Building Sustainable Supply Chain Investment Decisions Through Financial Analysis - Case Study of Lusaka SMEs


  • Dr Geoffrey Kapasa Mweshi School of Business, P. O. Box 35243, Dedan Kimathi Road, ZCAS University, Lusaka, Zambia
  • Dr Kwesi Sakyi School of Business, P. O. Box 35243, Dedan Kimathi Road, ZCAS University, Lusaka, Zambia


small and medium enterprises SMEs, financial statements, knowledge, credibility, access, investment decision


The purpose of this paper was to establish whether there is a relationship between the ability to analyse financial statements by small and medium enterprises (SMEs) in Lusaka and their investment decisions.   The study was quantitative in nature; data was collected through the distribution of questionnaires. The study used a probability sampling method known as cluster sampling in which the population was divided into clusters selected from all of its elements (SMEs) Selection of the cluster for the sample was done using the simple random sampling technique. Deductive reasoning was used in the research process with the intention to depart from the general theories and understanding concerning what influences investors’ investment decisions and it took time to actually study and analyse the information on the ground before either confirming or disputing the already existing theories about the use of financial statements in investment decisions.  The findings of the study after testing the hypothesis showed that there was a significant relationship between investment decisions which was the dependent variable and the three independent variables (Knowledge of financial statement analysis, Credibility of Financial Statements and Access to Financial Statements). The study therefore concluded that these three factors, with the intervening variable of adequacy of information in financial statements, can influence the investment decisions of small and medium enterprises that may wish to invest their money into firms.  The study has highlighted four variables that can influence a potential investor’s decision and companies that wish to attract investors can use the findings of this study to improve in areas of their operations that may dissuade potential investors from investing with them.


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How to Cite

Kapasa Mweshi, D. G. ., & Sakyi, D. K. . (2019). Building Sustainable Supply Chain Investment Decisions Through Financial Analysis - Case Study of Lusaka SMEs. American Scientific Research Journal for Engineering, Technology, and Sciences, 59(1), 81–92. Retrieved from