The effect of electricity reliability on the sustainability of SMEs in Fako Division of Cameroon

Published: Sep 21, 2023

Abstract:

Purpose: To investigate the effects of the reliability of electricity supply on the sustainability of SMEs in Cameroon.

Research Methodology: This study investigates the effects of the reliability of electricity supply on the sustainability of SMEs in Cameroon. The study used a quantitative approach with the philosophical underpinnings of objectivist ontology and positivist epistemology. Primary data were obtained through closed-ended questionnaires that were responded to by 54 purposively sampled participants in the Fako division. The data were analyzed by Structural Equation Modeling (SEM) using SPSS 23 and SPSS Amos 24 software.

Results: The study revealed that sporadic electricity supply interruptions, chronic electricity supply interruptions, and momentary electricity supply interruptions have no significant positive impact on the sustainability of SMEs in the Fako Division of the Southwest Region of Cameroon.

Limitations: This study had a limitation in methodology, as it used a quantitative approach only. A better understanding of this study’s phenomenon can be achieved by adopting a mixed research method, where the qualitative aspect will provide a deeper understanding of the effects of other variables that affect SME sustainability.

Contribution: Based on the results of this study, business managers will come to the understanding that the sustainability of their businesses is not dependent on the reliability of the electricity supply. This means that other variables responsible for the sustainability of businesses can be studied qualitatively.

Keywords:
1. Electricity
2. Interruptions
3. sustainability
4. small and medium size enterprises
5. electricity interruptions
Authors:
1 . Felix Tapang
2 . Irene Mbarika
How to Cite
Tapang, F., & Mbarika, I. (2023). The effect of electricity reliability on the sustainability of SMEs in Fako Division of Cameroon. Annals of Human Resource Management Research, 3(1), 17–39. https://doi.org/10.35912/ahrmr.v3i1.1615

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References

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    Bean, R., Snow, S., Glencross, M., Viller, S., & Horrocks, N. (2020). Keeping the power on to home medical devices. PloS one, 15(7), e0235068.

    Boone Jr, H. N., & Boone, D. A. (2012). Analyzing likert data. The Journal of extension, 50(2), 48.

    Bouri, E., & El Assad, J. (2016). The Lebanese electricity woes: An estimation of the economical costs of power interruptions. Energies, 9(8), 583.

    Cheruto, N. M., & Munene, P. (2019). Relationship between Power Supply Interruptions and Financial Performance of Manufacturing Companies in Machakos County.

    Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. psychometrika, 16(3), 297-334.

    Deichmann, U., Reuter, A., Vollmer, S., & Zhang, F. (2019). The relationship between energy intensity and economic growth: New evidence from a multi-country multi-sectorial dataset. World Development, 124, 104664.

    Diboma, B. S., & Tatietse, T. T. (2013). Power interruption costs to industries in Cameroon. Energy Policy, 62, 582-592.

    Ef Ii, P.-P. (2021). The impact of Electricity insecurity on the performance of small and medium size enterprises-The case of Cameroon. UiT Norges arktiske universitet.

    Eikeland, O. F., Maria Bianchi, F., Holmstrand, I. S., Bakkejord, S., Santos, S., & Chiesa, M. (2022). Uncovering contributing factors to interruptions in the power grid: An Arctic case. Energies, 15(1), 305.

    El-Bassiouny, A., El-Shimy, M., & Hammouda, R. (2017). Impact of power transformer failures on customer interruptions costs using customer damage functions. Paper presented at the 2017 Nineteenth International Middle East Power Systems Conference (MEPCON).

    ENEO. (2022). Data base for electricity interruption management.

    Falama, R. Z., Welaji, F. N., Dadjé, A., Dumbrava, V., Djongyang, N., Salah, C. B., & Doka, S. Y. (2021). A solution to the problem of electrical load shedding using hybrid PV/battery/grid-connected system: The case of households’ energy supply of the Northern Part of Cameroon. Energies, 14(10), 2836.

    Foundation, F. (2020). The Entrepreneurial Ecosystem And Strategies For The Growth Of SME’s In Cameroon. Retrieved from https://www.foretiafoundation.org/events/the-entrepreneurial-ecosystem-and-strategies-for-the-growth-of-smes-in-cameroon/

    Francis, R., & Bekera, B. (2014). A metric and frameworks for resilience analysis of engineered and infrastructure systems. Reliability engineering & system safety, 121, 90-103.

    Glad, T., & Ljung, L. (2014). Control theory.

    Gonzalez, W. J. (2013). Value ladenness and the value-free ideal in scientific research. Handbook of the philosophical foundations of business ethics, 1503-1521.

    Goudarzi, A., Ghayoor, F., Waseem, M., Fahad, S., & Traore, I. (2022). A Survey on IoT-Enabled Smart Grids: Emerging, Applications, Challenges, and Outlook. Energies, 15(19), 6984.

    Gupta, R., Bruce-Konuah, A., & Howard, A. (2019). Achieving energy resilience through smart storage of solar electricity at dwelling and community level. Energy and buildings, 195, 1-15.

    Haimes, Y. Y. (2009). On the definition of resilience in systems. Risk Analysis: An International Journal, 29(4), 498-501.

    Hanger, J. (2003). Reactive Power and the Blackout. Retrieved from https://energycentral.com/c/tr/reactive-power-and-blackout

    Hurley, A. E., Scandura, T. A., Schriesheim, C. A., Brannick, M. T., Seers, A., Vandenberg, R. J., & Williams, L. J. (1997). Exploratory and confirmatory factor analysis: Guidelines, issues, and alternatives. Journal of Organizational Behavior, 667-683.

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    Izadi, M., & Safdarian, A. (2018). A MIP model for risk constrained switch placement in distribution networks. IEEE Transactions on Smart Grid, 10(4), 4543-4553.

    John, D., Bruce, F., & Allen, T. (1990). Feedback control theory. Book. Macmillan Publishing Co, 150-160.

    Kefale, H. A., Getie, E. M., & Eshetie, K. G. (2021). Optimal design of grid-connected solar photovoltaic system using selective particle swarm optimization. International Journal of Photoenergy, 2021, 1-9.

    Küfeo?lu, S. (2015). Economic impacts of electric power outages and evaluation of customer interruption costs.

    Kunaifi, & Reinders, A. (2018). Perceived and reported reliability of the electricity supply at three urban locations in Indonesia. Energies, 11(1), 140.

    Lehmann, P., Sijm, J., Gawel, E., Strunz, S., Chewpreecha, U., Mercure, J.-F., & Pollitt, H. (2019). Addressing multiple externalities from electricity generation: a case for EU renewable energy policy beyond 2020? Environmental Economics and Policy Studies, 21, 255-283.

    Li, W., Vaahedi, E., & Choudhury, P. (2006). Power system equipment aging. IEEE Power and Energy Magazine, 4(3), 52-58.

    Linares, P., & Rey, L. (2013). The costs of electricity interruptions in Spain. Are we sending the right signals? Energy Policy, 61, 751-760.

    Mahmud o‘g‘li, A. A., & Khudoymurodovich, K. B. (2022). The Role of Electricity in All Cases. Central Asian Journal of Theoretical and Applied Science, 3(3), 78-80.

    Martí, I., & Fernández, P. (2013). The institutional work of oppression and resistance: Learning from the Holocaust. Organization Studies, 34(8), 1195-1223.

    Mendes, A. C., Ferreira, F. A., Kannan, D., Ferreira, N. C., & Correia, R. J. (2022). A BWM approach to determinants of sustainable entrepreneurship in small and medium-sized enterprises. Journal of cleaner production, 371, 133300.

    Messabia, N., Beauvoir, E., & Kooli, C. (2021). Haitian Cooperative of Savings and Credits: Social and Community Dimensions of Success. Paper presented at the The International Conference On Global Economic Revolutions.

    Messabia, N., Beauvoir, E., & Kooli, C. (2022). Governance and management of a savings and credit cooperative: The successful example of a Haitian SACCO. Vision, 09722629221074130.

    Milin, I. A., Mungiu Pupazan, M. C., Rehman, A., Chirtoc, I. E., & Ecobici, N. (2022). Examining the Relationship between Rural and Urban Populations’ Access to Electricity and Economic Growth: A New Evidence. Sustainability, 14(13), 8125.

    Minnaar, U., Visser, W., & Crafford, J. (2017). An economic model for the cost of electricity service interruption in South Africa. Utilities Policy, 48, 41-50.

    Mireku, D. O., Dauda, S., & Danladi, B. M. (2022). IMPROVING ELECTRICITY SUPPLY THROUGH INTERNAL QUALITY CONTROL MEASURES: THE CASE OF NORTHERN ELECTRICITY DISTRIBUTION COMPANY (NEDCo), GHANA. Proceedings on Engineering, 4(1), 89-96.

    Moraes, C. H. V. d., Vilas Boas, J. L. d., Lambert-Torres, G., Andrade, G. C. C. d., & Costa, C. I. d. A. (2022). Intelligent Power Distribution Restoration Based on a Multi-Objective Bacterial Foraging Optimization Algorithm. Energies, 15(4), 1445.

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    Yan, Q., Dokic, T., & Kezunovic, M. (2016). Predicting impact of weather caused blackouts on electricity customers based on risk assessment. Paper presented at the 2016 IEEE Power and Energy Society General Meeting (PESGM).

    Zhao, Y., Tang, K. K., & Wang, L.-l. (2013). Do renewable electricity policies promote renewable electricity generation? Evidence from panel data. Energy Policy, 62, 887-897.

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  2. Bean, R., Snow, S., Glencross, M., Viller, S., & Horrocks, N. (2020). Keeping the power on to home medical devices. PloS one, 15(7), e0235068.
  3. Boone Jr, H. N., & Boone, D. A. (2012). Analyzing likert data. The Journal of extension, 50(2), 48.
  4. Bouri, E., & El Assad, J. (2016). The Lebanese electricity woes: An estimation of the economical costs of power interruptions. Energies, 9(8), 583.
  5. Cheruto, N. M., & Munene, P. (2019). Relationship between Power Supply Interruptions and Financial Performance of Manufacturing Companies in Machakos County.
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  7. Deichmann, U., Reuter, A., Vollmer, S., & Zhang, F. (2019). The relationship between energy intensity and economic growth: New evidence from a multi-country multi-sectorial dataset. World Development, 124, 104664.
  8. Diboma, B. S., & Tatietse, T. T. (2013). Power interruption costs to industries in Cameroon. Energy Policy, 62, 582-592.
  9. Ef Ii, P.-P. (2021). The impact of Electricity insecurity on the performance of small and medium size enterprises-The case of Cameroon. UiT Norges arktiske universitet.
  10. Eikeland, O. F., Maria Bianchi, F., Holmstrand, I. S., Bakkejord, S., Santos, S., & Chiesa, M. (2022). Uncovering contributing factors to interruptions in the power grid: An Arctic case. Energies, 15(1), 305.
  11. El-Bassiouny, A., El-Shimy, M., & Hammouda, R. (2017). Impact of power transformer failures on customer interruptions costs using customer damage functions. Paper presented at the 2017 Nineteenth International Middle East Power Systems Conference (MEPCON).
  12. ENEO. (2022). Data base for electricity interruption management.
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  14. Foundation, F. (2020). The Entrepreneurial Ecosystem And Strategies For The Growth Of SME’s In Cameroon. Retrieved from https://www.foretiafoundation.org/events/the-entrepreneurial-ecosystem-and-strategies-for-the-growth-of-smes-in-cameroon/
  15. Francis, R., & Bekera, B. (2014). A metric and frameworks for resilience analysis of engineered and infrastructure systems. Reliability engineering & system safety, 121, 90-103.
  16. Glad, T., & Ljung, L. (2014). Control theory.
  17. Gonzalez, W. J. (2013). Value ladenness and the value-free ideal in scientific research. Handbook of the philosophical foundations of business ethics, 1503-1521.
  18. Goudarzi, A., Ghayoor, F., Waseem, M., Fahad, S., & Traore, I. (2022). A Survey on IoT-Enabled Smart Grids: Emerging, Applications, Challenges, and Outlook. Energies, 15(19), 6984.
  19. Gupta, R., Bruce-Konuah, A., & Howard, A. (2019). Achieving energy resilience through smart storage of solar electricity at dwelling and community level. Energy and buildings, 195, 1-15.
  20. Haimes, Y. Y. (2009). On the definition of resilience in systems. Risk Analysis: An International Journal, 29(4), 498-501.
  21. Hanger, J. (2003). Reactive Power and the Blackout. Retrieved from https://energycentral.com/c/tr/reactive-power-and-blackout
  22. Hurley, A. E., Scandura, T. A., Schriesheim, C. A., Brannick, M. T., Seers, A., Vandenberg, R. J., & Williams, L. J. (1997). Exploratory and confirmatory factor analysis: Guidelines, issues, and alternatives. Journal of Organizational Behavior, 667-683.
  23. Hussain, J., Karimu, A., Salia, S., & Owen, R. (2022). Does the cost of energy matter for innovation? The effects of energy prices on SME innovation in Sub-Saharan Africa. International Journal of Entrepreneurial Behavior & Research, 28(2), 548-566.
  24. Izadi, M., & Safdarian, A. (2018). A MIP model for risk constrained switch placement in distribution networks. IEEE Transactions on Smart Grid, 10(4), 4543-4553.
  25. John, D., Bruce, F., & Allen, T. (1990). Feedback control theory. Book. Macmillan Publishing Co, 150-160.
  26. Kefale, H. A., Getie, E. M., & Eshetie, K. G. (2021). Optimal design of grid-connected solar photovoltaic system using selective particle swarm optimization. International Journal of Photoenergy, 2021, 1-9.
  27. Küfeo?lu, S. (2015). Economic impacts of electric power outages and evaluation of customer interruption costs.
  28. Kunaifi, & Reinders, A. (2018). Perceived and reported reliability of the electricity supply at three urban locations in Indonesia. Energies, 11(1), 140.
  29. Lehmann, P., Sijm, J., Gawel, E., Strunz, S., Chewpreecha, U., Mercure, J.-F., & Pollitt, H. (2019). Addressing multiple externalities from electricity generation: a case for EU renewable energy policy beyond 2020? Environmental Economics and Policy Studies, 21, 255-283.
  30. Li, W., Vaahedi, E., & Choudhury, P. (2006). Power system equipment aging. IEEE Power and Energy Magazine, 4(3), 52-58.
  31. Linares, P., & Rey, L. (2013). The costs of electricity interruptions in Spain. Are we sending the right signals? Energy Policy, 61, 751-760.
  32. Mahmud o‘g‘li, A. A., & Khudoymurodovich, K. B. (2022). The Role of Electricity in All Cases. Central Asian Journal of Theoretical and Applied Science, 3(3), 78-80.
  33. Martí, I., & Fernández, P. (2013). The institutional work of oppression and resistance: Learning from the Holocaust. Organization Studies, 34(8), 1195-1223.
  34. Mendes, A. C., Ferreira, F. A., Kannan, D., Ferreira, N. C., & Correia, R. J. (2022). A BWM approach to determinants of sustainable entrepreneurship in small and medium-sized enterprises. Journal of cleaner production, 371, 133300.
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  37. Milin, I. A., Mungiu Pupazan, M. C., Rehman, A., Chirtoc, I. E., & Ecobici, N. (2022). Examining the Relationship between Rural and Urban Populations’ Access to Electricity and Economic Growth: A New Evidence. Sustainability, 14(13), 8125.
  38. Minnaar, U., Visser, W., & Crafford, J. (2017). An economic model for the cost of electricity service interruption in South Africa. Utilities Policy, 48, 41-50.
  39. Mireku, D. O., Dauda, S., & Danladi, B. M. (2022). IMPROVING ELECTRICITY SUPPLY THROUGH INTERNAL QUALITY CONTROL MEASURES: THE CASE OF NORTHERN ELECTRICITY DISTRIBUTION COMPANY (NEDCo), GHANA. Proceedings on Engineering, 4(1), 89-96.
  40. Moraes, C. H. V. d., Vilas Boas, J. L. d., Lambert-Torres, G., Andrade, G. C. C. d., & Costa, C. I. d. A. (2022). Intelligent Power Distribution Restoration Based on a Multi-Objective Bacterial Foraging Optimization Algorithm. Energies, 15(4), 1445.
  41. Moura, M. d. C., Diniz, H. H. L., Droguett, E. L., da Cunha, B. S., Lins, I. D., & Simoni, V. R. (2017). Embedding resilience in the design of the electricity supply for industrial clients. PloS one, 12(11), e0188875.
  42. Mukete, N., Li, Z., Mukete, B., Irene, N., Terence, A., Abdoulaye, C., . . . Saeed, S. (2021). Determinants of small and medium size enterprises access to credit schemes in the Mezam division of Cameroon. Open Access Library Journal, 8(2), 1-12.
  43. Nduhuura, P., Garschagen, M., & Zerga, A. (2021). Impacts of electricity outages in urban households in developing countries: A case of Accra, Ghana. Energies, 14(12), 3676.
  44. Ngounou, G. M., Gonin, M., Gachet, N., & Crettenand, N. (2015). Holistic approach to sufficient, reliable, and efficient electricity supply in hospitals of developing countries: Cameroon case study. Paper presented at the Sustainable Access to Energy in the Global South: Essential Technologies and Implementation Approaches.
  45. Numbere, D., Idoniboyeobu, D., & Braide, S. (2022). Improvement of Electricity Supply to Choba Community Using Newton-Raphson’s Technique.
  46. Nyemb, N. B., & Novikova, O. (2019). The impact of small and medium-sized businesses in Cameroon on the development of the energy system. Paper presented at the E3S Web of Conferences.
  47. Onaolapo, A. K., Carpanen, R. P., Dorrell, D. G., & Ojo, E. E. (2022). A comparative assessment of conventional and artificial neural networks methods for electricity outage forecasting. Energies, 15(2), 511.
  48. Ortmeyer, T. H., Reeves, J. A., Hou, D., & McGrath, P. (2010). Evaluation of sustained and momentary interruption impacts in reliability-based distribution system design. IEEE transactions on Power delivery, 25(4), 3133-3138.
  49. Oseni, M. O., & Pollitt, M. G. (2015). A firm-level analysis of outage loss differentials and self-generation: Evidence from African business enterprises. Energy Economics, 52, 277-286.
  50. Otcenasova, A., Bolf, A., Altus, J., & Regula, M. (2019). The influence of power quality indices on active power losses in a local distribution grid. Energies, 12(7), 1389.
  51. Roser, M. (2021). What is economic growth? And why is it so important? Retrieved from https://ourworldindata.org/what-is-economic-growth
  52. Tzvetkova, S. (2021). Interruptions of the Power Supply in Low Voltage Cable Networks. Paper presented at the 2021 17th Conference on Electrical Machines, Drives and Power Systems (ELMA).
  53. Vugrin, E. D., Warren, D. E., & Ehlen, M. A. (2011). A resilience assessment framework for infrastructure and economic systems: Quantitative and qualitative resilience analysis of petrochemical supply chains to a hurricane. Process Safety Progress, 30(3), 280-290.
  54. Yan, Q., Dokic, T., & Kezunovic, M. (2016). Predicting impact of weather caused blackouts on electricity customers based on risk assessment. Paper presented at the 2016 IEEE Power and Energy Society General Meeting (PESGM).
  55. Zhao, Y., Tang, K. K., & Wang, L.-l. (2013). Do renewable electricity policies promote renewable electricity generation? Evidence from panel data. Energy Policy, 62, 887-897.