
3.3.2. SECONDARY SOURCE
For the purpose of this study, the secondary data will be sourced from Books, Journals, Articles,
publication and both published and unpublished research materials which have been
exhaustively discussed in chapter two.
3.4. QUESTIONNAIRE DESIGN
Questionnaire meant for this research study will be designed in structured format. The reasons
for using questionnaire are:
- They are usually less costly to administer.
- Almost every problem in administrative sciences research can be approached from the
questionnaire standpoint Baridam, (2001).
The questionnaire will be administered to SME owners, staff, managers and accountants
and accounting officers in Rivers State.
3.5. POPULATION AND SAMPLE PROCEDURE
The population of this study shall be all the small and medium scale enterprises in Rivers State.
It will not be convenient for the researcher to travel round the entire small and medium scale
enterprises, in course of this study. The cross-sectional survey method, the sample of the
population will be used for the study and the result will be binding on the entire population.
The target population consists of 100 managers, owners, staff, accountants and accounting
officers of registered SMEs in Rivers State, Nigeria, operating under manufacturing, retail/trade,
services, agro-based business sectors.
The sample procedure shall be determined using the YARO YARMEN’S formula. The researcher
shall use 5% level of significance, that is, (0.05).
The sample size shall be:
N
a= 2
1+ N (e)
Where
N=Number of population size
a = Sample size
e = level of significance
Where
N= 100
e = 0.05
Substituting
100
2
1+ 100(0.05)
100
1+ 100(0.0025)
100
1+ 0.25
100
1.25
a = 80
3.6. DATA ANALYSIS TECHNIQUE
According to Mac’Odo (2006), the correlation analysis is a statistical procedure to describe the
extent to which a variable linearly related to another variable. That is, the coefficient of
correlation measures the strength of relationship or going togetherness of the sets of data. In
this study, the Pearson’s Product Moment Correlation Coefficient (PPMCC) will e adopted. This
statistical tool studies accurately the extent to which Management Accounting Practices affects
small and medium scale enterprises in a linear form.
r =N ∑ XY −¿ ¿ ¿