CASH MANAGEMENT TECHNIQUES AND NON-FINANCIAL PERFORMANCE OF SMALL AND MEDIUM SIZE ENTERPRISES IN SOUTH-EAST, NIGERIA

Abstract

Cash management is a critical component of organizational success, with implications for both financial and non-financial performance, especially among small and medium size enterprises (SMEs). This study investigates the effect of cash management techniques of cash planning/budgeting and cash disbursement on non-financial performance measures of operational efficiency, customer retention, and new product development. The study focused on SMEs in South-East Nigeria. A structured questionnaire was sent to 1,150 SMEs cutting across several industry such as manufacturing, ICT, food services. A total of 905 were returned and used for analysis. The study hypotheses were tested using partial least square – structural equation modelling (PLS-SEM) 3.2.9. The results demonstrate that both cash planning/budgeting and cash disbursements have significant positive effects on operational efficiency, customer retention, and new product development. The findings suggest that SMEs prioritizing cash management are better positioned to streamline operations, enhance customer satisfaction, and foster innovation. The study contributes to the existing body of knowledge by providing a comprehensive assessment of cash management techniques, expanding the scope of performance metrics, and offering industry-specific insights. The conclusions have practical implications for managers seeking to optimize cash management strategies and enhance overall organizational performance.