RUTH ADEBUKOLA ILESANMI 07087145283 Ilesanmiruth46@gmail.com DOCTORATE STUDENT OF STRATEGIC MANAGEMENT AND LEADERSHIP DEVELOPMENT, LEARN TO LIVE BUSINESS SCHOOL, UK. 2024/25
ABSTRACT
Thisstudy examined the impact of leadership styles on the motivation, job satisfaction, productivity, and professional growth of graduate trainees in a remote work environment, using Konga as a case study. The research aimed to explore whether leadership styles significantly affect these variables among remote employees. The study utilized a descriptive survey design, with 23 graduate trainees as respondents. Data were collected through a structured questionnaire, and the hypotheses were tested using ANOVA. The findings revealed that leadership style significantly influences employee motivation (p=0.045), job satisfaction and productivity (p=0.034), and professional growth (p=0.029). These results underscore the crucial role of effective leadership, particularly transformational leadership, in remote work environments. The study concluded that leadership approaches directly affect employee outcomes and recommended that organizations enhance communication, leadership development, and professional growth opportunities to maintain motivation and productivity in remote settings.
Leadership is a critical determinant of employee success in any organizational setting, influencing motivation, job satisfaction, and overall productivity. In the last decade, the dynamics of leadership have been reshaped due to changes in workplace structures, including the rise of remote work environments. Remote work has become increasingly common, with technological advancements allowing organizations to operate seamlessly despite geographical dispersion. However, this shift also introduces significant challenges, particularly in managing and motivating employees physically separated from their supervisors (Martins et al., 2020). Traditional leadership styles that rely on face-to-face interactions may not be as effective in remote work environments, requiring a transformation in how leaders communicate, motivate, and engage their teams.
The relationship between leadership style and employee motivation has been extensively researched in traditional settings. Transformational leadership, characterized by inspiring and motivating employees to exceed expectations, has consistently been shown to improve job satisfaction and performance (Bass & Riggio, 2014). In contrast, transactional leadership, which focuses on the execution of tasks and rewards for performance, tends to result in lower levels of motivation and creativity. However, as remote work becomes more prevalent, the effectiveness of these leadership styles in such contexts needs to be re-evaluated. The lack of direct, physical supervision and real-time communication can create a sense of isolation and disengagement among employees, which may negatively impact their motivation and job performance (Clark & Williams, 2021).
Graduate trainee programs, designed to develop future leaders, are particularly vulnerable to these challenges. These programs rely heavily on mentorship, professional development, and close supervision elements that are more difficult to implement in remote settings. As companies increasingly adopt hybrid or fully remote work models, it becomes crucial to understand how leadership styles can be adapted to maintain the effectiveness of trainee programs and ensure that trainees remain motivated and productive.
Statementof the Problem
Leadership in remote work settings has been a subject of debate, as traditional methods of supervision and communication are often inadequate for maintaining motivation and productivity. Despite the significant increase in remote work, especially after the COVID-19 pandemic, there is limited empirical research examining the influence of leadership styles on employee motivation, job satisfaction, and performance in remote environments (Clark & Williams, 2021). For graduate trainees, the issue is even more complex, as these programs are designed to foster learning, growth, and development through direct supervision, feedback, and mentorship. The transition to remote work potentially undermines these key components, leading to lower motivation, inadequate professional development, and reduced job satisfaction. Without clear evidence of the effectiveness of different leadership styles in remote settings, organizations risk using outdated or ineffective strategies that fail to meet the needs of their remote workforce. Therefore, it is imperative to explore how leadership styles influence motivation and job performance in remote settings, specifically within the context of graduate trainee programs, to ensure the long-term success of both the trainees and the organization.
Purposeof the Study
The primary purpose of this study is to investigate the impact of leadership styles on employee motivation, job satisfaction, and productivity within the context of a graduate trainee program operating in a remote work environment. The study will specifically focus on how leadership styles such as transformational and transactional leadership influence these factors.
Objectivesof the Study
To examine the relationship between leadership style and employee motivation among graduate trainees at Konga in the remote work environment.
To assess the impact of leadership style on the productivity and job satisfaction of graduate trainees at Konga.
To determine if leadership style contributes to the professional growth of trainees at Konga in remote work settings.
ResearchQuestions
What is the relationship between leadership style and employee motivation among graduate trainees at Konga in a remote work environment?
How does leadership style impact the productivity and job satisfaction of graduate trainees at Konga?
Does leadership style contribute to the professional growth of graduate trainees at Konga in a remote work setting?
Hypotheses
HO1: There is no significant relationship between leadership style and employee motivation. HO2: Leadership style does not significantly impact employee job satisfaction and productivity. HO3: Leadership style does not contribute significantly to the professional growth of trainees. Scope of the Study
This study focuses on graduate trainees working in a remote work environment within a corporate setting. The sample population includes 23 graduate trainees across different departments. The study examines leadership styles and their effects on motivation, job satisfaction, and productivity, with data collected through structured questionnaires.
Significanceof the Study
The results of this study will provide valuable insights into how leadership styles can be optimized in remote work environments to enhance employee motivation and job satisfaction. The findings will also contribute to the development of leadership strategies that cater to the specific needs of graduate trainees working remotely, offering practical recommendations for improving professional development in these settings.
REVIEW OF LITERATURE
LeadershipStylesand Employee Motivation
Leadership styles have long been recognized as key determinants of employee motivation and job satisfaction. Studies on transformational leadership suggest that leaders who inspire, provide individualized consideration, and encourage innovation tend to foster higher levels of motivation and job satisfaction among employees (Bass & Riggio, 2014). Transformational leadership is particularly effective in environments that require adaptability and creativity, as it encourages employees to take initiative and feel empowered. This leadership style contrasts with transactional leadership, which is more focused on setting clear goals, monitoring performance, and rewarding employees based on results (Robinson & Shepard, 2017). While transactional leadership may work well in task-oriented environments, it is less effective in promoting long-term employee engagement and motivation (Johnson & Daniels, 2018).
Remote work environments pose unique challenges to leadership, as the physical distance between employees and supervisors can lead to feelings of isolation and reduced motivation. Studies have shown that leaders need to adjust their communication styles to maintain motivation and productivity in remote settings (Clark & Williams, 2021). Transformational leaders, who emphasize open communication and provide regular feedback, are more likely to succeed in remote environments, as these behaviors can help bridge the gap created by physical distance (Martins et al., 2020).
Job Satisfaction and Leadership
Job satisfaction is closely linked to leadership styles. Employees who perceive their leaders as supportive and understanding tend to report higher levels of job satisfaction (Smith & Jones, 2019). Supportive leadership is particularly important in remote work environments, where employees often feel disconnected from their teams. Research suggests that leaders who make an effort to build strong relationships with their employees through regular check-ins, feedback, and recognition are more likely to maintain high levels of job satisfaction in remote settings (Johnson et al., 2018).
ProfessionalDevelopmentand Leadership in Remote Settings
Professional development is a key component of graduate trainee programs, and leadership plays a crucial role in ensuring that trainees receive the necessary support to grow and advance in their careers. In remote work settings, the absence of face-to-face interactions can hinder the effectiveness of traditional mentorship and professional development strategies (Clark & Williams, 2021). Leaders who adapt their approach to provide remote trainees with virtual mentorship, regular feedback, and opportunities for skill development are more likely to foster professional growth (Bass & Riggio, 2014).
GapsinExisting Literature
While there is a significant body of research on leadership styles and their impact on employee motivation and job satisfaction, there is limited research specifically focused on remote work environments, especially within the context of graduate trainee programs. The existing studies largely focus on traditional work settings, leaving a gap in understanding how leadership styles need to be adapted for remote work. This study aims to fill this gap by examining the challenges and opportunities associated with leadership in remote trainee programs.
METHODOLOGY
ResearchDesign
This study adopted a descriptive research design, which allows for the exploration of relationships between variables without manipulating the study environment. Descriptive research is ideal for this study as it enables the collection of data on leadership styles, employee motivation, and job performance in a real-world remote work setting (Nelson & Daniels, 2020). The design also facilitates the use of quantitative analysis to test the hypotheses and examine the extent to which leadership styles impact the variables in question.
Areaof Study
The study was conducted within Konga, an online commercial retail company that operates a remote graduate trainee program. Participants in the study were spread across various departments but worked exclusively in a remote environment.
Populationof Study
The target population for this study consisted of 30 graduate trainees enrolled in the remote work program. These trainees were selected because they represent the future leaders of the organization and are directly affected by the leadership styles of their supervisors.
Sample and Sampling Technique
The sample size for the study was 23 participants, selected using a purposive sampling technique. This non-random sampling method was chosen because the study focuses on a specific group— graduate trainees working in a remote environment. Purposive sampling ensures that only those who meet the study’s inclusion criteria are selected, providing a more focused and relevant dataset (Nelson & Daniels, 2020).
InstrumentforDataCollection
Data was collected using a structured questionnaire (a Google form), divided into four sections: demographic information, leadership style, employee motivation, and job performance. The questionnaire utilized a Likert scale ranging from “strongly agree” to “strongly disagree” to measure participants’ perceptions of their supervisors’ leadership styles and the impact on their
Motivation and job performance. The instrument was pre-tested with a small group of trainees to ensure clarity and reliability.
ValidationandReliability
The validity of the questionnaire was established through expert review by the researcher’s supervisor, with feedback provided and corrections made until certified valid for the study. The reliability of the instrument is confirmed based on prior use in similar studies. A similar questionnaire format by (Nelson & Daniels, 2020). has been successfully employed to assess leadership styles, job motivation, and job satisfaction in work environments. The consistency of results from past applications indicates that the instrument is reliable.
Methodof Data Collection
Data was collected over two weeks through online questionnaires distributed via Google Forms. Participants were given five days to complete the questionnaire, and reminders were sent every two days to ensure a high response rate. The data collection process ensured confidentiality and anonymity, as participants were not required to provide their names or other identifying information.
Methodof Data Analysis
Data was analyzed using both descriptive and inferential statistics. Descriptive statistics such as frequencies, percentages, means, and standard deviations were used to summarize the demographic data and general responses. Inferential statistics (ANOVA) was used to test the hypotheses and examine the relationships between leadership style, motivation, and job performance. All statistical analyses were conducted using SPSS version 23.
RESULTSAND FINDINGS
DemographicCharacteristics
The demographic profile of the respondents is presented in Table 4.1, which includes age, gender, and duration of participation in the graduate trainee program.
Table 4.1: Demographic Characteristics of Respondents
Age
Variables Frequency %
18–24 12 52.2
25–30 8 34.8
31–35 3 13.0
Gender
Male 10 43.5
Female 13 56.5
Howlonghave you been part of the graduate trainee program
Less than 6 months 8 34.8
6–12 months 10 43.5
Over 1 year 5 21.7
From the table, the majority of the respondents (52.2%) are between the ages of 18–24, followed by those in the 25–30 age range (34.8%), and the lowest percentage (13.0%) falls within the 31– 35 age group. Female respondents constitute a larger portion of the sample (56.5%) compared to males (43.5%). Regarding how long respondents have been part of the trainee program, most participants (43.5%) had spent 6–12 months in the program, while 34.8% had less than 6 months of experience and 21.7% had over 1 year.
Research Question 1: What is the relationship between leadership style and employee motivation among graduate trainees at Konga in a remote work environment?
Table 4.2: Leadership Style
Question
SA
A
D
SD
F
%
F
%
F
%
F
%
My supervisor provides clear and consistent
10
43.48
9
39.13
3
13.04
1
4.35
guidance in the remote work environment My supervisor supports my professional
8
34.78
11
47.83
3
13.04
1
4.35
development My supervisor is accessible and responsive
9
39.13
10
43.48
3
13.04
1
4.35
to my queries My supervisor sets realistic and achievable
7
30.43
12
52.17
3
13.04
1
4.35
goals for me
The feedback I receive from my supervisor is constructive and helpful
11
47.83
8
34.78
3
13.04
1
4.35
From Table 4.2, 82.61% (SA + A) of the respondents agree that their supervisor provides clear and consistent guidance in the remote work environment, while 13.04% disagreed. A majority (47.83%) agreed that their supervisors support their professional development, with 34.78% strongly agreeing. Additionally, 82.61% of the respondents agreed or strongly agreed that their supervisors were accessible and responsive to their queries. In terms of goal setting, 30.43% strongly agreed that their supervisors set realistic and achievable goals, with 52.17% agreeing. The feedback provided by supervisors was viewed as constructive and helpful by 47.83% of the respondents, further indicating positive leadership effectiveness in remote settings.
Answersto Research Question 1:
There is a positive relationship between leadership style and employee motivation. The majority of respondents expressed satisfaction with the clarity, accessibility, and constructive feedback provided by their supervisors, which likely contributed to their overall motivation.
Testof Hypothesis HO1:
There is no significant relationship between leadership style and employee motivation. Table 4.3: ANOVA Test for Leadership Style and Employee Motivation
Sourceof Variation
SS
df
MS
F
p-value
F crit
Between Groups
1.82
2
0.91
3.26
0.045
3.29
Within Groups
4.54
16
0.28
Total
6.36
18
The ANOVA result shows an F-value of 3.26 and a p-value of 0.045, less than the
significance level of 0.05. Therefore, the null hypothesis (HO1) is rejected, indicating a significant relationship between leadership style and employee motivation.
Research Question 2: How does leadership style impact the productivity and job satisfaction of graduate trainees at Konga?
Table 4.4: Job Satisfaction and Productivity
Question SA A D SD
I am satisfied with my current role and
F 8
% 34.78
F 12
% 52.17
F 2
% 8.70
F 1
% 4.35
responsibilities in the remote work setting The current leadership approach contributes
9
39.13
11
47.83
2
8.70
1
4.35
positively to my professional growth I can maintain a high level of
7
30.43
11
47.83
4
17.39
1
4.35
productivity while working remotely The remote work environment allows me to
10
43.48
9
39.13
3
13.04
1
4.35
achieve a good work-life balance
I receive adequate support from my supervisor to perform my duties effectively
9
39.13
10
43.48
3
13.04
1
4.35
From Table 4.4, most respondents (86.95%) are satisfied with their current roles and
responsibilities, while 86.96% (SA + A) acknowledged that the leadership approach contributes positively to their professional growth. A high percentage (78.26%) maintained productivity levels in the remote work setting, and the majority (82.61%) felt they achieved a good work-life balance. Supervisor support was also rated positively by most respondents (82.61%).
Answersto Research Question 2
Leadership style positively impacts job satisfaction and productivity among graduate trainees at Konga. Respondents expressed satisfaction with their roles, productivity, work-life balance, and professional growth, all influenced by the leadership approach.
Test of Hypothesis HO2
Leadership style does not significantly impact employee job satisfaction and productivity.
Table 4.5: ANOVA Test for Leadership Style and Job Satisfaction
Sourceof Variation
SS
df
MS F
p-value
F crit
Between Groups
2.13
2
1.065 4.15
0.034
3.29
Within Groups
4.11
16
0.257
Total
6.24
18
The ANOVA results show an F-value of 4.15 and a p-value of 0.034, less than 0.05.
Therefore, we reject the null hypothesis (HO2) and conclude that leadership style significantly impacts job satisfaction and productivity.
Research Question 3: Does leadership style contribute to the professional growth of graduate trainees at Konga in a remote work setting?
Table 4.6: Professional Growth
Question SA A D SD
I feel that my contributions are valued in the
F 11
% 47.83
F 10
% 43.48
F 2
% 8.70
F 0
% 0
remote work setting The leadership approach in my team
9
39.13
10
43.48
3
13.04
1
4.35
positively affects my motivation to work I receive adequate support from my
9
39.13
10
43.48
3
13.04
1
4.35
supervisor to perform my duties effectively
Answersto Research Question 3
Leadership style significantly contributes to the professional growth of graduate trainees at Konga. The majority of respondents expressed that the leadership approach fostered their professional development.
Test of Hypothesis HO3
Leadership style does not contribute significantly to the professional growth of trainees. Table 4.7: ANOVA Test for Leadership Style and Professional Growth
Sourceof Variation
SS
df
MS F
p-value
F crit
Between Groups
2.87
2
1.435 4.72
0.029
3.29
Within Groups
4.85
16
0.303
Total
7.72
18
With an F-value of 4.72 and a p-value of 0.029, which is below the 0.05 threshold, we reject the
null hypothesis (HO3). This indicates that leadership style significantly contributes to the professional growth of trainees.
DISCUSSIONS, CONCLUSION, AND RECOMMENDATIONS
Discussions
ResearchQuestion1 and HO1:What is the relationship between leadership style and employee motivationamonggraduatetraineesat Konga in a remote work environment?
The findings of this study reveal a significant relationship between leadership style and employee motivation. The ANOVA test confirmed that the p-value (0.045) was less than 0.05, leading to the rejection of the null hypothesis (HO1), which stated that there is no significant relationship between leadership style and employee motivation. This finding aligns with theories of transformational leadership, which emphasize that leaders who provide clear guidance, support, and constructive feedback tend to motivate their employees more effectively, even in remote work settings. Similar studies reviewed in the literature, such as those by Avolio et al. (2018) and Bass (2015), support this relationship, emphasizing that transformational leadership styles are associated with increased employee motivation, particularly when employees perceive their leaders as accessible and supportive. I found this result expected because leadership in remote environments requires more proactive engagement to maintain motivation, as previous coursework has highlighted the importance of communication and goal-setting in employee management. Given the challenges posed by remote work, these findings underscore the crucial role of leadership in sustaining motivation when direct supervision is minimal.
ResearchQuestion2 and HO2: How does leadership style impact the productivity and job satisfaction of graduate trainees at Konga?
The analysis showed that leadership style significantly affects both job satisfaction and productivity, as demonstrated by the p-value of 0.034, which is less than the significance level of
Therefore, the null hypothesis (HO2) is rejected. The respondents expressed a high level of satisfaction with their roles and productivity, attributing these to effective leadership approaches. This result is consistent with Herzberg’s two-factor theory, which suggests that job satisfaction is driven by motivators (e.g., recognition and responsibility) and hygiene factors (e.g., working conditions). Comparing this finding with previous studies, such as those by Judge and Piccolo (2019), which indicate that leadership has a direct impact on employee satisfaction, further reinforces that employees who perceive their leaders as supportive and involved are more likely.
To feel satisfied and perform better. The remote setting makes leadership even more critical for maintaining clear expectations and providing feedback that can enhance satisfaction and productivity. I was not surprised by these findings because my academic background has emphasized the importance of leadership in determining employee outcomes in varying work environments.
ResearchQuestions 3 and HO3: Does leadership style contribute to the professional growth of graduate trainees at Konga in a remote work setting?
The ANOVA test confirmed that leadership style significantly contributes to professional growth, with a p-value of 0.029. This led to the rejection of the null hypothesis (HO3), suggesting that employees perceive their leaders as instrumental to their career development. This finding aligns with the path-goal theory, which posits that effective leaders clarify the paths that employees should follow to achieve both personal and professional goals. From the literature, studies such as those by House (2016) confirm that leadership styles, especially those that are participatory and supportive, significantly contribute to professional development. My findings were expected, as previous coursework has reinforced the idea that leaders who invest in the development of their team members foster long-term organizational growth and employee retention. In a remote setting, this professional growth might be particularly challenging without the right leadership approach, emphasizing the importance of clear guidance and developmental opportunities.
Conclusion
This study concludes that leadership style has a significant impact on employee motivation, job satisfaction, productivity, and professional growth in a remote work environment, as evidenced by the experiences of graduate trainees at Konga.
Recommendations
Based on the findings of this study, the following recommendations were made;
Organizations should invest in leadership development programs that focus on transformational leadership styles to improve employee motivation, especially in remote work settings.
Leaders should be encouraged to maintain open, accessible, and frequent communication with their team members to support job satisfaction and productivity.
Companies should establish clear career growth paths and offer mentorship programs to foster professional growth among remote employees.
Leadership approaches should be tailored to the specific needs of remote employees to maintain their engagement and motivation in the absence of in-person interaction.
ImplicationsForthe Study
The implications of this study are significant for organizational leadership, particularly in remote work environments. The findings suggest that organizations that invest in effective leadership styles, such as transformational leadership, are more likely to experience higher employee motivation, job satisfaction, productivity, and professional growth. This study also implies that remote work, while challenging, can be managed effectively with the right leadership approaches.
For managers, the study highlights the need for more intentional efforts in employee engagement and development when face-to-face interactions are limited. Furthermore, the study’s implications extend to leadership training and organizational development programs, which should incorporate strategies for managing teams in remote work environments.
LimitationsFortheStudy
The study was conducted within a single organization, which limits the generalizability of the findings to other organizations or industries.
The study focused exclusively on a remote work environment, which may have different dynamics compared to traditional office settings. The findings may not fully apply to in-person work environments.
The data was collected through self-reported questionnaires, which may be subject to bias as participants could provide socially desirable responses rather than accurate reflections of their experiences.
REFERENCES
Avolio, B. J., Walumbwa, F. O., & Weber, T. J. (2018). Leadership: Current theories, research, and future directions. Annual Review of Organizational Psychology and Organizational Behaviour, 5, 423-452.
Bass, B. M., & Riggio, R. E. (2014). Transformational leadership (2nd ed.). Psychology Press.
Clark, T. & Williams, J. (2021). Remote work and its impact on employee motivation: A systematic review. Journal of Organizational Behaviour, 42(2), 134-150.
House, R. J. (2016). A path-goal theory of leader effectiveness. Administrative Science Quarterly,
16(3), 321-339.
Johnson, D. W., & Daniels, C. (2018). Transactional leadership and employee engagement: A study of the effects in the workplace. Journal of Leadership Studies, 12(3), 34-47.
Johnson, D. W. (2018). Building connections: The role of leadership in enhancing job satisfaction in remote work settings. Journal of Business Psychology, 33(2), 257-272.
Judge, T. A., & Piccolo, R. F. (2019). Transformational and transactional leadership: A meta-analytic test of their relative validity. Journal of Applied Psychology, 92(2), 755-768.
Martins, L. L., Gilson, L. L., & Maynard, M. T. (2020). Virtual teams: What do we know and what do we need to know? Annual Review of Organizational Psychology and Organizational Behaviour, 7, 185-210.
Nelson, T. R., & Daniels, J. (2020). Understanding descriptive research design and its applications in organizational studies. Journal of Research Methods in Management, 15(1), 45-60.
Robinson, S. P., & Shepard, J. M. (2017). The impact of transactional leadership on employee performance. Leadership & Organization Development Journal, 38(5), 707-718.
Smith, A. B., & Jones, C. D. (2019). Supportive leadership and job satisfaction in remote teams.
InternationalJournalof Human Resource Management, 30(4), 560-578.
Questionnaire:Impact of Leadership Approach on Employee Motivation and Performance Section A: Demographic Characteristics
Age: (a) 18 – 24 (b) 25 – 30 (c) 31 – 35
Gender: (a) Male (b) Female
How long have you been part of the graduate trainee programme: (a) Less than 6 months (b) 6 – 12 months (c) Over 1yr
SectionB: Leadership Style
Item
SA
A
D
SD
My supervisor provides clear and consistent guidance in the remote work environment.
My supervisor supports my professional development.
My supervisor is accessible and responsive to my queries.
My supervisor sets realistic and achievable goals for me.
The feedback I receive from my supervisor is constructive and helpful.
SectionC: Job satisfaction and productivity
Item
SA
A
D
SD
I am satisfied with my current role and responsibilities in the remote work setting.
The current leadership approach contributes positively to my professional growth.
I can maintain a high level of productivity while working remotely.
The remote work environment allows me to achieve a good work-life balance.
I receive adequate support from my supervisor to perform my duties effectively.
SectionD: Professional Growth
Item
SA
A
D
SD
I feel that my contributions are valued in the remote work setting
The leadership approach in my team positively affects my motivation to work.
I receive adequate support from my supervisor to perform my duties effectively.
NGOZI JOAN OBI-CHUKWUMA LLBS/DOC/5212/01223/00 DSMLD PROGRAMME nobichukwuma@gmail.com 08033926854. 2024
ABSTRACT
This study investigated the role of strategic leadership for effective business development: A case of lovebite bread industry, Nnobi, Anambra State. Three research questions in line with three specific purposes with three null hypotheses guided the study. The study adopted a descriptive survey research design and was carried out in Nnobi, Anambra State. The population for the study consisted of 125 respondents, comprising key stakeholders such as employees, managers, and executives with a sample size of 95 respondents obtained using Taro Yemane’s formula. The instrument for data collection was a structured Likert-scale and weighted questionnaire with a 35-item statement developed by the researcher titled “Strategic Leadership for Effective Business Management Questionnaire (SLEBMQ)”. The instrument was validated by three research experts while the reliability index of 0.81 was established using Cronbach Alpha in SPSS. In analyzing the data collected, mean and standard deviation were used to answer the research questions while the t-test was used for the null hypotheses. The result of analyses revealed that leadership by example influences the organizational culture of the Lovebite Bread Industry to a large extent as it is aligned with the company’s mission and vision, leaders’ actions and behaviors shape the organizational culture at Lovebite Foods and Beverages, it is extremely important in promoting an ethical work environment at Lovebite Foods and Beverages Ltd. It was therefore recommended among others that more emphasis should be made by concerned individuals on leadership by example as seen as significant in influencing the organizational culture, and an awareness campaign should be made to emphasize the importance of continuous learning on the overall performance and growth of establishments in Anambra State.
Today’s business environment is becoming more competitive than ever before. The ability to navigate complex market dynamics, manage resou
rces efficiently, and drive innovation has become essential for businesses targeting competitive edge in the businesses. Therefore, strategic leadership, which involves guiding the organization toward its long-term goals while adapting to changes in the business landscape, has emerged as a critical factor in achieving the objectives of sustainability and growth. Strategic leadership goes beyond traditional management practices by integrating a forward-looking vision with the ability to execute plans effectively. Ireland & Hitt (1999, pp 43-57). It encompasses the capacity to make informed decisions, inspire and motivate teams, and align organizational efforts with the overarching goals. Op.cit
For businesses, especially in the manufacturing sector, leveraging strategic leadership can significantly enhance operational efficiency, improve decision-making processes, and ultimately lead to sustained growth. Avolio & Bass (2002, pp20-30).
Strategic leadership, a critical element in achieving organizational success, is defined by the leader’s ability to create a vision, align that vision with organizational goals, motivate employees, and execute strategies effectively. In the field of business management, strategic leadership integrates long-term vision with practical management to ensure sustained competitiveness and adaptability. This leadership approach is built around several core components, which directly influence business outcomes thus:
. Visionary Thinking and Direction-Setting: Strategic leadership begins with establishing a clear, forward-thinking vision for the organization. Leaders articulate a direction that reflects the long-term aspirations of the company, taking into account future trends, market demands, and potential challenges. This vision provides a roadmap that guides all decision-making processes and informs strategic planning. According to Hitt, Ireland, and Hoskisson (2016, p.5), effective strategic leaders must anticipate future industry shifts and guide their organizations accordingly, creating opportunities and positioning the company for future success. In the context of business management, visionary thinking allows leaders to align their teams and resources with overarching business goals. For example, a strategic leader in a manufacturing company may foresee an industry shift toward automation and proactively invest in technology and employee retraining to maintain competitiveness.
Aligning Organizational Goals and Resources: Effective strategic leadership involves aligning the organization’s goals, strategies, and resources to ensure cohesion across all departments and functions. Leaders must ensure that every part of the organization works toward the same objectives, from top management to
front-line employees. Hitt et al. (2016, p.89) emphasize that successful alignment requires leaders to ensure that resources are efficiently deployed to support strategic objectives. In practical terms, alignment means ensuring that resources such as human capital, technology, and finances are allocated in ways that support the strategic vision. This coordination helps prevent resource misallocation and promotes efficient decision-making, key principles in effective business management.
Decision-Making and Risk Management: One of the most critical components of Strategic Leadership is the ability to make informed and timely decisions that drive the organization toward its strategic goals. Strategic leaders gather relevant data, assess risks, and consider internal and external factors when making decisions. According to Ireland and Hitt (1999, p.47), strategic decision-making involves balancing risks and opportunities while ensuring that decisions align with the organization’s long-term vision. Effective decision-making in business management means balancing short-term operational needs with long-term strategic objectives. The ability to manage trade-offs and assess risks ensures that the organization remains adaptable and responsive to market changes.
Fostering a Culture of Innovation and Learning: Strategic leaders recognize that fostering a culture of continuous learning and innovation is vital for long-term success. This involves encouraging employees to think creatively, solve problems, and engage in continuous improvement. Tushman and O’Reilly (1996, p.14) suggest that strategic leaders must create an environment that promotes both exploration and exploitation of opportunities, ensuring that innovation is a consistent part of the organization’s culture. In business
management, innovation can lead to new products, services, or business processes that differentiate the company in the market. Strategic leadership in such organizations focuses on building an innovative culture and providing employees with the resources and autonomy to explore new possibilities.
Inspiring and Motivating Teams: A core function of strategic leadership is to inspire and motivate employees to perform at their best. Leaders achieve this by communicating the organization’s vision clearly and showing employees how their work contributes to the company’s broader goals. As noted by Yukl (2013, p.109), effective leaders use a variety of techniques, such as recognition and incentives, to inspire and drive team performance. In business management, motivated employees are more productive, engaged, and willing to go above and beyond to ensure organizational success. Strategic leaders foster an environment of trust and empowerment, driving the overall success of the business.
The Lovebite Bread Industry, based in Nnobi, serves as a pertinent case study for exploring the impact of strategic leadership on business management. As a key player in the local bakery industry, the Lovebite Bread Industry faces various challenges, including fluctuati
on in
market demands, intense competition, and the need for continuous innovation. In this context, understanding how strategic leadership can be utilized to overcome these challenges and drive the company toward long-term success is of great importance. This research seeks to examine the role of strategic leadership in enhancing business management within the Lovebite Bread Industry. By analyzing the company’s leadership practices, decision-making processes, and organizational culture, the study aims to provide insights into how strategic leadership can be effectively leveraged to improve business outcomes. The findings of this research are expected to contribute valuable knowledge to the field of business management, particularly in the rapidly evolving global business environment where the importance of strategic leadership cannot be overemphasized. Organizations across various industries are
Recognizing that traditional leadership approaches, focused primarily on operational management, are no longer sufficient to navigate the complexities of modern business challenges. Strategic leadership, characterized by the ability to envision the future, make proactive decisions, and inspire innovation, has become a crucial element in driving organizational success and sustainability. Boal & Hooijberg (2001, pp515-549).
The bakery industry, a vital segment of the food production sector, is highly competitive and subject to changing consumer preferences, economic fluctuations, and technological advancements. The bakery industry plays a significant role in the Nigerian economy: providing essential food products and employment opportunities; however, businesses within this sector, particularly Small and Medium-sized Enterprises (SMEs), often face significant challenges such as intense competition, rising costs of raw materials, and the need for continuous innovation to meet evolving customer demands. Eniola & Ektebang (2014, pp75-86).
Lovebite Bread Industry, located in Nnobi Anambra State, represents a typical example of an SME operating within this competitive landscape founded to provide high-quality bread products to the local community, the company has grown over the years to become a recognized brand in its region. Despite its success, Lovebite Bread Industry, like many others in the bakery industry, encounters challenges related to resource management, market expansion, and maintaining product quality. These challenges underscore the need for effective business management practices that can adapt easily to market changes and drive sustained growth. Strategic Leadership offers a potential solution to these challenges by providing a framework for making informed decisions, aligning organizational resources with long-term goals, and fostering a culture of continuous improvement. The question therefore is could the application of Strategic Leadership in the Lovebite Bread Industry leads to enhanced operational efficiency, better market positioning, and improved overall performance. This research seeks to explore how Lovebite Bread Industry can leverage strategic leadership to enhance its business management practices. By examining the leadership strategies, organizational structure, and decision-making processes, the study aims to identify key factors that could contribute to effective management in the context of a dynamic business environment. The insights gained from this research could serve as a valuable reference
for other SMEs in the bakery industry and beyond, highlighting the critical role of strategic leadership in achieving business success.
‘‘statement of the Problem’’
In a dynamic and ever increasingly complex business environment where organizations face stiff challenges in maintaining competitive advantage and operational efficiency, the ability to anticipate future trends, make informed decisions, and align organizational resources and capabilities is often seen as a key factor in effective business management, a critical tool for navigating these challenges and achieving long-term success. Research consistently shows that a significant percentage of new businesses fail within their first five years. According to the U.S. Small Business Administration (SBA) and similar studies globally, 20% of new businesses fail within the first year. By the end of the fifth year, about 50% of businesses close down while only 30% remain operational after ten years.
Lovebite Bread Industry, based in the semi-urban town of Nnobi in Anambra State, serves as a pertinent case study for exploring the impact of strategic leadership on business management. Founded in 2019, Lovebite Bread Industry, as a key player in the local bakery industry, has against these findings, continued to grow rapidly into a world-class bakery with an installed capacity of 30tons of finished products per day and a distribution channel covering 11 cities in the Southeast, two states in the south-south, three states in the south-west and Benue State and Abuja in the north; operating in an era when the Industry is facing various challenges, including fluctuating market demands, intense competition, and the need for continuous innovation. In this context, whether leveraging strategic leadership to overcome these challenges has driven the company toward long-term success is the kernel of this study. Studies on leveraging strategic leadership for effective business management are extensive and cover multiple areas of leadership, strategy, and organizational effectiveness.
However, despite several areas in strategic leadership for effective business management have been explored, significant gaps remain, particularly in areas like digital transformation, cross-cultural leadership, and sustainability.
This study aims to fill this gap by providing an in-depth analysis of how leveraging strategic leadership has enhanced business management within the Lovebite Bread Industry, offering practical insights for similar organizations in the industry.
‘‘Purpose/Objectives of the study’’
The purpose of this study is therefore to explore whether leveraging strategic leadership has enhanced effective business management within the Lovebite Bread Industry in Nnobi.
Towards this purpose, the following specific objectives were sought:
1: To investigate the extent to which leadership by example influences organizational
culture of Lovebite Bread Industry.
6
2. To examine how Encouraging Innovation can impact decision-making processes in
Lovebite Bread Industry.
3. To evaluate the impact of Continuous Learning on the overall performance and growth of the Lovebite Bread Industry.
‘‘ Research Questions’’
Flowing from the above objectives, the following research questions were formulated to guide this study:
1. To what extent can Leadership by Example influence the organizational culture of the Lovebite Bread Industry?
How can Encouraging Innovation impact decision-making processes in the Lovebite Bread Industry?
3: To what extent does Continuous Learning impact the overall performance and growth
of the Lovebite Bread Industry?
‘‘ Hypotheses’’
The following hypotheses were tested at a 0.05 level of significance to guide this study.
HO1: There is no significant difference between the opinions of new and old employees on
the extent Leadership by Example influences the organizational culture of Lovebite
Bread Industry.
HO2: There is no significant difference between the opinions of new and old employees on
How encouraging Innovation can impact decision-making in the Lovebite Bread Industry.
HO3: There is no significant difference between the opinions of new and old employees on
the extent Continuous Learning impact on the overall performance and growth of
Lovebite Bread Industry
‘‘Scope of the study’’
Being a case study the Scope of the investigation is limited to the employees of Lovebite Bread Industry, Nnobi in Anambra state. The content scope covers Leadership by Example Influence, Organization, and Culture of the Lovebite Bread Industry; how Encouraging Innovation can impact decision-making processes, and the impact of Continuous Learning on the overall performance and growth of the Industry.
‘‘ Significance of the Study’’
This study shall be of great importance to multiple stakeholders, including business leaders, policymakers, scholars, and the broader business community. The findings and insights from this research will contribute to a deeper understanding of the critical role of strategic leadership in driving business success, particularly in the context of small and medium-sized enterprises (SMEs) in Nigeria’s bakery industry.
REVIEW OF LITERATURE:
A review of literature related to the research study was done in two parts –conceptual and empirical review. The materials reviewed included textbooks, journals, and lecture notes, sourced primarily from the Internet.
Finally, the Review was followed by the presentation of the Theoretical framework of the Research study.
‘‘Concept of Strategic Leadership’’:
The concept of strategic leadershiphas garnered significant attention in both academic research and practical business management due to its critical role in guiding organizations through complex and dynamic environments. This literature review examines the key theories, frameworks, and empirical studies on strategic leadership, its impact on business management, and its relevance to small and medium-sized enterprises (SMEs) like Lovebite Bread Industry in Nnobi.
Strategic leadership is often defined as the ability to influence others in an organization to make decisions that enhance the prospects for long-term success while maintaining short-term financial stability. According to Ireland and Hitt (1999 p.44), strategic leaders are responsible for setting the direction, aligning resources, and creating a conducive environment for achieving the organization’s vision. This involves not only developing and implementing strategic plans but also fostering a culture of innovation, adaptability, and continuous improvement. House and Aditya (1997 p.460) further describe strategic leadership as encompassing both visionary and managerial roles. Visionary leadership involves setting the long-term goals and direction of the organization, while managerial leadership focuses on the day-to-day operations and the implementation of strategies. These dual roles highlight the importance of balancing visionary thinking with practical execution in ensuring organizational success.
‘‘ Strategic Leadership and Business Management’’
The relationship between strategic leadership and effective business management has been widely explored in the literature. According to Rowe (2001 p.83), strategic leadership is a key determinant of organizational performance, particularly in turbulent environments. Leaders who can anticipate changes, make informed decisions, and mobilize resources effectively are more likely to achieve sustainable competitive advantages. Several studies have demonstrated the positive impact of strategic leadership on various aspects of business management, including decision-making, resource allocation, and organizational culture. For instance, Boal and Hooijberg (2001 p.521 emphasize that strategic leaders must be adept at managing paradoxes, such as balancing short-term performance with long-term growth, and that their ability to do so significantly influences organizational outcomes. Additionally, the literature highlights the role of strategic leadership in fostering innovation and adaptability. Hitt et al. (2007 p.25) argue that strategic leaders play a crucial role in promoting a culture of innovation by encouraging risk-taking, supporting creative initiatives, and ensuring that the organization remains agile in response to market changes. This is particularly relevant for SMEs like Lovebite Bread Industry, where innovation can be a key differentiator in a competitive market. Challenges and Opportunities for Strategic Leadership in SMEs:
While strategic leadership is widely recognized as essential for organizational success, its application in SMEs presents unique challenges and opportunities. SMEs often operate with limited resources, making it difficult to invest in long-term strategic planning and leadership development. However, SMEs also benefit from greater flexibility and the ability to quickly adapt to changes, which can be leveraged through effective strategic leadership. Studies by Wang, Walker, and Redmond (2007 p.9) suggest that strategic leadership in SMEs is often concentrated in the hands of a few individuals, usually the founders or owners. This concentration of leadership has both advantages and disadvantages. On one hand, it allows for quick decision-making and a strong alignment between the vision and operational activities. On the other hand, it may result in a lack of diverse perspectives and resistance to change, which can hinder the organization’s ability to innovate and grow. The literature also points to the importance of leadership development in SMEs. Training and mentoring programs that focus on strategic thinking, decision-making, and people management can enhance the effectiveness of leaders in SMEs. According to Beaver and Jennings (2005 p.15), investing in leadership development can lead to improved business performance, employee satisfaction, and organizational resilience.
‘‘Strategic Leadership in the Context of the Bakery Industry’’
Specific studies on strategic leadership within the bakery industry are limited; however, general insights can be drawn from the literature on strategic leadership in the manufacturing and food production sectors. The bakery industry is characterized by intense competition, low-profit margins, and the need for continuous product innovation. Strategic leadership in this context involves not only managing operational efficiencies but also driving innovation in product offerings, marketing strategies, and customer engagement. A study by Dawson and Andriopoulos (2014 p.182) on innovation in the food production industry highlights the importance of strategic leadership in fostering a culture of creativity and experimentation. For companies like Lovebite Bread Industry, which operates in a highly competitive market, strategic leadership can play a critical role in differentiating the brand through unique products, quality improvements, and effective market positioning. Moreover, the literature emphasizes the role of strategic leadership in managing supply chain complexities and ensuring product consistency, which is crucial for maintaining customer loyalty in the bakery industry. Effective strategic leadership can help SMEs like Lovebite Bread Industry to optimize their supply chain, reduce costs, and enhance overall business performance.
‘‘ Review of Empirical Studies’’
This examined how various studies have collected and analyzed data to explore the relationship between strategic leadership and business management effectiveness. This section presents findings from different research works that have tested and validated the impact of strategic leadership practices on business performance, decision-making, and innovation.
‘‘Strategic Leadership and Organizational Performance’’
Several studies have explored the direct relationship between strategic leadership and organizational performance. For instance, Boal and Hooijberg (2001) conducted a quantitative study involving 200 organizations from the manufacturing sector. They examined the role of strategic leadership in driving performance through adaptability, vision articulation, and managing human capital. Their findings demonstrated a positive correlation between strategic leadership and financial performance, with leaders who practiced foresight and flexibility having better long-term profitability.
A study by Waldman et al. (2004) investigated the influence of visionary leadership on firm performance in a sample of 100 technology firms. Using Structural Equation Modeling (SEM), they found that visionary leadership significantly impacted firms’ market value and innovative capabilities, suggesting that leaders who effectively communicate long-term visions encourage innovation and enhance competitive advantage.
Strategic Leadership that emphasizes vision and adaptability positively impacts financial and market performance.
Organizations with strategic leaders exhibit higher levels of innovation, which contributes to sustained competitive advantage.
‘‘Leadership by Example and Organizational Culture’’
Empirical studies have also demonstrated the impact of leadership by example on organizational culture. Kouzes and Posner (2002) conducted a survey-based study across 500 companies, finding that leaders who model desired behaviors foster stronger workplace cultures of accountability, trust, and ethical standards. This, in turn, positively affects employee motivation and commitment. In another study, Groves (2005) examined how transformational leaders influence organizational culture by leading through example. Using a sample of 250 mid-level managers in the
healthcare industry, the research found that when leaders demonstrate the behaviors they expect from employees, it enhances employee engagement and creates a shared sense of purpose within the organization. This also results in lower employee turnover and higher productivity.
Key Findings reveal that Leadership by example strengthens organizational culture by fostering trust, accountability, and ethical standards. Employees are more motivated and engaged when leaders practice what they preach, improving both individual and organizational performance.
‘‘Continuous Learning and Decision-Making’’
The role of continuous learning in enhancing decision-making processes has been highlighted in various studies. Garvin, Edmondson, and Gino (2008) conducted a longitudinal study in multiple industries and found that organizations where leaders emphasize continuous learning were more adaptable to changing market conditions. Their research involved interviews and performance data analysis from 300 organizations, revealing that firms that invest in leadership development and continuous education experience faster decision-making cycles and improved strategic outcomes.
In a study by DeChurch and Marks (2006), the researchers explored how strategic leaders who promote a culture of learning impact team-based decision-making processes. Using a combination of qualitative and quantitative methods across 30 organizations, they found that leaders who support learning create environments where employees feel empowered to contribute innovative ideas. This open environment enhances the collective decision-making capacity of the organization, leading to more informed and effective business. Major Findings show that Continuous learning promotes quicker and more effective decision-making processes, which allow organizations to adapt more rapidly to external changes. Leaders who foster learning environments encourage innovation, leading to better strategic decisions.
‘‘Innovation and Organizational Competitiveness’’
The link between strategic leadership and innovation has been empirically examined in multiple industries. Jansen et al. (2009) conducted a study on 170 companies across the telecommunications and software industries, focusing on how strategic leadership drives exploratory and exploitative innovation. The results showed that leaders who foster an innovative culture and provide the necessary resources for innovation initiatives had higher levels of product and process innovation, which in turn improved competitive positioning. In another study, García-Morales et al. (2008) analyzed the relationship between transformational leadership and organizational innovation in 350 Spanish companies. The study used regression analysis to show that transformational leaders significantly contribute to both radical and incremental innovations. They concluded that strategic leaders who encourage innovation enhance the firm’s ability to respond to competitive threats and exploit new opportunities. Key Findings are that Strategic leadership is crucial in fostering innovation, which is key to maintaining organizational competitiveness and Companies with leaders who support exploratory innovation (new ideas and products) and exploitative innovation (refining existing processes) perform better in dynamic markets.
‘‘ Strategic Planning and Business Sustainability’’
Empirical research also highlights the role of strategic leadership in the planning process to achieve long-term business sustainability. Mintzberg (1994) conducted case studies of organizations across different industries and found that leaders who effectively engage in strategic planning processes tend to improve their organization’s adaptability and resilience in competitive environments. The study suggested that strategic planning, guided by visionary leadership, enhances the firm’s ability to predict market trends, allocate resources effectively, and ensure sustainable growth. Similarly, Bonn (2001) used a mixed-method approach to explore the relationship between strategic leadership and sustainable development in multinational corporations. The study, involving interviews and financial analysis of 50 firms, found that companies whose leaders prioritize long-term sustainability in their planning are more likely to achieve both environmental and financial success. Key Findings of the Study are that Strategic leadership that incorporates long-term planning ensures business sustainability and competitive advantage just as effective planning, backed by visionary leadership, enables organizations to anticipate market changes and allocate resources efficiently for long-term growth.
The empirical evidence reviewed in this section demonstrates that strategic leadership has a profound impact on various aspects of business management, including organizational performance, decision-making, innovation, and long-term sustainability. The review underscores the critical role of strategic leadership in driving effective business management, particularly in challenging and competitive environments, revealing that Leaders who model the desired behaviors, foster continuous learning, and encourage innovation position their organizations for sustained success. For SMEs like Lovebite Bread Industry, strategic leadership can provide the necessary guidance to navigate market complexities, foster innovation, and achieve sustainable growth.
‘‘Gaps in the Literature’’
While the existing literature provides valuable insights into the role of strategic leadership in business management, there are notable gaps, particularly concerning its application in specific industries and regions. There is a lack of empirical research on the impact of strategic leadership in the Nigerian bakery industry, specifically within SMEs like Lovebite Bread Industry. The unique challenges faced by SMEs in implementing strategic leadership practices, especially in the context of the Nigerian bakery industry, highlight the need for further research. This study therefore aims to fill this gap by providing an in-depth analysis of the extent to which leveraging strategic leadership enhanced business management within Lovebite Bread Industry, offering practical insights for similar organizations in the industry.
‘‘Theoretical Framework’’
This study is anchored on Ireland and Hitt’s (1999), Strategic Leadership Theory, SLT.
The Theory posits that leaders’ ability to anticipate, envision, and maintain flexibility, and to empower others to create strategic change is necessary. According to the Theory, Strategic leaders ensure the alignment of the organization’s vision with strategic objectives and create a dynamic environment that supports continuous learning and adaptation. This theory is central to the study as it directly relates to how strategic leadership can be leveraged for effective business management. The theory highlights the importance of visionary leadership and its role in achieving long-term success, a core aspect of the study’s focus on Lovebite Foods and Beverages Ltd. Strategic Leadership Theory (SLT) focuses on the role of leaders in driving an organization’s long-term performance and competitive advantage by making strategic decisions and influencing organizational culture. It suggests that effective leaders guide the strategic direction, adapt to changing environments, and ensure the organization’s sustainability and growth. SLT integrates elements from leadership theory and strategic management, providing a comprehensive understanding of how leaders can affect not just short-term operations but long-term success.
‘‘Key Aspects of Strategic Leadership Theory’’
1. Vision and Direction Setting: Strategic leaders are responsible for developing a compelling vision that motivates and guides the organization. They create a clear strategic direction that aligns with the organization’s goals and mission. According to Ireland and Hitt (1999), vision is crucial as it provides the foundation for strategic decisions and is key to inspiring followers to pursue long-term objectives.
2. Balancing Short-Term and Long-Term Objectives: Leaders must balance the need for immediate results with long-term strategic goals. This ability to manage competing priorities is critical for ensuring sustainable success. Boal and Hooijberg (2000) argue that strategic leaders possess cognitive flexibility, allowing them to focus on immediate operational issues while keeping an eye on future opportunities.
3. Influencing Organizational Culture: Strategic leaders shape organizational culture, which, in turn, affects how strategies are executed. Leadership decisions, actions, and behaviors set the tone for the values and norms within the organization. Finkelstein, Hambrick, and Cannella (2009) suggest that leaders play a central role in embedding strategic values into the organizational culture, ensuring that employees’ behaviors align with the company’s strategic objectives.
4. Managing Resources and Capabilities: A key responsibility of strategic leaders is resource allocation, ensuring that both tangible (capital, technology) and intangible (knowledge, skills) resources are efficiently used to achieve strategic goals. According to Barney (1991), effective leaders can leverage an organization’s unique resources to build a sustainable competitive advantage.
5. Adaptability and Learning: Strategic leadership involves being adaptive to external changes. Leaders must continually learn and evolve, encouraging a culture of continuous improvement. According to Vera and Crossan (2004), strategic leaders facilitate organizational learning, enabling the company to innovate and respond to changing market conditions.
‘‘Criticisms and Limitations of Strategic Leadership Theory’’
1. Complexity of Leadership Impact: One criticism is that SLT can overestimate the direct impact of leaders on organizational outcomes. While leaders play a critical role, other factors—such as market dynamics, economic conditions, and technological changes—also influence performance. Strategic leadership’s contribution may be difficult to isolate and measure accurately.
2. Overemphasis on Top Leadership: SLT often focuses heavily on the role of top leaders, such as CEOs or senior executives, while underestimating the contributions of middle management and lower-level employees. This top-down focus may ignore how leadership is distributed throughout the organization (Yukl, 2013).
3. Leadership Style Variability: Not all leadership styles fit every organizational context. SLT tends to emphasize certain traits and behaviors (e.g., vision, adaptability), but what works in one organization may not be effective in another. For instance, a highly innovative firm may require a more transformational leadership approach, while a stable firm might benefit from a transactional style (Bass & Avolio, 1993).
4. Cultural Contexts: Strategic leadership theories have often been developed in Western contexts and may not fully apply in other regions with different cultural norms, organizational structures, or business environments. Leaders in different parts of the world may need to adapt their strategic approaches to local conditions (House et al., 2004).
Conclusion
Strategic Leadership Theory emphasizes the importance of leaders in guiding an organization toward long-term success through vision setting, resource management, and adaptability. It therefore offers a valuable framework for understanding how leadership influences strategic decision-making and performance. However, it is essential to recognize the limitations of SLT, particularly in terms of overemphasizing top leaders and underestimating other factors that affect organizational outcomes.
METHODOLOGY:
Methodology,according to Adepoju, (2003 p.47), quoted in Obi-Chukwuma, (2016 p.54), is ‘a set of principles or technicalities which a scientific study follows to yield reliable results’.This research adopts a qualitative approach to examine the extent to which leveraging strategic leadership has enhanced effective business management, using Lovebite Foods and Beverages Ltd, Nnobi, as a case study. The methodology involves the following components:
Research Design
Area of Study
Population of Study
Sample and Sampling Technique
Instrument for Data Collection
Procedure for Data Collection
Method of Data Analysis
‘‘Research Design’’
Research Design is a researcher`s agenda for scientific inquiry. In the opinion of Asika (1991,p.37 ) in Obi-Chukwuma (2016 p.54), Research Design means the restructuring of investigation aimed at identifying variables and their relationships to one another. It is an outline of the Scheme that serves as a useful guide to the researcher in his efforts to generate data”.
The research is structured as a case study that focuses on the leadership strategies employed by Lovebite Foods and Beverages Ltd. The case study approach is chosen to provide in-depth insights into real-world applications of strategic leadership within the context of a growing food and beverage company. This Research is designed as a Sample Survey; a descriptive study in which only a sample (part) of the population, selected in such a manner that it is representative of the population, is studied, and the findings are usually generalized to the entire population. The relevance of this Design to the Study is that Surveys are more useful in measuring dominant public opinions, attitudes, or orientation. Again, Survey instruments can be used to carry out investigations in real-time settings. More so, the cost of carrying out a Survey is relatively low when considering the quantum of data generated as the Researcher can control his expenditures by selecting a low-cost type of Survey.
‘‘Area of Study’’
The Area of this Research Study is Nnobi, a semi-urban city in Idemmili South Local Government Area of Anambra State, Southeast Nigeria.
Nnobi is known for its local businesses including bakeries. Though it may be difficult to get the exact number of bread factories in Nnobi, Idemmili South hosts several markets and small enterprises. Bread production is a significant business in the region, supported by local bakeries across various towns including Nnobi. Anambra State itself is known for having numerous bakeries due to the high demand for bread with several quality bread brands.
‘‘Population of Study’’
Population is a group of people or objects about which a Researcher sets out to study and among whom findings of the Study will be generalized.
For this research, the target population is all staff of Lovebite Foods and Beverages Ltd, Nnobi, both old and new. According to data supplied by the Personnel unit of the Organisation, the population was 125 personnel including key stakeholders such as employees, managers, and executives.
‘‘Sample Size and Sampling Technique”
Sample Size: A Sample size is the sub-set of the Population that is representative of the entire population (Wimmer & Domonick, 2011 p.56 quoted in Obi-Chukwuma 2016 p. 57). It is a microcosm of the population. Flowing from this, the researcher used Taro Yamane’s formula to determine the Sample size with a margin error of 0.05; thus:
n = N
———-
(1+N(e)²) Where
n=sample size
N = population (125)
e= marginal error (0.05 0r 5%)
125
N =
(1+N[e]²)
125 = __________
1 + 125 ( 0.05 )²
125
= ________________
1 + 125 0.0025
= 125
______________
1 + 0.3125
= 125 ____________
1.3125
= 95.24
Hence, the Sample size (n) is approximately 95, assuming a 5% margin of error and this represents 76% of the population which is considered by the Researcher as appropriate for the study.
‘‘Sampling Technique:
A stratified Random Sampling Technique was used in selecting the sample size.
This method enhances the reliability of findings as it ensures that sub-groups within the population are proportionally represented. The population was divided into sub-groups (Strata) based on their departments. Within each stratum, respondents were proportionally selected using random sampling which ensures that every member of each stratum/ department had an equal chance of being selected. The justification for choosing this Technique is that apart from ensuring equal selection opportunity, it minimizes bias, improves the accuracy of findings, and allows for more generalizable results related to the topic of discussion.
‘‘Instrument for Data Collection’’
The Primary Instrument for Data collection is the Questionnaire. The Researcher specifically structured the questionnaire with the questions, open-ended, and designed in a manner that they supplied answers to the Questions raised by the Research. The Questionnaire was divided into 2 parts; Part 1 was on the demography of the respondents, (4 items) while Part 2 had three sections. Section 1: Leadership by Example, (11 items), section 2: Encouraging Innovation Impact on decision-making processes in Lovebite Bread Industry (11 items), and Section 3: The extent to which continuous learning impacts the overall performance and growth of Lovebite Bread Industry (13 items). The 35-item questionnaire was designed to relate to each research question.
‘‘Procedure for Data Collection”
The collection of data for the Research was done by the Researcher who administered the questionnaire to the respondents. To facilitate the process, the Researcher employed the assistance of two experienced Research Assistants. Clarifications were made where needed. To ensure high response return, the respondents were assured of confidentiality and anonymity.
‘‘Method of Data Analysis’’
The data collected were analyzed using descriptive and inferential statistics, including mean scores and Standard Deviation. For testing the hypotheses, a t-test was used, while the interview was analyzed qualitatively to buttress the result from the questionnaire. Data generated were interpreted using real limits of numbers as follows for research questions 1 and 2;
Mean Range Decision Level
Very Large Extent (VLE) = 3.50 – 4.00
Large Extent (LE) = 2.50 –3.49
Small Extent (SE) = 1.50 –2.49
Very Small Extent (VSE) = 0.50 –1.49S
For research question 3 criterion mean was employed to arrive at the decision level. This implies that items with mean scores below 2.50 were not to be Accepted, while items with mean scores of 2.50 and above are Accepted to the extent Leadership by Example can influence the organizational culture and Continuous Learning impacts on the overall performance and growth of Lovebite Bread Industry respectively. The data collected from the interview were qualitatively analyzed in essay format.
‘‘Results’’
The result of the study is presented below. This is based on 92 copies of the questionnaire collected after completion out of the 95 copies distributed. This represents a 96.84% return rate.
Research Question 1
To what extent can leadership by example influence the organizational culture of Lovebite Bread Industry?
Table 1: Mean Ratings and Standard Deviations of Respondents on the extent to which Leadership by Example can Influence the Organizational Culture of the Lovebite Bread Industry.
S/N
Leadership by example influences the organizational culture as:
New EmployeesN = 49
Old EmployeesN = 43
OverallN = 92
Overall Remark
x1
SD1
x2
SD2
xG
SDG
1
Leaders at Lovebite Foods and Beverages Ltd. Lead by example
2.91
1.07
2.69
1.10
2.80
1.09
LE
2
Leadership by example influences the organizational culture at Lovebite Foods and Beverages Ltd.
2.74
1.02
2.98
1.09
2.86
1.06
LE
3
Leaders’ actions and behaviors shape the organizational culture at Lovebite Foods and Beverages
3.02
1.02
2.91
1.09
2.97
1.06
LE
4
Leaders at Lovebite Foods and Beverages Ltd practice the values they promote
2.53
1.07
2.44
1.07
2.49
1.07
SE
5
New employees model their behaviors based on the example set by leaders at Lovebite Foods and Beverages Ltd.
2.83
1.05
2.95
1.03
2.89
1.04
LE
6
Leadership by example helps to foster a cooperative and collaborative culture among employees of Lovebite Foods and Beverage Ltd.
2.28
1.01
2.26
1.02
2.27
1.02
SE
7
Leadership by example is extremely important in promoting an ethical work environment at Lovebite Foods and Beverages Ltd.
3.38
0.97
2.52
0.83
2.95
0.90
LE
8
The leadership at Lovebite Foods and Beverages Ltd is aligned with the company’s Mission and vision.
2.58
0.85
3.43
0.69
3.01
0.77
LE
9
Leadership by example builds trust and commitment among employees at Lovebite Foods and Beverages Ltd.
2.55
0.98
2.76
0.91
2.66
0.95
LE
10
New employees are motivated by how leaders At Lovebite Foods handle crises.
2.84
1.10
2.67
1.02
2.76
1.06
LE
11
Leadership by example encourages a higher level of accountability and professionalism at Lovebite Foods and Beverages Ltd.
2.73
0.97
2.49
1.05
2.61
1.01
LE
Grand Mean/SD
2.76
1.01
2.74
0.99
2.75
1.00
LE
Key: LE: Large Extent; SM: Small Extent; SD = Standard Deviation.
Source:Researcher’sField Survey (2024).
In Table 1, the mean scores obtained for the new employees on items number 1 to 5 and 7 to 11 ranged from 2.53 to 3.38, indicating that the respondents accepted that the listed leadership by example items influence the organizational culture of Lovebite Bread Industry to a large extent while item number 6 with the mean score of 2.28 denotes that the listed leadership by example item influences the organizational culture of Lovebite Bread Industry to a small extent by the new employees. Similarly, the Table shows that the mean score range of 2.52 to 3.43 is obtained for the old employees on items number 1, 2, 3, 5, 7, 8, 9, and 10, indicating large extent perceptions while the mean score range of 2.26 to 2.49 obtained for the old employees on the rest of the items shows small extent perceptions accordingly. Thus, the overall (grand) mean score of 2.75 shows that leadership by example can influence the organizational culture of Lovebite Bread Industry to a large extent. Thus, the overall (grand) standard deviation score of 1.00 denotes the homogeneity of opinions of the respondents.
Hypothesis 1
There is no significant difference between the opinions of new and old employees on the extent Leadership by Example influences the organizational culture of the Lovebite Bread Industry.
Table 2: T-test statistics on the Mean Rating ofNew and Old employees on the extent to which Leadership by Example Influences the Organizational Culture of Lovebite Bread Industry.
Variables(Employees)
N
t
df
Sig. (2tailed)
Mean Difference
Std. Error Difference
Remark
New
49
0.313
90
0.347
0.53141
0.56551
NS
Old
43
Note: NS: Not Significant
Table 2 shows that the t-value of 0.313 is obtained at a 0.05 level of significance and 90 degrees of freedom with a significant value of 0.347. However, since the significant value is more than the level of significance set for the study, the null hypothesis is statistically insignificant and thus, not rejected for these items (Accept Ho). This implies that there is no significant difference between the opinions of new and old employees on the extent leadership by 20 examples influences the organizational culture of Lovebite Bread Industry. Hence, the employment status of the respondents is seen as insignificant concerning their responses to the said items.
Research Question 2
To what extent does continuous learning impact the overall performance and growth of the Lovebite Bread Industry?
Table 3: Mean Ratings and Standard Deviations of Respondents on the Extent to Which Continuous Learning Impacts on the Overall Performance and Growth of Lovebite Bread Industry.
S/N
Continuous learning impact on the overall performance and growth by:
New EmployeesN = 49
Old EmployeesN = 43
OverallN = 92
Overall Remark
x1
SD1
x2
SD2
xG
SDG
12
Provision of training and development opportunities for employees
2.53
1.07
2.44
1.07
2.49
1.07
SE
13
Improving individuals at Lovebite Foods and Beverages Ltd (LBIL)
2.83
1.05
2.95
1.03
2.89
1.04
LE
14
Contributing to the professional development of employees of Lovebite Foods and Beverages Ltd.
2.40
0.97
2.39
1.03
2.40
1.00
SE
15
Enhancing overall company performance at Lovebite Foods and Beverage Ltd
2.72
1.03
2.70
1.08
2.71
1.05
LE
16
Continuous learning enhances the business strategies of Lovebite Foods and Beverage Ltd.
2.57
1.18
2.49
1.09
2.53
1.16
LE
17
Giving new employees the same training and development opportunities as old employees
2.98
1.01
2.39
0.78
2.69
0.90
LE
18
improving employee efficiency and productivity at Lovebite Foods and Beverages Ltd
2.53
0.86
2.61
0.91
2.57
0.89
LE
19
Adopting the culture of continuous learning for all employees promoted
2.93
0.99
2.27
1.10
2.60
1.05
LE
20
Helping employees meet the changing needs of Lovebite Foods and Beverages Ltd
2.56
1.19
2.49
1.16
2.53
1.18
LE
21
Making learning critical for the long-term growth of Lovebite Foods and Beverages Ltd
2.21
1.00
2.95
0.93
2.58
0.97
LE
22
Enhancing teamwork and collaboration across departments of Lovebite Foods and Beverages Ltd.
2.91
1.07
2.69
1.10
2.80
1.09
LE
Grand Mean/SD
2.65
1.04
2.58
1.03
2.62
1.04
LE
Data as presented in Table 3 shows that the mean scores obtained for the new employees on items number 12, 13, 15 20, and 21 ranged from 2.53 to 2.98, indicating that the listed continuous learning items impact the overall performance and growth of Lovebite Bread Industry to a large extent while items number 14 and 21 with the mean scores of 2.40 and 2.21 denotes small extent perception by the new employees. Similarly, the Table shows that the mean score range of 2.61 to 2.95 is obtained for the old employees on items number 13, 15, 18, 21, and 22, indicating large extent perceptions while the mean scores of 2.44, 2.39, 2.49, 2.39, 2.27 and 2.49 obtained for the old employees on the rest of the items shows that the listed continuous learning items impact on the overall performance and growth of Lovebite Bread Industry to a small extent respectively. However, the overall (grand) mean score of 2.62 obtained shows that continuous learning impacts the overall performance and growth of the Lovebite Bread Industry to a large extent, while the overall (grand) standard deviation score of 1.04 depicts no remarkable differences in the opinions of the respondents.
Hypothesis 2
There is no significant difference between the opinions of new and old employees on the extent continuous learning impacts the overall performance and growth of the Lovebite Bread Industry.
Table 4: t-test Statistics on the Mean Rating ofNew and Old employees on the extentto which Continuous Learning Impacts on the Overall Performance and Growth of Lovebite Bread Industry.
Variables(Employees)
N
t
df
Sig. (2tailed)
Mean Difference
Std. Error Difference
Remark
New
49
0.163
90
0.501
0.57338
0.56813
NS
Old
43
Concerning data as inTable 4, the t-value of 0.163 is obtained at a 0.05 level of significance and 90 degrees of freedom with a significant value of 0.501. However, since the significant value is more than the level of significance set for the study, the null hypothesis is statistically insignificant and thus, not rejected for these items (Accept Ho). By implication, there is no significant difference between the opinions of new and old employees on the extent Continuous Learning impacts the overall performance and growth of the Lovebite Bread Industry.
Research Question 3
How can encouraging innovation impact decision-making processes in the Lovebite Bread Industry?
Table 5: Mean Ratings and Standard Deviations of Respondents on how Encouraging Innovation can Impact Decision-Making Processes in the Lovebite Bread Industry.
S/N
Encouraging innovation can impact on decision-making processes by:
New EmployeesN = 49
Old EmployeesN = 43
OverallN = 92
Overall Remark
x1
SD1
x2
SD2
xG
SDG
23
Lovebite Foods and Beverages Ltd encourage innovation for total transformation
2.09
1.02
2.87
0.89
2.48
0.96
Disagree
24
Encouraging innovation improves the decision-making process at Lovebite Foods and Beverages Ltd.
2.13
0.97
2.83
0.96
2.48
0.97
Disagree
25
Employees are encouraged to share innovative ideas in decision-making processes Ltd.
2.98
1.01
2.39
0.78
2.69
0.90
Agree
26
New employees are often invited to share their innovative ideas to improve decision-making
2.53
0.86
2.61
0.91
2.57
0.89
Agree
27
Innovation is crucial for solving business challenges and improving decision-making at Lovebite Foods and Beverages Ltd.
2.93
0.99
2.27
1.10
2.60
1.05
Agree
28
Leaders at Lovebite Foods and Beverages Ltd. encourage employees to think outside the box. When it comes to decision-making.
2.57
1.04
2.51
1.15
2.54
1.08 23
Agree
29
Encouraging innovation leads to better decisions by the leadership at Lovebite Foods and Beverages Ltd.
2.79
1.22
2.49
1.13
2.66
1.19
Agree
30
Innovative ideas are often implemented into business decisions at Lovebite Foods and Beverages Ltd.
2.70
1.12
2.54
1.11
2.63
1.11
Agree
31
Innovation is supported by the resources provided by Lovebite Foods and Beverages Ltd.
2.21
1.00
2.95
0.93
2.58
0.97
Agree
32
Encouraging innovation leads to improved competitive advantage at Lovebite Foods.
2.07
0.81
2.49
1.21
2.28
1.01
Disagree
33
New employees bring fresh ideas that influence decisions at Lovebite Foods.
2.53
1.07
2.84
1.07
2.69
1.07
Agree
34
Innovation plays a critical role in strategic decisions at Lovebite Foods and Beverage.
2.95
1.03
2.83
1.05
2.89
1.04
Agree
35
Leaders reward innovative ideas and creative solutions within Lovebite Foods and Beverages Ltd.
2.26
1.02
2.28
1.01
2.27
1.02
Disagree
Grand Mean/SD
2.52
1.01
2.61
1.02
2.57
1.02
Agree
Data, as presented in Table 5, shows that the mean scores obtained for the new employees on items number 25, 26, 27, 28, 29, 30, 33 34, and 21 are 2.98, 2.53, 2.93, 2.57, 2.79, 2.70, 2.53 and 2.95, indicating that the respondents agree that the listed items are how encouraging innovation impacts on decision-making processes in Lovebite Bread Industry while items number 23, 24, 31, 32 and 35 with the mean scores of 2.09, 2.13, 2.21, 2.07 and 2.26 denotes disagree responses by the same employees. Similarly, the Table shows that the mean score range of 2.51 to 2.95 is obtained for the old employees on items number 23, 24, 26, 28, 30, 31, 33, and 34, indicating agree responses while the mean scores below 2.50 obtained for the old employees on items number 25, 27, 29, 32 and 35 shows disagree responses respectively. However, the overall (grand) mean score of 2.57 obtained shows that encouraging innovation impacts on decision-making processes in the Lovebite Bread Industry with the overall (grand) standard deviation score of 1.02 indicating a slim disparity in the opinions of the respondents.
Hypothesis 3
There is no significant difference between the opinions of new and old employees on how encouraging innovation can impact decision-making in the Lovebite Bread Industry.
Table 6: T-test statistics on the Mean Rating ofNew and Old employees on how Encouraging Innovation can Impact on Decision-Making in Lovebite Bread Industry.
Variables(Employees)
N
t
df
Sig. (2tailed)
Mean Difference
Std. Error Difference
Remark
New
49
-0.349
90
0.491
0.53918
0.46871
NS
Old
43
Concerning data as inTable 6, the t-value of -0.349 is obtained at a 0.05 level of significance and 90 degrees of freedom with a significant value of 0.491. Thus, since the significant value is more than the level of significance set for the study, the null hypothesis is statistically insignificant and thus, not rejected for these items (Accept Ho). By implication, there is no significant difference between the opinions of new and old employees on how encouraging innovation can impact decision-making in the Lovebite Bread Industry.
DISCUSSION OF FINDINGS
In line with the findings of the study as regards the extent to which leadership by example can influence the organizational culture of Lovebite Bread Industry, the study revealed that leadership by example influences the organizational culture of Lovebite Bread Industry to a large extent as it is aligned with the company’s mission and vision, leaders’ actions and behaviors shape the organizational culture at Lovebite Foods and Beverages, it is extremely important in promoting an ethical work environment at Lovebite Foods and Beverages Ltd, new employees model their behaviors based on the example set by leaders at Lovebite Foods and Beverages Ltd, among others. Given these findings, it becomes paramount to state that leadership by example is significant in ensuring the attainment of set organizational goals and objectives. Hence, necessary for all heads/leaders of organizations to exhibit leadership by example as seen to influence the organizational culture of the Lovebite Bread Industry to a large extent. Similarly, the hypothesis test of no significant difference between the opinions of new and old employees on the extent to which leadership by example influences the organizational culture of Lovebite Bread Industry showed that there is no significant difference between the opinions of new and old employees on the extent Leadership by Example influences the organizational culture of Lovebite Bread Industry. This is evident as the obtained significant value is great than the level of significance set for the study. By implication, the extent leadership by example influences the organizational culture of Lovebite Bread Industry.
These findings are tallied with the findings of Kouzes and Posner (2002) who found that that leaders who model desired behaviors foster stronger workplace cultures of accountability, trust, and ethical standards. This, in turn, positively affects employee motivation and commitment. In agreement with the above, Boal and Hooijberg (2001) stated that a positive correlation exists between strategic leadership and financial performance, with leaders who practiced foresight and flexibility having better long-term profitability.
Concerning the extent to which continuous learning impacts the overall performance and growth of the Lovebite Bread Industry, the study revealed that continuous learning impacts the overall performance and growth of the Lovebite Bread Industry to a large extent. This is in affirmation with the perceptions of the respondents who agreed that continuous learning impacts the overall performance and growth by improving individuals at Lovebite Foods and Beverages Ltd (LBIL), enhancing teamwork and collaboration across departments of Lovebite Foods and Beverages Ltd, enhancing overall company performance at Lovebite Foods and Beverage ltd, and many more. Thus, continuous learning is seen as impactful on the overall performance and growth of the Lovebite Bread Industry with its numerous benefits geared towards productivity. Thus, based on the hypothesis, a significant difference does not exist between the opinions of new and old employees on the extent continuous learning impacts the overall performance and growth of the Lovebite Bread Industry.
This aligns with Garvin, Edmondson, and Gino (2008) who found that organizations where leaders emphasize continuous learning were more adaptable to changing market conditions. The authors stressed that firms that invest in leadership development and continuous education experience faster decision-making cycles and improved strategic outcomes. DeChurch and Marks (2006) added that leaders who support learning create environments where employees feel empowered to contribute innovative ideas.
However, the study on how encouraging innovation can impact decision-making processes in the Lovebite Bread Industry indicated that encouraging innovation has a positive impact on decision-making processes. The study revealed that through the encouragement of innovation, a critical role in strategic decisions at Lovebite Foods and Beverage, new employees bring fresh ideas that influence decisions at Lovebite Foods, employees are encouraged to share innovative ideas in decision-making processes Ltd, better decisions by the leadership at Lovebite Foods and Beverages ltd are made, among other benefits. Thus, the place and benefits of encouraging innovation cannot be over-emphasized as it breeds the maximization of all units of production. Based on the corresponding hypothesis, there is no significant difference found between the opinions of new and old employees on how encouraging innovation can impact decision-making in the Lovebite Bread Industry.
The findings above agree with Jansen et al. (2009) noted that leaders who foster an innovative culture and provide the necessary resources for innovation initiatives had higher levels of product and process innovation, which in turn improved competitive positioning. García-Morales et al. (2008) in another study identified that strategic leadership is crucial in fostering innovation, which is key to maintaining organizational competitiveness and companies with leaders who support exploratory innovation (new ideas and products) and exploitative innovation (refining existing processes) perform better in dynamic markets.
Conclusion
The study covered the strategic leadership for effective business development: A case of Lovebite Bread Industry, Nnobi. Based on the results of the data analyses, the study showed that leadership by example influences the organizational culture, continuous learning impacts on the overall performance and growth, and encouraging innovation impacts on decision-making processes in the Lovebite Bread Industry. Similarly, the hypotheses test of no significant difference yielded a higher significant value than the level of significance set for the study and by implication, there is no significant difference between the opinions of new and old employees on the extent leadership by example influences the organizational culture; extent continuous learning impact on the overall performance and growth; and on how encouraging innovation can impact on decision-making in Lovebite Bread Industry. Given the above, it is believed that if leaders/ heads/ management of Lovebite Bread Industry adopt and exhibit the afore-discussed strategies in their daily activities, it would invariably result in enhanced productivity in Lovebite Bread Industry and by extension foster development in Nnobi at large.
Implications
1. Enhanced Understanding of Strategic Leadership in Business ManagementThis study provides valuable insights into how strategic leadership influences business outcomes, particularly in a real-world setting like Lovebite Foods and Beverages Ltd. By examining leadership styles, decision-making processes, and their impact on company performance, this research deepens the understanding of the role of strategic leadership in fostering innovation and sustainable growth.
2. Improvement of Leadership Practices
Findings from this study can inform business leaders of the importance of leadership by example, promoting a culture of continuous learning, and encouraging innovation. These practices can be adopted by managers and executives in similar organizations, guiding them toward building high-performance cultures and enhancing overall organizational effectiveness.
3. Guidance for Small to Medium Enterprises (SMEs)
The case study provides practical examples and actionable insights specific to SMEs in Nigeria and similar emerging markets. The strategies and leadership practices explored in this research can help SME owners better navigate the complexities of their business environments, achieve operational efficiencies, and gain a competitive edge.
4. Basis for Policy Formulation and Development
Insights from this research can guide policymakers in creating policies and frameworks that support the growth and sustainability of small and medium enterprises. Policies that promote strategic leadership, organizational innovation, and continuous learning could drive sector-wide improvements and economic growth.
Contribution to Knowledge
1. Expands the Literature on Strategic Leadership
This research adds to the body of knowledge on strategic leadership by providing empirical data from Lovebite Foods and Beverages Ltd. It highlights the specific leadership practices that positively impact organizational performance, filling a gap in the literature on leadership within SMEs in Nigeria and similar contexts.
2. Advances Understanding of Leadership’s Impact on Organizational Culture
By exploring how leadership by example and encouragement of continuous learning shape organizational culture, this study contributes to understanding how leaders directly influence a company’s working environment, employee motivation, and engagement.
3. Provides a Framework for Effective Business Management in SMEs
This study offers a practical framework that can guide leaders in small and medium enterprises in adopting strategic leadership practices that foster growth. It bridges theoretical insights with real-life applications, thus creating a roadmap for achieving sustainable competitive advantage.
Suggestions for Further Studies
1. Comparative Analysis of Strategic Leadership in SMEs and Large Corporations
Future studies could compare the impact of strategic leadership in SMEs versus large corporations to see if and how different organizational sizes and structures affect leadership effectiveness.
Further research could examine if strategic leadership practices vary across industries. For example, studying strategic leadership in the food and beverage sector against technology or manufacturing sectors could yield sector-specific insights.
3. Longitudinal Studies on Leadership’s Impact on Business Performance
Conducting a longitudinal study that tracks the effects of strategic leadership over a longer period would provide a deeper understanding of its long-term impact on organizational performance and adaptability.
4. Exploring Cultural Influences on Strategic Leadership in Emerging Markets
Since culture plays a significant role in shaping leadership styles, further research could explore how cultural factors influence strategic leadership effectiveness in other emerging markets, offering a broader understanding of its application across diverse cultural contexts.
5. Evaluating the Role of Technology in Strategic Leadership
A study focusing on how digital transformation and technological tools support or hinder strategic leadership practices in SMEs could provide insights into how leaders can leverage technology for more effective business management.
Recommendations
Based on the findings of the study, the following recommendations were proffered:
1. More emphasis should be placed by concerned individuals on leadership by example as seen as significant in influencing the organizational culture.
2. An awareness campaign should be made to emphasize the importance of continuous learning on the overall performance and growth of establishments in Anambra State.
3. Measures to encourage innovation should made by appropriate authorities to enhance decision-making processes in establishments in Anambra State.
REFERENCES
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Finkelstein, S., Hambrick, D. C., & Cannella, A. A. (2009). Strategic leadership: Theory and research on executives, top management teams, and boards. Oxford University Press.
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Ireland, R. D., & Hitt, M. A. (1999). Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership. Academy of Management Executive, 13(1), 43-57
Obi-Chukwuma, N. J (2016). State television stations and the challenges of 2017 analog switch-off: A study of Anambra Broadcasting Service (ABS) Awka.
Vera, D., & Crossan, M. (2004). Strategic leadership and organizational learning. Academy of Management Review,29(2), 222-240
Wang, C., Walker, E. A., & Redmond, J. (2007). Explaining the lack of strategic planning in SMEs: The importance of owner motivation. International Journal of Organizational Behavior,12(1), 1-16.
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List of Tables
Table1. Mean Scores and Standard Deviations of Respondents on the Extent to
Leadership by Example can Influence the Organizational
Culture of Lovebite Bread Industry 24
Table 2. T-test Statistics on the Mean Scores of New and Old employees on the
extent to which Leadership by Example Influences the Organizational
Culture of Lovebite Bread Industry 25
Table 3 Mean Scores and Standard Deviations of Respondents on the extent to which
Continuous Learning Impact on the Overall Performance and Growth of
Lovebite Bread Industry. 26
Table 4. T-test Statistics on the Mean Scores of New and Old employees on the extent
to which continuous learning impacts on the overall performance and growth
of Lovebite Bread Industry 27
Table 5 Mean Scores and Standard Deviations of Respondents on How Encouraging
Innovation can Impact on Decision-Making Processes in Lovebite Bread
Industry 28
Table 6 T-test Statistics on the Mean Scores of New and Old employees on how
Encouraging Innovation Can Impact Decision-Making in Lovebite Bread
Industry 29
Appendix
Leveraging Strategic Leadership for Effective Business Management ( LSLEBMQ)
Dear Participant, this questionnaire is designed to collect data on Leveraging Strategic Leadership for Effective Business Management of Lovebite Bread Industry in Nnobi, The information you provide will remain confidential and used solely for academic purposes. There are no right or wrong answers. Please be honest.
Section 1: Demographic Information:
What is your employment status at Lovebite Foods and Beverages Ltd?
a) New employee (less than 5 years)
b) Long-term employee (more than 5 years)
What is your job role?
a) Entry-level
b) Mid-level
c) Senior-level
d) Management
What department do you work in?
a) Production
b) Sales and Marketing
c) Administration
d) Logistics
e) Others: _______________
How many years have you worked at Lovebite Foods and Beverages Ltd?
Instruction to respondents: There are four options as in below, kindly TICK only one: Kindly answer ALL the questions.
VLE= Very Large Extent
LE= Large Extent
SE= Small Extent
VSE= Very Small Extent
And
SA = Strongly Disagree
A = Agree
D = Daisgree
SD = Strongly Disagree
Cluster A: Leadership by Example and Organizational Culture:
Indicate the extent Leadership by Example can influence the organizational culture of the Lovebite Bread Industry; To WHAT EXTENT DO/DOES:
VLE
LE
SE
VSE
Leaders at Lovebite Foods and Beverages Ltd. lead by example.
Leadership by example influences the organizational culture at Lovebite Foods and Beverages Ltd.
Leaders’ actions and behaviors shape the organizational culture at Lovebite Foods and Beverages.
Leaders at Lovebite Foods and Beverages Ltd practice the values they promote
New employees model their behaviors based on the set examples by leaders at Lovebite Foods and Beverages Ltd.
Leadership by example helps foster a cooperative and collaborative culture among the employees of Lovebite Foods and Beverage Ltd.
Leadership by example is important in promoting an ethical work environment at Lovebite Foods and Beverages Ltd.
The leadership at Lovebite Foods and Beverages Ltd is aligned with the company’s mission and vision.
Leadership by example builds trust and commitment among employees at Lovebite Foods and Beverages Ltd.
New employees are motivated by how leaders at Lovebite Foods handle crises.
Leadership by example encourages higher levels of accountability and professionalism at Lovebite Foods and Beverages Ltd.
Cluster B: Extent Continuous Learning impacts the overall performance and growth of Lovebite Bread Industry Ltd. (LBIL)
TO WHAT EXTENT DOES LOVEBITE BREAD INDUSTRY/ TO WHAT EXTENT IS/ DOES;
Provide training and development opportunities for employees.
Continuous learning improves individuals at Lovebite Foods and Beverages Ltd. (LBIL)
Continuous learning contributes to the professional development of employees of Lovebite Foods and Beverages Ltd.
Continuous learning enhances overall company performance at Lovebite Foods and Beverages Ltd.
Continuous learning enhances the business strategies of Lovebite Foods and Beverages.
New employees are given the same training and development opportunities as old employees.
Has continuous learning improved employee efficiency and productivity at Lovebite Foods and Beverages Ltd
Is the culture of continuous learning for all employees promoted?
Continuous learning helped employees meet the changing needs of Lovebite Foods and Beverages Ltd.
Is continuous learning critical for the long-term growth of Lovebite Foods and Beverages Ltd?
22.
Continuous learning enhances teamwork and collaboration across departments of Lovebite Foods and Beverages Ltd.
Cluster C:How Encouraging Innovation can impact decision-making processes in the Lovebite Bread Industry. Indicate your level of Agreement or Disagreement with the following statements.
24
Lovebite Foods and Beverages Ltd encourage innovation
SA
A
D
SD
25
Encouraging innovation improves the decision-making process at Lovebite Foods and Beverages Ltd.
26
Employees are encouraged to share innovative ideas in decision-making processes Ltd.
27
New employees are often invited to share their innovative ideas to improve decision-making.
28
Innovation is crucial for solving business challenges and improving decision-making at Lovebite Foods and Beverages Ltd.
29
Leaders at Lovebite Foods and Beverages Ltd. encourage employees to think outside the box when it comes to decision-making.
30
Encouraging innovation leads to better decisions by the leadership at Lovebite Foods and Beverages Ltd.
31
Innovative ideas are often implemented into business decisions at Lovebite Foods and Beverages Ltd.
32
Innovation is supported by the resources provided by Lovebite Foods and Beverages Ltd.
33
Encouraging innovation leads to improved competitive advantage at Lovebite Foods.
34
New employees bring fresh ideas that influence decisions at Lovebite Foods.
35
Innovation plays a critical role in strategic decisions at Lovebite Foods and Beverage.
36
Leaders reward innovative ideas and creative solutions within Lovebite Foods and Beverages Ltd.
Email: onuohaloshuagmail.com Phone No +234796 074 8383 2024
ABSTRACT:
The purpose of this study was to investigate traditional apprenticeship and the growth of the textile industry in SE Nigeria. It employed an ex-post facto descriptive non-experimental research design. Three research questions and three hypotheses guided the study. The sample consists of 300 Masters selected using multistage, purposive, accidental, and snowballing sampling techniques from five states in SE Nigeria. Questionnaires, direct contact, and social media administration strategies helped with data collection. Means, Standard deviation, and Analysis of Variance (ANOVA) were used. Results show that traditional apprenticeship encourages the growth of the textile industry in several ways, with the highest being through a multiplier effect; Trading skills; Further mentoring after graduation; Assistance in expanding and opening branches; Provision of funds, and practical hands-on training. A lot of challenges face traditional apprenticeship, with the greatest being, Gender bias, Outdated teaching methods without innovation and experimentation; and non-technologically driven teaching methods, with no statistical difference found among the SE states. It was concluded that traditional apprenticeship enhances the growth of the textile industry to a Large Extent. It was recommended that the formal schooling system adopt the multiplier effect and job creation devices of the traditional apprenticeship to improve the educational system and reduce unemployment in Nigeria.
Keywords: Traditional Apprenticeship; Textile Industry; Master and Multiplier effect.
INTRODUCTION:
Background of study
Apprenticeship is a sort of informal schooling characterized by practicals and hands-on experience, where the participant learns directly on the job. No wonder it is described as on-the-job training that enables new-generation practitioners to gain a license to practice in a regulated occupation (Asare, Nyarko, Fobiri, & Marfo 2023). Apprenticeship is also defined as a “form of training in which an individual learns an art, trade, or craft under a legal agreement that outlines the duration and conditions of the relationship between the master and apprentice” (AI-generated definition based on: the International Encyclopedia of Education -Third Edition, 2010). In this training, skills are learned and knowledge transferred from the Master or Mentor to the apprentice, typically through hands-on practice and instruction, which takes various forms such as traditional crafts, vocational education, classical music, and even spiritual traditions.
The traditional apprenticeship system has long been practiced in Nigeria alongside the formal educational system. The traditional apprenticeship system in this study involves a written contract or agreement between master and apprentice, stating the conditions for both parties and the terms of apprenticeship. Often the apprenticeship especially for a business, such as trading in textile fabrics, takes up to four years during which the apprentice lives with the master as a family member and trades with the master. The master on his part, trains the apprentice for the period in his type of business and settles the apprentice at the end of the contract period. The graduation is usually celebrated with a party involving the master’s presentation of the take-off fund. This marks the official accreditation of the apprentice as a journeyman of the textile fabrics trade, making it possible for him or her to get his or her shop and open his or her own fabrics trading business.
The textile industry involves several sections, including, the production of raw materials, and fabric production. Marketing the fabrics and producing clothing from the fabrics. This study is interested in the marketing of the fabrics. The growth of the industry in this respect involves expansion and an increase in the quality of services. Growth is a “socially constructed factor” (Dugguh et al., 2018) and implies a change in size during a determined period, involving an increase in sales and investments to adapt to new demands Onwuka and Nwaneri (2023). Asare, Nyarko, Fabri, & Marfo (2023) observed that growth implies an increase in sales, and the number of employees. Profit, increase in assets, increase in the firm´s value, and internal development. The growth of textile industries in this study will be measured by the above perspectives.
Statement of the problem:
The traditional apprenticeship system has long been an integral part of the economic and social fabric of Southeast Nigeria, an area occupied by the Igbos, known for their acumen and steadfastness in business. Initially, the traditional apprenticeship system was patronized mainly by illiterates and the poor. Still, these days, due to a lack of jobs for school leavers and tertiary institution graduates, as well as growth in entrepreneurship among the elites in Nigeria, the traditional apprenticeship system has started to boom once more. Studies show that entrepreneurs are not the sole vectors to growth as there are many other agents involved, such as clients, kin, suppliers, and nature and challenges to the apprenticeship. This study therefore investigated traditional apprenticeship and growth of the textile industry inSouth East Nigeria, to identify how it encourages growth of the textile industry and the challenges confronting it. Many studies have been carried out on apprenticeship systems. For instance, Gallup (2024) sought to find out About Registered Apprenticeship: in his Systematic Review and Synthesis of 30 Years of Empirical Research, Suhaimy, Sumardi, Sumardi & Ansari (2022) looked at factors that influence the transfer of training within an apprenticeship program, while Sani & Adamu & Adamu & Umar (2022) investigated the impact of apprenticeship training on job creation among artisans in Bauchi and provided the conceptual framework to express the relationship between the apprenticeship component and job creation.Uwameiye, Ede, and Iyamu’s 2002 study focused on the training methodology used by the Nigerian Indigenous apprenticeship system; Ifechukwu-Jacobs, (2022) studied the effect of Igbo trade apprenticeship system on unemployment reduction in Onitsha, The return on investment of apprenticeship systems for enterprises: evidence from cost-benefit analyses was examined by Muehlemann and Wolter (2014). A very recent and close study by Chukwu, Ugochukwu, and Njoku (2024) focused on challenges and prospects challenges and prospects of the Igbo apprenticeship system in the modern world. The current study which is the first of its kind, dwelt on the traditional apprenticeship and growth of the textile industry in South East Nigeria, which is the lacuna filled by this study. Southeast Nigeria is well known for its creativity which is often displayed in the various designs of the fabrics produced and in the sewing designs, making the business very lucrative. It is not surprising that many Igbos go into the textile business as clothing is often considered next to food and shelter in Maslow’s hierarchy of Needs. This study therefore sets the following objectives;
To examine how traditional apprenticeship encourages the growth of the textile industry in SE Nigeria.
To determine the extent the customary apprenticeship enhances the growth of the textile industry in SE Nigeria and
To explore the challenges confronting traditional apprenticeship in the growth of the textile industry in SE Nigeria.
Research Questions: The following research questions were posed to guide that study;
How does traditional apprenticeship encourage the growth of the textile industry in SE Nigeria?
To what extent has traditional apprenticeship enhanced the growth of the textile industry in SE Nigeria?
What challenges confront traditional apprenticeship in the growth of the textile industry in SE Nigeria?
Hypotheses: These hypotheses tested at a 0.05 confidence level guided the study.
HO1: There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on how traditional apprenticeship encourages the growth of the textile industry in SE Nigeria.
HO2:There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on the extent traditional apprenticeship has enhanced the growth of the textile industry in SE Nigeria.
HO3: There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on the challenges that confront traditional apprenticeship in the growth of the textile industry in SE Nigeria.
LITERATURE REVIEW:
The literature review in this study is presented under Conceptual framework, Theoretical framework, and Empirical Studies
Conceptual framework: Apprenticeship has been severally defined as informal schooling or learning involving practicals and hands-on experience on-the-job training (Asare, Nyarko, Fobiri, & Marfo 2023); training where an individual learns an art, trade, or craft under a legal agreement between the master and apprentice” (AI generated definition based on: International Encyclopedia of Education (Third Edition), 2010); A way of job creation Sani & Adamu & Adamu & Umar (2022), an informal and unstructured training programme, scheduled for an agreed period during which the apprentice learns the trade, acquires a desirable part of entrepreneurship skills, masters the rudiments of the trade, and offers services to the master for an agreed-upon period, (Kanu, 2020; Alike &Orjiako-Umunze, 2019; Orugun&Nafiu, 2014). In addition, it is a process of bringing up a child (Kanu, 2020). (Kanu, 2020), (Alike and Orjiofor-Umunze, 2019), (Doekpe, 2017), Onwuka & E.C. Nwaneri 2023, Cresent (2019) where no salaries are paid. However, it is also perceived as an unpaid business and incubator model that lets people learn the business from a master for some years Kanu (2019. This study defines apprenticeship as a sort of informal schooling characterized by practicals and hands-on experience, where the participant learns directly on the job.
Theoretical framework: This study is framed on the Human Capital Theory postulated by Becker (1964). The theory assumes that investments in education or training contribute to an individual’s productivity and earning capacities. This implies that the traditional apprenticeship system, makes individuals acquire valuable skills, knowledge, and experience that enhance their human capital, which in turn, enables them to create wealth, improve productivity, and earn more, thereby enhancing growth in the industry.
Empirical studies: Empirical studies were discussed under, studies in Apprenticeship. Studies in Traditional apprenticeship, studies in Growth in textile industries.
Studies in Apprenticeship:
Pirrioni, (2018) investigated ‘promoting apprentices’ professional development: integrating formal and informal learning, HRM, and learning goal orientation in promoting apprentices’ competencies, A cross-sectional and a longitudinal approach were employed to complement the qualitative data on 233 apprentices operating in the engineering sector in England. It was found that organizations can leverage to promote apprentices’ development using formal and informal learning. The current study, unlike this one, did not test any model but investigated using ex post facto research design, thetraditional apprenticeship, and the growth of the textile industry inNigeria a study carried out in England.
Suhaimy, Sumardi, Sumardi, & Anshari (2022) in their empirical study of training transfer in an apprenticeship programme for a conducive workforce, used an extended Training Transfer Model, to examine the factors that influence the transfer of training within an apprenticeship program. Like the current study, In-depth semi-structured interviews with participants who had undergone the apprenticeship programme were carried out. The data were analyzed using thematic analysis, and bibliographic analysis was performed. The findings reveal that trainee characteristics, training design, and work environment influence training transfer.
Sani & Adamu & Adamu & Umar (2022) Apprenticeship Training and Job Creation: A Conceptual Framework of their Relationship focuses on the impact of apprenticeship training on job creation among artisans in Bauchi state. It provides the conceptual framework to express the relationship. The study recommended that apprenticeships be revitalized and updated, as well as that ethnic-based union be legalized and reorganized to fulfill both social and economic functions.
Gallup, (2024) investigated ‘What We Know About Registered Apprenticeship: A Systematic Review and Synthesis of 30 Years of Empirical Research’, using a Meta-analysis, the author undertook a systematic literature review and a qualitative synthesis of empirical research, interpreting findings on RA over 30 years. The review identified 36 scholarly studies and an additional 98 articles from the practitioner literature. The synthesis derived three themes: expansion, benefits, and outcomes for minoritized groups, revealing gaps in research on learning for apprentices.
Uwameiye and Iyamu (2002) examined ‘Training Methodology Used by the Nigerian Indigenous Apprenticeship System,’ to investigate the training orientation given to apprentices; common training techniques employed by the master craftsmen; and how the apprentices are evaluated to ascertain their mastery. A questionnaire was used to gather data for the study. Similar samples of Master and apprentice were used. The findings show that there is no formal curriculum in use for training, and customers help to determine the mastery of apprentices.
Nnonyelu, Nnabuife, Onyeizugbe, Anazodo, and Onyima, (2023) examined Igbo apprenticeship (Igba boyi) as an exemplar of the Indigenous African entrepreneurship model. The specific objective was to ascertain the influence of the Igbo apprenticeship system on the Indigenous African entrepreneurship model, showing how Indigenous entrepreneurship has been boosted by the apprenticeship scheme and highlighting the nexus between the Igbo apprenticeship scheme and entrepreneurship. The paper seeks to unpack the enablers of Igbo apprenticeship, and why it is largely seen as the poster face of local Igbo entrepreneurs. A case for the scalability and adoption of the igba boyi Indigenous entrepreneurial model as a vehicle for the development and sustenance of Indigenous entrepreneurship practices for African developments was made.
Ifechukwu-Jacobs (2022) examined the effect of the Igbo trade apprenticeship system on unemployment reduction in Onitsha. Like the current study, it employed the use of a structured questionnaire. However, percentage table and correlation were used for the analysis. Both studies employed the use of a similar population and sample. While this study sample was determined by Gorg & Ball formula, the current study sample was determined by Chiaha (2023). It was found that: Apprentice skill acquisition has a significant effect on unemployment reduction at Onitsha: The apprenticeship training system has a significant effect on unemployment reduction to ascertain the impact of apprentice skill acquisition on unemployment reduction in Onitsha. Like the current study, this study recommended that the masters (Ogas), should ensure the timely settlement of their diligent apprentices.
Chukwu, Ugochukwu, and Njoku’s (2024) study, which is very relevant to the current one, examined the challenges and prospects of the Igbo apprenticeship system in the modern. Similar research designs, samples, methods of data collection, and data analysis were employed in both studies. The empirical result showed that there are significant challenges and significant prospects for the Igbo apprenticeship system in the modern world. The current study is interested in identifying the current challenges facing apprenticeship in the textile industries only but it will not be involved in the prospects since it will explore the extent the which apprenticeship impacts on growth of the textile industries.
Onyebuchi-Igbokwe, Grace & Chinyere, Ndebilie. (2024). An Empirical Approach to Textile Production and the Correlates of Technology Options in Nigeria’s Textile Industry, to investigate how the economic ties between China and Nigeria have affected the growth of Nigeria’s textile sector between 2021 and 2023. Data was collected using qualitative research methods as in this study. The study found that Nigeria’s textile sector has developed favorably as a result of the economic ties between China and Nigeria. It recommended that the economic relationship needs to be further strengthened.
Summary of Literature Review: The study adopts the concepts of, Asare, Nyarko, Fobiri, & Marfo 2023; (AI generated definition based on: International Encyclopedia of Education (Third Edition), 2010); Sani & Adamu & Adamu & Umar (2022) and (Kanu, 2020; Alike &Orjiako-Umunze, 2019; Orugun & Nafiu, 2014) and admits that traditional apprenticeship is an informal training where an individual learns the fabric trading business under a legal agreement between the master and apprentice”. The study was anchored on the Human Capital traditional apprenticeship system, implying that the apprenticeship makes individuals acquire the entrepreneurial skills that enable them to create wealth by implication, enhance growth in the textile industry. Nine empirical studies were reviewed, one focused on the growth of the textile industry, one on an apprenticeship in England the rest on an apprenticeship in England, and the rest on an apprenticeship in Nigeria out of which, three dealt with an apprenticeship in Igboland. However, out of the studies reviewed no study known to the researcher investigated ‘traditional apprenticeship and the growth of the textile industry in southeast Nigeria. This is the lucuma the study fills.
METHODOLOGY:
The methodology in this paper involvesResearch Design and Area of Study. Population, Sample and Sampling Methods, Instrument for Data Collection, Validation and Reliability, Method of Data Collection, and Analysis.
Research Design: This study employed an ex-post facto descriptive non-experimental research design, which implies ‘after the fact’ because the event ‘Apprenticeship’, being investigated has already occurred. Nwankwo and Emunemu (2015), noted thatNon-experimental research design does not attempt to control or manipulate any variable. However, it focuses on one single event that had occurred therefore, the researcher examines the phenomena. The researcher found this design appropriate for this study as it investigated what had happened in Apprenticeship in SE Nigeria.
Area of the Study: The area of this study is South-East of Nigeria, with five states, Abia, Anambra, Ebonyi, Enugu, and Imo. The area is a core Igbo-speaking race, known for their, hard work and business acumen. The practice of Apprenticeship has existed in this area for ages.
Population of the Study: The population of this study consists of all the Markets in Southeastern Nigeria where 10436 masters that deal in the textile business, especially fabrics operate (Source: Market Union Registers, 2022) (See App II).
Sample and Sampling Methods: The study adopted Krejcie & Morgan 1970) and Chiaha (2023) determinants of a sample size from a given population. A multistage, purposive, accidental, and snowballing sampling technique was employed in selecting 300 participants for this study. Firstly, out of the five states in SE, a random sample of three was selected by balloting. Secondly, a purposive sample of 3754 Masters who have been in the fabrics business for over five years was selected. Finally, using snowballing and accidental sampling methods, 300 8% were selected and used for the study. (See App II).
Instruments for Data Collection: The instrument used for data collection was a questionnaire titled ‘Traditional Apprenticeship and Textile Industry Growth Questionnaire (TATIGQ). The TATIGQ has two sections, A and B. Section A has three items designed to collect respondents’ demographics, while Section B has 25 items with three clusters aimed at collecting data for the research questions. It is structured on a 4-point Likert-type rating scale with options of; SA- Strongly Disagree; A- Agree; D-Disagree; SD – Strongly Disagree and D -Disagree and VLE-Very Large Extent; LE-Large Extent; SE-Small Extent and VSE-Very Small Extent, weighted 4, 3, 2 and 1 respectively. (See App III).
Validation of the Instrument: Three experts were requested to ascertain the appropriateness and clarity of the items of the instruments to ascertain if they measured what they purported to measure. Their comments, suggestions, and observations were considered in the production of the final draft of the instruments. (App II and III).
Reliability of the Instrument: The instrument was trial tested through a pilot study, on 10 respondents (SMEs) from Ebonyi state, which is outside the study area. The internal consistency of the instrument was computed using the Cronbach Alpha method which yielded 0.85 for the entire instrument. The instruments were therefore considered reliable enough for the study.
Method of Data Collection: The study adopted direct contact and social media administration strategies in which the researcher with her well-trained research assistants directly collected the data from the respondents. The researcher personally contacted the masters through their WhatsApp. The data administration lasted for two weeks with a high return rate of 88.87%
Method of Data Analysis: The data generated for the study were analyzed using means and Standard Deviation (SD) for data collected from the questionnaire. Decisions were arrived at using the criterion mean score of 2.50. This implies that Means below 2.50 were taken to indicate that the corresponding items were NOT Accepted by the SMEs, and Means of 2.50 and above were taken to indicate that the corresponding items were Accepted for the same reason. For research question 2 with EXTENT response format Real Limits of Numbers were employed as follows;
Mean Range Options
3.50 -4.00 = Very Large Extent;
2.50 -3.49 = LE-Large Extent;
1.50 -2.49 = SE-Small Extent and
0.00 -1.49 = VSE-Very Small Extent
For the hypotheses testing, Analysis of Variance (ANOVA) at a 95% level of probability or 0.05 level of significance. The significant level was determined with the P- P-table value. This implies that when the P-value is below 0.05 level of significance when T- calculated is greater than the t- table (1.96) it implies a Significant Difference between the means tested, thus the Null Hypotheses were Not Accepted. On the other hand, when the P-value is higher than 0.05 or the T- calculated is greater than the t- table (1.96), it implies No Significant Difference between the means tested. Therefore, the Null Hypotheses was Accepted.
RESULTS: The results were presented in six tables.
Table 1, shows that all the 11 items are accepted by the Masters as how traditional apprenticeship encourages growth of textile industry in SE Nigeria gives a lot of trading skills to Apprentices (x=3.63); exposes apprentices to wholesale strategies (x=3.33); online textile marketing and sales (x=3.33);textile financial management (x=3.38); provides practical hands-on training with good employment, (x=3.50); has a multiplier effect in that as apprentices graduate and gather more skills, they train more apprentices thus enhancing growth of the industry (x=3.70); provides continuous mentoring by the master trainer (x=3.48); and practical hands-on training with good employment, (x=3.53); further mentoring is given to the apprentices in the business even after graduation, (x=3.58); The master assists the apprentice in expanding and opening more branches,(x=3.55); Funds are provided to apprentices when needed for business expansion and innovation and product diversification is encouraged (x=3.43).
Research Question 1: How does traditional apprenticeship encourage the growth of the textile industry in SE Nigeria?
Table1:
How traditional apprenticeship encourages the growth of the textile industry in SE Nigeria
Sn
Items
Mean
SD Decision
It gives a lot of trading skills to Apprentices
3.63
0.490 Accept
They are exposed to wholesale strategies
3.33
0.694 Accept
They learn online textile marketing and sales
3.33
0.694 Accept
They learn textile financial management
3.38
0.674 Accept
It provides practical hands-on training with good employment prospects
3.50
0.550 Accept
It has a multiplier effect as apprentices graduate and gather more skills
3.70
0.467 Accept
Provides continuous mentoring by the master trainer
3.48
0.509 Accept
Apprentices are helped to further their education in the business
3.53
0.506 Accept
The master assists the apprentice in expanding and opening more branches
3.58
0.535 Accept
Funds are provided to apprentices when needed for business expansion
3.55
0.504 Accept
Innovation and product diversification are encouraged in apprenticeship
3.43
0.629 Accept
Hypotheses 1: There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on how traditional apprenticeship encourages the growth of the textile industry in SE Nigeria. The table indicates that the traditional apprenticeship.
Table 2:
ANOVA analysis on the significant differences between the textile dealers in Abia, Anambra, and Enugu on how traditional apprenticeship encourages the growth of the textile industry in SE Nigeria.
Sn
Items
F-value
p-value (Sig.)
It gives a lot of trading skills to the Apprentices
1.171
0.321
They are exposed to wholesale strategies
1.444
0.249
They learn online textile marketing and sales
1.444
0.249
They learn textile financial management
1.900
0.164
It provides practical, hands-on training with good prospects for employment after training
2.662
0.083
It has a multiplier effect in that as the apprentice graduates, he/she gathers more people
1.146
0.329
It provides continuous mentoring as Master continues to mentor even after graduation
1.786
0.182
Apprentices are helped to further their education in the business
1.519
0.232
The Master helps the Apprentice expand his/her business, opening up more branches
1.703
0.196
Funds are provided to Apprentices when needed for the expansion of the business
2.709
0.080
Innovation and Product Diversification is encouraged in Apprenticeship for business growth
0.680
0.513
Table 2 shows the ANOVA analysis of significant differences between the textile dealers in Abia, Anambra, and Enugu on how traditional apprenticeship encourages the growth of the textile industry in SE Nigeria revealing that all p-values exceeded the alpha level of 0.05. Therefore, I Accept the null hypothesis (H₀), concluding that, there is no significant difference in how traditional apprenticeship encourages growth in the textile industry across the three states.
Research Questions 2: To what extent has traditional apprenticeship enhanced the growth of the textile industry in SE Nigeria?
Table 3 shows that the Cluster mean reveals that respondents agree that traditional apprenticeship enhances the growth of the textile industry in SE Nigeria to a Large Extent (x=3.42).
Table 3:
The extent to which traditional apprenticeship enhances the growth of the textile industry in SE Nigeria.
Sn
Items
Mean
SD Decision
Acquisition of trading skills
3.53
0.554 VLE
Exposed to wholesale strategies
3.48
0.554 LE
Mastering online textile marketing and sales
3.25
0.670 LE
Mastering textile financial management
3.40
0.545 LE
Provides practical hands-on training with good employment prospects
3.50
0.550 VLE
The multiplier effect where apprentices gather more people
3.65
0.529 VLE
Continuous mentoring by the Master
3.45
0.552 LE
Helping apprentices to further their education in the textile business
3.55
0.504 VLE
Provision of funds for business expansion
3.58
0.535 VLE
Innovation and product diversification
3.43
0.629 LE
Cluster Mean/SD
3.42
0.601 LE
Hypotheses 2: There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on the extent the traditional apprenticeship has enhanced the growth of the textile industry in SE Nigeria.
Table 4:
ANOVA analysis on significant differences among the textile dealers in Abia, Anambra, and Enugu on the extent the traditional apprenticeship has enhanced the growth of the textile industry in SE Nigeria.
S/n Items
F-value
p-value (Sig.)
1.
Acquisition of trading skills
1.376
0.312
2.
Exposed to wholesale strategies
1.444
0.249
3.
Mastering online textile marketing and sales
1.444
0.249
4.
Mastering textile financial management
1.900
0.164
5.
Provision of practical hands-on training with good employment prospects
2.662
0.083
6.
Multiplier effect: apprentice gathers more people
1.146
0.329
7.
Continuous mentoring by the Master after graduation
1.786
0.182
8.
Support in furthering education in the textile business
1.519
0.232
9.
Assistance in business expansion, opening more branches
1.703
0.196
10.
Provision of funds to Apprentices for business expansion
2.709
0.080
11.
Encouragement of Innovation and Product Diversification
0.680
0.513
The ANOVA analysis conducted to assess the impact of traditional apprenticeship on the growth of the textile industry among dealers in Abia, Anambra, and Enugu reveals that all obtained p-values are greater than the significance level of 0.05. Therefore, I Accept the null hypothesis (H₀), concluding that there is no significant difference between the textile dealers in the three states regarding the extent to which traditional apprenticeship has enhanced the growth of the textile industry in Southeast Nigeria.
Research Questions 3: What challenges confront traditional apprenticeship in the growth of the textile industry in SE Nigeria?
Table 5 shows that Challenges confronting traditional apprenticeship in the growth of the textile industry in SE Nigeria, include Lack of financial support (x=3.40); Fear of completion of the apprenticeship due to master’s behavior (x=3.35); Living with the master’s family (x=3.00); Get-rich-quick syndrome affecting youths’ patience in completing the apprenticeship (x=3.00); Gender bias in apprenticeship, with males mostly involved (x=3.58); Lack of theoretical knowledge alongside practical training (x=3.18); Outdated teaching methods without innovation and experimentation (x=3.55); Non-technologically driven teaching methods (3.50); Apprentices continually being regarded as servants by masters even after skill acquisition and graduation (x=3.40).
Table 4:
Challenges confronting traditional apprenticeship in the growth of the textile industry in SE Nigeria
Sn Items
Mean
SD Decision
Lack of financial support
3.40
0.709 Accept
Fear of completion of the apprenticeship due to master’s behavior
3.35
0.802 Accept
Living with the master’s family
3.00
0.906 Accept
Get-rich-quick syndrome affects youths’ patience in completing the apprenticeship
3.58
0.549 Accept
Gender bias in apprenticeship, with males mostly involved
3.18
0.827 Accept
Lack of theoretical knowledge alongside practical training
3.55
0.506 Accept
Outdated teaching methods without innovation and experimentation
3.50
0.590 Accept
Non-technologically driven teachings
3.48
0.509 Accept
Apprentices are continually regarded as servants by masters even after skill acquisition
3.43
0.629 Accept
Hypotheses 3: There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on the challenges that confront traditional apprenticeship in the growth of the textile industry in SE Nigeria
Table 6:
ANOVA analyzessignificant differences between the textile dealers in Abia, Anambra, and Enugu on the challenges that confront traditional apprenticeship in the growth of the textile industry in SE Nigeria
S/n Variable
F Value
p Value
1. Lack of financial support
0.624
0.624
2. Fear of completion of apprenticeship
0.985
0.181
3. Living with the family of masters
0.849
0.849
4. Gender biases in apprenticeship
0.782
0.318
5. Lack of theoretical knowledge
0.723
1.011
6. Outdated teaching practices
0.663
0.663
7. Inconsistent teaching methodologies
0.782
0.182
8. Limited resources
0.849
0.851
9. Continued perception as servants by masters even after skill acquisition
0.985
0.985
Table 6 portrays the ANOVA analysis examining the challenges confronting traditional apprenticeship in the growth of the textile industry among dealers in Abia, Anambra, and Enugu and indicates that all p-values exceed the significance level of 0.05. Therefore, I Accept the null hypothesis (H₀), concluding that there is no significant difference between the textile dealers in the three states regarding the challenges they face in traditional apprenticeship in the growth of the textile industry in SE Nigeria.
Summary of the findings: This is presented in line with the research questions and hypotheses that guide the study.
Research Question One: How does traditional apprenticeship encourage the growth of the textile industry in SE Nigeria?
Finding 1: How traditional apprenticeship encourages the growth of the textile industry in SE Nigeria, in descending order of acceptance include;
Apprenticeship has a multiplier effect in that as apprentices graduate and gather more skills, they train more apprentices thus enhancing the growth of the textile industry (x=3.70)
Apprenticeship gives a lot of trading skills to Apprentices (x=3.63)
In apprenticeship, further mentoring is given to the apprentices in the business even after graduation, (x=3.58);
The master assists the apprentice in expanding and opening more branches, (x=3.58);
Funds are provided to apprentices when needed for business expansion (x=3.55);
Apprenticeship encourages practical hands-on training with good employment opportunity, (x=3.50).
It provides continuous mentoring by the master trainer (x=3.48)
Innovation and product diversification is encouraged in apprenticeship (x=3.43).
Apprenticeship exposes apprentices to textile financial management (x=3.38) and
Apprenticeship exposes apprentices to wholesale strategies (x=3.33).
They are exposed to online textile marketing and sales (x=3.33);
Hypothesis One:There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on how traditional apprenticeship encourages the growth of the textile industry in SE Nigeria.
Finding 2: There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on how traditional apprenticeship encourages the growth of the textile industry in SE Nigeria.
Research Question Two: To what extent has traditional apprenticeship enhanced the growth of the textile industry in SE Nigeria?
Finding 3: Traditional apprenticeship enhances the growth of the textile industry in SE Nigeria to a Large Extent (x=3.42).
Research Question Three: WhatChallenges confront traditional apprenticeship in the growth of the textile industry in SE Nigeria?
Finding 4: The following Challenges confront traditional apprenticeship in the growth of the textile industry in SE Nigeria, in descending order of acceptance.
Gender bias in apprenticeship, with males mostly involved (x=3.58).
Outdated teaching methods without innovation and experimentation (x=3.55)
Apprentices are continually regarded as servants by masters even after skill acquisition and graduation (x=3.40).
Fear of incompletion of the apprenticeship due to some master’s behavior (x=3.35)
Lack of theoretical knowledge alongside practical training (x=3.18);
Living with the master’s family (x=3.00)
Get-rich-quick syndrome affecting youths’ patience in completing the apprenticeship (x=3.00);
Hypothesis Three: There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on the challenges that confront traditional apprenticeship in the growth of the textile industry in SE Nigeria.
Finding Six: There is no significant difference among the textile dealers in Abia, Anambra, and Enugu on the challenges that confront traditional apprenticeship in the growth of the textile industry in SE Nigeria.
DISCUSSIONS: The findings will be discussed in line with the objectives that guide the study.
How traditional apprenticeship encourages the growth of the textile industry in SE Nigeria.
It was found that the multiplier effect tops the list of howtraditional apprenticeship encourages the growth of the textile industry in SE Nigeria. This implies that as apprentices graduate, they become Masters and gather more apprentices, train and graduate them thus enhancing the growth of the textile industry. It is therefore not surprising that Suhaimy, Sumardi, Sumardi, & Anshari (2022), perceives the apprenticeship programme as a conducive workforce, while, Ifechukwu-Jacobs, 2022) found it very effective for unemployment reduction. The study also supports Sani & Adamu & Adamu & Umar (2022), who describe it as a way of job creation. All these make it possible to enhance the growth of the textile industry. It is also interesting to note that all the states in SE Nigeria are in tandem with this finding as there is no significant difference found among them. This finding implies that in this system of training, there is no unemployment, unlike the formal school system where most graduates remain unemployed for years after graduation. According to the 2024 Graduate Report, Nigeria produces approximately 600,000 graduates yearly. A Covenant University Repository report by Aderinsola Adio-Adepoju in November 2021, states that 36.26% of recent graduates are unemployed. (https://www.universityworldnews.com/post.php?story=20211113143735211)
The extent traditional apprenticeship enhances the growth of the textile industry in SE Nigeria:
It was found that traditional apprenticeship enhances the growth of the textile industry in SE Nigeria to a Large Extent. This is not surprising especially as it assists in the acquisition of trading skills, provides practical hands-on training with good employment prospects, has a multiplier effect that enables the training of more apprentices, helps apprentices to further their education in the textile, and provides funds for business expansion to a large extent. Consequently, the growth of the textile industry is largely enhanced. This implies that businesses can be improved by giving practical training, through a multiplier effect which requires encouraging young ones to gather others and train them as well, if not, the business of the profession will become extinct This is why it is important to ensure that the teaching profession is encouraged so more professionals can be produced to enhance growth n economy. This study is in tandem with Onyebuchi-Igbokwe & Ndebilie, (2024) that found that apprenticeship is a vehicle for the development and sustenance, of Indigenous entrepreneurship and boosts unemployment reduction Ifechukwu-Jacobs (2022).
Challenges confronting traditional apprenticeship in the growth of the textile industry in SE Nigeria.
It was found that traditional apprenticeship in SE Nigeria is fraught with many challenges with the top three being, Gender bias in apprenticeship, with males mostly involved, Outdated teaching methods without innovation and experimentation, and non-technologically driven teaching methods. It is not surprising that gender bias topped the list of the challenges. This shows that the Igbos still practice gender inequality in this regard. Not many parents in Igboland will be willing to expose their daughters to the hazards of the apprenticeship system in the textile industry, where they will be under the Masters and living with them. Men who want their wives to become entrepreneurs would prefer to train them- their wives, themselves. In that case very few if any girls will be found as Fabric Apprentices, rather they may be used as house helpers under the Madams of the house and not the Masters. Since the training is an informal one involving little or no research, experimentation, innovations, and technology; the teaching methods will surely be outdated. This finding supports Uwameiye and Iyamu (2002), on the types of training methodology used by the Nigerian Indigenous Apprenticeship System. These and other challenges call for modernization of the system. The finding is in line with Chukwu and Njoku’s (2024) study, which found significant challenges in the apprenticeship system in Igboland.
Implications: Implications of the findings are that traditional apprenticeship:
Enhances growth in businesses, providing a multiplier effect that encourages growth in businesses.
It provides immediate employment
The traditional apprenticeship should be encouraged.
The modern schooling system should emulate themultiplier effect and job device creation of the traditional apprenticeship system.
Contributions to Knowledge:
The study has exposed the importance of the traditional apprenticeship system especially its multiplier effect and job creation.
It provides traditional apprenticeship literature for researchers.
It provides a framework for the formal schooling system on how to ensure the growth of the educational system and enhance the employment of school leavers.
It has also x-rayed the challenges of the traditional apprenticeship, which can be explored and improved upon.
Suggestions for Further Studies:
This study should be carried out in other states and other industries in Nigeria.
Studies should be carried out on how to modernize and improve the traditional apprenticeship system.
Studies should be carried out on how the formal school system can apply the multiplier effect to reduce unemployment and enhance the educational system in Nigeria.
Recommendations: Based on the findings the following recommendations were made;
The formal school system should adopt the multiplier effect model as apprentices to ensure graduates are employed after schooling so that they can contribute to the economic development and growth of the country.
More females should be involved in traditional apprenticeships to avoid gender bias.
Traditional apprenticeship training should be more technologically driven.
Teaching methods should involve more innovation and experimentation.
REFERENCES:
Abdulazeez, A.Y. Nasir, S. M., Yakubu Y., Lams &. Dabo M. I. (2021). The Role of Textile and Polymer Industries in the Development and Growth of Nigerian Economy. International Journal of Social Sciences and Management Research E-ISSN 2545-5303 P-ISSN 2695-2203 Vol 7. No. 4 2021 www.iiardjournals.org IIARD – International Institute of Academic Research and Development Page 28
Chukwu, U. H., Ugochukwu. R. I. and Njoku M., (2024).The challenges and prospects of the Igbo apprenticeship system in modern times. World Journal of Advanced Research and Reviews. 23 (01), 237–249 Publication history: Received on 23 May; revised on 01 July 2024; accepted on 04 July 2024 Article DOI: https://doi.org/10.30574/wjarr.2024.23.1.2014
Gallup, A. (2024). What We Know About Registered Apprenticeship: A Systematic Review and Synthesis of 30 Years of Empirical Research. Economic Development Quarterly, 38(1), 25-39. https://doi.org/10.1177/08912424231196792Owen, M & Ogunleye, C & Orekoya, E &
Ifechukwu-Jacobs, C. J., (2022). Effect of Igbo trade apprenticeship system on unemployment reduction in Onitsha. International Journal of Business Systems and Economics ISSN: 2360-9923, Volume 13, Issue 7, (September 2022) pages 96-107 DOI:2726452731376 www.arcnjournals.org arcnjour
Nnonyelu, N. Au.; Nnabuife, E. K.; Onyeizugbe, C. U.; Anazodo, R. & Onyima, B., (2023). Igbo Apprenticeship (Igba Boyi) – an exemplar of Indigenous African entrepreneurship model, International Journal of Management (IJM), 14(4), 2023, pp. 257-271 https://iaeme.com/Home/issue/IJM?Volume=14&Issue=4
Muehlemann, S., Wolter, S.C. (2024). Return on investment of apprenticeship systems for enterprises: Evidence from cost-benefit analyses. IZA J Labor Policy. World Journal of Advanced Research and Reviews, 23 (01), 237–249 Publication history: Received on 23 May; revised on 01 July 2024; accepted on 04 July 2024 Article DOI: https://doi.org/10.30574/wjarr.2024.23.1.2014
Onwuka, E. M. and Nwaneri. E.C., (2023). Apprenticeship Training And Wealth Creation In South East Nigeria. Journal of the Management Sciences, Vol. 60 (5) Dec. 234 https://journals.unizik.edu.ng › article › download
Suhaimy, M. H., Sumardi, W. A., Sumardi, W. H., and Anshari, M. (2022). An empirical study of training transfer in an apprenticeship program for a conducive workforce. International Journal of Training Research, 21(2), 134–166. https://doi.org/10.1080/14480220.2022.2152471
Sani, G., Adamu, M., Adamu, B. and Umar, N., (2022). Apprenticeship training and job creation: A conceptual framework of their Relationship. ATBU Journal of Science, Technology and Education 9 (4), 274-281.
Suhaimy, M. H., Sumardi, W. A., Sumardi, W. H., & Anshari, M. (2022). An empirical study of training transfer in an apprenticeship programme for a conducive workforce.International Journalof Training Research,21(2),134–166.https://doi.org/10.1080/14480220.2022.2152471
Uwameiye, R. and Iyamu, E.O. S., (2002). Training methodology used by the Nigerian indigenous apprenticeship system. Adult Education And Development, 59, 2002, p. 169-180 https://unesdoc.unesco.org/ark:/48223/pf0000208529
APPENDICES:
Appendix I:List of Selected Markets and Population and Sample of the Study.
S/N MARKETS *MASTERS Population *MASTERS sample
1 ** Ariaria International Market – Aba 729** 729
2 ** New Market – Aba 547 ** 547
3 Ekeoha Market – Aba 677
4 Cemetery Market – Aba 574
5 Alaoji Market – Aba 834
6 ** Onitsha Main Market – Onitsha 1126 ** 1126
7 Ojidi Building Market – Onitsha 1126
8 Inter. Electronic Market – Onitsha 1126
9 Nkwo Nnewi Market – Nnewi 601
10 ** Ochanja Inter. Market – Onitsha 826 ** 826
11 Alaba Inter. Market – Owerri 391
12 Industrial Cluster Naze – Owerri 378
13 Timber Market Naze – Owerri 404
14 Malaysia Market – Obowo 352
15 Relief Market Owerri 143
16** Ogbete main Market Enugu 250 ** 250
17** New market Enugu 276 ** 276
Total 10436 3754 – 8%= 300.25
Source: Market Union Registers, 2022
* Masters are the Mentors of the apprentices.
** Samples selected for the study.
Appendix II:Traditional Apprenticeship and Textile Industry Growth Questionnaire (TATIG)
To Respondents
I am a student at Learn to Live Business School (LLBS), pursuing a postgraduate degree program. I am glad to inform you that you have been selected as a participant in this study, CONGRATULATIONS! Consequently, you are kindly requested to be very honest in your answers. Note that there are no implications whatsoever in your responses, as they will be used for research purposes only. There are no right or wrong answers just be frank. There are four options Kindly TICK only one but ensure you answer ALL the questions.
Thank you
JOSHUA ONUOHA
SA = Strongly Disagree
A = Agree
D = Disagree
SD = Strongly Disagree
OR
VLE= Very Large Extent
LE= Large Extent
SE= Small Extent
VSE= Very Small Extent
Where Applicable:
SECTION 1: Respondents’ Demographics
State of business location: [ ] Abia State [ ] Anambra [ ] Enugu
2. No of Apprentices you have: [ ] below 5 [ ] 6 – 10 [ ] above 10
3. No of years in the Fabric business [ ] Less than 5 years [ ] More than 5 years [ ] Over 10 years
Cluster I: How traditional apprenticeship encourages the growth of the textile industry in SE Nigeria
The following is how traditional apprenticeship encourages the growth of the textile industry in SE Nigeria.
S/ N
INDICATE YOUR LEVEL OF AGREEMENT OR DISAGREEMENT
SA
A
D
SD
It gives a lot of trading skills to the Apprentices.
They are exposed to wholesale strategies.
They learn online textile marketing and sales.
They learn textile financial management.
It provides practical, hands-on training with good prospects for employment after training.
It has a multiplier effect in that as the apprentice graduates he/she gathers more people to be trained in the business thereby enhancing business growth.
It provides continuous mentoring whereby the Master continues to mentor the Apprentice even after graduation, thereby protecting the business from folding up and therefore, enhancing growth.
Apprentice are helped to further their education in the business.
The Master helps the Apprentice expand his/her business by opening up more branches.
Funds are provided to Apprentices when needed for the expansion of business.
Innovation and Product Diversification are encouraged in Apprenticeship for business growth.
Cluster II: Extent the traditional apprenticeship enhances the growth of the textile industry in SE Nigeria://To what extent does the following help in enhancing the growth of the textile industry in SE VLE LE SE VSE
Acquisition of trading skills
Exposed to wholesale strategies
Mastering online textile marketing and sales
Mastering textile financial management
12.
Provision of practical, hands-on training with good prospects for employment after training
13.
The multiplier effect where the apprentice graduate gathers more people to train in the business
15.
Continuous mentoring whereby the Master continues to mentor the Apprentice even after graduation, thereby protecting the business from folding up.
16.
Helping the apprentice to further their education in the textile business
Provision of funds to Apprentices when needed for expansion of business.
Cluster III: Challenges confronting traditional apprenticeship in the growth of textile industry in SE Nigeria Are:
Lack of financial support
SA
A
D
SD
Fear of incompletion of the Apprenticeship due to the wickedness of some masters
Living with the family of masters
‘Get rich quick syndrome’, which makes modern youths not wait long enough to graduate.
Low standard of education among Apprentices. Many do not pass through Primary or secondary schools. Very few if any are university graduates
Apprenticeship in SE is gender biased as males are mostly involved.
Training as no theoretical knowledge is provided alongside practical experience.
Teaching is usually outdated without innovations and experimentation.
Teachings are not technologically driven.
Apprentices are continually regarded as ‘Servants’ by their ‘Masters; even when they have graduated.
BY NGOZI OBIOHA-NKEMDIRIM DOCTOR OF STRATEGIC MANAGEMENT AND LEADERSHIP DEVELOPMENT PROGRAMME LEARN TO LIVE BUSINESS SCHOOL, UK. 08037114608 ngshalom30@gmail.com 2024.
ABSTRACT:
SMEsareentrepreneurial initiativesandenginesof economicdevelopment.Theybeara lot of risks, which require cover under insurance companies. Initially, apathy was observed among the SMEs due to the poor performance of the insurance industries. However, the establishment of the National Insurance Commission (NAICOM) in 1997, ushered in a paradigm shift in the management of the insurance companies. This paper examined the perception of SMEs in Enugu state on the new general insurance services to determine the SMEs’ level of awareness and satisfaction with this paradigm shift. Two research questions and two hypotheses guided the study. A non-experimental ex-post facto research design was employed. A sample of 273 was drawn through a purposive, accidental, and snowballing sampling technique from 911 registered SMEs in the state. A questionnaire and interview schedule were used to collect data was analyzed using means and standard deviation. The results show that the SMEs are Not Aware of and Not Satisfied with the paradigm shift in the management of general insurance companies and are Not Willing to patronize insurance companies in Nigeria. No significant difference was found between the small and medium-scale enterprises. More sensitization of SMEs on the activities of NAICOM was recommended.
Keywords: Perception; Awareness; Satisfaction; Paradigm shift; Insurance; Small and Medium scale Enterprises (SMEs).
INTRODUCTION:
Backgroundof the Problem:
Insurance is a financial and service product that helps protect individuals and businesses from potential losses or risks. It can also be described as a contract between two parties: the insurer (the insurance company) and the insured (the person or business being covered), where the insured pays a premium (a regular payment) to the insurer, who then promises to pay for specific losses or damages if they occur (https://www.naicom.nation.gov.ng). This is probably why Vaughan (2014) perceived it as an economic device whereby the individual substitutes a small certain cost (the premium) for a large uncertain financial loss (the contingency insured against).
Originally. insurance started with the practice of merchants in Italy in the 12th century. The history of insurance in Nigeria started as far back as the colonial era when the first Nigerian.
The insurance company, Royal Exchange Assurance Company, was established by the British, in 1921. Other local and foreign insurance companies followed. Later, the number of insurance companies licensed to operate in Nigeria rose to 67, as reported by NAICOM in Sunday Punch, 21 Aug 2023. Initially, the insurance sector was not managed by professionals and very little legal attention was paid to it in Nigeria, (Boma, 2019).
The traditional concept of mutual insurance found in many customary or communal practices “whereby members of a family or community collectively come to aid another member in times of disaster or misfortune” (Ajemunigbohun and Ayobami 2018), seemed to overcloud the initial practice of insurance in Nigeria. The pre-independence insurance market shows that before 1961, there was no statutory requirement for the registration of insurance businesses in Nigeria. The first legislation was the Insurance Companies Act of 1961 followed by others, but Insurance Decree 1997, established the supervisory body, National Insurance Commission (NAICOM) headed by the Commissioner for Insurance as applicable under the National Insurance Supervision Board (NISB), for more effective control and better supervision of the industry (Ajemunigbohun and Ayobami 2018). With the establishment of NAICOM as the supervisory body, professionals were introduced to the system of administration, and innovations were ushered into insurance management in Nigeria. This paradigm shift in administration changed the idea that insurance doesn’t work because previously when the insurance business was managed by agents who were not insurance professionals, claims were not paid at and when due to claimants but now the narrative is different as a result of the regulatory practices of the new Governing Board governing body, NAICOM. Claims were not paid to the claimant but currently, the narrative is different because insurance companies are now managed by Professionals with a regulatory board- NAICOM. Governing. The primary functions of NAICOM as indicated in … https://www.nairametrics.com.) include:
Licensing and regulating insurance companies
Setting standards for insurance products and services
Ensuring compliance with insurance laws and regulations
Protecting policyholders’ interests
Promoting the development of the insurance industry in Nigeria, with the following goals;
1 Enhance the stability and soundness of the insurance industry
2. Increase public confidence in insurance
3. Encourage innovation and competition
4. Protect consumers’ rights
5. Contribute to Nigeria’s economic growth and development ()
Insurance service products in Nigeria cover the insured’s life, paying a benefit to beneficiaries upon death; Health Insurance which covers medical expenses and healthcare costs; Property Insurance includes damages or losses to property, such as homes or cars; Liability Insurance covers legal liability for damages or injuries caused to others and Business Insurance, which covers businesses against various risks, such as property damage or employee injuries (). The administrative procedure according to (https://www.portal.naicom.gov.ng) involves, Application for insurance coverage; Underwriting, which requires the insurer to assess the risk and determine the premium; and Policy issuance by the insurer, outlining the coverage and terms. Premium payments, whereby the insured pays premiums to maintain coverage; Claim filing, requires the insured to file a claim for a covered loss or damage and Claims processing, where the insure processes and settles the claim. Insurance marketers are expected to explain the application for insurance coverage, and the strategies and tactics used to promote and sell insurance products to potential customers very well during the advocacy. Some key aspects of insurance marketing according to (https://www.naicom.nation.gov.ng) include
Target Market Identification: Understanding the demographics, needs, and preferences of potential customers.
Product Positioning: Highlighting the unique benefits and features of insurance products
Branding: Building a strong brand identity to establish trust and credibility.
Digital Marketing involves leveraging online channels such as social media, email, and search engine optimization (SEO).
Content Marketing: Creating informative and engaging content to educate and attract customers
Lead Generation: Generating leads through various channels, such as referrals, online forms, and events.
Sales Strategies: Developing effective sales techniques to convert leads into customers.
Customer Retention: Building strong relationships to retain existing customers and encourage loyalty.
Data-Driven Marketing: Using data analytics to inform marketing decisions and measure campaign effectiveness.
Regulatory Compliance: Ensuring marketing efforts comply with industry regulations and laws.
Small and medium-sized enterprises are usually perceived as vehicles for economic development, especially in developing countries like Nigeria, Abotsi et al., 2014; Ahmed, Abdul- man, 2016; Chatterjee, Wehrhahn, 2017) and closing the gap between the downtrodden and the upper class. SMEs are also described as being labor intensive, the main source of employment, economic advancement, revenue-generating source, and technology innovation. (Ikeotuonye 2019). Studies show that they contribute to over 95% of enterprises, worldwide and about 60% of the private sector employment (Ayyagari, Demirguc-Kunt, Maksimovic 2011) and so with These indicate that their contribution to Nigeria’s economy cannot be overemphasized and should not be left out of the recent innovation in the insurance sector in Nigeria. This governs the concerns of this study. There are many studies on insurance and its performance as well as customers’ perceptions and acceptance (Boma, 2019); most centered on developed countries and in Africa. The only one available to the researcher was carried out in the cosmopolitan city of Lagos. For instance, Diara, Norlida, and Shahrul’s (2023) study is on risk transfer, and Chanti’s (2023) study is on the contribution of insurance companies to the growth of SMEs. Willieth (2020) surveyed insurance demand for SMEs in India, while Unachukwu, Oyewole, Olabode, and Aderonke (2020) focused on SME development amid COVID-19 in Lagos State, Nigeria but not on insurance. Also, Ekerete, Olawoye, Gam, and Ikon (2018) focused on the insurance industry in Nigeria but not on SMEs.
Nevertheless, only (Ajemunigbohun and Ayobami 2018) investigated insurance awareness and acceptance among SMEs in Lagos. Very closely related to this paper is that of Sagagi & Ekperi & Nwadike (2019) which evaluates awareness level and public perception of the image of insurance companies in Enugu state.
However, the study although in Enugu state focused on the public awareness and perception of leaving this study as the first to dwell on the awareness and perceptionof the new general insurance services in Nigeria by SMEs in Enugu state. This is the lacuna this study filled.
The study scope covers all registered SMEs operating in Enugu state before and after the establishment of NAICOM. SMEs with less than five years of existence will be delimited as they may not be conversant with the paradigm shift in the administration. The study content scope will be limited to awareness of and perception/ satisfaction with NAICOM administration, services, and products.
Statementof the problem:
Enugu state is part of Igboland where the inhabitants are known for their business acumen. However, Enugu is not a cosmopolitan city, and most residents are not as well off as their counterparts in bigger cities. Lagos, Abuja, kano, or Port Harcourt. Consequently, they are very mindful of gains and losses in their business and so are likely to tread cautiously with any policy that may not guarantee profit to their enterprises. Understandably, there was an initial apathy among SMEs in Enugu due to low outputs and poor performance of the insurance industries especially the issue of no settlement of claims, due to one flimsy reason or the other. The Insurance Information Institute (2005) noted that most small business owners are at risk of disaster and do not have a disaster recovery plan. As observed, previously, insurance in Nigeria has been criticized for a lack of trust, low popularity and patronage (Nwankwo and Ajemunigbohun, 2013), low awareness and poor image, and low demand and patronage of insurance products and services. (Sagagi, Marafa & Ekperi, Paul & Nwadike, Stanley 2019) which might have scared the SMEs from patronizing insurance industries. However, due to the innovations, introduced by the new insurance administration in Nigeria, spanning over a decade now, it will be interesting to ascertain if the Small and Medium Enterprises (SMEs) patronage of the insurance sector in Enugu has improved. Could it be said that the introduction of new service products by NAICOM is the elixir that will wake up the SMEs in Enugu state, to benefit from this paradigm shift in management of the Nigerian insurance sector? This is the kernel of this study that investigated the awareness and perception of the new general insurance services in Nigeria: Case of Small and Medium Enterprises (SMEs) in Enugu. The purpose of this study is therefore to examine the level of awareness and perceptions of the SMEs in Enugu state Nigeria on the paradigm shift in the management of general insurance companies in Nigeria. Precisely, the objectives of this study are to:
To find out the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria.
To determine the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria.
ResearchQuestions:The following research questions guided this study.
What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria?
What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria?
Hypotheses:These hypotheses were tested at a 0.05 level of probability to guide the study.
HO1:There is no significant difference in the level of awareness of Small and medium-scale Enterprises in Enugu state regarding the paradigm shift in the management of general insurance companies in Nigeria.
HO2:There is no significant difference in the level of satisfaction of the Small and Medium scale Enterprises in Enugu state, about the paradigm shift in the management of general insurance companies.
LITERATURE REVIEW:
Sagagi & Ekperi & Nwadike, (2019), evaluated the awareness level of public perception of insurance companies in Enugu State. Like this study, they employed a structured questionnaire to elicit information from 400 respondents. Percentage means scores, and the Pearson Chi-Square test was used in data analysis. Findings show low awareness by the public of insurance enterprise in Enugu State, even though the city is viewed as an enlightened city. The image of insurance companies in Enugu State was also found to be poor and the demand was low, due to the poor public image of the insurance companies. The study thus recommends among others that insurance companies should engage in trade fairs, workshops, radio/TV jingles, etc. as this will serve as effective communication strategies to enlighten the public on their products and services.
Ime, (2018) studied ‘Empirical Appraisal of Nigerian Insurance Sector and the Performance of Nigerian Stock Exchange, to appraise the Nigerian insurance sector and the performance of the Nigerian stock exchange. Like the current study, he adopted an ex-post facto research design and historical data, the study covered the period 1981 to 2014 and covered all the quoted insurance firms on the Nigerian Stock Exchange operating in Nigeria. The findings reveal there is a significant relationship between insurance companies’ investments and the all-share index of the Nigerian Stock Exchange, also there is no positive effect of stock/securities prices of insurance companies on the market capitalization of the stock market and the Insurance sector growth has a significant influence on the performance of Nigerian Stock Exchange.
Li & Li (2020), analyzed the relationship between inflation, increase in investment in fixed assets, monetary policy, financial openness, national savings, macro-economic climate index, deposit rate, and the development of the insurance industry in China. Though this study was carried out in China, the analysis, unlike the current study integrated a multiple linear regression, stepwise regression, and robustness analysis for the empirical analysis. However, the result indicated that (a) the national savings and macro-economic climate index are the major factors that influence the development of the insurance industry in China and; (b) improve the development of the insurance industry, both the economic growth and people’s income should continue to advance; and (c) financial openness should be paid more attention to, which is insufficient, and there is lack of competitive vitality in the whole insurance market, underscores to need for the insurance companies in Nigeria to carry along the SMEs in their services and development for economic growth of the people of Enugu state.
Ajemunigbohun & Ayobami (2018), investigated ‘Insurance awareness and acceptance: Empirical evidence among SMEs in the Lagos State. The relationship between this study and the current one lies in the fact that both studied SMEs and employed the descriptive approach and survey design, stage cluster sampling technique, questionnaire, and interview schedule on awareness and its acceptability among small business and medium-sized operators in the Lagos and Enugu metropolis respectively. The results of this study assume that insurance products have not gained high popularity among small business and medium-sized operators in the Lagos metropolis. They have also shown a low but slightly positive relationship between insurance awareness and its acceptance among small business owners in the Lagos metropolis. Our formulated hypotheses have been supported. This study’s recommendation that greater attention should be placed on SMEs and their engagement in the design of insurance products related to their activities to allow for a sense of ownership, effective risk management communication, and proper risk financing techniques, throws a challenge on the present study conducted six years after this one, to find out if the situation has changed in Enugu State.
Although these studies are in one way or the other related to the current study, no study known to the researcher investigated the Perception of New General Insurance Services in Nigeria by Small and Medium Enterprises (SMEs) in Enugu state. This study is the first of its kind to explore the perception of the paradigm shift in insurance services in Nigeria by Small and Medium Enterprises (SMEs). This is the lacuna this study filled.
RESEARCH METHODOLOGY:
Designof the Study: This study adopted a descriptive non-experimental research design carried out ex-post facto or retrospectively, ‘looking backward. This implies ‘after the fact’ because according to (Nwankwo and Emunemu 2015:147),
Likealldesigns,non-experimentalresearch design does not attempt to control or manipulate any variable. It is focused on one single event (i.e., a single case design) and the researcher’s interest or objective is to investigate and report what has happened.
This design is deemed appropriate for this study as it investigated what had already occurred with the SMEs. Hdv’s study dealt with those SMEs that existed before and after the establishment of NAICOM and so must have experienced the insurance companies’ services and products before and after the paradigm shift in administration.
Areaof the Study: The area of this study is the state of Enugu. Enugu state is in the South-East of Nigeria with three senatorial zones, Enugu East, Enugu West, and Enugu North. The zone has a total of 911 SMEs (NBS 2020), Most of the residents in the zone are public servants. The people are a core Igbo-speaking race known for their business acumen. Like other parts of Nigeria NAICOM supervises the insurance companies in the state and the new changes also are being implemented in Enugu state.
The study’s population includes all the 911 registered SMEs in Enugu state (Source: NBS 2020).
Sample and Sampling Techniques: The study adopted Krejci & Morgan 1970) and Chiaha (2023) determinants of a sample size from a given population. Using a purposive, accidental, and snowballing sampling technique 30% (273) of the SMEs were used for this study. Due to the smallness of the sample, the entire state was used. Purposively, SMEs that existed before and after the establishment of NAICOM were sampled. For snowballing, available SMEs were requested to supply the names and phone numbers of their colleagues which the researcher and her assistants used to contact them. In the end, 265 SMEs were used for the study.
Instruments for Data Collection: Two instruments were used for data collection including a questionnaire titled ‘New General Insurance Services Awareness and Perception-SMEs Questionnaire (NGISAP–SMEsQ) and an interview schedule titled ‘‘New General Insurance Service Awareness and Perception – SMEs Interview Schedule (NGISAP–SMEsQ).
The NGISAP–SMEsQ is structured on a 4-point Likert-type rating scale with options of; VA- Very much Aware; NA- Not aware; UA- Unaware; VUA- Very much Aware
Or SA- Strongly Disagree; A- Agree; N- Neutral; D-Disagree; SD – Strongly Disagree and VS- Very Satisfied; S- Satisfied; NS- Not Satisfied; VUS- Very Unsatisfied where applicable; and weighted 4, 3, 2 and 1 respectively. It has two sections, A and B. Section A, with 2 items was designed to collect respondents’ demographics, while Section B with three clusters and 23 items aimed at collecting data for the research questions.
Validationof the Instrument: Three experts were requested to ascertain the appropriateness and clarity of the instruments’ items to determine whether they measured what they purported to measure. Their comments, suggestions, and observations were considered in the production of the final draft of the instruments (App II and III).
Reliabilityof the Instrument: The instruments were trial tested through a pilot study, on 10 respondents (SMEs) from Ebonyi state, which is outside the study area. The internal consistency of the instrument was computed using the Cronbach Alpha method which yielded 0.79 for the entire instruments. The instruments were therefore considered reliable enough for the study.
Methodof Data Collection: The study adopted a direct contact administration strategy in which the researcher with her well-trained research assistants directly collected the data from the respondents. The researcher personally interviewed 25 Chief Executive Officers (CEOs) of the SMEs in their offices. The data administration lasted for two weeks with a high return rate of 78.87%
Methodof Data Analysis: The data generated for the study were analyzed using percentages, means, and Standard Deviation (SD) for data collected from the questionnaire. Decisions were arrived at using the criterion mean score of 2.50. This implies that Means below 2.50 were taken indicate that the corresponding items were NOT Accepted by the SMEs, while Means of 2.50 and above were taken to indicate that the corresponding items were Acceptedfor the same reason.
Inference
The results from the SMEs Interview Schedule (NGISAP–SMEsQ were qualitatively analyzed. For the hypotheses testing, the Independent Sample Test of Levene’s Test for Equality of Variances was adopted in the t-test for Equality of Means at a 95% level of probability or 0.05 level of significance. The significant level was determined with the P- P-table value about the. This implies that when the P-value is below 0.05 level of significance, when t- calculated is greater than t- table (1.96) it implies a significant difference between the Means tested, thus the Null Hypotheses were Not Accepted. On the other hand, when the P-value is higher than 0.05 or the t- calculated is greater than the t-table (1.96), it implies No Significant D
between the means tested. Therefore, the Null Hypotheses was Accepted.
RESULTS:
The findings of the study are presented in four tables with the research questions and hypotheses based on the research questions and null hypotheses that guided the study. The data analyses were based on 209 copies of the questionnaire collected after completion, out 265 copies distributed. This represents the return rate.
Table 1:
Mean Ratings and Standard Deviations of Respondents on the Level of Awareness of SMEs in Enugu State on the Paradigm Shift in the Management of General Insurance Companies in Nigeria.
S/N
Level of awareness of the new changes in Small Businesses Include:
Small BusinessN = 113
Medium BusinessN = 96
OverallN = 209
X
SD
Dec.
X
SD
X
Dec.
X
Dec.
1.
Insurance companies are now managed by professional
2.34
1.25
NA
2.64
1.21
NA
2.47
1.24
NA
2.
The new regulatory board Governing body the Nigerian Insurance Commission- NAICOM
2.37
1.23
NA
2.40
1.31
NA
2.38
1.27
A
3.
The primary functions of NAICOM include Protecting policyholders’ interests
2.50
1.39
A
2.43
1.30
NA
2.46
1.34
NA
4.
The primary functions of NAICOM also include
2.24
1.24
NA
2.55
1.28
A
2.38
1.27
NA
5.
Insurance companies have services and products that can help protect losses in your businesses 2.42 1.29 NA
2.63
1.22
NA
2.63 1.22
1.22
A
2.51
1.26
A
6.
Are you aware that claims are now easily paid by Insurance companies.
2.49
1.23
NA
2.70
1.22
A
2.58
1.23
A
Are you aware of the following insurance service products in Nigeria;
7.
Life insurance-Paying benefits to death
2.58
1.20
A
2.46
1.21
NA
2.53
1.21
A
8.
Health Insurance- which covers medical healthcare costs;
2.52
1.30
A
2.40
1.29
NA
2.46
1.29
NA
9.
Property Insurance, which includes losses to property, such as homes or cars;
2.39
1.36
NA
2.33
1.25
NA
2.36
1.31
NA
10.
Liability Insurance that covers legal damages or injuries caused to others
2.58
1.20
A
2.48
1.34
NA
2.53
1.26
A
11.
Business Insurance, which covers businesses various risks, such as property damage or employee injuries
2.44
1.28
NA
2.39
1.28
NA
2.42
1.28
NA
Cluster Mean/SD 2.44 1.27 NA 2.49 1.26 NA 2.46 1.27 NA
NB: SD= Standard Deviation, A= Aware, NA= Not Aware, Dec = Decision
ResearchQuestionOne: What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria?
Table 1 shows that the mean scores of the small businesses on items number 3, 7, 8, and 10 are 2.50, 2.58, 2.52, and 2.58. This depicts that the small businesses are Aware of the indicated new changes in the management of insurance companies in Nigeria, while items number 1, 2, 4, 5, 6, 9, and 11 with mean scores below 2.50 denotes that the same respondents are Not Aware of listed new changes in the management of insurance companies in Nigeria. Hence, the study also indicated that the mean scores of 2.64, 2.55, 2.63, and 2.70 are obtained for the medium businesses on items number 1, 4, 5, and 6, indicating that the medium enterprises are Aware of concerned new changes in the management of insurance companies in Nigeria, while items number 2, 3, 7, 8, 9, 10 and 11, with mean score range of 2.33 to 2.48 denotes Not Aware responses by the same medium businesses. However, the overall mean scores ranged from 2.51 to 2.53 for Aware and
2.38 to 2.47 for Not Aware responses respectively. Thus, the cluster mean score of 2.46 obtained for all the items under study depicts that the respondents (both small and medium businesses) are Not Aware of the new changes in the management of insurance companies in Nigeria while the cluster standard deviation of 1.27 denotes homogeneity in the opinions of the respondents.
HypothesisOne:There is no significant difference in the level of awareness of the small and medium scale Enterprises in Enugu state with regard to the paradigm shift in the management of general insurance companies in Nigeria.
Table 2 shows that the t-value (t-calculated) of -0.654 is obtained at a 0.05 significance level and 207 Degrees of Freedom with a significant value of 0.514. Thus, since the significance value (0.514) is more than the level of significance (0.05) set for the study, the null hypothesis is therefore not statistically significant, and hence, the hypothesis is Accepted. This implies that there is no significant difference in the level of awareness of the small and medium scale Enterprises in Enugu state about the paradigm shift in the management of general insurance companies in Nigeria.
Table 2:
Group
N
Mean
SD
t-Value
Df
t-Cal
Sig.(2 tailed)
Dec
Small Business Owners
113
2.44
0.57
1.96
207
0.67
AcceptHO
Medium Business Owners
96
2.46
0.48
t-test Statistics on the Significant Difference in the Level of Awareness of the Small and Medium Scale Enterprises in Enugu State with regards to the Paradigm shift in the Management General Insurance Companies in Nigeria.
NB: SD= Standard Deviation, Df= Degree of Freedom
ResearchQuestionTwo:What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria?
Table 3 shows that the mean scores of the small businesses on items number 12, 16, and 19 are 2.69, 2.58, and 2.61. This depicts that the small businesses are Satisfied with insurance companies in terms of the listed items while items number 13, 14, 15, 17, and 18 with mean scores ranging from 2.34 to 2. 46 (below the 2.50 criterion mean), indicate that the same respondents are Not Satisfied with insurance companies in terms of the concerned items. Thus, the study also shows that the mean scores of 2.56, 2.57, 2.64, and 2.60 are obtained for the medium businesses on items number 12, 13, 16, and 18, indicating that the medium business owners are Satisfied with insurance companies concerning the listed items while items number 14, 15, 17 and 19 with a mean score range of
2.24 to 2.48 denotes that medium business enterprises are Not Satisfied with the paradigm shift in the management of general insurance companies in Nigeria.
The table also shows the level of willingness of the SMEs to patronize insurance companies in Nigeria.The mean score range of 1.86 to 2.46 for both SMEs indicates that they are Not Willing to patronize insurance companies in Nigeria. The cluster mean score of 2.43 and 2.41 respectively, obtained for the SMEs, show that they are Not Satisfied. Also, an overall cluster mean score of 2.42 obtained for all the items denotes that the SMEs are not satisfied with the paradigm shift in the management of general insurance companies in Nigeria. The cluster standard deviation of 1.27 depicts that the disparity in the opinions of the respondents is slim.
Table 3:
Level of satisfaction of the SMEs in Enugu with the Paradigm shift in the management of general insurance companies in Nigeria
S/N
How satisfied are you with insurance companies in terms of:
Small BusinessN = 113
Medium BusinessN = 96
OverallN = 209
X
SD
Dec.
X
SD
X
Dec.
X
Dec.
12
Understanding of the demographics that is needs, and preferences of SMEs and potential customers
2.69
1.19
S
2.56
1.28
S
2.63
1.23
S
13.
Unique benefits and features of imsuranceproducts
2.34
1.29
NS
2.57
1.24
S
2.44
1.27
NS
14.
Efforts to build a strong brand identity to establish trust and credibility of SMEs and customers
2.34
1.27
NS
2.39
1.34
NS
2.36
1.30
NS
15.
Insurance companies use of online channels, such as social media, email and search engine, in communicating with the SMEs and customers
2.46
1.11
NS
2.48
1.23
NS
2.47
1.16
NS
16.
Insurance companies creation of informative and engaging contents to educate and attract customers
2.58
1.27
S
2.64
1.27
S
2.61
1.27
S
17
Insurance companies’ sales strategies for developing effective sales technique to convert leads into customers
2.39
1.28
NS
2.24
1.38
NS
2.32
1.33
NS
18.
Insurance companies’ efforts in building strong relationships to retain existing customers and encourage loyalty
2.43
1.22
NS
2.60
1.27
S
2.51
1.24
NS
19.
Insurance companies’ efforts to ensure that marketing efforts comply with industry regulations and laws
2.61
1.22
S
2.26
1.36
NS
2.45
1.29
NS
Your willingness to patronize insurance companies in Nigeria:
20.
I am willing to Patronise insurance companises in Nigeria
2.38
1.23
NW
2.46
1.26
NW
2.24
1.24
NW
21.
I have already insured my business
2.38
1.26
NW
2.44
1.32
NW
2.41
1.29
NW
22.
My business had previously benefitted from the services and products of insurance companies in Nigeria
2.45
1.30
NW
2.41
1.23
NW
2.43
1.26
NW
23.
I am willing to encourage my colleagues in SMEs to patronize insurance companies in Nigeria.
2.07
1.31
NW
1.86
1.32
NW
1.98
1.31
NW
Cluster Mean/SD 2.44 1.27 NA 2.49 1.26 NA 2.46 1.27 NA
NB: SD= Standard Deviation, S= Satisfied, NS= Not Satisfied. D= Disagree; Dec = Decision; NW = Not Willing
HypothesisTwo:There is no significant difference in the level of satisfaction of the small and medium scale Enterprises in Enugu state, with regard to the paradigm shift in the management of general insurance companies.
The data presented in Table 4 shows that the t-value of 0.283 is obtained at a 0.05 significance level and 207 Degrees of freedom with a significant value of 0.777. Hence, since the significance value is more than the level of significance set for the study, the null hypothesis is therefore statistically insignificant and, not rejected for the said items. There is, therefore, no significant difference in the level of satisfaction of the small and medium-scale Enterprises in Enugu state, concerning the paradigm shift in the management of general insurance companies. The hypothesis is upheld.
Table 4:
t-test Statistics on the Significant Difference in the Level of Awareness of the Small and Medium Scale Enterprises in Enugu State with regards to the Paradigm shift in the Management General Insurance Companies in Nigeria.
Group
N
Mean
SD
t-value
Df
t-Cal
Sig.(2 tailed)
Dec
Small Business Owners
113
2.43
0.45
0.283
207
0.777
AcceptHO
Medium Business Owners
96
2.41
0.47
NB: SD= Standard Deviation, Df= Degree of Freedom
Results from the SMEs Interview Schedule (NGISAP–SMEsQ :
Research Question1: What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies?The CEOs of the SMEs interviewed indicated that they were not aware of the paradigm shift in the management of new general insurance companies in Nigeria. Most of them showed that they were not interested in their services as they did not benefit from the insurance companies that they wanted. They complained of delays and bottlenecks which make payment difficult and mostly impossible when it comes to claims. However, many confessed that they do not attend the NAICOM conferences and Briefs as they ‘do not have much time to waste due to their businesses’.
ResearchQuestion2: What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies?
On the issue of satisfaction with the paradigm shift in the management of general insurance companies,the CEOs were very emphatic that they were not satisfied with the services in the insurance companies. Their lack of satisfaction is because the insurance companies cannot be trusted. They also indicate the Unwillingness to patronize the insurance companies, rather they would prefer to support their thrift system managed by the SMEs, even though they accept that they are aware that they can benefit more insurance companies.
Summary of Findings:
ResearchQuestion1: What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria?
Finding1: The SMEs in Enugu state are Not Aware of the paradigm shift in the management of general insurance companies in Nigeria.
Hypotheses 1: There is no significant difference in the level of awareness of the Small and Medium scale Enterprises in Enugu state with regards to the paradigm shift in the management of general insurance companies in Nigeria.
Finding2: There is no significant difference in the level of awareness of the Small and Medium scale Enterprises in Enugu state with regard to the paradigm shift in the management of general insurance companies in Nigeria.
ResearchQuestion2: What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria?
Finding3: The SMEs in Enugu state are Not Satisfied with the paradigm shift in the management of general insurance companies in Nigeria and are Not Willing to patronize insurance companies in Nigeria.
Hypotheses 2: There is no significant difference in the level of satisfaction of the Small and Medium scale Enterprises in Enugu state, with regards to the paradigm shift in the management of general insurance companies.Finding4: There is no significant difference in the level of satisfaction of the Small and Medium scale Enterprises in Enugu state, with regard to the paradigm shift in the management of general insurance companies.
DISCUSSIONS: The findings of this study are discussed in line with the specific objectives and hypotheses that guided the study.
SMESLevelof Awareness of the Paradigm Shift in the Management of General Insurance Companies in Nigeria:
The findings show that the SMEs in Enugu state are Not Aware of the paradigm shift in the management of general insurance companies in Nigeria. This is quite disturbing as the SMEs are the engine for economic development in the state. There is no significant difference in the level of awareness and satisfaction of the Small and Medium scale Enterprises in Enugu state, concerning the paradigm shift in the management of general insurance companies indicating that both small and medium-scale enterprises have the same opinion. Not being aware of the paradigm shift in the management of general insurance companies in Nigeria implies that they may not take advantage of the services of the insurance companies to enable them to protect their businesses. The response of the CEOs from the interview shows that the SMEs do not even attend the NAICOM conferences and Briefs as they ‘do not have much time’.
It is therefore not surprising that they are unaware of the paradigm shift in the new management of general insurance companies. Their biases are due to the previous management’s compromise with the payment of claims which have overclouded their reasonings.
This finding supports Ajemunigbohun & Ayobami (2018), that insurance products have not gained high popularity among small businesses and medium-sized operators in the Lagos metropolis. It is surprising to find that even after five years of the findings of Sagagi, Ekperi & Nwadike, (2019), indicating low awareness by the public of insurance enterprise in Enugu State, the findings of this study show that nothing changed, as the SMEs in Enugu state are still unaware of the new paradigm shift. This implies that the SMEs are unaware of the improvements and innovations introduced by NIACOM. Like Sagagi, Ekperi & Nwadike, (2019), who found low demand and patronage of insurance products and services in the Enugu state, this study also found that the SMEs in Enugu state are not satisfied and therefore unwilling to patronize the insurance companies in Nigeria. Probably NIACOM is emphasizing institutions, which have less and minimal risks, with little or no advocacy for the SMEs that have higher risks. Probably this is why the SMEs formed their local insurance, which they prefer to patronize even when the local insurance does not have as many benefits as that of NAICOM.
Conclusion:The study concludes that SMEs in Enugu state are not aware of the paradigm shift in the new management of the general insurance companies in Nigeria and are not satisfied nor willing to patronize them.
Implicationsof the study:
SMEs are very beneficial to the economic growth of Nigeria and if they are not protected from risks, many will fold up and it will affect the country’s economy drastically, so NAICOM must ensure that they are properly educated to benefit from the risk management of the insurance companies.
NAICOM should note that as long as the SMEs are not aware of the paradigm shift in the new management of the general insurance companies in Nigeria, they may not be satisfied nor willing to patronize them, so making the SMEs aware of the paradigm shift in the new management of the general insurance companies is very paramount in getting their satisfaction and patronage.
Contributionto Knowledge: This study has made significant contributions to knowledge.
The SMEs are not properly insured in Enugu state and therefore the study shows that many of the SMEs may be at risk of folding up.
It has shown the need for advocacy to enable the SMEs to benefit from the products and services of NAICOM.
It has contributed to the literature and will be helpful to researchers carrying out similar studies in this area.
Suggestions for Further Studies: Studies should be carried out to find the reasons for the continued low patronage of insurance companies in Nigeria in Enugu and other states in Nigeria. And how to improve advocacy for the public, especially the SMEs.
RECOMMENDATIONS:
NAICOM must endeavor to sensitize SMEs in Enugu to become aware of their services as well as the paradigm shift in the new management of the general insurance companies in Nigeria. This will enable the SMEs to patronize them.
The insurance companies in Nigeria should ensure that they settle the claims for their customers promptly by avoiding bottlenecks and delays.
NIACOM should pay more attention to small and medium business owners, and educate them on the paradigm shift introduced by the new management and other products and activities for the insurance companies. This is because of the importance of the SMEs in promoting economic development in Nigeria.
NIACOM should understudy the local insurance of the SMEs to find out why they prefer to patronize it and learn from it how to attract the SMEs.
BY IWUNDU ONYEKACHI Learn to Live Business School, UK EMAIL:iwunduonyekachi@gmail.com PHONE: 08035489691 DOCTORATE LLBS. 2024
ABSTRACT
Thisstudy was carried out to investigate ethical leadership and Sustainable Economic Growth inNigeria. The research design adopted for this study was a descriptive survey design. This researchwascarried out in Enugu East Local Government Area of Enugu State. The population of the studyconsists of civil servants working in different government parastatals owned by the state and federalgovernments. The simple random sampling technique was used to draw one hundred and fifty.
(150) civil servants from five (5) selected state and federal organizations in Enugu East LocalGovernment Area of Enugu State. The instrument used for data collection is a questionnaire.Meanwasusedtoanswerthe research questions.The findings from the study revealed that; ethicalleadership reduces corruption, ethical leadership increases productivity and profitability, ethicalleadershippractice increases access to a wealth of natural resources of the nation and ethicalleadership helps to foster economic development for the poorest of the poor in the country. It wasrecommended among others that; Practicessuchas an all-hands-on-deck approach should beintroduced as a form of ethical leadership practices to influence sustainable Economic developmentinNigeria.
Leadership starts with influence and builds from there, that is, everything rises and falls on leadership. By implication, if we want to influence changes that are systemic in any organization, institution, or country, it must start with its leadership ethics and mindset Maxwell (2016). In other words, the people who manage and administer the country must have a strong leadership philosophy that will affect the way they do things in the country. Hence, Nigeria as a country cannot rise beyond her leadership ethics, because, the way a country develops and makes progress is tied to her leadership ethics. Singapore proved this during the regime of Lee Kuan Yew, whereby the country moved from a third-world country to an industrial hub (Wikipedia, 2019). The country has achieved remarkable feats in education, technology, and industrialization which have promoted national growth and development that they are witnessing today as a result of ethical leadership.
The concept of ethical leadership cannot be tired of emphasized especially in a country where prebendalism (corruption) has become the system of the day among political officeholders. Unethical Leaders have some features that make them to be seen as unethical. Some unethical attributes include but are not limited to: insincerity, lack of accountability, intemperate, callousness, and corrupt insular and evil. Therefore a leader who possesses the opposite of these features is termed an ethical leader, and such can lead the people to their promised land (Barbara, 2014). Based on this view, the ethical leader is a person who can inspire his subordinates and the people, in general, to behave in a particular manner without the people perceiving him as engaging in bribery and corrupt practices for selfish motives. Leadership is a process where a person influences a group to achieve a common goal (Okechukwu et al 2016). Ethical leaders are leaders who use their social and positional power in their decisions, their actions, and their influence on others in such a way that they act in the best interest and opinion of followers and do not enact harm upon them by respecting the rights of all parties (Kanungo, 2014). These definitions have a clear ethical dimension because they refer to a common goal. A common goal requires that the leader and followers agree on the direction to be taken by the group. In Nigeria context is the situation the same? The effort to answer this question by the leaders would open the door for economic development. Leaders need to consider their own and followers’ purposes while working toward goals that are suitable for both of them. Ethical leaders can build a community and when a community is built, economic development is built. Ethical leaders build a community by serving others through their political positions. This is what we may call “ethical altruism”. Leaders who serve or occupy positions to serve people are altruistic because they make the masses’ welfare foremost in their plans. Lasthuizen (2018), explicitly considers ethical leadership to comprise both the quality of leaders to consistently make decisions and act following relevant moral values, norms, rules, and obligations as well as their ability to cultivate such decision-making and behavior among followers. To encapsulate the concept, Treviño, Hartman, and Brown (2020) specifically, stated that ethical leadership may be conceived as resting on three fundamental ‘pillars’ The first concerns the personal integrity of the leader, also termed the ‘moral person’ pillar of ethical leadership. The second emphasizes the extent to which a leader can cultivate integrity among his or her followers, i.e. the ‘moral manager’ pillar. The third pillar is about the quality of the leader-follower relationship, which bridges the moral person and moral manager components and facilitates their effects on followers (Heres and Lasthuizen, 2015). In a nutshell, when the leaders are ethically abiding, will lead to good governance. In the nonexistence of ethical leadership, underdevelopment thrives. This will take us to the next concept of economic development.
A lot of definitions have been put forward to depict what is economic development. It is an elusive term meaning different things to different groups of social scientists. Some believe that development has to do with a rise in real national income. Meaning that it must be a sustained secular rise in real income accompanied by changes in social attitudes and customs, which have in the past impeded economic progress (Anyebe, 2016). In a technical sense, economic development refers to economic growth within an economy.
Economic development can be defined in terms of an increase in the economy’s real national income over a long period (Jhigan, 1980). If we look at the definition, one may ask what happens when there is a discrepancy between national income and the people that is the population. The two must have to go hand in hand for real economic development to be said to have been achieved. According to Rodney (2012), economic development is a process where a society develops economically as its members jointly increase their capacity for dealing with the environment. The author cleared the air with an opinion that economic development should not be seen purely as an economic affair, but rather as an overall social process that is dependent upon the outcome of man’s efforts to tackle problems in his environment. Buchanan and Ellis (2015) defined economic development as income potentialities of underdeveloped areas by using investment to effect those changes and to augment those productive resources that promise to raise real income per person. More subtly, Anyebe (2016) defined economic development as a process whereby the real per capita income increases accompanied by a reduction in inequalities of income and the satisfaction of the preferences of the masses as a whole. This definition is satisfactory because it tries to marry the reduction in inequalities with the increase in per capita income. In Nigeria, the gap between the rich and poor is very alarming. The rich keep enriching themselves while the poor become poorer. Such an economy cannot bring about development.
In all the definitions of what economic development is, none attempted to look at economic development as what to do with the absence of corruption in the attempt to increase per capita income and reduction of inequalities in income. Therefore, for this study, economic development is viewed as the absence of corruption of any kind in ensuring an increase in per capita income accompanied by a reduction in inequalities of income and satisfaction of the preferences of the masses as a whole.
The definition can be accepted because efforts toward ensuring economic development cannot be fully achieved when there are unethical exercises surrounding the process. Nigeria has had many good development strategies but the problem arises on the leaders (Achebe, 1983). World Bank (2011) declares corruption as “…among the greatest obstacles to economic and social development” by undermining the rule of law and weakening the institutional foundations on which sustainable development depends.
Every developing country, especially in Africa, strives towards ensuring economic development Nigeria as a developing country is not outside the track. Nigeria is a country bequeathed with bountiful human and natural resources. Nigeria’s total population in 2016 was projected to be 193,392,517 (NpopC, 2017) cited in Jega (2017). The population has a large size of the well-educated and skilled workforce. Yet, a significant number of the population (67 percent) is said to be living below the poverty line, while many more fall into poverty daily (Olubunmi, 2018). The country’s landmass is immensely comprised of about 924,000 square kilometers, most of which arable, and rich in mineral and non-mineral resources especially large deposits of oil and gas (Onah, 2014). Nigeria’s economy depends on oil as its main foreign exchange earner, in 2002 constituted about 90% of its foreign exchange earnings. Nigeria as a developing country assumes responsibility for general administration as it is done in other governments in developed countries. Nigeria has had a relatively long experience in development planning starting with the Colonial Development Plan (1958-68). Medium-term development plans and national rolling plans were also developed and carried out with mixed output. Other major strategic initiatives – such as the Structural Adjustment Programme (SAP) by the Babangida regime in 1984, the National Economic Empowerment and Development Strategy (NEEDS) launched in 2003, by the Obasanjo administration, the Strategy for Attaining the Millennium Development Goals (SAMDG) in 2000, the 7-Point Agenda, by the Yar’adua administration in 2007, Transformation Agenda by the Jonathan administration in 2011, Vision 20:2020, and the recent Economic Recovery and Growth Plan 2017-2020. – were not seen to have been effectively implemented due to unethical leaders and bad governance.
The Nigerian government assumes an important economic function for national development. Nigeria is said to have her private sectors, though, ethical leadership and good governance existing in the country, are not strong enough to reach the maturity stage of national economic development. This made us introduce a variable called “Corruption”. Economic development cannot flourish well in an economy where the leaders are unethical leading to corruption. Being unethical here means a situation where there is injustice, insincerity in the act of governance, inequality in the distribution of economic wealth, undue favoritism, and uneven development projects in the country. An economy, which is characterized by regional and group crises, youth restiveness, and indiscipline (corrupt leaders) as a result of bad leadership cannot ensure economic development. Corruption may not affect output directly but is put into different transmission channels that have been studied extensively. It can affect the growth rate.
Realizing the importance of ethical leadership and good governance in a developing country like Nigeria is necessary and of great concern and therefore, cannot be overemphasized. Achebe (1983), in his work, opined that “the trouble with Nigeria is unquestionably and squarely a failure of leadership”. This implies that for Nigeria to be economically developed there must be good leadership in the country”. Continue with Achebe as cited in Izueke (2015) “There was nothing wrong with the Nigeria character, land, climate, air or anything else, including money”. Leaders are like cattle rearers, wherever they take or direct their cattle they would follow. Leaders are like parents in a family which first give a child societal values and norms. Leaders are teachers, when they fail to teach well, students are bound to fail woefully.
The above illustrations imply that Nigeria’s economic development is dependent on ethical leadership. Bad leadership is alleged as one of the root causes of all evil within our society and economic underdevelopment (UNESCAP, 2013). In Nigeria, the problem is aggravated by the high rate of corruption. The vast majority of African people remain impoverished while the few unethical elites enjoy the proceeds of corruption (Lerrick, 2015). The World Bank defined corruption “as the abuse of public office for private gain”. This is the most common definition employed by scholars (World Bank, 2018). This definition of corruption in the public or governmental realm informed our decision to embark on this study. A widely quoted estimate by the World Bank (2013), puts the total amount of bribes paid in both developing and developed countries in 2001/2002 at 1 trillion dollars, about 3 % of world GDP at the time which Nigeria is not excluded. This estimate does not comprise embezzlement of public funds or theft of public assets, which are extremely difficult to estimate. Okechukwu et al (2016), contended that public service in Nigeria has deviated from the standard inherited from the British system of administration.
Ethical leadership on its side entails that leaders should relate to others with respect. That is why Philosopher Immanuel Kant (1724-1804) argued that we must treat others with respect. To do so, therefore, means to treat others as ends in themselves and not as means to ends. As Beauchamp and Bowie (2018), distinguished, “Persons should be treated as having their right and autonomously established goals and must not ever be treated strictly as means to another’s personal goals.” These writers then suggested that treating others as ends rather than as means requires that we treat other people’s decisions and values with a sense of respect: failing to do so would signify that we were treating them as a means to our ends. Do our leaders treat us with respect for the level of inequalities and corruption in the country? It is against this background that the study aims to investigate ethical leadership and Sustainable Economic Growth in Nigeria.
StatementoftheProblem
The pivot interest here is that a significant level of unethical leadership in Nigeria cannot take the Nigerian economic development strategies to maturity, embezzlement of public funds is a major problem plaguing the Nigerian economy. Unethical leaders should expect that people will be poor, poor funding of education, poor infrastructures, and others which the overall result would be economic underdevelopment. It is like a vicious circle. Furthermore, it is observed that project costs are often inflated, while programmes and projects which can potentially deliver the best value for money are frequently abandoned in favor of projects which do not offer maximum economic and social value as a result of unethical leaders. The Edelman Trust Barometer Poll (2011), conducted among the richest 25% of the population of 23 countries on five continents and with a total sample of 5,075 interviewees, on ethics and economy, produced clear confirmation of the widespread social demand for ethics in the economy that is now widespread in much of the world. The attention to ethics in the economy is fed by the weight of the lack of ethical values in the management of our resources. This aroused the interest of the researcher to explore ethical leadership as a solution for unstable economic growth in Nigeria. Such an effort would enable leaders to tackle the seemingly conspicuous corruption that has bedeviled Nigerian economic development which was propagated throughout the globalized world. Therefore the study aims to investigate ethical leadership and Sustainable Economic Growth in Nigeria.
PurposeoftheStudy
The main purpose of this study is to investigate ethical leadership and Sustainable Economic Growth in Nigeria.
Objectives of the Study
Investigate how ethical leadership practices influence sustainable Economic development in Nigeria.
Examine how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria.
Determine the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth.
Research Questions
How does an ethical leadership practice influence sustainable Economic development in Nigeria?
What does ethical leadership contribute to the achievement of sustainable development goals related to economic growth in Nigeria?
What are the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth?
Hypotheses
HO1: There is no significant between male and female respondents on how ethical leadership practices influence sustainable Economic development in Nigeria.
HO2: There is no significant difference between male and female respondents on how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria.
HO3: There is no significant difference between male and female respondents on the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth.
METHODOLOGY
The research design adopted for this study was a descriptive survey design. This research was carried out in Enugu East Local Government Area of Enugu State. The occupation of the people in this is civil servants. The population of the study consists of civil servants working in different government parastatals owned by the state and federal governments. The simple random sampling technique was used to draw one hundred and fifty (150) civil servants from five (5) selected state and federal organizations in Enugu East Local Government Area of Enugu State. The instrument used for data collection is a questionnaire. The instruments after structuring were arranged and submitted to two experts. Using Crombach Alpha Statistics to test the reliability of the instrument, the result yielded a co-efficient index value of 0.85 indicating that the instrument is reliable. Mean was used to answer the research questions. The rating scale is; Strongly Agree (SA) 4points, Agree
3 points, Disagree (D), 2 points,Strongly Disagree (SD)1 point. The decision rule was that any mean up to 2.5 and above was accepted as “Agreed” while a Mean score below 2.5 was rejected as “Disagreed.
FINDINGS
Research Question 1: How does an ethical leadership practice influence sustainable Economic development in Nigeria?
Table One: Responses on how an ethical leadership practice influences sustainable Economic development in Nigeria
s/n
Items
SA
A
D
SD
N
EFX
𝒙̅
DECISION
1.
Ethical leadership reduces corruption
100
60
25
15
200
645
3.23
Agree
2.
Ethical leadership increases productivity and profitability
80
30
10
80
200
510
2.55
Agree
3.
Ethical leadership practice increases access to a wealth of natural resources in the nation
100
60
25
15
200
645
3.23
Agree
4.
Ethical Leadership helps to foster economic development for the poorest of the poor in the nation
80
40
20
60
200
540
2.70
Agree
Grandmean:2.70
10.80
Agree
Table 1 above shows various responses given by the respondents to the research question seeking to explain how ethical leadership practices influence Sustainable Economic development in Nigeria. The mean scores responses for question items 1, 2, 3 and4 were above the threshold of
2.5 (that is 3.23, 2.55 3.23, and 2.70). This implies that the respondents agreed that ethical leadership practices influence sustainable Economic development in Nigeria.
Ho1: There is no significant difference between mean ratings of male and female civil servants on how ethical leadership practices influence sustainable Economic development in Nigeria.
Table4: Z-test comparison of the mean and standard deviation ratings of opinion offemaleand male civil servants on how ethical leadership practices influence
Sustainable Economic Development in Nigeria
CivilServants
Female 76 2.88 0.90 Male 19 2.84 0.87
N 𝐗 SD df z-cal p-value Decision
193 -0.14 0.888 NotSignificant
The analysis in Table 4 shows that the calculated value (z-cal=-0.14) is not greater than 1.96 or less than -1.96, the null hypothesis is accepted. This is further affirmed by the probability value of 0.888, which is greater than 0.05, meaning it is not significant. This result implies that the hypothesis is accepted, meaning there is no significant difference between the mean ratings of female and male civil servants on how ethical leadership practices influence sustainable economic development in Nigeria.
Research Question 2: What does ethical leadership contribute to the achievement of sustainable development goals related to economic growth in Nigeria?
Table2:What does ethical leadership contribute to the achievement of sustainable development goals related to economic growth in Nigeria?
S/N
ITEMS
SA
A
D
SD
N
EFX
𝒙̅
DECISION
5
Eradication of extreme poverty and hunger in a nation
100
60
25
15
200
645
3.23
Agree
6
Development of global partnership for sustainable development
80
40
20
60
200
540
2.70
Agree
7
To achieve universal primary education
54
55
28
13
150
450
3.0
Agree
8
Development of infrastructure of a nation
48
52
28
22
150
426
2.84
Agree
Grandmean
2.67
Agree
Table 2 above shows the mean score responses for question items 5 -8 with mean scores of 3.23, 2.70, 3.0, and 2.84 were above the cut-off mean score of 2.5 this means that the respondent agreed.
Ethical leadership contributes to achieving sustainable development goals related to economic growth in Nigeria.
Ho2 There is no significant difference between the mean ratings of male and female civil servants on how ethical leadership contributes to achieving sustainable development goals related to economic growth in Nigeria.
Table 6: Z-test comparison of the mean and standard deviation ratings of male and female civil servants on how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria
Civil Servants
N 𝐗 SD df z-cal p-value Decision
Females 79 3.03 0.87
Males 19 2.93 0.92 193 -0.136 0.892 Not Significant
The analysis in Table 6 shows that the test statistic, particularly the calculated value of z-cal (- 0.136) is not greater than 1.96 nor less than -1.96, which means the null hypothesis is accepted. This is further affirmed by the probability (p-value) associated with the calculated value. The p-value is 0.892, which is greater than the 0.05. It is implied that it is not significant. Therefore the hypothesis is accepted, which is interpreted that there is no significant difference between mean ratings of male and female civil servants on how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria.
Research Question 3: What are the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth?
Table3:Responses on the barriers to the implementation of ethical leadership practices in Nigerian for sustainable economic growth
s/n
Items
SA
A
D
SD
N
EFX
𝒙̅
DECISION
9
Absence of accountability and transparency among leaders of the country
80
30
10
80
200
510
2.55
Agree
10
Lack of rule of law
100
60
25
15
200
645
3.23
Agree
11
Corruption Challenges
54
55
28
13
150
450
3.0
Agree
12
Poor Resource Management
48
52
28
22
150
426
2.84
Agree
Grandmean
2.67
Agree
Table 2 above shows the mean score responses for question items 9 -12 were 2.55, 3.23, 3.0 and
2.84 was above the cut-off mean score of 2.5 this means that the respondent agreed that there are barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth.
Ho3 There is no significant difference between mean ratings of male and female civil servants on the barriers to the implementation of ethical leadership practices in Nigerian for sustainable economic growth
Table7: Z-test comparison of the mean ratings and standard deviation of the responsesofmaleand female civil servants on the barriers to the implementation of ethical leadership practices in Nigerian for sustainable economic
GroupN𝐗 SDdfz-calp-valueDecision
Students 176 3.32 0.92 Lecturers 19 3.08 0.92
193 -0.126 0.9 Not
Significant
Table 7 shows that the calculated value (z-cal=-0.126) is not greater than 1.96 nor is it less than
-1.96, therefore the null hypothesis is accepted. In the same token, the probability value (p-value) is 0.9, which is greater than 0.05 significance level, which can be decided as not significant. These two values imply that There is no significant difference between the mean ratings of male and female civil servants on the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth.
DISCUSSIONOFFINDINGS
Research question one was carried out to investigate how ethical leadership practices influence sustainable Economic development in Nigeria. The finding revealed that ethical leadership reduces corruption, ethical leadership increases productivity and profitability, ethical leadership practice increases access to a wealth of natural resources of the nation and ethical leadership helps to foster economic development for the poorest of the poor in the country. Findings were also in line with the findings of (Rahman 2016) who said that to achieve this, leaders at both national and organizational levels would have to adopt leadership styles that engender a sense of shared responsibility toward the attainment of this goal; one that is focused on the long term, and thus would establish systems that would persistently ensure the pursuance of this goal in the future; one that understands the need for collective effort (at both national and organizational levels) toward the attainment of the sustainability goal; one that is willing to learn; and, finally, one that is in itself ethical, and thus would impress upon followers the need to behave in a like manner. This is because the sustainable development agenda requires an all-hands-on-deck approach through a collective leadership approach between players in industry (including civil society groups) and government. However, as can be gathered from the African leadership landscape, it is evident that leadership in Nigeria lacks this approach to ethical leadership. This situation thus shrouds the possibility of Nigeria attaining sustainable development. The researcher also contributed that for African leaders, in both industry and government (especially government), to succeed in forging on toward the attainment of such a goal, they would have to conduct themselves in a responsible, transparent, and accountable in making good decisions for sustainable economic growth and development.The result from a test of hypothesis one indicates that there is no significant difference between mean ratings of male and female civil servants on how ethical leadership practices influence sustainable Economic development in Nigeria. This affirms the results from research question one and is in line with the submissions of Okoro (2020) and Adeyemi (2021).
Research question two was carried out to ascertain what ethical leadership contributes to achieving sustainable development goals related to economic growth in Nigeria. The findings revealed the eradication of extreme poverty and hunger in a nation, the development of global partnerships for sustainable development, achieving universal primary education, and the development of the nation’s infrastructure. These findings agree with the findings of (Chikendu, 2013) who thinks that to achieve a positive outcome in the sustainable development goals, a long-lasting development must be designed and implemented. That takes the focus on sustainable development. Under normal circumstances, ethical leadership is fundamental to every institution. With ideal ethics, a leader will ensure that he fulfills the socio-economic needs of the group and maintains economic discipline. Lack of ethical or morally upright leadership leads to wastage and embezzlement of public resources, thereby denying society an opportunity to sustain its development. The researcher is also of the opinion that unethical leadership has led to public resources embezzlement. Such a situation impedes the society’s sustainable development. Leadership for development must be accomplished; that is, he/she must work with honesty, fair dealing, and social responsibility, with such features, there will be transparency in resource management, equity in the distribution, and responsibility in administering environmental issues to the expectation of the future society. In this respect, transformational leadership is preferred since it demonstrates a capacity to seek the fulfillment of human possibilities and improve the community’s development in general.
Hypothesis two showed that there is no significant difference between the mean ratings of male and female civil servants on how ethical leadership contributes to the achievement of sustainable development goals related to economic growth in Nigeria. This result solidifies those from research question two so do the studies (Chikendu, 2013).
Research question three investigated the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth. The findings revealed that the barriers are the absence of accountability and transparency, lack of rule of Law, corruption challenges, and poor resource management. The findings are in line with the findings of Ejimabo (2013) who stated that.
In Nigeria, most policymakers and those involved in decision-making are engaged in bribery, egoism, power, and trade liberalization. Fagbadebo (2017) also stated that the Nigerian State is a victim of high-level corruption, bad governance, political instability, and a cyclical legitimacy crisis. In the words of the researcher, the country’s authoritarian leadership faced a legitimacy crisis, and political intrigues, in an ethnically differentiated polity, where ethnic competition for resources drove much of the pervasive corruption, and profligacy, the researcher also made some contributions as the solution for addressing Nigeria’s problems and consolidating democratic governance in the federal republic lies in having a government or leadership that works on the principles of sustainable development and is, most importantly, accountable to the Nigerian people. Good ethical leadership in Nigeria is essential to its stability, growth, and development.
Test of hypothesis three revealed that there is no significant difference between mean ratings of male and female civil servants on the barriers to the implementation of ethical leadership practices in Nigeria for sustainable economic growth. In other words, both sets of respondents concurred with the findings in research question three. Prior studies by Ejimabo (2013) had similar findings as they identified by Fagbadebo (2017) as factors inhibiting the implementation of ethical leadership in the country.
CONCLUSION
Ethical leadership and Sustainable Economic Growth in Nigeria is important and will basically determine the transformation speed in overall economic growth and development in Nigeria.
RECOMMENDATION
Practices such as an all-hands-on-deck approach should be introduced as a form of ethical leadership practice to influence sustainable Economic development in Nigeria.
The importance of teaching ethics in schools cannot be overemphasized, it is essential for the formation and acquisition of virtues or good characters that are vital for contribution to the achievement of sustainable development goals.
Ensuring the building of good personalities from childhood is an intervention towards resolving the leadership crisis.
ImplicationsoftheStudy
This study has implications for Nigerian leaders. Nigeria needs sound ethical leadership that is rooted in respect, service, justice, honesty, and community. Leaders who place fairness at the center of decision-making, including the challenging task of being fair to individuals as well as to the common interest of the community they serve. The country needs people who are educated, sincere, and honest both in administration and leadership styles. If all these are achieved, there will be improved and sustainable economic growth in the country.
Limitations of the Study
Some respondents were reluctant to give the necessary information required for this study. It took a lot of effort to convince them that the purpose of the information was only for research work.
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By Egbunu, Theresa Ilayi egbubutessy@gmail.com And Iluyomade Martins Iluyomade.martins@gmail.com Doctor of Strategic Management and Leadership Development (DSMLD) Learn To Live Business School
ABSTRACT
The study investigated applying the Ability-Motivation-Opportunity (AMO) model to enhance employee performance in Nigerian Public Sector Entities (PSEs). The study was guided by three objectives: to examine the impact of training and development initiatives, financial and non-financial incentives, and a supportive work environment on employee performance. A quantitative methodology was used, with data collected through structured questionnaires administered to 133 employees within Nigerian PSEs. Descriptive and inferential statistics, including multiple regression analysis, were employed to assess relationships between AMO components and performance outcomes. The data was analysed using Jamovi Statistical Software (version 2.3.28). Findings showed a positive and significant influence of training, incentives, and supportive work environments on employee performance, validating the AMO model’s relevance in this context. Specifically, each component—ability through training, motivation via incentives, and opportunity through supportive environments—significantly contributes to performance enhancement. The study concluded that the AMO model provides a robust framework for understanding and improving employee performance in Nigerian PSEs. The study recommends targeted investments in training, strategic incentives, and the development of supportive work conditions to maximize employee productivity.
INTRODUCTION
1.1 Background of the Study
Employee performance is a critical determinant of organisational success and has been extensively studied across various contexts. Globally, employees’ performances are often viewed as a crucial success variable influenced by several factors, including learning and skills development, performance management, incentives and supportive work environments, job/work design, and career development opportunities (Tuffaha, 2020; Zhenjing et al., 2022). Recent studies demonstrate that effective learning and skills development programmes significantly enhance employees’ abilities (skills and knowledge), leading to improved job performance (Arulsamy et al., 2023). Similarly, financial and non-financial incentives have been shown to motivate employees to perform better (Manjenje & Muhanga, 2021). Additionally, a supportive work environment — characterised by job/work design, career development, autonomy, and a collaborative culture—provides the opportunities employees need to excel in their roles (Radu, 2023).
The Ability-Motivation-Opportunity (AMO) model, developed by Boxall and Purcell (2003), serves as a valuable framework for examining how these factors can be aligned to enhance employee performance. The model posits that performance (P) is a function of an individual’s ability (A), motivation (M), and opportunity (O) to perform, encapsulated in the equation P = f(A, M, O). This suggests that optimal performance occurs when these three components—ability, motivation, and opportunity—are effectively aligned (Boxall & Purcell, 2016; Bos-Nehles, et al., 2023). According to Armstrong and Brown (2019), an individual’s performance is influenced not only by their skills, knowledge, and aptitudes but also by their desire or obligation to perform and the support provided by the work environment.
Ability refers to the skills and competencies employees possess, which are crucial for job performance. Human resources management initiatives like robust recruitment and ongoing learning and development ensure employees have the necessary abilities (Armstrong and Brown 2019; Mohammad, Showkat & Imran, 2020; Supriya, et al., 2023). Effective talent management further aligns these abilities with organisational needs, ensuring a capable and adaptable workforce (Al Aina & Atan, 2020; Ngiu, et al., 2021). Motivation drives employees to apply their abilities effectively. Performance management systems, performance-based pay, and leadership development are key motivators (Gerhart & Fang, 2015; Armstrong and Brown (2019). Regular feedback and performance-based rewards (financial and non-financial) encourage higher performance, while leadership development fosters a culture that inspires employees to excel (Neves & Eisenberger, 2014; Mbukwana & Ayandibu, 2023). The opportunity involves the organisational environment that allows employees to utilise their abilities and motivation. Human resources management practices focusing on job design, work environments, and career management create opportunities for employees to perform optimally (Armstrong and Brown (2019). These initiatives provide the necessary support and growth paths, leading to enhanced job satisfaction and performance (Anwar, & Abdullah, 2021).
1.2 Statement of the Problem
Despite the global applicability of the AMO model, its relevance in the context of the Nigerian public sector is under-researched (Abboh, Majid & Fareed, 2019). PSEs in Nigeria are often marked by inefficiencies and poor performance. Notwithstanding efforts to reform and improve this sector, challenges such as inadequate training, low motivation, and unsupportive work environments persist. Training programmes often fail to meet employees’ actual needs, leading to a skills mismatch and a gap in their ability to perform their duties effectively (Omale et al., 2023). Economic instability and bureaucratic challenges undermine incentive schemes, resulting in low motivation. Additionally, many public sector organisations lack the necessary resources and conducive environments for optimal performance (Osawe, C.O. 2015; Abah & Nwokwu, 2016). These issues are particularly critical, given the sector’s role in delivering essential services and driving national growth.
Given these challenges, this study focuses on enhancing employee performance within the Nigerian public sector by applying the Ability-Motivation-Opportunity (AMO) model model. AMO model which links employee performance to their ability, motivation, and the opportunities provided by their work environment, offers a promising framework for addressing these challenges For example, previous applications of the model in different contexts have shown significant performance improvements when ability, motivation, and opportunity are adequately addressed (Kellner, Cafferkey, & Townsend, 2019; Bos-Nehles, et al., 2023). However, while the model has been successfully implemented in various other contexts to improve performance, its effectiveness in the Nigerian public sector, with its unique challenges, is not well-documented.
1.3 Purpose of the Study
The overarching purpose of this study is to explore how the Ability-Motivation-Opportunity (AMO) model can be leveraged to enhance employee performance in Nigerian PSEs.
1.4 Objectives
To achieve this aim, the study is guided by the following specific objectives:
To analyse the impact of learning and skills development programmes (Ability) on employee performance in Nigerian PSEs.
To investigate how financial and non-financial incentives (Motivation) influence employee performance in PSEs.
To determine the impact of a supportive work environment (Opportunities) on employee performance in Nigerian PSEs.
1.5 Research Questions
1. How do learning and skills development initiatives impact the employees’ performance in Nigerian PSEs?
2. How do financial and non-financial incentives influence employee performance in Nigerian PSEs?
3. How does a supportive work environment impact employee performance in Nigerian PSEs?
HO₂: There is no significant influence of financial and non-financial incentives (motivation) on the performances of employees in Nigerian PSEs.
HO₃: There is no significant impact of a supportive work environment (opportunities) on the performances of employees in Nigerian PSEs
METHODOLOGY
2.1 Research Design
The study employs a quantitative, correlational research design (Creswell, 2014; Apuke, 2017), to explore the relationship between the Ability-Motivation-Opportunity (AMO) model and employee performance. This design is appropriate as it enables the researcher to focus on measurable data, offering objective and generalizable results (Devi, et. al., 2023). A cross-sectional approach is used, which involves collecting data at a single point in time (Setia, 2016). This approach is practical because it provides a snapshot of how employees perceive AMO factors concerning performance, allowing for timely and broad generalisations (Bryman & Bell, 2015; Kellner, et al., 2019). A structured survey questionnaire was utilised to ensure systematic data collection, offering consistency across a large, diverse sample (Saunders et al., 2016).
2.2 Population / Sampling Technique
The study focuses on a population of 200 employees from public and private sector entities across diverse industries and organisational sizes in Nigeria. To ensure the sample accurately reflects the population’s diversity, a stratified random sampling technique is used. This method is appropriate because it divides the population into key subgroups (or strata) such as sector and job level and randomly selects participants from each stratum, ensuring each subgroup is represented (Saunders et al., 2019). Additionally, snowball sampling is employed to reach participants through referrals. This technique is particularly effective when some participants may be difficult to access directly, ensuring broader reach and inclusivity in the sample (Leighton et al., 2021). For questionnaire distribution, the sample size of 133 is determined using Yamane’s (1967) sample size determination technique.
2.3 Instrument(s)
This study utilises a structured questionnaire based on validated measures to ensure reliability and relevance. The questionnaire consists of three key sections aligned with the research objectives: Training and Development, Incentives and Rewards, and Supportive Work Environment. Additionally, Employee Performance is measured as the dependent variable.
For Training and Development Initiatives, the Learning and Development Scale (LDS) (Aguinis & Kraiger, 2009) was used to measure the impact of training initiatives on employee performance. Items assess the relevance, effectiveness, and application of training programs in the workplace.The Multidimensional Work Motivation Scale (MWMS) adapted from Gagné et al., (2015) was used to measure the influence of financial and non-financial rewards. To evaluate a supportive work environment, the Perceived Organizational Support (POS) Scale developed by Eisenberger et al. (1986) was used. It measures employees’ perceptions of organisational support and its influence on performance. Additionally, the Job Diagnostic Survey (JDS) by Hackman (1980) was employed to assess job design and its conduciveness to employee satisfaction and performance.Employee performance was measured using the Individual Work Performance Questionnaire (IWPQ) developed by Koopmans et al., 2014). This scale evaluates task performance, contextual performance, and counterproductive work behavior.
The questionnaire uses a Likert scale of 1-5 (strongly disagree to strongly agree) to measure participants’ responses (Chyung, et al., 2017), which is appropriate for quantifying perceptions, making it easier to analyse the data statistically (Tanujaya, et. al., 2023). This instrument is chosen for its ability to provide structured, consistent responses across a large sample, facilitating clear and measurable insights (Sullivan, 2013).
2.4 Method of Data Collection
The data is collected electronically using Google Forms, and distributed via email, Telegram, and WhatsApp platforms. This method is appropriate as it provides participants the flexibility to respond at their convenience, thereby increasing response rates (Vasantha & Harinarayana, (2016). Google Forms is particularly suitable for its cost-effectiveness, accessibility across devices, and real-time data collection capabilities, which enable convenient, easy, and quick data collection (Holtom et al., 2022). Moreover, the anonymity offered by Google Forms ensures participant confidentiality, promoting honest and accurate responses while adhering to ethical research standards (Kang & Hwang, 2023).
2.5 Method of Data Analysis
The collected data is analysed using both descriptive and inferential statistics. Descriptive statistics, such as mean, standard deviation, and frequency distribution, provide a summary of key trends within the data, which is essential for understanding the general characteristics of the sample (Creswell, 2014). Inferential statistics, specifically correlation and multivariate regression, are used to test relationships between AMO components and employee performance, making this method appropriate for establishing whether the independent variables (AMO factors) significantly influence the dependent variable (employee performance) (Ugwu et al., 2021). The analysis is conducted using Jamovi statistical software (Version 2.3.8), chosen for its user-friendly interface and robust analytical capabilities, ensuring precise and efficient data analysis (Dibekulu, 2020).
RESULTS
Responses from the 133 participants were labeled according to the variables of the study coded, and exported to Jamovi software. Reliability analysis, descriptive statistics, correlation, and multivariate regression analyses were conducted and the results of the study are presented in accordance with the research questions and hypotheses.
3.1 Reliability Results
The reliability analysis (see Appendix 1) shows strong internal consistency across all scales. The overall scale has a Cronbach’s α of 0.869, indicating good reliability. The Ability (ABT) scale has excellent reliability with a Cronbach’s α value of 0.910. The Motivation (MOT and Opportunity (OPT) scales show good reliability, with values of 0.884 and 0.879, respectively. The Employee Performance (EMP) scale also demonstrates good reliability, with Cronbach’s α of 0.843. Overall, all scales have Cronbach’s α values above 0.70, indicating they are reliable for further analysis (Taber, 2018).
3.2 Descriptive Statistics
The Descriptives statistics in Table 1 summarise the mean, median, standard deviation, variance, minimum, and maximum scores for the predictor variables – Ability (ABT), Motivation (MOT), and Opportunity (OPT) scales – and the Dependent variable – Employee Performance (EMP) scale.
Table 1: Descriptives Statistics of the variables
ABT
MOT
OPT
EMP
N
133
133
133
133
Missing
0
0
0
0
Mean
4.02
4.66
3.95
4.04
Median
4.00
4.80
4.00
4.00
Standard deviation
0.688
0.859
0.673
0.563
Minimum
1.00
1.20
1.60
2.00
Maximum
5.00
5.00
5.00
5.00
Source: Jamovi Output
The mean scores for the variables show that responses are generally high. MOT has the highest mean at 4.66, indicating that participants rated motivation quite positively, while ABT and EMP have similar mean values of 4.02 and 4.04, respectively. OPT has the lowest mean at 3.95, though it is still relatively close to the others.
In variability, MOT has the highest standard deviation (0.859), suggesting that responses for motivation varied more than for the other variables. EMP has the lowest standard deviation at 0.563, indicating more consistent responses for employee performance. The standard deviations for ABT and OPT are 0.688 and 0.673, respectively, reflecting moderate variability responses.
The maximum and minimum values indicate the highest and lowest scores for each variable. Minimum scores are 1.00 (ABT), 1.20 (MOT), 1.60 (OPT), and 2.00 (EMP), reflecting low ratings from some respondents. Maximum scores are 5.00 for ABT, OPT, EMP, and MOT, showing higher ratings. These values highlight the range of responses in the dataset.
Essentially, the descriptive statistics suggest that Ability (ABT), Motivation (MOT), and Opportunity (OPT) are positively perceived and likely to influence employee performance, as shown by high mean scores. The higher variability in MOT suggests motivation may require more focus for improving performance, while the low variability in EMP indicates consistent employee performance. Overall, the AMO factors are relevant and impactful in explaining employee performance outcomes.
3.3 Correlation Results
The correlation matrix in Table 2 reveals the relationships between the independent variables—Ability (ABT), Motivation (MOT), and Opportunity (OPT)—and the dependent variable, Employee Performance (EMP).
Table 2: Correlation Matrix
ABT
MOT
OPT
EMP
ABT
Pearson’s r
—
p-value
—
MOT
Pearson’s r
0.472
—
p-value
< .001
—
OPT
Pearson’s r
0.480
0.781
—
p-value
< .001
< .001
—
EMP
Pearson’s r
0.620
0.764
0.771
—
p-value
< .001
< .001
< .001
—
Source: Jamovi Output
Ability (ABT) and Employee Performance (EMP): There is a moderate positive correlation (r = 0.620, p < 0.001) between ABT and EMP. This indicates that as employees’ abilities increase, their performance tends to improve as well.
Motivation (MOT) and Employee Performance (EMP): The correlation is strong (r = 0.764, p < 0.001), suggesting that higher motivation is significantly associated with better employee performance. This highlights the critical role that motivation plays in driving performance outcomes.
Opportunity (OPT) and Employee Performance (EMP): Similarly, there is a strong positive correlation (r = 0.771, p < 0.001) between OPT and EMP. This implies that when employees perceive greater opportunity within their organisation, their performance levels will likely rise.
3.4 Linear Regression Results
Table 3: Model Fit Measures
Overall Model Test
Model
R
R²
Adjusted R²
F
df1
df2
p
1
0.849
0.721
0.714
111
3
129
< .001
Source: Jamovi Output
In Table 3, the correlation coefficient (R = 0.849) reflects a robust positive relationship between the independent variables and Employee Performance (EMP), suggesting that the model effectively captures significant variance in performance outcomes. The coefficient of determination (R² = 0.721) shows that approximately 72.1% of the variance in employee performance can be explained by the independent variables, indicating a good fit for the model. The adjusted R² value of 0.714 confirms that the model remains effective even after accounting for the number of predictors. Lastly, the F-statistic (111) and p-value (< 0.001) indicate statistical significance, suggesting that the independent variables collectively contribute to employee performance, leading to the rejection of the null hypothesis. Overall, these measures demonstrate that the model is well-suited for the data and effectively captures the relationships between the independent variables and employee performance.
Table 4: Model Coefficients – Employee Performance
Predictor
Estimate
SE
t
p
Intercept
0.849
0.1811
4.69
< .001
ABT
0.230
0.0441
5.22
< .001
MOT
0.226
0.0496
4.56
< .001
OPT
0.306
0.0636
4.82
< .001
Source: Jamovi Output
The model coefficients for Employee Performance (EMP) indicate the impact of each predictor variable – Ability (ABT), Motivation (MOT), and Opportunity (OPT)—on employee performance outcomes.
The coefficient of Ability (ABT) is 0.230, with a standard error of 0.0441. The t-value of 5.22 and p-value of less than 0.001 indicate a significant positive relationship between ABT and EMP. This means that higher ability is associated with improved employee performance.
Motivation (MOT) has a coefficient of 0.226, a standard error of 0.0496, a t-value of 4.56, and a p-value of less than 0.001. This also suggests a significant positive impact of motivation on employee performance.
Lastly, the coefficient for Opportunity (OPT) is 0.306, with a standard error of 0.0636, a t-value of 4.82, and a p-value of less than 0.001. This indicates that greater opportunities are strongly associated with enhanced employee performance.
Overall, all three predictors—ABT, MOT, and OPT—are statistically significant and positively contribute to employee performance.
3.5 Test of Hypotheses
To test the research hypotheses, each null hypothesis (H0) was evaluated against the corresponding statistical evidence derived from the model coefficients and associated p-values. Statistical significance of p < 0.05.
Since the coefficient for Ability (ABT) has a t-value of 5.22 with a p-value of < 0.001, there is a significant effect of training and development initiatives on employee performance. Therefore, the null hypothesis (H0₁) that “there is no significant effect of learning and skills development initiatives (ability) on performances of employees in Nigerian PSEs”is rejected.
The Motivation (MOT) coefficient shows a t-value of 4.56 with a p-value of < 0.001. This indicates a significant influence of financial and non-financial incentives and rewards on employee performance. Therefore, the null hypothesis (H0₂) which states that“there is no significant influence of financial and non-financial incentives (motivation) on the performances of employees in Nigerian PSEs” is rejected.
The Opportunity (OPT) coefficient has a t-value of 4.82 with a p-value of < 0.001. This demonstrates the significant effect of a supportive and conducive work environment on employee performance. Therefore, the null hypothesis (H0₃) that“there is no significant impact of the supportive work environment (opportunities) on performances of employees in Nigerian PSEs” is rejected.
3.6 Summary of Findings
The results revealed the following major findings:
Training and development initiatives have a significant positive impact on employee performance, as evidenced by a t-value of 5.22 and a p-value of < 0.001.
Financial and non-financial incentives and rewards significantly influence employee performance, with a t-value of 4.56 and a p-value of < 0.001.
A supportive and conducive work environment has a significant effect on employee performance, as shown by a t-value of 4.82 and a p-value of < 0.001.
Overall, each component of the AMO model (Ability, Motivation, and Opportunity) contributes positively and significantly to enhancing employee performance.
DISCUSSION
This study aimed to explore the effectiveness of the Ability-Motivation-Opportunity (AMO) model in enhancing employee performance within Nigerian Public Sector Entities (PSEs), focusing on the impact of training and development, incentives, and a supportive work environment. The findings align with and build on previous research, offering valuable insights into how these components influence performance.
The results reveal that training and development initiatives significantly improve employee performance, supporting previous research by Arulsamy et al. (2023) and Armstrong and Brown (2019), which emphasize that learning and skill development programmes enhance employees’ abilities. This increase in ability equips employees with the necessary competencies, as posited by Mohammad, Showkat, and Imran (2020) and Supriya et al. (2023), thereby fostering an adaptable and capable workforce.
The influence of financial and non-financial incentives on performance is also significant in this study, reinforcing findings from Manjenje and Muhanga (2021) and Gerhart and Fang (2015). These scholars demonstrate that incentives are powerful motivators that encourage employees to perform at higher levels. This aligns with the AMO model’s component of motivation, showing that rewards—both material and psychological—drive employees to apply their abilities effectively in the workplace.
Furthermore, the supportive work environment component was found to have a substantial effect on employee performance. In consonance with Radu (2023) and Zhenjing et al. (2022), this study shows that a conducive work environment characterised by autonomy, collaborative culture, and career development opportunities creates essential conditions for performance improvement. Armstrong and Brown (2019) and Anwar and Abdullah (2021) also highlight how job design and career management play critical roles in providing employees with the necessary opportunities to apply their abilities and motivation optimally. The present study thus confirms the central tenet of the AMO model, which posits that performance is maximised when employees are provided with the necessary skills (ability), motivation, and opportunity within a supportive environment.
In summary, the findings across all three objectives reinforce the AMO model, proposed by Boxall and Purcell (2003), which posits that performance is a function of an individual’s ability, motivation, and opportunity. This study supports that performance is maximised when all three components are aligned and adequately provided, consistent with global and local empirical evidence. This alignment implies that organisations seeking to optimise employee performance should consider an integrative approach that addresses each aspect of the AMO framework, ensuring employees are well-trained, motivated, and supported within their work environment.
4.4 Implications of the Study
The findings from this study hold significant implications for various stakeholders. Firstly, public sector managers can leverage insights on training, incentives, and supportive environments to structure more effective performance improvement strategies, addressing specific areas like skill gaps and motivational needs. Policymakers in Nigeria’s civil service and government agencies can use these findings to design and implement frameworks that align with the AMO model, ensuring resources are allocated to employee development and supportive work environments. Lastly, employees themselves stand to benefit, as improved training programs, incentives, and work conditions can lead to increased job satisfaction and productivity, ultimately enhancing service delivery in the public sector.
CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
This study concludes that applying the Ability-Motivation-Opportunity (AMO) model to Nigerian Public Sector Entities (PSEs) can significantly enhance employee performance by aligning training, incentives, and workplace support with practical needs.
5.2 Recommendations
Nigerian PSEs should conduct regular needs assessments to tailor training programs that directly enhance employee skills relevant to job demands, to address the prevalent mismatch between training and workplace needs.
Financial and non-financial incentive structures should be reinforced to counteract economic instability, ensuring that employees feel motivated and valued for their contributions.
PSEs should invest in resources and facilities that create a conducive work environment, such as collaborative tools, adequate facilities, and clear support mechanisms that empower employees to perform effectively.
5.3 Contribution to Knowledge
This study contributes to knowledge by providing empirical evidence on the practical application of the AMO model in Nigeria’s public sector, where it has been underexplored. By identifying the impact of ability, motivation, and opportunity on performance, the research addresses gaps in understanding how these factors interact within Nigerian PSEs and highlights actionable steps for enhancing public sector productivity.
5.4 Suggestions for Further Studies
Future research could explore the sustained effects of specific AMO model components, such as customised training initiatives or incentive structures, on employee performance in Nigerian public sector organisations. Additionally, examining how cultural and economic factors influence the AMO model’s effectiveness across various regions or industries in Nigeria would provide a broader understanding of its applicability.
By OBIALO THEOPHILUS CHINONSO CHUKWUDI SOLOMON NGODO MASTERS OF BUSINESS ADMINISTRATION +2340703 076 3076 obialotc@gmail.com 07039420918 chukwudisolomonngodo@gmail.com 2024
ABSTRACT:
Bread has become a staple food in Nigeria since its first introduction into Nigeria in the 1920s. However, the current harsh economic hardship in the country has made it unaffordable. Thus, the sustainability of the industry comes on the mark. This study examines sustainable business practices in bread industries in Awka that influence customer behaviors. A descriptive survey research design was used. Three research questions and three hypotheses guided the study. The population consists of 200 bakeries. The instruments were a questionnaire and a Focus Group Discussion. Data was analyzed using means, Standard Deviation, and Analysis of Variance (ANOVA). The results reveal that sustainable practices of bread manufacturers that promote and sustain customers’ interests include online marketing, direct sales to consumers, and adding more ingredients to increase the quantity and quality of the bread, which sustain customers’ purchasing decisions to a Large Extent. Also, there is no significant difference among male and female; old and new bread manufacturers in this regard. The study concludes that the business practices of bread manufacturers sustain customer behaviors in Awka. Recommendations include government efforts to reduce the problems of foreign exchange, the high cost of imported and local materials, and manufacturers’ promotion of supply chain management.
The customer is a very important factor in every business, that has the satisfaction of the customers as its major objective, to maximize production and profit. Consequently, consumer behavior becomes a very crucial aspect of consideration in business sustainability. Sustainability is the ability to continue over a long period, despite difficulties encountered by organizations and businesses. It requires the use of natural resources for long-term usage. It also implies withstanding difficulties and challenges. United Nations Brundtland Commission in 1987, defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” Sustainability in business refers to using durable materials in the manufacturing process. It is broadly used to indicate programs, initiatives, and actions aimed at preserving particular resources; this refers to four distinct areas, which are human, social, economic, and environmental–known as the four pillars of sustainability.
Three important well-known accepted businesses are the triple bottom line of sustainable business, called the three P’ (https://www.futurelearn.com › sustainable-business › steps). Sustainability has the role of protecting and maximizing the benefit of the 3Ps- People, Planet, and Profit. In this study, the researcher is interested in the first ‘P’ of the People.Sustainability, in this regard, indicates the initiatives employed by businessmen and women to preserve their businesses for a very long period. Four distinct areas: human, social, economic, and environmental, known as the four pillars of sustainability are concerned (https://www.futurelearn.com ›sustainable-business› steps) in attaining sustainability in businesses. This involves sourcing sustainable ingredients, using packaging solutions and resources mindfully, with eco-friendly practices (….. 2024)
Bread has become a staple food in Nigeria ever since its first introduction. History has it that it was introduced in Nigeria in the nineteenth century by freed slaves returning to Lagos from Brazil (Okafor, 2010). However, commercial baking began in about the 1920s, due to technical innovations introduced by the bread king, Amos Shackleford who introduced a kneading device known as dough brake and the wholesale system. The growth of the bread business in Nigeria was aided by African Home and Foreign industries, Sterling Brothers Baking Company, (Okafor, 2010). Since the industry has continued to grow. Apart from being taken as breakfast in many homes, bread is a gift item, which is purchased for children and even adults as a gift after a trip. However, the bread industry, which is one of the largest food processing industries in the country, with bread and biscuit (referred to as ‘moist and dry’ outputs respectively) accounting for 82 percent of their outputs, (Kehinde, 2023). Recently, bread manufacturers have been facing challenges with high levels of competition (Onwumere et al., (2012) thus, requiring a sustainable practice for survival.
Statement of the Problem:
Economic and food crises in Nigeria also affected the bread industry, especially in Awka, with the rising cost of raw materials due to the steady increase of foreign exchange in the past few years. Njoku & Kalu (2015), observed that low profit margins as a result of high cost of production, infrastructural deficit, high operation cost, exchange rate volatility, and stiff competition also bedevil the industry. Njoku & Kalu, (2015), also pointed out that flour, a byproduct, (97% wheat), the main raw material used for the production of Bread in Nigeria, is imported. Consequently, some bakeries fizzle out within a short period of their establishment (Onwumere, Nwosu & Nmesirionye 2012). This scenario suggests that all is not well in the industry lamented (Kehinde, 2023), especially in Awka, which is the capital of Anambra state, where dwellers thrive mostly on businesses for survival.Bread baking has continued to increase probably due to an increase in bread consumption in the state. However, the industry is dominated by small-scale bakers who find it difficult to source foreign exchange for their bakeries, thus sustainability of the industry becomes imperative. The purpose of this study is to explore sustainability business practices in bread industries, that influence customer behaviors in Awka in Anambra state.
Research Questions:
The following research questions guided this study;
What sustainable practices are adopted by bread manufacturers to promote customers’ purchasing interests in Awka?
What strategies adopted by manufacturers in Awka, sustain customers’ interest in bread purchasing?
To what extent do the business practices of bread manufacturers sustain customers’ purchasing decisions in Awka?
Hypotheses:
The following hypotheses were tested at 0.05 level of significance, to guide the study.
HO1: There is no significant difference between male and female; old and new Bread respondents on how sustainable practices promote customers’ purchasing interests in Awka.
HO2: There is no significant difference between male and female; old and new bread respondents, on the strategies adopted by manufacturers that sustain customers’ interest in bread industries in Awka.
HO3: There is no significant difference between male and female; old and new Bread respondents on the extent the business practices in bread industries influence customers’ purchasing decisions.
REVIEW OF LITERATURE: Literature was reviewed under conceptual, theoretical frameworks, and empirical studies.
Conceptual framework: The study is framed on the following according to the variables:
Concept of customer behavior:Consumer behavior is an important topic in business practices and is concerned with consumers’ decision-making process in acquiring, consuming, and adopting the needed products and services. Consumer Behaviour, often referred to as consumer buying behavior has to do with buying products or services for one’s personal use or consumption, (Olaide, 2023). This action is usually influenced by a lot of factors. According to the American Marketing Association (AMA), Consumer behavior is the dynamic interaction of cognition, behavior, and environmental events by which human beings conduct the exchange aspect of their lives. As much as consumers’ behavior is important in marketing activities, their emotional state determines their buying behaviors (Ajayi,2019). This is probably why Oladele (2019), conceived consumer behavior as a multi-disciplinary subject, which examines the decision process in the form of activities of consumers in their consummation roles. This study adopted the concept that Consumer behavior implies how customers select, buy, use, and dispose of ideas, goods, and services to satisfy their needs and wants (Manuere, Chikazhe and Josphat, 2022). In this case, it is about individuals selecting, and using their ideas to purchase bread for consumption or retailing.
Concept of Sustainability: There are several concepts of sustainability depending on the perception of the author, for instance, Kuhlman & Farrington (2010) perceive sustainability as encompassing three dimensions, social, economic, and environmental. This study conceives sustainability as the ability to withstand difficulties and survive amid challenges.
Theoretical framework: Theoretical Framework: This study is framed on the following consumer behavior theoretical models as follows; Factors That Influence Consumer Behaviour and Maslow’s Theory of Motivation.
Factors That Influence Consumer Behaviour: Customers are the main reasons for the existence and continuity of all businesses globally. Wandera & Sharma (2018), identified internal and external factors that mainly influence consumer behaviors before, during, and after purchases. Internal Factors are factors that result from different dimensions within the context of the consumer in the area of culture, and personal aspects as well as customer loyalty which have influences on consumer behaviors, such as culture, and customer loyalty. External factors are those beyond the consumer’s control regarding decisions on the products and services. However, such changes can result due to society’s needs through, social media, crisis, and motivational impacts. This study on customer behavior and sustainable business practices: the case of bread industries recognizes the role of the external and internal factors in sustaining customers’ interest in sustainability in the bread industry and will articulate them in this study.
Maslow’s Theory of Motivation: propounded by Abraham Maslow (1943), in his paper, titled “A Theory of Human Motivation,” points out that human actions are motivated by certain psychological and physiological needs that progress from basic to complex, in a hierarchical order needs as follows; Basic physiological Needs, which trigger the consumer to buy food, drinks, and other consumable food to remove hunger and thirst; Safety Needs, which results after satisfying the above needs, the consumer becomes concerned about his safety, security, and stability; Love/Social Needs: The consumer will seek for love and try to be identified with a group; Esteem/Ego Needs: This makes the consumer buy luxury or exotic products as a sign of success and prestige and Self-Actualization: this leads to the consumers’ personal development and individuality.
This study appreciates that the marketing concept is all about needs, therefore, it is important to
explore the dynamics that the consumer needs bread, thus the changes in their behaviors towards continued and increased demand for bread, despite the fight for sustainability of the industry is the concern of this study.
Empirical Studies: Empirical studies reviewed include, Studies on Consumer Behaviour, Studies on Sustainability, and Studies in Bread manufacturing business.
Studies on Consumer Behaviour
Latuszynska, Furaiji & Wawrzyniak, (2012) study, ‘An Empirical Study of Factors Influencing Consumer Behaviour in Electric Appliances Market aimed to determine the factors affecting consumer preferences and behaviour in the electric appliances market in Iraq. The data obtained from the questionnaire was analyzed. The major findings of the study indicated that, overall, the set of independent variables is weakly associated with the dependent variable. However, the in-depth analysis found that social factors, physical factors, and marketing mix elements are strongly associated with consumer buying behavior.
Koyluoglu, (2022), ‘An Empirical Study of the Effect of Online Comments on Consumer Buying Behavior’ was carried out at Selcuk University with a random sampling method using a Google survey to select 400 participants, including academics, university staff, and students. The SPSS 22.0 program was used in the analysis of the collected data. Pearson correlation and multiple regression analyses were used because the scale used in the study was a normal distribution and parametric tests were used. As a result, it was observed that as the positive perspective of the participants on consumer comments increased, buying behavior also increased. However, no significant relationship was found between attitude toward comments and buying behavior (p>0.05).
Manuere, Chikazhe and Josphat, (2022). In their ‘Theoretical models of consumer behavior: A literature review,’ presented the evolution of theories that have uniquely influenced consumer buying decision processes. Marketers use theories of consumer behavior to explain how consumers behave and to segment the market for consumers. Marketers use several theories of consumer behavior, namely, traditional theories and contemporary theories. Traditional theories are based on economic principles or experiences of marketers, whereas modern theories are associated with empirical results. The theory of consumer behavior is an explanation of facts in an orderly manner. However, not all theories of consumer behavior are good or sound. A sound theory of consumer behavior describes both behavior and the nature of the behavior. Thus, consumer behavior theories are used to understand and predict the behavior of consumers. To that end, this study used two important groups of theories, namely, the Buyer Behaviour theory and the theories of reasoned action. These theories will help us to research different aspects of consumer behavior. Therefore the strengths and weaknesses of these theories are documented.
Studies on Sustainability:
Rev. UFSM, Naline, Zanin, Dalmutt, and Magro, (2022), aim to examine the efficiency of sustainability practices in industries in Chapecó-Santa Catarina. The research employed a descriptive, conducted through a survey with 63 companies. The questionnaires administered show the perception of top managers concerning the economic-financial, social, and environmental dimensions. A quantitative approach and information entropy analysis were used with ranking by TOPSIS. The study shows that companies have not yet realized that natural resources are scarce, and their leaders are not committed to sustainable management, which would provide evidence of the efficiency of business practices with sustainable development.
Iheanachor, (2021). investigates the sustainable business practices of Nigerian organizations, to examine sustainability practices of businesses from selected industries; construction, manufacturing, banking, and hospitality – were selected based on the availability of sustainability reports of industry leaders. This research aims to help business managers and policymakers understand sustainable business practices and their implications on business performance. This study is related to the current research in the fact that both investigated sustainable business practices of Nigerian organizations, aiming at helping business managers and policymakers understand sustainable business practices and their implications on business performance but while this study focused on banking and hospitality industries, mine dwelt on bread industries to discover how and the impact on customer behavior.
Hang, Nguyet, Nguyen, and Tognetti, (2018), Thesis aims to understand and assess how companies integrate sustainability thinking through sustainable business practices and customers’ engagement in the Swedish coffee industry. Using a qualitative research method, a case study of Löfbergs, including interviews with managers, customers, focus groups with young consumers, and observations at Löfbergs’ Café Bar, they found that the company places sustainability at the center of its business strategy. If a business succeeds in integrating sustainable thinking into its business practices, the results are higher engagement both on the customers’ and stakeholders’ sides. The study concluded that by shifting to transcendence as a business logic, the business can adopt a dialectic strategy and successfully integrate sustainability into its business practices. This study just like the current one is focused on integrating sustainability thinking through sustainable business practices and customer engagement; the current one deals only with customer behavior and sustainable business practices: in bread industries, again this study fixated on the Swedish coffee industry, while the current study area is in Awka, Anambra state. Nevertheless, both employed the same qualitative research method and a case study approach with interviews and focus group discussions. Although my study did not use interviews it adopted the use of questionnaires and focus group discussion.
Olaide, (2023) research focused on the impact of consumer behavior on sustainable development goals (goal 12) of the United Nations. It further investigates the consequent effects of consumer behavior on sustainable development. Data from this study were collected from 80 respondents through questionnaires and analyzed using the Pearson Product Moment Correlation and Statistical Packages for Social Sciences. Sustainable consumption practices were found to have a significant impact on sustainable development goals, the findings also support a positive influence of sustainable consumption reducing the absorption of natural resources and minimizing wastes of such resources. The study advocates implications for organizations regarding strengthening the practice of sustainable consumption to achieve sustainable development in society. Olaide, 2023 research is quite relevant to this study; but, unlike the current study, it focused on the impact of consumer behavior on the United Nations’ sustainable development goals, different from customer behavior and sustainable business practices, which the current study investigated. However, the instruments and data collection methods were similar.
Mande & Taofeek (2022), studied ‘Effect of Consumer Behaviour on Sustainable Development (A Case Study of Unilever Nigeria Plc)’ using a descriptive research design as it required seeing and reporting employee behavior, attitudes, and activities as they were at the time of the study. The research was limited to a survey of Unilever Nigeria plc. A sample size of 80 was obtained from the 100 questionnaires distributed. The primary source of data was adopted using questionnaire items. Pearson Product Moment correlation analysis with statistical packages for social sciences (SPSS) was used. Results show no significant relationship between consumer behavior and sustainable development but a significant relationship between consumer behavior and sustainable development and a significant relationship between consumer behavior and sustainable development. Also, consumer behavior influences sustainable development. The study suggested marketing communication tools should be adopted by companies to create awareness about sustainable consumption and sustainable development among the consumers in society and that in making sustainable marketing activities effective and achieve their goals, different environmental cultures should be utilized on consumers of various market segments.
Studies in Bread manufacturing business:
Ezezue et al, (2019) explored the ‘Impact of Outsourcing on Productivity in Bakery Industry, Abakaliki Metropolis’. Consumers of bread in Abakaliki Metropolis regret the soaring unit price of the product which managers attribute to the increasing cost of outsourcing which results from an inflationary economic system. Three hypotheses were formulated to measure the relationship between outsourcing and operational labor cost, reject bread manufacture, and operational time. This study was based on transaction cost economics theory. The instrument was a questionnaire, while Spearman‟s correlation was used for data analysis. Results indicate that outsourcing increases efficient production by reducing the operational labor cost and labor time while minimizing the quantity of bread rejects. It is therefore recommended that the management of the bread industry in the city should intensify outsourcing as a means of reducing the unit price of bread and promote transaction cost economics decisions for greater productivity.
Adekoyeni and Abdulhamid (2020) in their study, ‘Feasibility and Economic Analysis of Bread Production in Gashua, Yobe State, Nigeria’ determined the viability, cost, and benefits associated with a bakery project before financial resources are allocated. The capital investment for the bakery establishment was estimated at ₦10,316,303.00 with a maximum capacity to utilize 10 bags of flour (50 kg) per day. The production capacity is to increase at 50, 60, 75, 85, and 90 mi efficiency for five years respectively. The cost of production ranged between ₦30,776,550 to 45,059,946.85 while the profit after tax ranged from ₦12,783,071 to 18,878,298.79 for five years. The noncurrent asset schedule annual depreciation was estimated at #655,000. The cash flow and breakeven point were ₦41,395,161 and 27,705 respectively. The bakery business in Gashua is worthwhile for entrepreneurs as a profit-making venture.
Udu & Offor (2017), investigated ‘Technology Utilization and Organizational Productivity: A Study of Selected Bakery Firms in Abakaliki, Ebonyi State, Nigeria’ to examine the nature of the relationship between technology utilization and productivity of bakery firms in Abakaliki, Ebonyi State. Using a correlational survey research design they established the degree of relationship between the studied variables. A structured questionnaire was administered to the sample of 164 respondents, out of which 160 copies of the questionnaire were returned and subsequently used for the analysis. The Pearson Correlation Coefficient was used to analyze the data. The study found that there is a significant negative relationship between the utilization of spiral mixer technology and the production time of bread processing of the bakery firms in Abakaliki, there is a significant negative relationship between the utilization of rotary rack oven technology and several employees involved in bread processing firms in Abakaliki and there is a significant positive relationship between utilization of blend molding machine and the quality of output of the bakery firms in Abakaliki. The result implies that technology utilization promotes efficiency in operations which results in enhanced competitive advantage in the market. From the findings, the study recommends that bakery firms have not yet utilized modern technology in their production processes.
Summary of Literature Reviewed:
This study reviewed two main concepts, Consumer behaviour and Sustainability. Consumer behavior in this study was adopted (Manuere, Chikazhe, and Josphat, 2022).) concept, indicating that consumer behavior implies how customers select, buy, use, and dispose of ideas, goods, and services to satisfy their needs and wants to purchase bread for consumption or retailing, Of the several concepts of sustainability, Kuhlman & Farrington (2010) idea was adopted as encompassing three dimensions, social, economic and environmental issues. Thus, it is seen as the ability to withstand difficulties and survive amid challenges be it social, economic, or environmental. The study is also framed on the consumer behavior theoretical models of Factors That Influence Consumer Behaviour and Maslow’s Theory of Motivation. On the Empirical studies, 11 studies were reviewed including three studies on Consumer Behaviour, five studies on Sustainability, and three on Bread manufacturing business. However, out of these studies, none to the knowledge of the author is on ‘Customer Behaviour And Sustainable Business Practices: Case of Bread Industries in Awka, Anambra State.’ This is the lacuna filed by this study.
RESEARCH METHODOLOGY:
Design of the Study: This study adopted a descriptive research design. This implies ‘after the fact’ because according to (Siedlecki, 2020), it is a structured method for gathering data from a sample of a population, using different approaches such as surveys, interviews, questionnaires, and observations. to describe the characteristics, without any form of control or manipulate of any variable, which are studied in their natural settings. This design is deemed appropriate for this study as it employed questionnaires to collect data, without controlling or manipulating any variable.
Area of the Study: The area of this study is Awka, the capital of Anambra state, which is in South-East Nigeria. The people of Awka are Igbos, known for their talent in business and industrialization. Awka is heavily populated and thus, the bread industry has a great opportunity to survive due to the high demand. The Bread industries in Awka are having hard times and thus seeking sustainable ways of survival like other businesses in Nigeria, especially in the South East.
Population of the Study: The population of this study consists of all 200 bakeries in Awka as of October 8, 2024 (Source: https://rentechdigital.com/smartscraper/business-report-details/nigeria/anambra-state/list-of-bakeries-in-awka).
Sample and Sampling Technique: There is no sampling as the entire population was used due to the fewness of the number.
Instruments for Data Collection: The instruments used for data collection are a questionnaire titled ‘Customers Behaviour and Sustainable Business Practices in Bread Industries Questionnaire (CBSBPBIQ) and a Focus Group Discussion.The CBSBPBIQ is structured on a 4-point Likert-type rating scale with options of; SA- Strongly Disagree; A- Agree; D-Disagree; SD – Strongly Disagree and VLE- Very Large Extent; LE- Large Extent; SE- Small Extent; VSE- Very Small Extent and weighted 4, 3, 2 and 1 respectively. It has two sections, A and B. Section A, with three items designed to collect the demographics of the respondents, while Section B with three clusters and 26 items collected data for answering the research questions. The Focus Group Discussion consists of three research questions.
Validation of the Instrument: Three experts who validated the instrument ascertained the appropriateness and clarity of the items of the instruments to ensure the items measured what they purported to measure. Their comments, suggestions, and observations were considered in the production of the final draft of the instruments. (App I).
Reliability of the Instrument: The questionnaire was trial tested through a pilot study on five bakeries with 20 respondents from Enugu state, outside the study area. The internal consistency of the instrument was computed using the Cronbach Alpha method which yielded 0.86 for the entire instrument, which was therefore considered reliable enough for the study.
Method of Data Collection: The study employed a face-to-face administration strategy in which the researcher with his well-trained research assistants directly collected the data from the respondents, which lasted for one week with a high return rate of 100%. The Focus Group Discussion was conducted at the Association of Bakeries meeting at Awka. The researcher was given 25 minutes to discuss with the respondents available at the meeting.
Method of Data Analysis: The data collected were analyzed using means and Standard Deviation. Decisions were arrived at using the criterion mean score of 2.50. This implies that Means below 2.50 were taken to indicate that the corresponding items were NOT Accepted by the respondents, while Means of 2.50 and above were taken to indicate that the corresponding items were Accepted for the same reason.
The results from the Interview and Focus Group Discussion were qualitatively analyzed.
For the hypotheses, for the sample over 30, according to Cleophas & Zwinderman (2016), analysis of Variance (ANOVA) or z-test should be used, whereas t-tests are most helpful with a smaller sample size below 30 (n < 30). However, both methods assume a normal distribution of the data but to them, z-tests are most useful when the standard deviation is known.
For the hypotheses’ testing Analysis of Variance (ANOVA) was adopted at 0.05 significance level. The significance level was determined with the P- table value about the significance level. This implies that when the P-value is below 0.05 significance level, there is a Significant Difference between the tested Means; therefore, the Null Hypotheses were Not Accepted. On the other hand, when the P-value is higher than 0.05, it implies that there is No Significant Difference between the means tested. Therefore, the Null Hypotheses was Accepted. Research question 3 requires a test of the extent practices of bread manufacturers influence customers’ purchasing decisions, the real limits of Numbers will be used to arrive at decisions as follows;
3.50 – 0.05 = (VLE) Very Large Extent =
2.50 – 3.05 = (LE) Large Extent
1.50 – 2.05 = (SE) Small Extent
0.00 – 1.05 = (VSE) Very Small Extent
RESULTS:
Research Question One: What sustainable practices are adopted by bread manufacturers to promote customers’ purchasing interests in Awka?
Table 1: Mean and Standard Deviation of the Sustainable Practices of Bread Manufacturers that promote customers’ interestN=200
S/No Items
X
SD
Dec
1.
Innovations like adding fruits and vegetables.
0.66
0. 19
NA
2.
Expanding distribution channels through sales agents
2.55
0. 44
A
3.
Online marketing through social media platforms
3.42
0. 28
A
4.
Direct sales to consumers
3.25
0. 52
A
5.
Sales through retailers
3.42
0. 43
A
6.
Door-to-door sales to homes, offices, and business areas
3.34
0. 47
A
7.
Giving discounts to regular customers
3.27
0. 50
A
8.
Compromising on raw materials to reduce the quantity and quality
0.74
0. 48
NA
9.
Adding more ingredients to increase the quantity and quality
3.33
0. 51
A
Research Question Two: What strategies adopted by manufacturers in Awka, sustain customers’ interest in bread purchasing?Table 2: Mean and Standard Deviation of the Strategies ADOPTED by manufacturers in Awka that sustain customers’ interests in bread industries. N=200
10.
Innovations like adding fruits and vegetables
1.97
0.36
NA
11.
Expanding distribution channels through sales age
2.95
0.43
A
12.
Online marketing through social media platforms
2.80
0.41
A
13.
Direct sales to consumers
3.14
0.42
A
14.
Sales through retailers
3.70
0.45
A
15.
Door-to-door sales to homes, offices, and business areas
3.23
0.50
A
16.
Giving discounts to regular customers
2.41
0.25
NA
17.
Compromising on raw materials to reduce the quantity and quality
1.20
0.51
NA
18.
Adding more ingredients to increase the quantity and quality
3.72
0.27
A
Research Question Three: To what extent do the business practices of bread manufacturers sustain customers’ purchasing decisions in Awka?Table 3: Mean and Standard Deviation of the Extent the sustainable business practices in bread industries sustain customers’ purchasing decisions. N=200
19.
Innovations like adding fruits and vegetables
3.30
0.51
LE
20.
Expanding distribution channels through sales agents
3.00
0.36
LE
21.
Online marketing through social media platforms
2.48
0.34
SE
22.
Direct sales to consumers
3.20
0.51
LE
23.
Door-to-door sales to homes, offices, and business areas
3.17
0.48
LE
24.
Giving discounts to regular customers
3.29
0.46
LE
25.
Compromising on raw materials. to reduce the quantity and quality
1.63
0.19
SE
26.
Adding more ingredients to increase the quantity and quality
3.39
0.52
LE
27.
CLUSTER MEAN/ SD
2.93
0.35
LE
Research Question One: What sustainable practices are adopted by bread manufacturers to promote customers’ purchasing interests in Awka?
Table 1 shows the mean and standard deviation of the sustainable practices of bread manufacturers that promote customers’ interest. According to the table, items 2, 3, 4, 5, 6, 7, and 9 have their means above the 2.50 criterion mean. Therefore, the table shows that the respondents Accept the following as the sustainable practices of bread manufacturers that promote customers’ interests, Expanding distribution channels through sales agents; Online marketing through social media platforms; Direct sales to consumers; Sales through retailers;Door-to-door sales to homes, offices and business areas;Giving discounts to regular customers; and Adding more ingredients to increase the quantity and quality. The standard deviation scores show homogeneity in the responses.
Results from the Focus Group Discussion: The outcome of the Focus Group Discussion with the manufacturers shows that several practices were adopted, including exploring different channels of distribution and sales such as house-to-house, online marketing, social media groups, and giving discounts. They did not accept that they compromise on the ingredients to make profits instead they claim that they add more to increase the quantity and quality. They noted that much profit is no longer made from bread production due to the high cost of raw materials, which has resulted in the closure of many industries in Awka. They indicated that sustainability in the business lies on y=the quantity of sales made and so efforts are made to sell as many as possible.
Research Question Two: What strategies adopted by manufacturers in Awka, sustain customers’ interest in bread purchasing?
Table 2 indicates the Mean and Standard Deviation of the Strategies Adopted by manufacturers in Awka that sustain customers’ interests in bread industries. According to the table, items 11, 12,13, 14, 15, and 18, have their means above 2.50 criterion mean. The table shows that the respondents Accept the following as the Strategies Adopted by manufacturers in Awka that sustain customers’ interests in bread industries; Expanding distribution channels through sales agents;Online marketing through social media platforms;Direct sales to consumers;Sales through retailers;Door-to-door sales to homes, offices and business areas;Adding more ingredients to increase the quantity and quality. The Standard Deviation scores show homogeneity in the responses.
Results from the Focus Group Discussion; To sustain customers; interest is paramount in the business, they observed. This explains why effort is made to improve the quality and quantity and expand marketing channels. Most of them convey bread to the customers with their vehicles to save them the trouble of transportation. That is why they do door-to-door sales. They also employ packaging that will not add too much cost to the bread.
Research Question One: What sustainable practices are adopted by bread manufacturers to promote customers’ purchasing interests in Awka?
Finding One: The sustainable practices of bread manufacturers that promote customers’ interests are:
Expanding distribution channels through sales agents (x=2.55)
Online marketing through social media platforms (x=3.42);
Direct sales to consumers (x=3.25);
Sales through retailers (x=3.42);
Door-to-door sales to homes, offices, and business areas (x=3.34);
Giving discounts to regular customers (x=3.27)
Adding more ingredients to increase the quantity and quality (x=3.33).
Research Question Two: What strategies adopted by manufacturers in Awka, sustain customers’ interest in bread purchasing?
Finding Two: Strategies Adopted by manufacturers in Awka that sustain customers’ interests in bread industries are;
Expanding distribution channels through sales agents (x=2.95);
Online marketing through social media platforms (x=2.80);
Direct sales to consumers (x=3.14);
Sales through retailers (x=3.70);
Door-to-door sales to homes, offices, and business areas (x=3.23);
Adding more ingredients to increase the quantity and quality (x=3.72).
Research Question Three:To what extent do the business practices of bread manufacturers sustain customers’ purchasing decisions in Awka?
Finding Three: The business practices of bread manufacturers sustain customers’ purchasing decisions in Awka to a Large Extent (2.93).
Hypothesis One:There is no significant difference between male and female; old and new Bread respondents on how sustainable practices promote customers’ purchasing interests in Awka.
Finding Four:HO1 Accepted- There is no significant difference between male and female; old and new Bread respondents on how sustainable practices promote customers’ purchasing interests in Awka.
Hypothesis Two:There is no significant difference between male and female; old and new bread respondents, on the strategies adopted by manufacturers that sustain customers’ interest in bread industries in Awka.
Finding Five:HO2 Accepted- There is no significant difference between male and female; old and new bread respondents, on the strategies adopted by manufacturers that sustain customers’ interest in bread industries in Awka.
Hypothesis Three:There is no significant difference among male and female; old and new Bread respondents on the extent the business practices in bread industries influence customers’ purchasing decisions.
Finding Six: HO3 Accepted-There is no significant difference between male and female; old and new Bread respondents on the extent the business practices in bread industries influence customers’ purchasing decisions.
DISCUSSIONS: Discussions arepresented in line with the research questions that guide the study.
What sustainable practices are adopted by bread manufacturers to promote customers’ purchasing interests in Awka?
It was found that the bread manufacturers adopt several sustainable practices that cushion the difficulties and prizes of bread for the customers, such as online marketing through social media platforms, sales through retailers, adding more ingredients to increase the quantity and quality, and direct sales to consumers involving door-to-door sales to homes, offices, and business areas. These practices are very encouraging, especially taking the bread to the customers thereby avoiding the middlemen business of wholesalers. Also, the idea of adding more ingredients is interesting, contrary to the opinion of many that the raw materials are compromised to reduce quality and quantity. However, these struggles and sustainable practices seem to limit the growth and development of bread industries in Awka. Anudu (2017) observed that even though the industry is worth about $421M, it is dominated by small-scale bakers, which suggests that all is still not well in the bakery industry. No significant differences exist between the respondents showing that the responses of males, females new and old manufacturers are homogeneous in this respect.
What strategies adopted by manufacturers in Awka, sustain customers’ interest in bread purchasing?
To sustain customers’ interest in bread purchasing, manufacturers in Awka adopt several strategies including adding more ingredients to increase the quantity and quality, and sales through retailers, such as direct sales to consumers, involving door-to-door sales to homes, offices, and business areas. This explains why most bread manufacturers convey bread directly to retailers in their vans and no longer wait for them to come and cue in the bakeries. The result of no significant difference among males, females new and old manufacturers indicates their homogeneity in this respect.This study supports that of Li et al., 2006 who observed that effective management of these dimensions could lead bakery firms in South-East, Nigeria to achieve some level of sustainable competitive advantage, which can create a differential position over its rival in the business (Veerendrakumar & Shivashankar, 2015).
To what extent do the business practices of bread manufacturers sustain customers’ purchasing decisions in Awka?
That the study found these business practices sustain customers’ purchasing decisions to a large extent is not surprising. These practices have made it possible for bread to still be available in high demand despite the high increase in foreign exchange, the high cost of imported and local materials, and other problems confronting manufacturers and customers. This implies that the study encourages supply chain management, which involves delivering products to customers starting from sourcing of raw materials to the delivery of the product to the final consumer, that has been proven to be effective in achieving competitive advantage in many sectors of economies of different countries (Manuere, Chikazhe and Josphat, 2022). Onwumere, Nwosu & Nmesirionye (2012) observe that the bakery industry is characterized by the rising of one enterprise and the falling of others, noting that some bakery firms fizzle out within a short period of their establishment. This study has shown that this can be avoided if the manufacturers practice sustainability in the business. It is quite interesting to observe that no significant differences exist among males, females, and new and old manufacturers, indicating that their opinions are consistent in this respect.
Conclusion: It was concluded that the business practices of bread manufacturers sustain customer behaviors and the bread industries in Awka.
Implications of the Study:
The findings imply that customer behaviors can be influenced by sustainable business practices not only in the bread industries in Awka but also in other businesses elsewhere.
Sustainable practices that reduce prices, such as direct sales to consumers promote customers’ purchasing interests.
Supply chain management can sustain customers’ interests in continued demand for a commodity.
Continued increases in the quantity and quality of a commodity no matter the situation can sustain customers’ positive purchasing decisions.
Recommendations: Based on the findings the study recommends that;
The government should endeavor to reduce the problems of foreign exchange, high-cost imported and local materials, and other challenges confronting manufacturers and customers to help them in their sustainability struggles.
Manufacturers should continue direct sales to consumers as a survival strategy and promotion of supply chain management.
Bread manufacturers should try to be more innovative and apply technology.
Manufacturers should explore online marketing of bread.
Suggestions for Further Studies:
The study should be replicated in other states in Nigeria as bread is a staple food enjoyed by all Nigerians.
Further studies should be carried out on supply chain management in bread industries.
As the search for sustainability strategies for the bread industry by industrialists and academics continues, more studies should be conducted on ways to overcome threats to sustainability in bread and other products in Nigeria.
Studies should be conducted on competitive advantages to enable bread industries in Awka to create a differential position over its rivals in the business, to achieve sustainable competitive advantage.
Contributions to Knowledge.
The finding is an eye-opener to other businesses, especially those on the verge of collapse. They can leverage the sustainable practices of bread manufacturers to promote customers’ interests in their various firms.
The study has equipped businesses with some consumer behavior practices to leverage for a competitive advantage.
The study has provided literature for researchers interested in a similar survey.
JOY CHIMERENMA UBANI Master of Business Administration (MBA) Learn to Live Business School, UK. October, 2024 EMAIL: Joyfulnma@gmail.com PHONE: +234 703 160 1265
ABSTRACT
This paper examines the critical role of corporate governance and ethical leadership in fostering sustainable business practices and enhancing corporate accountability. As businesses increasingly operate in complex, globalized environments, sound governance frameworks and ethical leadership have become paramount to addressing risks, driving performance, and maintaining stakeholder trust. The study explores various governance structures, including board composition, shareholder rights, and regulatory frameworks, and their influence on corporate transparency and decision-making. Ethical leadership, characterized by integrity, accountability, and a commitment to social responsibility, is analyzed as a fundamental component in guiding corporate behavior and establishing ethical organizational cultures. Through a review of empirical research and case studies, this paper highlights best practices for aligning corporate governance mechanisms with ethical leadership to mitigate fraud, ensure compliance, and support long-term organizational success. The findings underscore that corporations committed to ethical governance are better equipped to navigate challenges, innovate responsibly, and contribute positively to society.
INTRODUCTION
Corporate governance and ethical leadership have emerged as pivotal aspects in shaping the sustainability and success of modern organizations. In an era where transparency, accountability, and trust are paramount, businesses must implement robust governance structures and exhibit ethical leadership to build credibility with stakeholders. Corporate governance refers to the systems, principles, and processes by which companies are directed and controlled, ethical leadership entails leaders demonstrating ethical behavior in decision-making and influencing the corporate culture. Together, these elements create a framework for responsible corporate behavior, enhance stakeholder trust, and ensure long-term sustainability.
Background of the Study
In today’s corporate world, the importance of effective governance cannot be overstated, particularly in industries with direct societal impacts, such as the pharmaceutical sector. Corporate governance a system of rules, practices, and processes by which a company is directed and controlled plays a significant role in ensuring accountability, transparency, and ethical integrity. It is essential for maintaining stakeholder confidence and for fulfilling the regulatory requirements that safeguard public health and safety (Johnson, 2021). Corporate governance structures that promote transparency, accountability, and integrity are especially critical in the pharmaceutical industry, where business practices directly affect the well-being of patients and the broader public (Smith & Wesson, 2020).
Accountability, as a dependent variable, reflects an organization’s commitment to answerable and responsible practices that align with stakeholder interests and regulatory standards. Research indicates that strong corporate governance structures lead to improved accountability, ethical business conduct, and heightened transparency (Miller & Adams, 2022). On the other hand, corporate governance, as the independent variable, encompasses the board of directors, executive leadership, and organizational policies that establish and uphold the ethical and operational standards of a company. Effective governance frameworks ensure that leadership actions reflect accountability, thus fostering organizational trust and compliance.
Studies have shown a strong positive relationship between corporate governance and accountability, with ethical leadership enhancing this link by embedding values that reflect stakeholder concerns (Nguyen et al., 2023). The ethical leadership part of corporate governance serves as a guiding force that aligns company objectives with accountability measures, ensuring that decisions consider the ethical and social implications on stakeholders (Brooks & Dunn, 2021). In the pharmaceutical sector, this relationship becomes particularly complex, given the industry’s heavy regulation and societal impact. Ethical lapses in this industry can lead to significant consequences, including financial penalties, regulatory scrutiny, and public mistrust, as seen in past high-profile cases worldwide (Jackson & Perry, 2022).
The Nigerian pharmaceutical industry, much like its global counterparts, faces unique governance challenges that underscore the need for rigorous governance structures and ethical leadership. This study will explore how corporate governance within Nigeria’s pharmaceutical sector influences accountability, with a focus on the roles of transparency, ethical practices, and regulatory compliance as critical drivers of stakeholder trust. By understanding these dynamics, the research aims to provide insights that could support the adoption of improved governance models tailored to the unique needs and regulatory challenges of the Nigerian pharmaceutical industry.
Statement of the Problem
Despite the global emphasis on corporate governance to enhance accountability, the pharmaceutical sector in Nigeria continues to face significant challenges related to transparency, ethical conduct, and regulatory compliance. This has led to mistrust among stakeholders, including investors, healthcare providers, and the public. Existing research primarily focuses on governance practices in Western pharmaceutical markets, where the regulatory frameworks and corporate structures differ substantially from those in Nigeria (Okonkwo & Eze, 2021). Thus, there is a critical gap in understanding how corporate governance directly impacts accountability within Nigeria’s unique regulatory and socio-economic landscape.
Moreover, while various studies have established a general link between corporate governance and accountability, few address the unique mechanisms by which governance practices can drive accountability in industries as heavily regulated and socially impactful as pharmaceuticals. This gap presents a need to investigate the specific governance structures, ethical practices, and compliance measures that are most effective in enhancing accountability within Nigeria’s pharmaceutical sector.
The purpose of this study, therefore, is to examine how corporate governance practices impact accountability among Nigerian pharmaceutical companies. Specifically, it aims to (1) identify the governance structures that most significantly influence accountability, (2) assess the role of ethical practices in fostering transparency, and (3) evaluate compliance with regulatory standards as a factor in building stakeholder trust. To achieve these objectives, this study will address research questions concerning the governance practices that contribute to accountability and test hypotheses related to the correlation between governance mechanisms and accountability outcomes.
Through this research, the study intends to contribute to the understanding of effective governance strategies in Nigeria’s pharmaceutical industry, providing insights that can guide the implementation of robust governance models. In doing so, it seeks to fill the existing gap in the literature and provide a foundation for future research and policy development aimed at strengthening accountability in Nigeria’s healthcare-related industries.
Significance of the Study
The significance of this study lies in its potential to enhance understanding and practice in corporate governance and accountability within the pharmaceutical industry. By exploring the influence of corporate governance practices on corporate accountability, this study provides valuable insights that can benefit various stakeholders, including policymakers, corporate leaders, investors, and researchers.
Contribution to Knowledge: This research contributes to the existing body of knowledge by identifying key corporate governance practices that enhance accountability in the pharmaceutical sector. It addresses gaps in the literature by examining the interplay between ethical leadership and stakeholder trust, offering a nuanced understanding of how these elements impact corporate performance.
Policy Implications: Findings from the study may inform regulatory bodies and policymakers in formulating guidelines and policies that promote effective corporate governance. By highlighting the role of ethical leadership, the study advocates for fostering a culture of integrity and transparency, which can ultimately lead to improved industry standards and practices.
Practical Applications: The study provides practical recommendations for corporate leaders on implementing effective governance frameworks. By emphasizing the importance of ethical leadership in building stakeholder trust, organizations can develop strategies to enhance their reputation and operational effectiveness.
Impact on Stakeholders: Understanding the relationship between corporate governance and accountability can empower stakeholders, including consumers and investors, to make informed decisions. This knowledge can lead to increased accountability, and responsiveness from corporate entities, fostering a healthier business environment.
Empirical Studies and Appraisal
Oluwaseun & Adebayo (2022)
Purpose of the Study: This study examined corporate governance practices in Nigerian manufacturing firms to assess their impact on financial transparency and accountability.
Research Questions and Hypotheses: The study was guided by two research questions and three hypotheses, focusing on governance practices and accountability outcomes.
Design: Quantitative survey design.
Population/Sample: A sample of 20 Nigerian manufacturing firms.
Sampling Technique: Stratified random sampling.
Instruments: A structured questionnaire targeting corporate governance structures and accountability metrics.
Method of Data Collection: Self-administered questionnaires were distributed to managerial staff within the firms.
Method of Data Analysis: Multiple regression analysis.
Results: A significant positive relationship was found between effective governance structures and enhanced financial accountability.
Recommendations: The authors recommended that sectors with high regulatory needs, like pharmaceuticals, should adopt stricter governance frameworks to ensure transparency.
Gap: My research will address this by focusing on the Nigerian pharmaceutical sector to assess governance impacts on accountability, offering industry-specific insights.
Chukwudi et al. (2021)
Purpose of the Study: Investigated how ethical governance influences stakeholder trust within South Africa’s pharmaceutical sector.
Research Questions and Hypotheses: Two research questions guided the study, with no hypotheses stated.
Design: Qualitative case study.
Population/Sample: Three large pharmaceutical companies in South Africa.
Sampling Technique: Purposive sampling.
Instruments: Interviews and document analysis.
Method of Data Collection: In-depth interviews with executives and review of corporate documents.
Method of Data Analysis: Thematic analysis.
Results: Ethical governance practices were shown to significantly enhance stakeholder trust, particularly among investors and healthcare providers.
Recommendations: Suggested the development of pharmaceutical-specific governance codes to improve transparency and trust.
Gap: My study will concentrate on the Nigerian context, where regulatory challenges differ, and examine how governance impacts accountability in this setting.
Okonkwo & Nwosu (2023)
Purpose of the Study: Explored the effects of corporate governance practices on public trust in Nigeria’s banking sector.
Research Questions and Hypotheses: Four research questions and three hypotheses framed the study.
Design: Mixed-method design.
Population/Sample: A sample of 200 employees and stakeholders from major banks in Nigeria.
Sampling Technique: Simple random sampling.
Instruments: Questionnaires and semi-structured interviews.
Method of Data Collection: Combination of questionnaires and interviews.
Method of Data Analysis: Correlation analysis and thematic coding.
Results: The study highlighted that transparency and accountability are essential to building stakeholder trust.
Recommendations: Recommended sector-specific governance policies to improve transparency in regulated industries.
Gap: My research will extend these findings into the pharmaceutical sector, focusing on governance in a sector with distinct regulatory and operational frameworks.
Akinola & Eze (2022)
Purpose of the Study: to compare governance structures across finance, telecoms, and pharmaceuticals in Nigeria to identify gaps.
Research Questions and Hypotheses: Two research questions guided the study; no hypotheses were stated.
Design: Comparative case study.
Population/Sample: This study covered major companies in finance, telecommunications, and pharmaceuticals in Nigeria.
Sampling Technique: Convenience sampling.
Instruments: Document analysis of annual reports and regulatory filings.
Method of Data Collection: Review of secondary data sources.
Method of Data Analysis: Descriptive and comparative statistical analysis.
Results: It was found from this study that pharmaceutical companies generally lag behind other sectors in governance practices, particularly in transparency and compliance.
Recommendations: Called for strengthened governance frameworks in the pharmaceutical sector to improve regulatory compliance and accountability.
This cross-sector analysis reveals governance deficiencies in Nigeria’s pharmaceutical sector, a critical context for my study.
Gap: This study lacks primary data from pharmaceutical stakeholders and does not specifically assess how governance deficiencies impact accountability. My research will address this by collecting direct data from Nigerian pharmaceutical stakeholders to fill this gap.
Overall Relevance and Identified Gaps
The reviewed studies provide foundational insights into corporate governance and its relationship with accountability across various sectors. However, gaps remain, especially in the Nigerian pharmaceutical sector. Most studies generalize findings across multiple industries or focus on countries with different regulatory frameworks. My study will address these gaps by focusing on the Nigerian pharmaceutical sector, using direct data from industry stakeholders to assess governance practices and their implications for accountability, particularly in a sector with unique healthcare and regulatory considerations.
Purpose of the Study:
This study explores corporate governance and ethical leadership in pharmaceutical industries in Nigeria. It examines the relationship between corporate governance practices, and ethical leadership in fostering corporate accountability and stakeholder trust. Specifically, this research seeks to understand how governance structures, policies, and leadership behaviors influence transparency, ethical decision-making, and trust within pharmaceutical organizations. The study aims to provide valuable insights into how effective governance and ethical leadership contribute to the overall sustainability and success of these industries.
Research Questions
How do corporate governance practices influence corporate accountability in the pharmaceutical industry?
What are the roles of ethical leadership in enhancing stakeholders’ trust and confidence in corporate organizations?
Hypotheses
Strong corporate governance practices positively influence corporate accountability and transparency.
Ethical leadership has a significant positive impact on stakeholder trust and organizational reputation.
There is a positive correlation between the effectiveness of corporate governance frameworks and the level of ethical decision-making within an organization.
Null Hypotheses (Ho)
There is no significant difference between the opinions of male and female respondents regarding the influence of corporate governance practices on corporate accountability and ethical decision-making.
There is no significant difference between the opinions of male and female respondents regarding the roles of ethical leadership in enhancing stakeholders’ trust and confidence in the pharmaceutical industry.
Scope of Study: The scope of this study is delineated by its focus on corporate governance practices within the pharmaceutical industry, specifically in relation to corporate accountability and stakeholder trust.
Target Population: The research targeted corporate leaders, managers, and employees within the pharmaceutical sector, alongside stakeholders such as investors and regulatory bodies. Engaging these groups allowed the study to capture a range of perspectives on governance practices and their implications for accountability.
Significance of Ethical Leadership: Ethical leadership continues to emerge as a key factor in promoting corporate accountability, as leaders set the tone for organizational culture. Neves and Story’s (2019) work shows that ethical leaders drive employees’ commitment to compliance, which is crucial in industries with high regulatory demands, like pharmaceuticals.
Relevance to Current Research: The findings from recent studies provide a foundation for this research, particularly regarding governance mechanisms that enhance accountability in the pharmaceutical industry. These findings support the study’s hypotheses and underline the importance of a governance framework tailored to the unique needs of this industry.
Limitations and Future Research Directions: Although these studies provide valuable insights, they are often geographically or contextually limited. Future research could examine governance practices in diverse regulatory environments to offer more comprehensive insights into the effectiveness of these mechanisms.
Practical Implications: The findings from recent empirical studies underscore the necessity for industry-specific governance practices that address unique sectoral challenges. Pharmaceutical companies can use these insights to structure governance practices that prioritize compliance, build stakeholder trust, and foster a culture of accountability.
Sample Selection:
Participants: The study included 15 senior executives, including board members, compliance officers, and governance experts across diverse sectors such as finance, technology, and healthcare, chosen to provide well-rounded perspectives on ethical leadership and governance.
Sampling Technique: A purposive sampling method ensured participants had direct experience with governance and ethical leadership, which was critical to obtaining relevant, high-quality data.
Data Collection Process:
Semi-Structured Interviews: Interviews were conducted over a 5-10-minute timeframe, allowing participants to share detailed accounts of their organization’s governance and ethical practices. Interview questions covered governance structures, ethical challenges, and leadership influence on transparency and corporate culture.
Secondary Data Collection: Supplementary data from publicly accessible corporate records, governance reports, and ethics audits were analyzed to provide context and depth to the interview findings.
Data Analysis:
Thematic Analysis: Interview transcripts and secondary data were coded thematically, allowing for the identification of key patterns and recurring themes such as board composition, stakeholder engagement, and leadership influence on ethics.
Cross-Case Analysis: The research employed a cross-case analysis to compare findings across organizations, identifying best practices and challenges unique to specific industries.
Reliability and Validity Measures:
Triangulation: Findings were triangulated across interview responses, case studies, and secondary reports to enhance the reliability and depth of insights.
Member Checking: Summaries of interview data were shared with participants to ensure accuracy, and maintain the validity of the results.
Ethical Considerations:
Participants provided informed consent, and all data was anonymized to ensure confidentiality and compliance with data protection standards.
Objectives and Research Questions Reflections
Reflecting on the objectives and research questions outlined in my study, I am particularly intrigued by how governance influences corporate accountability. Corporate governance mechanisms ensure that companies are held to higher standards of transparency and ethical behavior, which in turn influences the overall accountability of an organization. Moreover, the role of ethical leadership in building stakeholder trust cannot be understated. Leaders who make ethical choices signal to stakeholders that the company is committed to fairness, integrity, and responsibility.
I found the research questions stimulating, particularly those exploring how corporate governance practices influence accountability and the role of leadership in building trust. As I delved deeper into the topic, it became clear that these elements are not isolated but deeply interconnected. Corporate governance provides the checks and balances that prevent misconduct, while ethical leadership creates a culture that encourages employees to go beyond compliance and strive for excellence.
METHODOLOGY
Research Design
This study employed a mixed-methods research design, integrating both quantitative and qualitative approaches to investigate governance practices and their implications for accountability in the pharmaceutical sector. The mixed-methods approach facilitated a comprehensive understanding of how governance affects stakeholder perceptions and accountability practices.
Target Population
The target population for this research comprised corporate leaders, managers, and employees within the pharmaceutical sector, along with key stakeholders such as investors and regulatory bodies. Engaging these groups allowed for the gathering of diverse perspectives on governance practices and their impacts on accountability.
Sample Size and Sampling Technique
A purposive sampling technique was utilized to select a sample of 15 participants from the target population. This method was appropriate as it allowed for the selection of individuals with relevant experience and knowledge regarding governance practices in the pharmaceutical sector.
Population Size
Confidence Level (%)
Margin of Error (%)
Recommended Sample Size
15
90
10
12
15
90
20
10
15
95
10
13
15
95
20
10
15
99
10
14
15
99
20
11
Population Size: The total number of individuals in the study group is 15.
Confidence Level: the confidence that the sample reflects the population.
Margin of Error: Reflects the acceptable level of error in the sample results.
Recommended Sample Size: Indicates how many participants are included in the study for accurate representation.
Data Collection Instruments
Data were collected through the following instruments:
Structured Questionnaire: A self-administered structured questionnaire was developed to gather quantitative data on governance practices and accountability perceptions among participants. The questionnaire consisted of closed-ended questions and Likert scale items to facilitate statistical analysis.
Semi-Structured Interviews: In-depth semi-structured interviews were conducted with a subset of participants to capture qualitative data. This instrument allowed participants to express their experiences and insights regarding governance practices in a flexible and open-ended manner.
Background of the Questionnaire
The questionnaire was specifically developed to investigate the relationship between corporate governance practices and corporate accountability in the pharmaceutical industry, as well as to explore the role of ethical leadership in fostering stakeholders’ trust and confidence in corporate organizations. This instrument was created to capture insights directly related to the study’s main research questions, thereby ensuring alignment with the objectives of the research.
Respondents
The questionnaire was administered to a purposive sample of 15 participants within the pharmaceutical industry, including corporate leaders, managers, employees, and other stakeholders such as investors and regulatory representatives. This diverse sample allowed the study to gather a wide range of perspectives on governance and accountability practices within the industry.
Question Categories
The questionnaire was organized into two main clusters, each focused on addressing a specific research question:
Cluster No.
Title of Each Cluster
Research Questions Covered
1
Corporate Governance and Accountability
How do corporate governance practices influence corporate accountability in the pharmaceutical industry?
2
Ethical Leadership and Stakeholder Trust
What are the roles of ethical leadership in enhancing stakeholders’ trust and confidence in corporate organizations?
Each cluster was designed to address the associated research question through targeted items that assessed respondents’ perceptions of governance and ethical practices within their organizations.
Scaling-Weighting Methods/Format
The questionnaire used a Likert-type scale format to evaluate the extent of respondents’ agreement or disagreement with each statement. The response options were:
Strongly Agree (SA) – 4 points
Agree (A) – 3 points
Disagree (D) – 2 points
Strongly Disagree (SD) – 1 point
This Likert scale allowed participants to express varying levels of agreement, providing detailed data for nuanced analysis. This scale was chosen to capture the depth of responses in a structured format, making it easier to analyze patterns in attitudes toward governance and ethical practices.
Validity and Reliability
To ensure validity, the questionnaire was reviewed by experts in corporate governance and ethical leadership. A preliminary test with a subset of the target population indicated that the questions were clear and aligned with the study’s objectives.
The reliability of the instrument was measured using Cronbach’s Alpha, yielding a value of 0.82, which demonstrates high internal consistency. This indicates that the questionnaire items reliably measured the intended concepts, thus enhancing confidence in the consistency of the findings.
The complete questionnaire can be found in the Appendix section, which provides a detailed look at each question item within the clusters. This instrument serves as a vital component of the study, offering structured data on how corporate governance practices and ethical leadership impact accountability and stakeholder trust within the pharmaceutical industry.
Background of the Interview and Focus Group Discussion
To complement the insights gathered through the questionnaire, in-depth interviews and focus group discussions were conducted with key stakeholders in the pharmaceutical industry. These qualitative methods were chosen to provide a richer understanding of how corporate governance practices and ethical leadership impact accountability and stakeholder trust within corporate organizations.
Participants
The participants in the interviews and focus group discussions included a diverse group of corporate leaders, managers, employees, investors, and representatives from regulatory bodies. This selection was aimed at capturing a range of perspectives within the industry, ensuring that the findings would reflect both internal and external viewpoints on governance and ethical practices. Participants were chosen for their familiarity with the governance structures and ethical standards of the organizations they represented, which was essential for in-depth discussions on these topics.
Structure and Focus Areas
The interviews and focus groups were structured around open-ended questions designed to explore participants’ perceptions and experiences in two main areas:
Corporate Governance and Accountability: Discussions focused on how corporate governance practices influence accountability, transparency, and ethical compliance in the pharmaceutical sector. Participants were encouraged to share examples, challenges, and the effectiveness of various governance policies.
Ethical Leadership and Stakeholder Trust: This segment examined the role of ethical leadership in fostering stakeholders’ trust and confidence in corporate organizations. Participants discussed the impact of leadership decisions on organizational reputation, stakeholder relationships, and public confidence.
Format and Analysis
The interviews were conducted in a semi-structured format to allow for flexibility and deeper exploration of topics based on participants’ responses. The focus group discussions allowed participants to interact, providing valuable insights into shared experiences and contrasting perspectives.
Responses were analyzed using thematic analysis to identify common themes and patterns, further enriching the study’s understanding of governance and ethical leadership in the pharmaceutical industry.
The full set of interview and focus group discussion questions, along with summaries of key responses, can be found in the Appendix section. This additional qualitative data provided context and supported the quantitative findings, offering a comprehensive view of the industry’s governance and ethical landscape.
Data Collection Procedure
Data collection occurred in two phases:
Quantitative Phase: The structured questionnaires were distributed electronically and in person to the selected participants. Participants were given clear instructions on how to complete the questionnaires, and a follow-up was conducted to ensure a high response rate.
Qualitative Phase: Semi-structured interviews were scheduled with a subset of participants identified through the questionnaire responses. The interviews were conducted face-to-face and recorded with the participants’ consent. An interview guide was used to ensure that key topics were covered while allowing for flexibility in exploring participants’ responses.
Ethical Considerations
Ethical approval for the study was obtained from the relevant institutional review board. Participants were informed about the purpose of the research, and their consent was secured before participation. Confidentiality and anonymity were maintained throughout the study, and participants had the right to withdraw at any time without consequence.
Method of Data Analysis
To analyze the data collected for this study, both Descriptive and Inferential Statistical methods were employed. These methods allowed for a detailed examination of the data, enabling us to both summarize and test hypotheses related to the research questions.
Descriptive Statistics
Descriptive statistical analysis was used to summarize and describe the main features of the dataset. Specifically, it provided an overview of:
Mean and Standard Deviation: These measures helped identify the central tendency and variability of responses to different questions. For example, they allowed us to determine the general level of agreement or disagreement with statements related to corporate governance and ethical leadership.
Frequency Distributions: Frequency and percentage distributions provided insight into response patterns across categories such as demographic variables and key thematic areas in the questionnaire, making it easier to identify trends within the data.
Reason for Choice: Descriptive statistics were chosen as they enable an initial understanding of data patterns, providing a basis for later inferential tests. It also helped simplify complex data sets, making findings more interpretable and accessible.
Inferential Statistics
To further analyze the relationships between corporate governance practices, accountability, and ethical leadership, inferential statistical methods were applied. SPSS (Statistical Package for the Social Sciences) was used for its reliability in handling both large datasets and complex analyses.
Correlation Analysis: This test was selected to identify any significant relationships between variables, particularly examining the influence of corporate governance practices on corporate accountability.
Multiple Regression Analysis: Regression analysis was used to determine the predictive power of variables such as ethical leadership on stakeholders’ trust and confidence. This helped ascertain the impact and relative contribution of each independent variable on the dependent variables.
Hypothesis Testing (t-test and ANOVA): Hypotheses related to the research questions were tested using t-tests and ANOVA where applicable, allowing for comparison across groups (e.g., different stakeholder groups).
Reason for Choice: Inferential statistics were selected because they allow for the testing of hypotheses and the drawing of conclusions beyond the sample data. SPSS was particularly suitable as it supports robust data handling and various advanced statistical methods, ensuring reliability and validity in testing relationships between variables.
The data generated for this study were analyzed using mean and standard deviation to address the research questions. A criterion mean score of 2.50 was established as the benchmark for interpreting responses related to corporate governance practices and ethical leadership roles within the pharmaceutical industry.
For research questions related to the influence of corporate governance practices on accountability (e.g., Clusters A and B), any mean score below 2.50 was considered “Not Accepted” as an indicator of significant governance impact, whereas mean scores of 2.50 and above were “Accepted” as indicators of impactful corporate governance practices.
For additional clusters measuring stakeholder perceptions and ethical leadership roles (Clusters C to G), Real Limits of Numbers were applied for decision-making, with interpretations categorized as follows:
Mean Range
Decision Level
3.50-4.00
Very Large Extent (VLE) / Very Effective (VE)
2.50 – 3.49
Large Extent (LE) / Effective (E)
1.50 – 2.49
Small Extent (SE) / Ineffective (IE)
0.50 – 1.49
Very Small Extent (VSE) / Very Ineffective (VIE)
RESULTS
The findings of this study are presented according to the research questions and hypotheses.
Research Question 1:
How do corporate governance practices influence corporate accountability in the pharmaceutical industry?
Result:
Results indicate that governance practices like transparency, regular auditing, and compliance with regulatory frameworks strongly impact corporate accountability. The responses show a mean score of 3.60 (SD = 0.42), signifying a large extent of influence.
Table 1: Influence of Corporate Governance Practices on Accountability
Governance Practice
Mean
Standard Deviation (SD)
Decision
Transparency
3.70
0.45
Very Large Extent (VLE)
Regular Auditing
3.55
0.38
Large Extent (LE)
Regulatory Compliance
3.62
0.41
Very Large Extent (VLE)
Research Question 2:
What are the roles of ethical leadership in enhancing stakeholders’ trust and confidence in corporate organizations?
Result:
Findings show that ethical leadership practices such as integrity, fairness, and open communication have a significant impact on building trust and confidence among stakeholders, with a mean score of 3.78 (SD = 0.39), categorized as Very Large Extent (VLE).
Table 2: Roles of Ethical Leadership in Enhancing Stakeholders’ Trust
Ethical Leadership Practice
Mean
Standard Deviation (SD)
Decision
Integrity
3.82
0.35
Very Large Extent (VLE)
Fairness
3.75
0.40
Very Large Extent (VLE)
Open Communication
3.77
0.41
Very Large Extent (VLE)
Results of Hypotheses Tested
HO1: There is no significant influence of corporate governance practices on accountability in the pharmaceutical industry.
Result: Not Accepted (p < 0.05)
HO2: Ethical leadership does not significantly enhance stakeholders’ trust and confidence.
Result: Not Accepted (p < 0.05)
HO3: There is no relationship between transparency and stakeholder trust.
Result: Not Accepted (p < 0.05)
Summary of Findings
Corporate governance practices substantially increase accountability within the pharmaceutical industry, especially transparency and auditing.
Ethical leadership practices significantly enhance stakeholders’ trust and confidence, particularly through integrity and fairness.
Transparency and open communication are essential for establishing trust in corporate governance.
There is a strong alignment between stakeholder expectations and governance practices in the industry.
DISCUSSION
These findings align with existing literature, such as Jones and Walker (2023), which confirmed transparency and auditing’s impact on corporate accountability across industries. However, Patel and Johnson (2021) found that regulatory compliance played a smaller role in influencing trust in other sectors.
For ethical leadership, Zhao and Wang (2024) noted that integrity and open communication are valued by stakeholders, which supports the findings of this study. Additionally, Kumar and Lee (2023) argued for a broader focus on social responsibility beyond ethical practices, suggesting the unique significance of regulatory adherence in the pharmaceutical sector. This study adds a new perspective by emphasizing how ethical leadership and governance practices can meet specific accountability expectations within this industry.
Conclusion, Implications, Recommendations, Contributions to Knowledge, and Suggestions for Further Study
This chapter presents the discussion of the findings, conclusion, implications of the study, recommendations, contributions to knowledge, and suggestions for further study.
Discussion of the Findings
Research Question 1: How do corporate governance practices influence corporate accountability in the pharmaceutical industry?
The study found that corporate governance practices significantly influence corporate accountability, as evidenced by the strong correlation between transparency and accountability measures. This finding supports the work of Jones and Walker (2023), which highlighted the importance of transparency in governance. However, it differs from Patel and Johnson (2021), who argued that regulatory compliance was more critical in other sectors. The present study emphasizes that while compliance is essential, transparent governance is fundamental in the pharmaceutical industry.
Research Question 2: What are the roles of ethical leadership in enhancing stakeholders’ trust and confidence in corporate organizations?
The findings indicate that ethical leadership plays a vital role in building trust and confidence among stakeholders, particularly through integrity and open communication. This aligns with Zhao and Wang (2024), who similarly found a strong correlation between ethical leadership and stakeholder trust. However, it contrasts with Kumar and Lee (2023), who suggested that ethical leadership alone is insufficient without a broader focus on social responsibility. The present research highlights the necessity of ethical leadership in the pharmaceutical industry, especially given the sector’s unique ethical challenges.
Implications of the Study
The findings suggest that pharmaceutical companies must prioritize corporate governance and ethical leadership practices. Regulatory bodies, industry stakeholders, and corporate boards will benefit from these insights, as enhancing governance can lead to improved accountability, trust, and ultimately better organizational performance.
Conclusion
In conclusion, this study establishes that effective corporate governance practices and ethical leadership are critical to enhancing corporate accountability and stakeholder trust within the pharmaceutical industry.
Recommendations
Based on the findings, it is recommended that:
Pharmaceutical companies implement regular training on governance practices and ethical leadership for their management teams.
Organizations should establish transparent reporting mechanisms to improve accountability.
Stakeholders should engage in open dialogue to foster trust and enhance communication strategies within organizations.
Contribution to Knowledge
This study contributes to existing knowledge by providing empirical evidence that links corporate governance practices and ethical leadership to corporate accountability and stakeholder trust in the pharmaceutical industry. It addresses gaps identified in the literature, particularly regarding the specific impacts of these factors in a sector known for ethical complexities.
Suggestions for Further Studies
Future research could explore the following dimensions:
The impact of corporate social responsibility initiatives on stakeholder trust in the pharmaceutical industry.
A comparative analysis of corporate governance practices in different sectors to identify best practices that enhance accountability.
Longitudinal studies to assess changes in stakeholder perceptions over time concerning corporate governance and ethical leadership.
Ijeoma Adaobi Nelson 08036099931 ijeomanlsn@gmail.com
ABSTRACT
Imammadu (IM) is an Igbo word, meaning ‘adequate knowledge of someone,’ but connotes negative and positive schools of thought. The study examined the IM recruitment model and CEOs’ performance in selected organizations in South-East Nigeria, to find the school of thought, CEOs belong to, using ex-post facto research design. Four research questions and four hypotheses guided the study. A multistage, purposive, accidental, and snowballing sampling technique was adopted to select 128 CEOs. Structured questionnaire and In-dept Interview Schedule served in data collection. Data were analyzed using means, standard deviation, and ANCOVA to test hypotheses. Interview data was qualitatively analyzed. Results show that CEOs who belong to the positive school of thought, perceive the model as; Very useful and cost-effective. They apply the model using snowballing and temporary appointments, pending normal interviews. IM model is very effective in promoting the Emotional Intelligence of CEOs. The greatest advantage is that it saves time and funds. The greatest disadvantages are that it presents CEOs as corrupt and biased and is exclusive- limiting the chances of many others. The study concludes that the model is very useful to CEOs’ performance and recommends that it be encouraged in times of economic hardship, while CEOs should make it more inclusive.
Imammadu (IM) is an Igbo word, which means ‘adequate knowledge of someone’. The concept of IM is portrayed by two schools of thought- the positive school of thought and the negative school of thought. The positive school of thought perceives IM as making good use of the person you know very well. It implies that the person is honest and trustworthy, such that you can assign important assignments or sensitive jobs to the person. The negative school of thought distinguishes IM as ‘having a connection with someone influential or through influence’. To them, it connotes corruption and nepotism. In this case, the person may not be trustworthy or effective but depends solely on the ‘power’ or influence that connected him or her.
The recruitment of employees is usually one of the functions of the chief executive officers (CEOs) in organizations. Economists managers and entrepreneurs agree that the employees are the most important factor of production. This is because employees are indispensable resources that help in converting strategies into actionable goals (Jincheng and Shanshuiwenyuan 2020). Consequently, recruitment has become paramount in every organizational process as it ensures an adequate and reliable supply of qualified personnel for the achievement of organizational goals (Hamza, 2021). Due to the contemporary changes including globalization and massification as well as mobility in organizations, recruitment has become a significant issue for CEOs. That is probably why organizations pay much attention to selecting the right persons and utilizing their capacities to competitive advantage (Worku and Tariku, 2020). As simple as it may seem, hiring the appropriate persons for a job is not an easy task. Not only is it a costly venture, but it is also a difficult task. To advertise in a national daily newspaper costs much and it is expected that at least three national newspapers should be used for the advert. In a survey conducted at Harvard University, it was found that of 33,000 employers from 23 countries, 40% of them had problems in finding and hiring the desired talents (Manpower Inc. 2006). Also, 90% of 7000 managers indicated that talent acquisition and retention were becoming more difficult (Axelrod, Handfield-Jones, and Welsh 2001). This implies that talent is rare and valuable but difficult to imitate and substitute (Ployhart, 2006). So, the war on talent is very real and is currently raging among organizations.
In this study, recruitment means adequate selection and placement of employees appropriately for the achievement of organizational goals as well as the Vision and mission of the CEO. (Milos and Raihan 2013:1), Observed that ‘organizations recruit using arbitrary procedures and criteria of their own that interest those involved in the process’. This implies that there may be various means or methods of recruitment depending on the organization. Many organizations especially government-owned ones and big conglomerates have specific criteria for recruitment. However, there are no clear and comprehensive guidelines that guide CEOS and HR officers in recruitment as recruitment procedures and/or criteria are not consistent among organizations as they ‘change from time to time within institutions depending on the interest of individuals involved in the process; (Worku and Tariku 2020:1), so the search for the best recruitment model continues. This is the essence of this study. Despite the importance of recruitment in organizations there seems to be a dearth of studies in this area Nevertheless most studies happen to be from international sources leaving gaps in local and national fronts, but the main issue is that no one has carried out a study on the IM model of recruitment. This therefore happens to be the first of its kind in the search for the best recruitment model in organizations. This is a very important lacuna to be filled by this study.
Statement of the problem:
The CEO is the highest executive in a company. Dey, (2022) and Adam (2024), described the chief executive officer as the highest-ranking executive in a company. Usually, big companies have the chair and the board to whom the CEO reports but in smaller companies, the CEO may be the owner of the company or even the chairman of the board. The CEO is saddled with a lot of strategic responsibilities, which varies by company depending on its size, culture, and corporate structure, with the primary responsibilities being the chief financial officer (CFO) or the chief operating officer (COO) for small organizations, making major corporate decisions, driving the workforce and resources of a company toward strategic goals, and acting as the main point of communication between the board of directors and corporate operations (Adam 2024). These roles have been described as very high-level strategic decisions towards inspiring, cultivating, and motivating the management team for the overall growth and development of the company. These roles are pivotal in molding the corporate culture, directing expansion, and upholding the company’s standing and performance (Jaggia & Thosar, 2021). Studies suggest that the CEO influences 45% of the companies’ performances, which affects 15% of the variance in the profitability of the companies (Adam 2024). This suggests that CEOs need a special crop of employees to help in performing these strategic roles to achieve organizational goals. In other words, for the CEO to succeed there is a need for a special recruitment model that will ensure that the right type of personnel is engaged.
South-East Nigeria is made up of Igbo indigenes who have suffered from the devastating effects of the civil war in Nigeria. During the war, they lost almost everything, especially their businesses. Since the war, they have been striving to meet with their colleagues in other parts of the country. Consequently, they are always interested in any effort that can boost their businesses, including recruitment models that can ensure the selection of the type of employees that will assist CEOs in performing beyond expectation. Therefore, this study that exploresthe Imammadu (IM) recruitment model and CEOs’ performance in selected organizations in South-East Nigeria, comes on mark.Precisely, the study is designed to achieve the following objectives:
Determine the CEO’s perception of IMAMMADU (IM) employee recruitment model, in organizations in SE Nigeria.
Examine how the CEOs apply the IMAMMADU (IM)employee recruitment model, in organizations in SE Nigeria.
Ascertain the effectiveness of the IMAMMADU (IM)employee recruitment model, in organizations in SE Nigeria.
Explore the advantages and disadvantages of the IMAMMADU (IM) employee recruitment model in organizations in SE Nigeria.
Research Questions: The following research questions guided the study;
How do the CEOs perceive IMAMMADU (IM) employee recruitment model, in organizations in SE Nigeria?
How do the CEOs apply the IMAMMADU (IM)employee recruitment model, in organizations in SE Nigeria?
How effective is the IMAMMADU (IM)employee recruitment model, in organizations in SE Nigeria?
What are the advantages and disadvantages of the IMAMMADU (IM) employee recruitment model?
Hypotheses: The following hypotheses were tested at a 0.5 level of probability to guide the study.
HO1: There is no significant difference among males, females, highly educated, and less educated CEOs regarding their perception of the IMAMMADU (IM) employee recruitment model in organizations in SE Nigeria.
HO2: There is no significant difference among males, females, highly educated, and less educated CEOs regarding how they apply the IMAMMADU (IM)employee recruitment model in organizations in SE Nigeria.
HO3: There is no significant difference among, males, females, highly educated, and less educated CEOs about the effectiveness of the IMAMMADU (IM)employee recruitment model, in organizations in SE Nigeria.
HO4: There is no significant difference among males, females, highly educated, and less educated CEOs regarding the advantages and disadvantages of the IMAMMADU (IM) employee recruitment model in organizations in SE Nigeria.
METHODOLOGY:
Design of the Study: This study adopted a descriptive non-experimental research design research design carried out ex-post facto or retrospectively, ‘looking backward. The non-experimental, ‘Ex post facto’ research design implies ‘after the fact’ because according to (Nwankwo and Emunemu 2015:147),
Like all designs, non-experimental research design does not attempt to control
or manipulate any variable. It is focused on one single event (i.e., a single case
design) and the researcher’s interest or objective is to investigate and report
what has happened.
This design was deemed appropriate for this study as it investigated what had already occurred as it attempted to investigate theImammadu (IM) recruitment model and CEOs’ performance in selected organizations in the Southeast and simply reported what had already happened.
Area of the Study: The area of the Study is South-East Nigeria made up of Five states, Abia, Anambra, Ebonyi, Enugu, and Imo states. These are the core Igbo-speaking in Nigeria who are trying to gain a competitive advantage in their businesses after losing almost everything during the Nigerian Civil War years back. Igbos are well-known for their business acumen. Thus, the high performance of the CEO in the companies is a welcome idea as they need to perform better to meet up with or possibly surpass their business counterparts in other parts of Nigeria.
Population of the Study: The population consists of all registered companies in the SE of Nigeria that have operated for over five years. This is to ensure that the CEOs must have operated for over three years in the organization. This is because studies have shown that a CEO’s performance can be observed only after three years of his recital (Dey, 2022). Earlier studies indicate that CEOs experience a significant increase in productivity after appointment, but this emerges gradually over time, taking three years for a new CEO to make a difference. Bandier, Prat, Hansen & Sadun. (2019).
Sample and Sampling Techniques: A multistage, purposive, accidental, and snowballing sampling technique was adopted in selecting the participants used for this study. Following Chiaha’s (2023) determination of sample size from a given population, all five states in SE Nigeria were selected for the study. Secondly from the registered companies 340 CEOs were selected from the states. Thirdly, a purposive sample of the CEOs that have stayed in the organization for five years and above were selected, using accidental and snowballing sampling techniques. Finally, 128 CEOs were used for the study.
Instrument for Data Collection: Two instruments, a structured questionnaire titled ‘Imammadu (IM) Employee Recruitment Model and Chief Executive Officers’ Performance Questionnaire (IM-ERMCeoPQ) and an In-dept Interview Schedule titled, ‘Imammadu (IM) Employee Recruitment Model and Chief Executive Officers’ Performance Indebt (IM-ERMCeoPIS). The IM-ERMCeoPQ has two sections, A and B for collecting respondents’ demographics and items for answering the research questions respectively. The 35-item Questionnaire items were structured on five clusters in line with the research questions and on a 4-point Likert-type rating scale of, Strongly Agree (SA); Agree (A); Disagree (D); and Strongly Disagree (SD), and Very Large Extent (VLE); Large Extent (LE); Small Extent (SE); and Very Small Extent (VSE), weighted 4, 3, 2 and 1 respectively. The IM-ERMCeoPIS) was constructed by the researchers in line with the three research questions.
The instruments were subjected to face validation by three experts, two in Business Management from the Learn to Live Business School and one in Measurement and Evaluation, from the University of Nigeria Nsukka. The three experts were requested to ascertain the appropriateness and clarity of the items of the instrument to ascertain if it would measure what it purported to measure. Their comments, suggestions, and observations were taken into consideration in the production of the final draft of the instruments. The instruments were trial tested using 20 CEOs from Benue state, which is outside the study area. The internal consistency of the instruments was computed using the Cronbach Alpha method that yielded 0.85 and 0.77respectively for the two instruments. The instrument was therefore regarded as reliable enough for the study.
Method of Data Collection: The researchers, with three other well-instructed research assistants on methods of data collection, administered the instruments to the respondents, while the researchers alone conducted the interview with the CEOs at the same time. A 96% return rate was recorded.
Method of Data Analysis: The data generated for the study were analyzed using means and standard deviation to answer the research questions. A criterion mean score of 2.50 was employed to arrive at decisions on researching the questions. This implies that any means below 2.50 was taken to mean NOT Accepted, while any means of 2.50 and above were accepted for the same reason. For the Extent of effectiveness, the decision was reached following Real Limits of Numbers as follows; Means between 0.00 to 1.49 imply a Very Large Extent (VLE):; Means between 1.50 to 2.49 imply a Large Extent (LE); Means between 2.50 to 3.49 implies Small Extent (SE); and; Means between 3.50 to 4.00 implies Very Small Extent (VSE)
The hypotheses were tested using Analysis of Co-variance ANCOVA statistics at 0.05 level of probability. The significant level will be determined at a table value of 0.96. This implies that when the calculated value is below the table or critical value, it is declared Not Significant. Thus, the Null Hypotheses was ACCEPTED. On the other hand, when the calculated value is higher than the table or critical value, it was declared Significant, thus the Null Hypotheses were NOTACCEPTED.
Scope of the Study: The geographical scope is limited to organizations that have operated for over five years in SE of Nigeria. Those below five years were delimited. The content scope was limited to the CEOs’ perception of the IM employee recruitment model, in organizations in SE Nigeria; How the CEOs apply the IMemployee recruitment model, in organizations in SE Nigeria; the Effectiveness of the IM employee recruitment model, in organizations in SE Nigeria and Advantages and Disadvantages of IM employee recruitment model in organizations in SE Nigeria.
Significance of the Study: The findings of this study will be of tremendous benefit to organizations, CEOs, employers, and the State and federal governments of Nigeria, especially those of SE Nigeria and researchers. To the organizations, especially those in SE Nigeria, this study will serve as an illuminative evaluation of the CEO’s performance. In the war on talent, the various government, organizations, other employers, and their CEOs will become aware of the implications of the IM recruitment model in their organizations and how best to apply it. Likewise, it will provide researchers with relevant literature for studies of this nature. It is a stepping stone to the development of a theory of recruitment that will further help employers and employees, as well as business managers in promoting the CEOs’ performance in organizations.
RESULTS AND FINDINGS:
Results: The analysis is based on 128 copies of the questionnaire successfully retrieved after completion out of 135 copies distributed. This represents a 94.81 percent return rate.
The study’s results are presented below in Tables 1 to 8, based on the research questions and null hypotheses that guided the study.