European Journal of Logistics, Purchasing and Supply Chain Management (EJLPSCM)

informal trade networks

Integration of Hybrid Supply Chain Infrastructure and Income Generation in Nigeria: A Structural Equation Modelling Approach (Published)

This study examined the integration of hybrid supply chain infrastructure and its influence on income generation in Nigeria. The study was motivated by the limited income outcomes associated with fragmented infrastructure systems and the need to understand how informal trade networks, physical systems, digital platforms and value-chain linkages interact to support economic opportunities. An ex-post facto research design was adopted using secondary data obtained from relevant national and international databases. Structural Equation Modelling (SEM) was employed to examine the relationships between the selected dimensions of hybrid supply chain infrastructure and income generation, while education, financial inclusion, urbanization, trade openness and secondary school enrolment were incorporated as complementary factors. The findings revealed that the model explained approximately 94.7% of the variation in income generation, indicating a strong explanatory capacity. Informal trade networks, value-chain linkages and education recorded significant negative effects on income generation, while financial inclusion, urbanization and trade openness exerted significant positive effects. However, digital platforms, physical infrastructure and secondary school enrolment did not have statistically significant effects within the estimated model. The study therefore concludes that infrastructure development alone does not automatically translate into improved income outcomes. Rather, income generation depends on the effective coordination of physical, digital, relational and value-chain systems alongside supportive financial, educational, urban and trade conditions. The study recommends an integrated policy approach that upgrades informal economic activities, strengthens domestic value-chain linkages, expands financial inclusion, improves skills alignment and promotes productive urbanization and trade diversification.

Keywords: Financial Inclusion, Nigeria, digital platforms, hybrid supply chain infrastructure, income generation, informal trade networks, structural equation modelling, value-chain integration

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