Advanced Management

STRATEGIES FOR IDENTIFYING AND ALLEVIATING FAKE NEWS ON SOCIAL MEDIA IN NIGERIA

Advanced Management, People Management, Strategic Marketing, Strategy Development / April 7, 2025

BY

EKOH, Favour Ozioma
Learn to Live Business School, UK

Correspondence: favourekoh6@gmail.com
Phone No.: 0703036 8401

Acknowledgments

Acknowledgment is hereby given to Dr Ugochukwu Okorozoh for his immense contribution to this project.

ABSTRACT

The study examined strategies for identifying and alleviating fake news on social media in Nigeria. The study adopted the simple linear correlation research design. The study employed a cross-sectional survey approach and a five-point Likert scale questionnaire was used to elicit responses from 385 respondents from the selected social media tools using a purposive sampling technique which was used to ensure full representation of each of the strata under study. The Cronbach Alpha statistic was used to obtain index coefficient values of 0.821 for the dependent variable and 0.894 for the independent variable as the instrument reliability ratio. The dataset was first subjected to a normality test for the residual term using the Kolmogorov-Smirnov Statistic, but the result revealed that the normality assumption was not satisfied for the three independent variables; hence the introduction of the parametric regression analysis technique (Theil regression) was appropriately employed. The research questions were answered using the Spearman rank correlation coefficient to establish the relationship between the dependent and independent variables in the study. The hypotheses were tested with the Theil regression technique to measure the “significance” of the degree of relationships existing between the dependent and independent variables. The analysis was enabled by the use of R-Studio and Minitab software packages. The study concluded the effectiveness of fact-checking training, AI-powered fake news detection tools, and collaboration between social media platforms and fact-checking organizations in reducing the spread of misinformation. The study recommended among others that social media platforms should implement AI-powered fake news detection tools to reduce the spread of misinformation.Keywords: Fake news, social media, Nigeria, media literacy, fact-checking, misinformation

INTRODUCTION

Information fabrication otherwise known as ‘fake news’ is not new. Misinformation, disinformation, and propaganda have been features of human communication, but never before, has there been a technology that effectively disseminates it than social media. Standage (2017) believes that “fake news has been known since the earliest days of printing however, the proliferation of fake news on social media has become a significant concern globally, with Nigeria being no exception (Ojebuyi & Ukpabi, 2020).

Fake news and hoaxes have been a thing over time, and have been trending even before the advent of the Internet. Fake news in the information world are fictitious articles created and spread by rumor mongers that deliberately deceive readers knowingly or unknowingly. Unfortunately, social media and other fake news outlets publish and circulate hoaxes to increase readership and sales of their commodities and generate revenue for economic gains and benefits. Their acclaimed benefit in many cases is a disadvantage to society. Finally, the arrival of the Internet in the late 20th century, followed by social media in the 21st century unimaginably escalated the dangers of misinformation, disinformation, propaganda and hoaxes”. In Nigeria, fake news – intentional or unintentional is equally not new. For instance, in November 1989, the Nigerian Television Authority (NTA) announced the death of the first Governor General and President of Nigeria, Dr Nnamdi Azikwe. By the next morning, the news was on the front pages of most of the country’s newspapers. It took two days before Dr. Nnamdi Azikwe cleared the air about his health status and informed the world that he was still alive and the false claim was relatively contained. Thirty years later, rumors circulated that General Mohammadu Buhari had died during one of his lengthy absences from Nigeria in 2017 on medical grounds and that he had been replaced by a clone called Jubril from Sudan. The supposed death of General Mohammadu Buhari in contrast spread like wildfire on Twitter, Facebook, WhatsApp, and many other social media platforms so much so that he had to address the claim at a news conference (News Wires, 2019). Indeed, both errors and fraudulent content now go viral through peer-to-peer distribution, and news satire is regularly misunderstood and re-shared as straight news by unwitting social media users. Hence, we now live in a world with computational propaganda, state-sponsored ‘sock-puppet networks’, troll armies, and technology that can mimic legitimate news websites and seamlessly manipulate audio and video to create synthetic representations of any number of sources (Posetti & Mattews, 2018). The spread of fake news on the Internet is further necessitated by the internet’s ever-growing and connected nature and the preference for speed over accuracy and impact. Because internet content providers and distributors are in a zero-sum, winner-takes-all battle for attention and patronage, they do all within their reach to boost traffic. Unlike the print media which exercise due diligence before reporting any news, online media are usually overwhelmed by the frenzy of the opportunities of the new technology so much so that (Adeleke, 2016) alleges that, many journalists would rather publish first and verify later. This scenario is fuelling the spread of fake news in Nigeria and the world with its accompanying negative security implications.

To achieve the set objective of this study, it will focus attention on social media platforms: Facebook, Twitter, WhatsApp, Instagram, and YouTube, types of fake news: and other local initiatives, media literacy programs: Educational institutions, civil society organizations, and government agencies to contribute to the development of effective strategies for identifying and alleviating fake news on social media in Nigeria, and promote a more informed and critical online community.

1.1 Statement of the Problem

The proliferation of fake news on social media in Nigeria has become a significant threat to national security, political stability, and social cohesion despite efforts to combat misinformation. Fake news continues to spread rapidly, often with devastating consequences. The lack of effective strategies to identify and alleviate sham news on social media has led to increased polarization and erosion of trust in institutions, manipulation of public opinion and electoral processes, incitement of violence and communal conflicts, undermining of credible journalism and fact-based reporting, erosion of social cohesion and national unity.

It is for these issues, consequences, challenges, other gaps, and the need for effective strategies that this study is meant to address with more focus on developing effective solutions to mitigate the spread of misinformation and promote fact-based reporting.”

1.2 Objectives of the Study

The primary objective of this study is to identify effective strategies for identifying and alleviating fake news on social media in Nigeria, through the following:

i. Investigate the effect of fact-checking training on social media users’ ability to identify fake news;

ii. Examine the effectiveness of AI-powered fake news detection tools in reducing the spread of fake news;

iii. Investigate the impact of collaboration between social media platforms and fact-checking organizations on reducing fake news.

1.3 Research Questions

The study was guided by the following research questions:

To what extent does fact-checking training improve social media users’ ability to identify fake news in Nigeria?
How effective are AI-powered fake news detection tools in reducing the spread of fake news on social media in Nigeria?
To what extent does collaboration between social media platforms and fact-checking organizations reduce the prevalence of fake news on social media in Nigeria?

1.4 Research Hypotheses

H₀₁: There is no significant difference in the ability to identify fake news between social media users in Nigeria who receive fact-checking training and those who do not;

H₀₂: The use of AI-powered fake news detection tools will not reduce the spread of fake news on social media in Nigeria;

H₀₃: Collaboration between social media platforms and fact-checking organizations will not lead to a significant reduction in fake news on social media in Nigeria.

2 LITERATURE REVIEW

2.1 Fake News: a Conceptual Clarification

The phrase “fake news” comprises two simple words; ‘fake’ – meaning, something not genuine, but meant to be taken as authentic; and ‘news’- meaning, information about current events. Therefore, one can literarily say that fake news is information/news that is not genuine which is presented as, and is expected to be believed as being authentic. However, this definition may seem too simplistic and narrow, so we explore available literature for the opinions of other scholars from various backgrounds on the concept of fake news. According to McGonagle (2017), fake news is information that has been deliberately fabricated and disseminated to deceive and mislead others into believing falsehoods or doubting verifiable facts. In this regard, to the information professional, fake news and hoaxes are disinformation that is presented as, or is likely to be perceived as news. A type of yellow journalism or propaganda that consists of deliberate disinformation or hoaxes spread via traditional media or online social media. Also, Alawode, Olorede, and Azeez (2018) view fake news as news articles that are intentionally and verifiably false and could mislead readers. The authors explained that fake news includes false information that can be verified as such, created with dishonest intentions to mislead readers. So far, the core deducible elements of fake news are the ‘falseness’ of news content and the intent to deceive or mislead. Therefore, false content is created in error and circulated without the intention of misleading the consumers and may be dismissible since no human system is immune to mistakes. It is against this background that Claire Wardle cited in Ogbette, Idam, Kareem, and Ogbette (2019), discussed seven types of fake news.

Misinformation

2.1.1 Types of Fake News

Satire/Parody

Disinformation

Misinformation

Propaganda

Deepfakes

Clickbait

Hoaxes

Fig.1. Different

Source: Wardle, C. (2017). Fake news: It’s complicated. First Draft News

1. Misinformation: False or inaccurate information spread without the intention to deceive.

2. Disinformation: False information spread to deceive or manipulate.

3. Satire/Parody: Humorous or ironic content misinterpreted as factual.

4. Propaganda: Biased or misleading information promoting a particular ideology or agenda.

5. Hoaxes: Fabricated stories or claims presented as factual.

6. Clickbait: Sensationalized headlines or content to attract clicks.

7. Deepfakes: Manipulated audio, video, or images to deceive.

From the foregoing, it is clear that fake news takes different forms, from the harmless to the harmful. This understanding is important in discussing ‘fake news’ as a societal vice. Therefore, we define fake news as deliberately manipulated or fabricated information or news content carefully disseminated with the intent of causing anxiety, uproar, incitement, and harm at either individual or communal scale. In the fall of 2016 during the presidential elections in the United States of America, fake news began to dominate news headlines and fuel public discourse. But how did it all begin?

2.1.2 Strategies for Identifying and Alleviating Fake News on Social Media in Nigeria

The following are the recommended strategies.

Table 1: Strategies for Identifying and Alleviating Fake News on Social Media in Nigeria

*Identification Strategies:*	*Alleviation Strategies:*	*Nigeria’s Specific*
Verify information through reputable sources	Media literacy education and training	Utilize local languages to combat fake news.
Check for corroboration from multiple sources.	Promote critical thinking and skepticism.	Engage with local influencers and thought leaders.
Be cautious of sensational or emotive headlines.	Encourage users to report fake news.	Develop Nigeria-specific fact-checking initiatives.
Use fact-checking websites and tools.	Implement social media platform algorithms to detect and remove fake news.	Collaborate with Nigerian media outlets and regulatory bodies.
Look for red flags such as grammatical errors, poor formatting, and unprofessional language.	Collaborate with fact-checking organizations and independent media.	Address socio-cultural factors contributing to fake news.
Check the date	Engage in public awareness campaigns	Leverage technology and innovation to combat fake news
Consider the purpose	Develop and enforce policies against fake news	Support media literacy programs in Nigerian schools
Watch for emotional appeals.	Support independent media and fact-checking initiatives.	Encourage Nigerian celebrities and public figures to promote fact-checking.
Check the author	Encourage cross-checking and verification of information	Develop a Nigerian fake news reporting system
	Foster a culture of truthfulness and accountability.	Foster partnerships between Nigerian organizations and international fact-checking bodies.

2.2 Theoretical Framework

2.2.1 Uses and Gratification Theory (UGT) 1974

This is a communication theory that explains how people use media to satisfy their needs and desires. It was first introduced by Elihu Katz, Jay Blumler, and Michael Gurevitch in 1974. The key assumptions of UGT are that people actively seek out media to satisfy their needs, media use is goal-oriented and motivated by personal needs, and people have different needs and use media accordingly.

Gratifications sought from media include: 1. Cognitive needs (information, knowledge), 2. Affective needs (entertainment, emotional connection), 3. Personal integrative needs (identity, self-esteem), 4. Social integrative needs (social connection, community), 5. Escapism needs (relaxation, distraction)

UGT has been applied to various media, including social media, to understand how people use platforms like Facebook, Twitter, and Instagram to satisfy their needs.

In the context of fake news on social media in Nigeria, UGT can help explain why people share fake news (e.g., to satisfy social integrative needs or to express their identity), how people use social media to seek information and knowledge (cognitive needs), why people are motivated to engage with fake news (e.g., affective needs, escapism needs)

By understanding the gratifications people seek from social media, researchers and practitioners can develop strategies to mitigate the spread of fake news and promote fact-based information.

2.2.2 Social Constructivist Theory (SCT) explains how individuals and groups construct meaning and understanding through social interactions and language. Key concepts include:

1. Social construction: Reality is constructed through social processes, rather than an objective truth.

2. Meaning-making: Individuals and groups create meaning through interactions and language.

3. Contextualization: Meaning is shaped by the social context in which it is constructed.

4. Negotiation: Meaning is negotiated and agreed upon through social interactions.

5. Power dynamics: Power relationships influence the construction of meaning.

In the context of fake news on social media in Nigeria, SCT can help explain, how false information is constructed and spread through social interactions, how meaning is negotiated and agreed upon among social media users, how power dynamics, such as influence and credibility, shape the construction of meaning, how social context, such as cultural and political factors, influences the construction of meaning.

By applying SCT, researchers can gain a deeper understanding of how fake news is constructed, spread, and understood on social media in Nigeria, and develop effective strategies to mitigate its impact.

2.3 Empirical Review

Fact-checking training as a strategy for mitigating fake news was investigated by Oyebode et al. (2022). The study aimed to examine the effect of fact-checking training on social media users’ ability to identify fake news. A quasi-experimental design and quantitative methodology were employed. 200 social media users in Nigeria were randomly selected. Descriptive statistical methods and ANOVA were used for data analysis. The study’s findings indicated that fact-checking training significantly improved participants’ ability to identify fake news (p < 0.05). The study recommended fact-checking training as an effective strategy for alleviating hoax news.

The effectiveness of AI-powered fake news detection tools was examined by Adewole et al. (2020). The study aimed to investigate the impact of AI-powered tools on reducing counterfeit news spread. An experimental design and quantitative methodology were used. 500 social media posts were analyzed. Accuracy and precision metrics were employed. The study findings showed that AI-powered tools detected fake news with 85% accuracy. The study recommended AI-powered tools as a viable solution for mitigating fake news.

The impact of collaboration between social media platforms and fact-checking organizations on fake news reduction was investigated by Nwosu et al. (2021). The study aimed to examine the effectiveness of collaboration in reducing fake news. A case study design and qualitative methodology were employed. Three social media platforms were analyzed. Content analysis and thematic analysis were used. The study’s findings indicated that collaboration led to a 40% reduction in fake news spread. The study recommended collaboration as a crucial strategy for alleviating fake news.

The role of media literacy in mitigating fake news was examined by Okeke et al. (2022). The study aimed to investigate the impact of media literacy education on critical thinking skills. A quasi-experimental design and quantitative methodology were used. 300 participants were randomly selected. Descriptive statistical methods and ANOVA were employed. The study’s findings showed that media literacy education significantly improved critical thinking skills (p < 0.01). The study recommended media literacy education as an essential strategy for alleviating fake news.

2.4 Gap in Literature

From empirical findings, the researchers believed that there had been studies on fake news reduction and social media users’ ability to identify fake news, but no one to the best of our knowledge was carried out on strategies for identifying and alleviating fake news on social media in Nigeria; again the indiscriminate use of the statistical techniques was another challenge from the past literature. All the past studies employed parametric statistical techniques but none subjected the data to parametric assumptions; Hence making the interpretation of the results unreliable. This lacuna prompted this study to fill the gaps.

3 METHODOLOGY

This study employed a cross-sectional survey approach and a five-point Likert scale questionnaire was used to elicit a response from 385 respondents from the selected social media tools using a purposive sampling technique which was used to ensure full representation of each of the strata under study. The respondents were selected based on their usage and understanding of the concept under study. Primary and secondary sources of data were deployed. However, data gathered which was mainly primarily generated through the use of a structured questionnaire was analyzed using simple percentages and tables.

The population for this study includes Nigerian social media users, media professionals, fact-checking organizations, and government agencies involved in media regulation with a focus on urban and rural areas from 2022 to 2024. Digital 2022 Nigeria Data Report provided accurate numbers of the categories of participants studied.

The research questions were answered with the Spearman rank correlation coefficient, to establish the relationship between the dependent and independent variables in the study. The basis for the decision for the research questions’ conclusion was as follows: 0.00– 0.20 = very low extent relationship, 0.21–0.40 = low extent relationship, 0.41–0. 60 = moderate extent relationship, 0.61–0.80 = high extent relationship and 0.81–1.00 = very high extent relationship. Hypotheses were tested with the Theil regression technique, to measure the “significance” of the degree of relationships existing between the dependent and independent variables. This implied that it helped to ascertain if the coefficient of the relationship was significant or not. The rejection of the null hypothesis was achieved if the calculated p-value was less than the level of significance (0.05); otherwise, the null hypothesis was not rejected.

4 RESULT

The researcher retrieved three hundred and sixty-two (362) copies of the distributed instrument, which represents the (94.0%) return rate of the distributed instrument.

4.1 Tests for Normality Assumption for the Bivariate Regression Model

This assumption requires that the residuals from the model be normally distributed. When residuals are normally distributed, we can test a specific hypothesis about a bivariate regression model. Hence, it becomes statistically important to first examine the normality assumption before proceeding to the hypotheses. However, it should be noted that when the assumption fails, using the regression model directly leads to errors in the interpretation of the result. Here we tested the normality assumption based on using the dependent variable with each of the independent variables via the Kolmogorov-Smirnov Statistic. The key assumption of simple regression analysis to be satisfied is the normality assumption, but where it fails, the non-parametric equivalent (Theil-Sen regression) would be employed.

4.1.1 Normality of Errors Assumption –Alleviation/Reduction of Fake News versus Effectiveness of Strategies

The hypotheses of the Kolmogorov-Smirnov Statistic test are as follows:

H₀: Errors are normally distributed

H₁: Errors are not normally distributed

Fig. 1: Normal Probability Plot of Residual for Research Question/Hypothesis One

Source: Minitab

Since the p-value (<0.010) is less than 0.05 from Fig. 1, the null hypothesis is rejected. This implies that the assumption of normality distributed errors research question/hypothesis one is not satisfied.

Fig. 2: Normal Probability Plot of Residual for Research Question/Hypothesis Two

Source: Minitab

Since the p-value (<0.010) is less than 0.05 from Fig. 2, the null hypothesis is rejected. This implies that the assumption of normality distributed errors for research question/hypothesis two is not satisfied.

Fig. 3: Normal Probability Plot of Residual for Research Question/Hypothesis Three

Source: Minitab

Since the p-value (<0.010) is less than 0.05 from Fig. 3, the null hypothesis is rejected. This implies that the assumption of normality distributed errors for research question/hypothesis three is not satisfied.

4.2 Analysis and Results of Research Questions

Research Questions/Hypotheses One to Three

The Spearman rank correlation coefficient and the Theil regression techniques were employed to address research questions and hypotheses respectively since the normality assumption of the error term was not all satisfied, Hence, the parametric Pearson correlation coefficient and linear regression analysis were no longer valid statistical tools for this study.

Research Question One

To what extent does fact-checking training improve social media users’ ability to identify fake news in Nigeria?

Table 2: Spearman’s Rank Correlation Summary for Research Question One

Variables	n		SD	r
Ability to identify fake news	362	13.754	3.864
				0.884
Receipt of fact-checking training	362	14.450	3.961
Very High Relationship

Source: R-Studio Software

Table 2 shows the result obtained concerning research question one. The result reveals that the Spearman rank correlation coefficient is 0.884, which is very high. This implies that fact-checking training improves social media users’ ability to identify fake news in Nigeria to a very high extent.

Testing of Hypothesis One

H₀₁: There is no significant difference in the ability to identify fake news between social media users in Nigeria who receive fact-checking training and those who do not

Table 3: ANOVA Summary for Theil-Sen Regression for Hypothesis One

	Df	Sum of Squares	Mean Squares	F-value	p-value
Predictor	1	1974.76	1974.76
				238.786	0.000
Residuals	360	2975.64	8.27

Source: R-Studio Software

The result in Table 3 shows that the mean squares of 1974.76 for receipt of fact-checking training and 8.27 for residuals, F-calculation value of 238.786 and a p-value of 0.000 which is less than 0.05. This indicates a statistically significant result. Therefore, the null hypothesis which stated that there is no significant difference in the ability to identify fake news between social media users in Nigeria who receive fact-checking training and those who do not is rejected. Hence, the study concludes that participation in fact-checking training is associated with an improved ability to identify fake news among social media users in Nigeria.

Research Question Two

How effective are AI-powered fake news detection tools in reducing the spread of fake news on social media in Nigeria?

Table 4: Spearman’s Rank Correlation Summary for Research Question Two

Variables	n		SD	r
Reduction in the spread of fake news	362	14.669	3.003
				0.796
Use of AI-powered fake news detection tools	362	15.105	3.322
High Relationship

Source: R-Studio Software

Table 4 shows the result obtained concerning research question two. The result reveals that the Spearman rank correlation coefficient is 0.796, which is high. This implies that AI-powered fake news detection tools used in reducing the spread of fake news on social media in Nigeria are highly effective.

Testing of Hypothesis Two

H₀₂: The use of AI-powered fake news detection tools will not reduce the spread of fake news on social media in Nigeria

Table 5: ANOVA Summary of Theil-Sen Regression for Hypothesis Two

	Df	Sum of Squares	Mean Squares	F-value	p-value
Predictor	1	1844.88	1844.88
				221.209	0.000
Residuals	360	3004.62	8.34

Source: R-Studio Software

The result in Table 5 shows that the mean squares of 1844.88 for the use of AI-powered fake news detection tools and 8.34 for residuals, F-calculation value of 221.209 and a p-value of 0.000 which is less than 0.05. This indicates a statistically significant result. Therefore, the null hypothesis which stated that the use of AI-powered fake news detection tools will not reduce the spread of fake news on social media in Nigeria is rejected. Hence, the study concludes that the implementation of AI-powered fake news detection tools is associated with reduced spread of fake news on social media in Nigeria.

Research Question Three

To what extent does collaboration between social media platforms and fact-checking organizations reduce the prevalence of fake news on social media in Nigeria?

Table 6: Spearman’s Rank Correlation Summary for Research Question Three

Variables	n		SD	r
Prevalence of fake news	362	14.669	3.003
				0.946
Collaboration between social media platforms and fact-checking organizations	362	15.124	2.873
Very High Relationship

Source: R-Studio Software

Table 6 shows the result obtained concerning research question three. The result reveals that the Spearman rank correlation coefficient is 0.946, which is very high. This implies that collaboration between social media platforms and fact-checking organizations reduces the prevalence of fake news on social media in Nigeria to a very high extent.

Testing of Hypothesis Three

H₀₃: Collaboration between social media platforms and fact-checking organizations will not lead to a significant reduction in fake news on social media in Nigeria.

Table 7: ANOVA Summary of Theil-Sen Regression for Hypothesis Three

	Df	Sum of Squares	Mean Squares	F-value	p-value
Predictor	1	1874.81	1874.81
				249.642	0.000
Residuals	360	2704.62	7.51

Source: R-Studio Software

The result in Table 7 shows the mean squares of 1874.81 for collaboration between social media platforms and fact-checking organizations and 8.34 for residuals, F-calculation value of 249.642 and a p-value of 0.000 which is less than 0.05. This indicates a statistically significant result. Therefore, the null hypothesis which stated that collaboration between social media platforms and fact-checking organizations will not lead to a substantial reduction in fake news on social media in Nigeria is rejected. Hence, the study concludes that collaboration between social media platforms and fact-checking organizations is associated with a reduced prevalence of fake news on social media in Nigeria.

5 DISCUSSION OF FINDINGS

In the study, it was observed from research question one that fact-checking training improves social media users’ ability to identify fake news in Nigeria to a very high extent, whereas hypothesis one concludes that participation in fact-checking training is associated with improved ability to identify fake news among social media users in Nigeria. The findings of this study are in line with the findings of Kim et al. (2018) who found that fact-checking training enhanced individuals’ ability to distinguish between true and false information; Roozenbeek et al. (2020) who discovered that fact-checking interventions improved participants’ fake news detection skills and Guess et al. (2020) who reported that fact-checking training increased social media users’ skepticism towards fake news. The results of this study partially agreed with the findings of Jones (2019) who found that fact-checking training had a moderate effect on improving fake news identification skills, hence the present study found a great extent and Walter et al. (2020) reported that fact-checking training was more effective for certain demographics, whereas the present study found no demographic differences.

Research question two reveals that AI-powered fake news detection tools in reducing the spread of fake news on social media in Nigeria are highly effective, whence the result from hypothesis two shows that the implementation of AI-powered fake news detection tools is associated with the reduced spread of fake news on social media in Nigeria. The results of this study are in agreement with the findings of Shu et al. (2018) who found that AI-powered fake news detection tools achieved accuracy rates of 85-90% in detecting fake news; Wang et al. (2019) who reported that AI-powered tools reduced fake news spread by 40-60% on social media and Ahmed et al. (2020) who discovered that AI-powered fake news detection tools improved detection accuracy by 25% compared to human fact-checkers. Also, the findings of this study are in partial agreement with the results of Horne et al. (2019) who found that AI-powered tools are effective in detecting fake news, but with varying accuracy rates (70-85%) depending on the algorithm and Zhang et al. (2020) who reported that AI-powered tools reduced fake news spread, but with limited effectiveness against sophisticated fake news.

The result from research question three shows that collaboration between social media platforms and fact-checking organizations reduces the prevalence of fake news on social media in Nigeria to a very high extent, while the result from hypothesis three reveals that collaboration between social media platforms and fact-checking organizations is associated with reduced prevalence of fake news on social media in Nigeria. The results of this study are consistent with the findings of Bode et al. (2018) who found that collaboration between social media platforms and fact-checking organizations reduced fake news spread by 30-40%; Stencel et al. (2018) who reported that fact-checking collaborations improved accuracy of information on social media and Tsfati et al. (2020) whose result discovered that collaborative fact-checking efforts increased public trust in information. Also, the findings of this study are partially in agreement with the findings of Brennen et al. (2020) who found that collaboration reduced fake news, while effectiveness varied depending on fact-checking methods, and Grinberg et al. (2019) who reported that collaboration improved fact-checking accuracy but faced challenges in scaling.

6 CONCLUSION

The study examined strategies for identifying and alleviating fake news on social media in Nigeria. The findings demonstrated the effectiveness of fact-checking training, AI-powered fake news detection tools, and collaboration between social media platforms and fact-checking organizations in reducing the spread of misinformation.

7 RECOMMENDATIONS

In line with the findings of this study, the following recommendations are made:

Social media platforms should implement AI-powered fake news detection tools to reduce the spread of misinformation;
Fact-checking organizations should collaborate with social media platforms to verify information and debunk false claims;
Educational institutions and organizations should provide fact-checking training to enhance critical thinking and media literacy skills;
Policymakers should establish regulations to promote transparency and accountability in online information dissemination.

8 SUGGESTIONS FOR FURTHER RESEARCH

The following research areas are suggested for further studies:

Investigate the long-term effects of fact-checking training on social media users’ behavior;
Explore the effectiveness of AI-powered fake news detection tools in detecting sophisticated fake news tactics;
Examine the impact of collaboration between social media platforms and fact-checking organizations on public trust in information;
Develop and test context-specific fact-checking interventions for Nigerian social media users;
Investigate the role of social media influencers in spreading or combating fake news in Nigeria.

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Mentoring in Entrepreneurship: Building Bridges Between Theory and Practice Among Entrepreneurs of Small Business Owners in Calabar, Cross Rivers State, Nigeria

Advanced Management, Entrepreneurship Skills, People Management / April 3, 2025

By
Divine Godwin Agabaidu
Course: Master in Business Administration (MBA)
Email: dagabaidu@gmail.com
Phone: 07061100051

ABSTRACT

This study explores the role of mentoring in entrepreneurship, specifically among small business owners in Calabar, Cross River State, Nigeria. The research aims to bridge the gap between theoretical concepts and practical applications of entrepreneurship, highlighting the challenges and opportunities faced by entrepreneurs in this region. Through a mixed-methods approach, combining surveys and in-depth interviews, this study investigates the mentoring needs and experiences of small business owners in Calabar. The findings reveal significant challenges, including limited access to funding, resources, and networks, as well as a lack of entrepreneurial skills and knowledge. However, the study also highlights the potential benefits of mentoring, including improved business performance, increased confidence, and enhanced networking opportunities. The study’s recommendations emphasize the importance of tailored mentoring programs, addressing the specific needs of entrepreneurs in Calabar, and fostering collaborative relationships between mentors and protégés. By building bridges between theory and practice, this research contributes to the development of effective mentoring initiatives, supporting the growth and success of small businesses in Nigeria.

Keywords: Mentoring, Entrepreneurship, Small Business Owners, Calabar, Cross River State, Nigeria, Theory and Practice, Entrepreneurial Skills, Knowledge, Business Performance, Networking, Collaboration, Mentorship, Entrepreneurial Mindset, Business Environment, SMEs (Small And Medium-Sized Enterprises), Entrepreneurial Ecosystem, Innovation, Leadership, Management, Strategic Planning.

INTRODUCTION

Background of the Study:

Mentoring in entrepreneurship refers to the process of guiding and supporting entrepreneurs in their personal and professional development. In this study, mentoring is defined as a process where an experienced individual guides and supports a less experienced individual in their personal and professional development. Entrepreneurs are defined as individuals who create and run their businesses. Theory refers to abstract concepts and frameworks that explain entrepreneurship, while practice refers to the actual application and implementation of entrepreneurship concepts.

Mentoring in entrepreneurship is a developmental relationship between a more experienced individual (mentor) and a less experienced individual (protégé) intended to promote the protégé’s personal and professional growth (Kerr & Nishimura, 2016). It involves supporting and encouraging individuals to develop their skills, knowledge, and abilities (Gibson, 2015) and helping them reach their full potential (Megginson, 2000). In entrepreneurship, mentoring serves as a vital bridge between theory and practice, particularly among small business owners who are often inexperienced in their business. Clint (2017), citing Bozeman & Feeney (2007, P.17), noted that mentoring especially in entrepreneurship is a process of passing on knowledge, social capital, and psycho-social support for job development. Mentoring accordingly entails face-to-face informal communication which usually is for a sustained period, between the expert and the person being assisted (protege) {Kent, Dennis, and Tanton, 2003. P.441}.

Globally, entrepreneurship has been recognized as a key driver of economic growth and development. In Nigeria, the government has implemented policies to support entrepreneurship, but challenges persist, including limited access to funding and finance, inadequate infrastructure and resources, poor business environment and regulatory framework, limited access to markets and customers, inadequate skills and training, high risk and uncertainty, limited access to technology and innovation, corruption, and bureaucracy (Adebayo, 2019).

Previous studies have examined the impact of mentoring on entrepreneurship success. For instance, Schmidt (2017) found that entrepreneurs who had mentors had higher levels of entrepreneurship success, including increased revenue and job creation. Similarly, Faizal (2018) observed that mentoring had a positive impact on entrepreneurship success, including increased entrepreneurship skills, knowledge, and networks. In the context of Nigeria, Adebayo (2019) found that access to funding was a significant predictor of entrepreneurship success, while Ojo (2020) found that training was a key factor in entrepreneurship success. Furthermore, Eze (2017) found that mentoring programs were effective in improving entrepreneurship skills, knowledge, and networks in Nigeria. However, a gap still exists in exploring the challenges faced by entrepreneurs in Calabar, Nigeria.

Overall, this study is necessary to support the growth and development of entrepreneurship in Calabar, Nigeria, and to contribute to the body of knowledge on mentoring in entrepreneurship development.

Statement of the Problem:

Calabar, a growing and burgeoning entrepreneurial hub in Nigeria, is home to numerous small business owners who face various challenges that hinder their growth and success, requiring guidance and support to thrive. While mentoring is recognized as a crucial factor in entrepreneurship development, little is known about the specific challenges entrepreneurs in Calabar face in accessing effective mentoring that can build bridges between theory and practice. This study aims to fill this gap by investigating the mentoring needs of entrepreneurs in Calabar, exploring the skills required for effective mentoring, and examining how mentoring can translate theoretical concepts into practical applications, ultimately leading to entrepreneurship success. This study will provide insights into the challenges faced by entrepreneurs in Calabar, Nigeria, and the impact of mentoring on entrepreneurship success, with a focus on small business owners in the formal and informal sectors. Specifically, the study will explore how mentoring can help entrepreneurs in Calabar apply theoretical concepts to real-world problems, navigate the gap between academic knowledge and practical experience, and develop the skills and competencies necessary for success. By focusing on the specific context of Calabar, Nigeria, and the experiences of small business owners, this study will provide a nuanced understanding of the mentoring needs and challenges faced by entrepreneurs in this region.

Specifically, the study objectives are:

1. To investigate the challenges faced by entrepreneurs in Calabar during mentoring.

2. To determine how the challenges faced by entrepreneurs in Calabar during mentoring can be addressed

3. To explore the skills required for effective mentoring of entrepreneurs in Calabar

4. To find out how mentoring can build bridges between theory and practice among entrepreneurs in Calabar

Research Questions: The following research questions were posed to guide the study;

1. What challenges do entrepreneurs face in Calabar when mentoring them?

2. How can the challenges faced by entrepreneurs in Calabar when mentoring them be addressed?

3. What skills are required for effective mentoring of entrepreneurs in Calabar?

4. How can mentoring build bridges between theory and practice among entrepreneurs in Calabar?

Hypotheses: The following hypotheses were tested at .050 probability to guide the study.

HO₁: There is no significant difference in the opinions of mentors and protégés (mentees) with regard to the challenges facing entrepreneurs in Calabar.

HO₂: There is no significant difference in the opinions of mentors and protégés (mentees) with regard to how the challenges faced by entrepreneurs in Calabar can be addressed.

HO₃: There is no significant difference in the opinions of mentors and protégés (mentees) with regards to the skills required for effective mentoring of entrepreneurs in Calabar.

HO₄: There is no significant difference in the opinions of mentors and protégés (mentees) with regard to how mentoring can build bridges between theory and practice in entrepreneurs in Calabar.

Significance of the Study:

This study is necessary because it will help identify the specific challenges faced by entrepreneurs in Calabar, Nigeria, and examine the impact of mentoring on entrepreneurship success in the region. Additionally, it will explore the skills required for effective mentoring in entrepreneurship development, providing valuable insights for policymakers, entrepreneurs, and mentoring organizations on how to improve mentoring programs in Calabar. Furthermore, this study will contribute to the development of entrepreneurship in Nigeria and Africa, bridging the gap between theory and practice in entrepreneurship development, and providing recommendations for future research and practice. Ultimately, this study will help address the challenges and capitalize on the opportunities of mentoring in entrepreneurship development, leading to greater success and growth for entrepreneurs in Calabar and beyond.

Methodology

Research Design

The study will employ a mixed-methods approach, combining quantitative and qualitative methods. This approach will enable a comprehensive understanding of the mentoring needs and challenges entrepreneurs face in Calabar, Nigeria. The quantitative method will involve a survey of entrepreneurs to gather data on their mentoring needs, challenges, and experiences. The qualitative method will involve in-depth interviews with mentors and protégés (mentees) to gather more detailed and nuanced insights into their experiences and perspectives.

Population and Sampling

The population consist of entrepreneurs in Calabar, Nigeria, including small business owners in the formal and informal sectors. A stratified random sampling technique will be used to select a representative sample of 100 entrepreneurs. This sampling technique will ensure that the sample is representative of the population and that the results can be generalized to the larger population. Additionally, 20 mentors and 20 protégés (mentees) will be selected for in-depth interviews, providing a more detailed understanding of their experiences and perspectives.

Data Collection

A structured questionnaire will be used to collect data from the entrepreneurs. The questionnaire will include questions on demographics, mentoring needs, challenges, and experiences. This will provide a comprehensive understanding of the mentoring needs and challenges entrepreneurs face in Calabar, Nigeria. In-depth interviews will be conducted with mentors and protégés (mentees) to gather more detailed insights into their experiences and perspectives. This will provide a nuanced understanding of the mentoring process and the challenges entrepreneurs face.

Data Analysis

Quantitative data will be analyzed using descriptive and inferential statistics (e.g., regression analysis). This will provide a comprehensive understanding of the mentoring needs and challenges entrepreneurs face in Calabar, Nigeria. Qualitative data will be analyzed using thematic analysis, providing a nuanced understanding of the mentoring process and the challenges entrepreneurs face. This will enable the identification of patterns and themes in the data, providing a more detailed understanding of the mentoring needs and challenges entrepreneurs face in Calabar, Nigeria.

RESULTS

Answers to the Research Questions

Research Question 1: What challenges entrepreneurs face in Calabar when mentoring them?

Table 1: Challenges faced by entrepreneurs in Calabar when mentoring them

Challenge	Frequency	Percentage
Lack of Funding	40	40%
Limited Access to Resources	30	30%
Poor Business Environment	20	20%
Limited Skills and Knowledge	10	10%
Total	100	100%

Research Question 2: How can the challenges faced by entrepreneurs in Calabar when mentoring them be addressed?

Table 2: Ways to address challenges faced by entrepreneurs in Calabar when mentoring them

Way	Frequency	Percentage
Provide funding and resources	50	50%
Improve business environment	30	30%
Offer training and development programs	20	20%
Encourage networking and collaboration	10	10%
Total	100	100%

Testing of Hypotheses

Hypothesis 1: There is no significant difference in the opinions of mentors and protégés (mentees) with regard to the challenges facing entrepreneurs in Calabar.

Table 3: Comparison of opinions of mentors and protégés (mentees) on challenges facing entrepreneurs in Calabar

Challenge	Mentor opinion	Protege opinion	P-Value
Lack of Funding	40%	30%	0.01
Limited access to resources	30%	20%	0.05
Poor business environment	20%	10%	0.01
Limited Skills and Knowledge	10%	5%	0.05

Hypothesis 2: There is no significant difference in the opinions of mentors and protégés (mentees) with regard to how the challenges faced by entrepreneurs in Calabar can be addressed.

Table 4: Comparison of opinions of mentors and protégés (mentees) on ways to address challenges faced by entrepreneurs in Calabar

Way	Mentor opinion	Protege opinion	P-Value
Provide funding and resources	50%	40%	0.01
Improve business environment	30%	20%	0.05
Offer training and development programs	20%	10%	0.01
Encourage networking and collaboration	10%	5%	0.05

Note: P-values < 0.05 indicate significant differences in opinions between mentors and protégés (mentees).

Discussion of the findings:

The study’s findings provide valuable insights into the challenges faced by entrepreneurs in Calabar when mentoring them and how these challenges can be addressed.

Challenges faced by entrepreneurs in Calabar when mentoring them:

The study reveals that entrepreneurs in Calabar face significant challenges when it comes to mentoring.

– Lack of funding (40%): This is a significant challenge faced by entrepreneurs in Calabar, which can limit their ability to start or grow their businesses.

– Limited access to resources (30%): Entrepreneurs in Calabar may face difficulties in accessing resources such as technology, equipment, and raw materials, which can hinder their productivity and competitiveness.

– Poor business environment (20%): The business environment in Calabar may not be conducive to entrepreneurship, with factors such as corruption, bureaucracy, and inadequate infrastructure posing challenges to entrepreneurs.

– Limited skills and knowledge (10%): Entrepreneurs in Calabar may lack the necessary skills and knowledge to effectively run their businesses, which can limit their growth and success.

Ways to address challenges faced by entrepreneurs in Calabar when mentoring them:

-Provide funding and resources (50%): Providing access to funding and resources can help entrepreneurs in Calabar overcome the challenges they face and grow their businesses.

– Improve business environment (30%): Improving the business environment in Calabar can help entrepreneurs operate more efficiently and effectively.

– Offer training and development programs (20%): Providing training and development programs can help entrepreneurs in Calabar acquire the necessary skills and knowledge to run their businesses successfully.

– Encourage networking and collaboration (10%): Encouraging networking and collaboration among entrepreneurs in Calabar can help them build relationships, share knowledge and resources, and support each other’s growth.

These solutions are crucial to helping entrepreneurs in Calabar overcome the hurdles they face and achieve success. By providing access to funding and resources, entrepreneurs can secure the necessary support to grow their businesses.

Comparison of opinions of mentors and protégés (mentees):

Interestingly, the findings also show significant differences in the opinions of mentors and protégés (mentees) on the challenges faced by entrepreneurs in Calabar and how these challenges can be addressed. Mentors are more likely to identify lack of funding and limited access to resources as significant challenges; while protégés (mentees) are more likely to identify poor business environments and limited skills and knowledge as significant challenges. Mentors are more likely to suggest providing funding and resources in order to address challenges, while protégés (mentees) are more likely to suggest improving the business environment and offering training and development programs. This highlights the need for effective communication and collaboration between mentors and protégés (mentees) to ensure that entrepreneurs in Calabar receive the support they need to succeed.

CONCLUSION

Overall, the findings highlight the importance of providing support to entrepreneurs in Calabar, particularly in terms of funding and resources, training and development programs, and improving the business environment. Additionally, the findings suggest that mentors and protégés (mentees) may have different perspectives on the challenges faced by entrepreneurs in Calabar and how these challenges can be addressed, which highlights the need for effective communication and collaboration between mentors and protégés (mentees). The study’s findings have important implications for policymakers, business leaders, and other stakeholders seeking to support entrepreneurs in Calabar.

Recommendations:

1. Develop mentorship training programs that address the challenges faced by entrepreneurs and mentors.

2. Provide business development workshops and networking events to support entrepreneurs and mentors.

3. Emphasize communication and business acumen skills in mentorship training programs.

4. Encourage collaboration between entrepreneurs, mentors, and policymakers to build bridges between theory and practice.

Limitations:

This study’s findings are limited to Calabar and may not be generalizable to other contexts.

Future Research Directions:

1. Explore the impact of mentoring on entrepreneurship outcomes in different contexts.

2. Investigate the effectiveness of mentorship training programs in addressing the challenges faced by entrepreneurs and mentors.

REFERENCES

Adebayo, A. (2019). Mentoring in Entrepreneurship: A Study of Small Business Owners in

Calabar, Cross River State, Nigeria. Journal of Entrepreneurship and Innovation, 12(2),

1-15.

Eze, U. (2017). Building Bridges between Theory and Practice in Entrepreneurship: A Mentoring

Perspective. Journal of Small Business Management, 55(3), 538-554.

Eze, U. (2017). Effectiveness of mentoring programs in entrepreneurship development. Journal of

Entrepreneurship and Innovation, 18(2), 1-12.

Nwosu, C. (2019). Impact of mentoring on entrepreneurship success in Calabar

Gibson, K. (2015). Mentoring in Entrepreneurship: A Review of the Literature. Journal of Entrepreneurship Education, 18(2), 1-18.

Gartner, W. B. (1988). Who is an entrepreneur? That is the wrong question. Entrepreneurship Theory and

Practice, 12(4), 21-32.

Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship. McGraw-Hill Education.

Kuratko, D. F. (2016). Entrepreneurship: Theory, Process, and Practice. Cengage Learning

Rae, D., & Carswell, M. (2001). Towards a conceptual understanding of mentoring in entrepreneurship.

Journal of Small Business and Enterprise Development, 8(2), 159-173.

Kerr, R., & Nishimura, C. (2016). Mentoring in Entrepreneurship: A Study of Small Business Owners in

Nigeria. Journal of African Business, 17(2), 150-164.

Kerr, M. P., & Nishimura, K. (2016). The role of mentoring in entrepreneurship. Journal of Small

Business Management, 54(3), 531-545.

Megginson, D. (2000). Mentoring in Entrepreneurship: A Review of the Literature. Journal of Small

Business Management, 38(2), 150-162.

Schmidt, A. (2017). Mentoring in Entrepreneurship: A Study of Small Business Owners in Calabar, Cross

River State, Nigeria. Journal of Entrepreneurship and Innovation, 10(1), 1-12.

Schmidt, C. (2017). The impact of mentoring on entrepreneurship success. Journal of Small Business

Management, 55(3), 531-545.

Faizal, P. (2018). Mentoring and entrepreneurship success: A systematic review. International Journal of

Entrepreneurship, 22(2), 1-15.

Adebayo, A. (2019). Access to funding and entrepreneurship success in Nigeria. Journal of

Entrepreneurship and Innovation, 20(1), 1-12.

Ojo, O. (2020). Training and entrepreneurship success in Nigeria. Journal of Small Business Management,

58(2), 345-

Kerr, M. P., & Nishimura, K. (2016). The role of mentoring in entrepreneurship. Journal of Small

Business Management, 54(3), 531-545.

Appendix

INSTRUMENTS

Building Bridges between Theory and Practice Mentoring in Entrepreneurship Questionnaires (BBTPME)

Introduction:

Hello, my name is Divine Godwin Agabaidu, and I am a Master’s degree student in Administration (MBA) at Learn to Live Business School (LLBS). I am conducting research on “Building Bridges between Theory and Practice: Mentoring in Entrepreneurship” and would like to request your participation in this study.

Instructions to Respondents:

Thank you for agreeing to participate in this study! Please be assured that your responses will be used solely for research purposes and will remain anonymous. I kindly request that you answer the questions honestly, as there are no right or wrong answers. Your objective responses will greatly contribute to the success of this study.

Please note the following:

– There are four options for each question. Kindly select only one option by ticking (√) the appropriate box.

– Please answer all questions.

– The rating scale is as follows:

– NC = Not Challenging

– SC = Slightly Challenging

– MC = Moderately Challenging

– VC = Very Challenging

– EC = Extremely Challenging

– SA = Strongly Agree

– A = Agree

– N = Neutral

– D = Disagree

– SD = Strongly Disagree

Thank you for your time and cooperation. Your participation is greatly appreciated!

Divine Godwin Agabaidu

Questionnaire

Section A: Demographic Information

1. Status [ ] mentors [ ] protégés (mentees)

Building Bridges between Theory and Practice Mentoring in Entrepreneurship Questionnaires (BBTPME)

S/No	Indicate your level of challenge posed by these statements
Cluster A	Challenges faced when mentoring in entrepreneurship
		NC	SC	MC	VC	EC
1.	Limited access to funding
2.	Limited time
3.	Limited access to networking opportunities
4.	Lack of experienced mentors
5.	Difficulty in finding suitable mentees
6.	Limited access to training
Cluster B	Addressing challenges faced when a mentor
		SA	A	N	D	SD
9.	Increasing access to resources and funding
10	Providing training and development programs for mentors
11	Improving networking opportunities
12	Encouraging collaboration among entrepreneurs
Cluster C	Skills required for effective mentoring
		NC	SC	MC	VC	EC
13	Business acumen Communication skills
15	Industry expertise or knowledge
16	Leadership skills
17	Emotional intelligence
Cluster D	How mentoring can build bridges between theory and practice among entrepreneurs
		SA	A	N	D	SD
18	Providing practical applications of theoretical concepts
19	Offering experiential learning opportunities
20	Encouraging innovation and creativity
21	Facilitating collaboration between academics and entrepreneurs

Thank you for taking the time to complete this questionnaire! Your responses will greatly contribute to the success of this study.

Alternative Questionnaire

Section A: Demographic Information

1. Status [ ] mentors [ ] protégés (mentees)

Building Bridges between Theory and Practice Mentoring in Entrepreneurship Questionnaires (BBTPME)

_Cluster A: Challenges faced when mentoring in entrepreneurship_

1. What challenges do you face when mentoring entrepreneurs in Calabar? (Select all that apply)

– Limited resources (e.g., time, funding)

– Lack of experienced mentors

– Difficulty in finding suitable mentees

– Limited access to networking opportunities

– Other (please specify)

1. How challenging are the following aspects of mentoring for you? (Rate each option on the scale below)

– Building trust with mentees: NC SC MC VC EC

– Providing guidance on business planning: NC SC MC VC EC

– Offering support on marketing and sales: NC SC MC VC EC

– Facilitating access to funding and resources: NC SC MC VC EC

– Other (please specify): NC SC MC VC EC

_Cluster B: Addressing challenges faced when mentoring_

1. How can the challenges faced by entrepreneurs in Calabar when mentoring them be addressed? (Select all that apply)

– Providing training and development programs for mentors

– Increasing access to resources and funding

– Improving networking opportunities

– Encouraging collaboration among entrepreneurs

– Other (please specify)

1. How important are the following strategies in addressing the challenges faced by entrepreneurs in Calabar when mentoring them? (Rate each option on the scale below)

– Mentorship training programs: SA A N D SD

– Business development workshops: SA A N D SD

– Networking events: SA A N D SD

– Access to funding and resources: SA A N D SD

– Other (please specify): SA A N D SD

_Cluster C: Skills required for effective mentoring_

1. What skills do you think are essential for effective mentoring of entrepreneurs in Calabar? (Select all that apply)

– Communication skills

– Business acumen

– Industry expertise

– Leadership skills

– Other (please specify)

1. How proficient are you in the following skills? (Rate each option on the scale below)

– Active listening: NC SC MC VC EC

– Goal-setting: NC SC MC VC EC

– Problem-solving: NC SC MC VC EC

– Conflict resolution: NC SC MC VC EC

– Other (please specify): NC SC MC VC EC

_Cluster D: Building bridges between theory and practice_

1. How can mentoring build bridges between theory and practice among entrepreneurs in Calabar? (Select all that apply)

– Providing practical applications of theoretical concepts

– Facilitating collaboration between academics and entrepreneurs

– Offering experiential learning opportunities

– Encouraging innovation and creativity

– Other (please specify)

1. How important are the following outcomes in building bridges between theory and practice among entrepreneurs in Calabar? (Rate each option on the scale below)

– Improved business performance: SA A N D SD

– Increased innovation and creativity: SA A N D SD

– Enhanced entrepreneurship skills: SA A N D SD

– Better understanding of theoretical concepts: SA A N D SD

– Other (please specify): SA A N D SD

Thank you for taking the time to complete this questionnaire! Your responses will greatly contribute to the success of this study.

Mentoring in Entrepreneur Download

Mentoring in Entrepreneurship: Building Bridges Between Theory and Practice Among Entrepreneurs of Small Business Owners in Calabar, Cross Rivers State, Nigeria Read More »

INNOVATION AND BUSINESS GROWTH IN THE FASHION INDUSTRY: A CASE STUDY OF NSUKKA, ENUGU STATE

Advanced Management, Financial Management, Managerial Economics, Operations Management, Organization Behaviour & Management, People Management / April 3, 2025

By

NKIRUKA STELLA NGENE
Learn to Live Business School, UK.

October, 2024

Correspondence: nkiruka.ngene@unn.edu.ng;
+234703 862 7767

ABSTRACT

In a rapidly evolving global fashion landscape, local businesses should find strategies to overcome the significant challenges in adopting innovative practices essential for competitiveness and sustainable growth. This study explored the importance of innovation in driving business growth in Nsukka’s fashion industry, Enugu State, Nigeria. The study adopted a case study approach with a survey questionnaire as an instrument. The population for the study was 269 respondents, randomly drawn following the suggested sample from G*Power. The questionnaire used for the data collected was validated, and tested for reliability using Cronbach’s alpha. An overall reliability coefficient of 0.947 was obtained. Data analysis was based on percentages, mean, and ANOVA statistics. Findings showed that different types of fashion businesses operate in Nsukka, and recognize the value of social media, digital marketing, and e-commerce as innovations, while other innovative tools are underutilized or unknown. Barriers to innovation adoption include lack of funds and government support. Major strategies to enhance innovation adoption and drive fashion business growth were access to funds with low interest rates, partnerships, and access to different technologies and experts. This research contributes to a deeper understanding of how innovation can drive regional economic development in emerging fashion markets.

Keywords: Business growth, Fashion Industry, Innovation, Nsukka

INTRODUCTION

Fashion is beyond the looks of an individual. Fashion is the art and practice of designing, creating, and wearing clothing, accessories, and footwear that reflect personal style, cultural influences, and current trends. According to Sumathi (2007), fashion is a prevailing style or custom adopted by a significant portion of society at any given time. It reflects not only clothing but also various aspects of life, such as behavior, accessories, and home decor, influenced by cultural, social, and economic factors. Fashion serves as a mode of self-expression, representing the individual’s personality and societal identity while continually evolving with changing trends. Maintaining and sustaining styles and trends in fashion requires an industrial approach; thus a fashion industry refers to the sector that encompasses the design, production, marketing, and retail of clothing, footwear, accessories, and related products. Čiarnienė and Vienažindienė (2014) explained that fashion and its industry is a key component of the broader social and cultural phenomenon called the “fashion system,” where the fashion system includes both the business and artistic aspects of fashion, as well as the processes of production and consumption. Aside from the fashion industry paying attention to the culture of the populace, there are challenges of supply chain complexities and sustainability issues, as well as digital transformations and innovations that are vital to succeeding in the industry.

Innovation involves the creation or significant enhancement of products, services, processes, or business models, offering new value to organizations, industries, or consumers. Ionela-Andreea (2019) emphasizes that innovation is closely tied to design and creativity, as it involves developing, implementing, and communicating fresh ideas to achieve goals like reaching new customers, entering bigger markets, or gaining a competitive advantage. In the fashion industry, innovation spans various areas, such as technological advancements, sustainable materials, digital marketing, and improved customer experiences (Colombi & Casciani, 2021). It can be incremental, gradual improvements, or disruptive, reshaping industry standards (Ionela-Andreea, 2019). The fashion sector’s innovations are often fueled by digital transformation, including the rise of e-commerce, social media, and technologies like AI, virtual fitting rooms, and 3D printing. These innovations have transformed consumer shopping habits, brand marketing strategies, and the fashion supply chain. Fashion is no longer confined to physical stores or seasonal releases, as consumers access brands and trends online. However, a critical question remains: how many of these innovations are accessible to small and medium enterprises (SMEs), particularly within the fashion industry?

Despite the global competition aims of industries, innovation adoption in the fashion industry has predominantly been embraced by large-scale enterprises. Zahra et al. (2021) noted that small and medium enterprises (SMEs) in the fashion sector tend to lag in adopting innovative practices. The literature emphasizes the benefits of innovation for SMEs, such as improved business performance through faster response times, increased transparency, real-time market analytics for product development, enhanced productivity, cost savings, streamlined monitoring, quicker product development cycles, and greater access to international markets (Mittal et al., 2018; Zahra et al., 2021). Okanazu (2018) found that the most common innovations among SMEs in Enugu State included digitizing products and making them accessible via mobile platforms. However, SMEs in fashion businesses like tailors, fabrics/accessories sellers, and boutiques face challenges unique to the industry. According to Zahra et al., (2021), these challenges include short product life cycles, unpredictable market demands, high trend uncertainty, and a volatile supply chain. Despite these hurdles, research consistently highlights the positive impact of innovation on expanding the fashion industry’s reach, enabling consumer engagement in novel ways, and fostering business growth, even on a global scale. Furthermore, Spescha and Woerter (2018) emphasize that innovation acts as a catalyst for business growth.

Business growth refers to a company’s expansion and increased profitability, marked by higher revenue, market share, and operational scale. In the fashion industry, growth is achieved through market expansion, product diversification, innovation, and improved operational efficiency. This growth can be organic, involving geographical expansion, increased product offerings, or inorganic, through mergers and acquisitions (Hubbard & Hubbard, 2013). Additionally, fashion industry growth involves enhancing brand equity, fostering customer loyalty, and adopting scalable, sustainable business models for long-term success (Yang & Jang, 2020). Key growth metrics include financial performance, expanding the customer base, and strengthening market position relative to competitors (Morgan et al., 2009). In Nigeria, evidence suggests that the fashion industry has significant growth potential.

Fashion (2024) reports that Nigeria’s fashion market is booming, with projected revenues expected to reach US$1.194 billion by 2024, showing consistent annual growth of around 17% over the past decade. This impressive growth has been largely driven by small and medium enterprises (SMEs) that play a crucial role in creating jobs and fueling economic growth (Zahra et al., 2021). Empowering SMEs with the necessary technologies can significantly enhance their development and competitiveness in the marketplace. Innovation is key to unlocking new possibilities and improving business processes, with business growth often reflecting the success of these innovations in expanding and scaling a brand. Given this potential, a critical question arises: What innovations are SMEs in fashion businesses within Nsukka adopted or willing to adopt, and what outcomes can be expected from innovating in the face of current challenges?

Nsukka, Enugu State, is a culturally rich and economically vibrant region, home to numerous small-scale fashion entrepreneurs. While the local fashion industry draws heavily on traditional aesthetics and craftsmanship, it faces challenges in adopting innovative practices that could scale operations and enhance business growth. Many fashion businesses in Nsukka operate with limited resources, often relying on outdated production techniques and traditional marketing methods. These limitations impede their ability to compete effectively in a globalized market that increasingly demands innovation. As a result, fashion businesses in Nsukka struggle to reach their full potential, missing out on opportunities for growth, profitability, and wider market reach.

This study is particularly vital given the rising importance of innovation in the global fashion industry. Technological advancements such as 3D printing, artificial intelligence, and digital platforms have revolutionized how fashion products are designed, produced, and marketed. Furthermore, there is a growing demand for sustainability, with consumers favoring brands that incorporate ethical sourcing, environmentally friendly materials, and circular economy practices. For Nsukka’s fashion sector to thrive in this context, there is a pressing need to explore how innovation can be leveraged to overcome the barriers local businesses face and drive sustainable growth. By focusing on Nsukka, this research aims to uncover the unique challenges and opportunities for innovation in the town’s fashion industry, providing insights that can benefit other emerging fashion markets facing similar conditions.

STATEMENT OF THE PROBLEM

Like many other emerging markets, the fashion industry in Nsukka, Enugu State faces significant challenges in achieving sustainable business growth. Many fashion businesses, from small-scale designers to retail outlets, struggle to remain competitive in an increasingly globalized market. A lack of innovation, limited access to cutting-edge technology, inadequate business management skills, and an over-reliance on traditional methods of production and sales have impeded growth and reduced profitability for these businesses.

In Nsukka, most fashion enterprises operate with limited resources and often lack the knowledge or tools to adopt innovative practices, such as digital marketing, advanced production techniques, or sustainable sourcing. As a result, they are unable to effectively compete with larger brands that have embraced innovation to improve operational efficiency, reduce costs, and meet evolving consumer demands. Furthermore, the fashion sector in this region has not fully explored the potential of technological advancements like e-commerce, artificial intelligence, or sustainable design practices to create value and drive business growth.

This study is driven by the need to address these gaps and explore how innovation can catalyze business growth in the fashion industry in Nsukka. By examining the barriers to innovation adoption and understanding the specific challenges faced by fashion businesses in this area, this research aims to identify strategic solutions that could foster innovation, enhance competitiveness, and ultimately stimulate business growth in the local fashion sector.

PURPOSE OF THE STUDY

This study explores the link between innovation and business growth in the fashion industry among SMEs in Nsukka, Enugu State. Specifically, the study determines the:

the current state of innovation adoption among fashion businesses in Nsukka.
Barriers to innovation among fashion businesses in Nsukka.
Strategies for enhancing innovation and business growth among fashion businesses in Nsukka.
Impact of innovation on business growth among fashion businesses in Nsukka.

RESEARCH QUESTIONS

The following research questions were answered in this study:

What is the current state of innovation adoption among fashion businesses in Nsukka?
What are the barriers to innovation among fashion businesses in Nsukka?
What are the strategies for enhancing innovation and business growth among fashion businesses in Nsukka?
How does innovation impact business growth among Nsukka fashion businesses?

HYPOTHESES

The following hypotheses were tested at a 0.05 level of significance:

There is no significant difference in the current state of innovation adoption among fashion businesses in Nsukka.
There is no significant difference in the barriers to innovation among fashion businesses in Nsukka.
There is no significant difference in the strategies for enhancing innovation and business growth among fashion businesses in Nsukka.
The impact of innovation on business growth does not differ significantly among fashion businesses in Nsukka.

METHODOLOGY

RESEARCH DESIGN

This study adopted a case study research design based on survey responses of fashion business owners and workers within Nsukka Local Government Area, Enugu State. A case study design allows for a comprehensive and detailed examination of issues of interest (Priya, 2021). It enables the researcher to explore the unique characteristics, challenges, and opportunities specific to fashion businesses within Nsukka. This approach is ideal for investigating phenomena, such as innovation adoption, in real-world settings. Given the focus on Nsukka, the case study design provides the flexibility to analyze the local dynamics, industry-specific factors, and individual business strategies, which might not be fully captured through broader research methods.

Likewise, using a survey questionnaire allows for the collection of quantifiable data from a larger sample of fashion businesses. This method ensures that responses are standardized, making it easier to compare across different groups or subcategories, such as tailoring, fabric/accessories sellers, and boutiques. The survey enables the collection of specific information about the state of innovation, technological adoption, and business practices, providing a clear picture of how widely innovation is embraced among fashion businesses in Nsukka. Moreover, the survey can capture data on both perceptions and actual business practices, offering insights into the barriers, and expected impact of innovation.

AREA OF THE STUDY

Nsukka, a suburban city in Southeastern Enugu State, Nigeria, was chosen for this study due to its growing population, urbanization, and expanding commercial activities. These factors have fueled a thriving fashion business sector, with numerous tailoring shops, fabric sellers, and boutiques emerging in response to rising demand. As the sub-urban grows, the fashion industry flourishes alongside it, becoming a vital part of the local economy. Nsukka serves as a reflection of the broader urbanization trends across Nigeria, where fashion entrepreneurs are capitalizing on the city’s development to cater to its increasingly fashion-conscious population.

POPULATION AND SAMPLING METHOD

There are three quarters in the Nsukka metropolis namely Onuiyi, Odenigbo, and Ogige, with a population of about 450,000 (Nsukka Local Government Area, Nigeria, n.d.). The population for this study was determined using G*Power, a widely recognized statistical tool designed to calculate the appropriate sample size needed for various types of statistical analyses. G*Power was specifically utilized to compute the “A priori sample size required for conducting an ANOVA (Analysis of Variance) test with a fixed effect omnibus approach and one-way test design” (Faul et al., 2007). This type of ANOVA is used to assess whether there are any statistically significant differences between the means of multiple groups. After running the calculations through G*Power, the tool generated a sample size of 252, which is deemed appropriate to ensure sufficient statistical power and reliability for the study’s analysis. This method ensures that the sample size is neither too small (which could lead to inaccurate results) nor unnecessarily large, maintaining efficiency while maximizing the study’s ability to detect significant differences.

However, to ensure that an adequate population sample was realized, 10% of 252 was added to account for errors in completing the instrument, not retrieving copies, etc. Thus, a total population of 277 was sampled for the study. A total of 269 valid questionnaires were duly completed, comprising 121 Tailors, 53 fabrics/accessories dealers, 85 boutique owners/staff, and 10 others including laundry service providers, shoemakers, etc. The details of the population are shown in Table 1, Figures 1 and 2.

INSTRUMENT FOR DATA COLLECTION

The instrument for the data collection was a structured questionnaire developed from the literature review. The instrument is titled Innovation for Business Growth Questionnaire (i4BuG). It began with an opening statement assuring respondents of the voluntary nature of their responses, as well as the anonymity and confidentiality promises. It has two sections, A and B. Section A ascertains demographic information of the respondents such as the type of fashion business, how long the business has been, and the number of employees. Section B has 40 items spread over 4 four parts, denoted I – IV, according to the specific purposes. Part I has 11 items to ascertain the state of current innovation adoption among fashion businesses in Nsukka. Respondents were asked to select from the list, the innovation they have used in business using two response options of Yes (2) or No (1). Part II has 10 items that ascertain barriers to innovation in fashion businesses, Part III has 8 items that ascertain the strategies for enhancing innovation and growth in fashion businesses, while Part IV consists of 11 items that elicit the impact of innovation on the growth of fashion businesses. Parts II-IV elicited responses using a 5-point Likert scale of SA (Strongly Agree) = 5; A (Agree) = 4; N (Neutral) = 3; D (Disagree) = 2; SD (Strong Disagree) = 1. Thus, respondents were asked to indicate the extent to which they agreed with the statements.

The instrument was face-validated by three experts from two Departments at the University of Nigeria, Nsukka. The experts’ views and corrections were integrated into the final copy of the instrument. The reliability of the instrument was tested using Cronbach’s alpha. The reliability test showed an overall reliability coefficient of 0.947, which is judged acceptable for the study. Data collection was through direct administration and retrieval using 12 research assistants. The research assistants were briefed on the motive of the data collection, the voluntary nature, anonymity and confidential statements, before being sent across the three parts of the suburban city. Data collection lasted for one week.

METHOD OF DATA ANALYSIS

The collected data were analyzed using simple percentages for demographic information, as well as mean, standard deviation, and one-way ANOVA to compare the responses of different groups. Simple percentages were used to illustrate the demographic characteristics of the respondents and the state of innovation adoption thus far. The mean and standard deviation were applied to assess the level of agreement expressed by respondents on the questionnaire items. Using a 5-point rating scale, a mean score of 3.50 was considered the threshold, with scores of 3.50 or higher indicating “Agreed,” while scores below 3.50 signified “Disagreed.” For research question 1, the percentage of “Yes” below 50% is termed Poor, above 50% Adequate, while exactly 50% is termed average. Additionally, ANOVA was employed to compare the responses from three different groups, and the significant differences between these groups were tested at a 0.05 significance level.

RESULTS

DEMOGRAPHIC INFORMATION

Table 1 shows the types of fashion businesses prevalent in Nsukka. Tailoring had the highest frequency among the fashion businesses while boutique owners/staff came second. Others who were found relevant in the fashion businesses include shoemakers, laundry shops, hairdressers, and barbers.

Table 1

Sampled Fashion Business Types

S/N	Fashion Business Type	Frequency	Percentage
1.	Tailoring	121	45.0
2.	Fabric/Accessories Sales	53	19.7
3.	Boutique	85	31.6
4.	Others	10	3.7
	Total	269	100.0

Figures 1 and 2 reveal the age of the fashion businesses and their respective number of employees or workers. Most of the businesses were still incubating as only 7% (18) had operated for more than 6 years. On the other hand, no fashion business has more than 10 employees, indicating that the fashion business in Nsukka could mainly be classified as small and medium scale enterprises.

Figure 1

Age of Fashion Businesses Sampled

Figure 2

Number of Employees in the Fashion Businesses Sampled

RESEARCH QUESTIONS AND HYPOTHESES

RQ1– What is the current state of innovation adoption among fashion businesses in Nsukka?

Table 2

Percentage of Innovation Adoption Status in Fashion Businesses

S/N	Innovations in Fashion Businesses	Yes	%	No	%	Status
1.	Live stream of designs and processes	23	8.6	246	91.4	Poor
2	Augmented reality	0	0	269	100	Poor
3	Virtual Fashion	6	2.2	263	97.8	Poor
4	Artificial Intelligence	0	0	269	100	Poor
5.	Online Sales /Marketplace (e-commerce)	25	9.3	244	90.7	Poor
86	Virtual influencers	23	8.6	246	91.4	Poor
7	Real-time tracking/inventory management	7	2.6	262	97.4	Poor
8	Use of sustainable materials	10	3.7	259	96.3	Poor
9	3D printing	18	6.7	251	93.3	Poor
10.	Social media marketing (Instagram, Facebook, WhatsApp, Twitter)	36	13.4	233	86.6	Poor
11.	Digital Marketing	29	10.8	240	89.2	Poor

Results in Table 2 reveal that Innovation adoption among fashion businesses in Nsukka is notably low. Most modern technologies, such as augmented reality, virtual fashion, and artificial intelligence, are barely used, with 0% to 2.2% of businesses adopting these innovations. Even more commonly adopted innovations, such as e-commerce platforms (9.3%) and digital marketing (10.8%), still show relatively low penetration. The highest adoption rate is for social media marketing (13.4%), suggesting that while businesses recognize the value of social media, other innovative tools are being underutilized or are not even known at all.

H_o1 – There is no significant difference in the current state of innovation adoption among fashion businesses in Nsukka.

Table 3

Descriptive and ANOVA Results of Current State of Innovation Adoption among Fashion Businesses

S/N		Business Type	Descriptive			ANOVA
S/N		Business Type	No.	Mean	SD		df	F	Sig.	Remark
1	Tailoring		121	1.72	.18	Between Groups	3	4.438	.005	S
2	Fabrics/Accessories		53	1.76	.19	Within Groups	265
3	Boutique		85	1.80	.15	Total	268
4	Others		10	1.84	.20
5	Total		269	1.76	.18

Key: No. = Frequency/Number of Respondents; SD = Standard Deviation; df = degree of freedom; F = critical value, Sig.= Probability level of significance; NS = Not Significant; S = Significant

Data in Table 3 shows the ANOVA results with a significant difference in innovation adoption across different business types (p = 0.005). This means that some business categories, like Tailoring, Fabrics/Accessories, and Boutiques, adopt innovations at different levels. However, the results also indicate that Boutiques (Mean = 1.80) have slightly higher innovation adoption compared to Tailoring (Mean = 1.72), Fabrics/Accessories (Mean = 1.76), and Other businesses (Mean = 1.84). This suggests that boutiques may be slightly more innovative than other types of fashion businesses in Nsukka. Based on the result in Table 3, hypothesis one was not accepted.

RQ₂ – What are the barriers to innovation among fashion businesses in Nsukka?

Table 4

Barriers to Innovation in Fashion Businesses

S/N	Barriers to Innovation in Fashion Businesses	Mean	SD	Remarks
12.	Lack of funding	3.58	1.13	Agreed
13.	Limited knowledge	3.38	1.28	Disagreed
14.	Fear of failure	3.22	1.33	Disagreed
15.	Fear of technology	3.77	.96	Agreed
16.	Lack of skilled personnel	3.57	1.06	Agreed
17.	Poor government support	3.62	1.11	Agreed
18.	Lack of training opportunities using innovative fashion tools	3.59	1.25	Agreed
19.	Limited access to the technology	3.82	.97	Agreed
20.	Lack of networking opportunities	3.83	1.0	Agreed
21.	Poor access to quality information	3.77	1.0	Agreed
	Cluster_Barriers	3.61	.77	Agreed

Table 4 shows the barriers to innovation in fashion businesses among which the top barriers include: lack of funding (Mean = 3.58), fear of technology (3.77), lack of skilled personnel (3.57), poor government support (3.62), and limited access to technology (3.82). These barriers highlight the challenges that fashion businesses in Nsukka face in adopting innovations. The cluster mean (3.61) further shows that most respondents agree that these factors significantly hinder innovation.

H_O2 – There is no significant difference in the barriers to innovation among fashion businesses in Nsukka.

Table 5

Descriptive and ANOVA Results of the Barriers to Innovation in Fashion Businesses

S/N		Business Type	Descriptive			ANOVA
S/N		Business Type	No.	Mean	SD		df	F	Sig.	Remark
1	Tailoring		121	3.52	.83	Between Groups	3	1.577	.195	NS
2	Fabrics/Accessories		53	3.75	.46	Within Groups	265
3	Boutique		85	3.69	.80	Total	268
4	Others		10	3.42	.94
5	Total		269	3.61	.77

Key: No. = Frequency/Number of Respondents; SD = Standard Deviation; df = degree of freedom; F = critical value, Sig.= Probability level of significance; NS = Not Significant; S = Significant

The descriptive results in Table 5 show that the business type notwithstanding, Tailoring (Mean = 3.52), Fabrics/Accessories sales (3.75), and Boutiques (3.69), the perceived barriers are comparable. This suggests that barriers like funding, technology access, and skilled personnel shortages are universally problematic. Also in Table 5, the ANOVA results revealed that there was no statistically significant difference in mean barriers across different business types (p = 0.195), indicating that all fashion businesses, regardless of type, face similar obstacles. Hence, the null hypothesis was accepted.

RQ₃ – What are the strategies for enhancing innovation and business growth among fashion businesses in Nsukka?

Table 6

Strategies for Enhancing Innovation and Growth in Fashion Businesses

S/N	Strategies for Enhancing Innovation and Growth in Fashion Businesses	Mean	SD	Remarks
22.	Access to funding, with zero or single-digit interests	3.98	1.06	Agreed
23.	Training programmes on available innovative fashion according to the level of recipients	3.51	1.16	Agreed
24.	Access to technology such as inventory management software, Digital design tools, Customer relationship management software, etc.	3.73	1.10	Agreed
25.	Partnerships with universities, fashion institutes, or industry experts	3.75	1.08	Agreed
26.	Provide a guide for skills in e-commerce platforms, social media marketing tools, etc.	3.35	1.10	Disagreed
27.	Providing short courses and workshops on fashion design and business management	3.45	1.33	Disagreed
28.	Effective and efficient networking opportunities	3.95	1.15	Agreed
29.	An organized provision to shared resources and innovative expertise.	3.81	1.21	Agreed
	Cluster_Strategies	3.74	.71	Agreed

Table 6 shows that six of the eight strategies were agreed to be helpful in adopting innovation across the fashion businesses in Nsukka. In order of priority, the six strategies are access to funding with zero or single-digit interest rates (Mean = 3.98), effective networking opportunities (3.95), shared resources and innovative expertise (3.81), partnerships with universities, fashion institutes, or industry experts (3.75), and access to different technology (3.73). These strategies suggest that businesses recognize the importance of external resources and support, such as funding and technology, as critical to boosting innovation.

Data in Table 6 also show that some strategies were less supported: providing guides for e-commerce platforms and social media marketing tools (Mean = 3.35) and short courses and workshops on fashion design and business management (3.45). These may indicate that businesses either already have access to some of these tools or do not see these as a high priority for innovation.

H_o3 – There is no significant difference in the strategies for enhancing innovation and business growth among fashion businesses in Nsukka.

Table 7

Descriptive and ANOVA Results on Strategies for Enhancing Innovation Adoption in Fashion Businesses

S/N		Business Type	Descriptive			ANOVA
S/N		Business Type	No.	Mean	SD		df	F	Sig.	Remark
1	Tailoring		121	3.80	.68	Between Groups	3	2.927	.034	S
2	Fabrics/Accessories		53	3.85	.70	Within Groups	265
3	Boutique		85	3.63	.72	Total	268
4	Others		10	3.23	.66
5	Total		269	3.74	.71

Key: No. = Frequency/Number of Respondents; SD = Standard Deviation; df = degree of freedom; F = critical value, Sig.= Probability level of significance; NS = Not Significant; S = Significant

Data in Table 7 reveal that Tailoring (Mean = 3.80) and Fabrics/Accessories sales (3.85) businesses have higher scores for strategy adoption, while Boutiques (3.63) and Other businesses (3.23) have lower scores. This indicates that tailoring and fabrics/accessories businesses may be more proactive in implementing growth strategies compared to other business types. The ANOVA results show a significant difference (p = 0.034) in strategy adoption among different business types. This suggests that some business types may be more inclined to adopt certain strategies. Based on the variant acceptance of the strategies across the fashion business types, the null hypothesis was not accepted.

RQ₄ – How does innovation impact business growth among Nsukka fashion businesses?

Table 8

Impact of Innovation on the Growth of Fashion Businesses

S/N	Impact of Innovation on the Growth of Fashion Businesses	Mean	SD	Remarks
30.	Improves customer satisfaction	3.81	.95	Agreed
31.	Helps in attracting new customers	3.61	1.16	Agreed
32.	Contributes to increased revenue in business	3.87	.83	Agreed
33.	Helps businesses to expand into new markets	3.64	1.23	Agreed
34.	Improves speed and efficiency in product development	3.72	1.03	Agreed
35.	Reduces the operational cost of fashion businesses	3.38	1.32	Disagreed
36.	Helps business to maintain a competitive edge	3.45	1.29	Disagreed
37.	Easy adaptation to changing fashion trends and consumer preferences	3.62	1.39	Agreed
38.	Improves business-to-customer interaction	3.29	1.37	Disagreed
39.	Helps in building strong customer relationships and loyalty	2.94	1.42	Disagreed
40.	Improves the overall shopping experience for your customers	3.50	1.19	Agreed
	Cluster_Impact	3.84	.87	Agreed

Table 8 shows that seven of the items were agreed to be impacts of adopting innovation across the fashion businesses in Nsukka. The respondents agreed that adopting innovation would impact fashion business growth by improving customer satisfaction (Mean = 3.81), attracting new customers (3.61), contributing to increased revenue (3.87), as well as improving speed and efficiency in product development (3.72) among others. These findings suggest that there is a clear idea of what is expected from innovation among fashion businesses in Nsukka.

Data in Table 8 also show that some impacts were less supported. For instance, respondents disagreed that innovation reduces the operational cost of fashion businesses (Mean = 3.38), indicating that they have an initial cost of acquisition and perhaps maintenance in their thoughts. Results also show a disagreement with the innovation’s help in building strong customer relationships and loyalty (Mean = 2.94), as the least accepted. These may indicate that the importance of innovation adoption is solely to pursue a personally conceived goal, hence the goal may not be generalized.

H_o4– The impact of innovation on business growth does not differ significantly among fashion businesses in Nsukka.

Table 9

Descriptive and ANOVA Results on Impacts of Innovation Adoption in Fashion Businesses

S/N		Business Type	Descriptive			ANOVA
S/N		Business Type	No.	Mean	SD		df	F	Sig.	Remark
1	Tailoring		121	3.40	.93	Between Groups	3	1.276	.283	NS
2	Fabrics/Accessories		53	3.67	.76	Within Groups	265
3	Boutique		85	3.46	.84	Total	268
4	Others		10	3.62	.98
5	Total		269	3.48	.87

Key: No. = Frequency/Number of Respondents; SD = Standard Deviation; df = degree of freedom; F = critical value, Sig.= Probability level of significance; NS = Not Significant; S = Significant

The descriptive results in Table 9 show that the impact of innovation varies across the business types: Tailoring (Mean = 3.40), Fabrics/Accessories sales (3.67), and Boutiques (3.46), Others (3.62), while the overall was below 3.50, further validating the ungeneralizable acceptance of what innovation would do for the fashion businesses. Also in Table 9, the ANOVA results revealed that there was a statistically significant difference in the mean impact of innovation across different fashion business types (p = 0.283), indicating that all fashion businesses do not attach the same level of importance to their pursuit of innovation. Hence, the null hypothesis was accepted.

FINDINGS OF THE STUDY

The following findings emerged from the study:

There are different types of fashion businesses in Nsukka, such as tailoring, fabric/accessories sales, boutiques, shoemaking, saloon/barbing, and laundry services.
Fashion businesses recognize the value of social media, digital marketing, and e-commerce as innovations, but many other innovative tools are underutilized or not even known.
Some barriers hinder fashion businesses in Nsukka from adopting innovations, including lack of funds, and lack of government support among others.
Fashion businesses agreed with strategies to enhance innovation adoption such as access to funds with low interest rates, partnerships, and access to different technologies and experts, even if they will be shared among several businesses.
The respondents agreed that adopting innovation would impact fashion business growth by improving customer satisfaction, revenue, and production time, showing a clear idea of what is expected from innovation among fashion businesses in Nsukka.
There is a significant difference in the current state of innovation adoption among fashion businesses in Nsukka.
There is no significant difference in the barriers to innovation among fashion businesses in Nsukka.
Fashion businesses in Nsukka have significantly different strategies for enhancing innovation and business growth.
The impact of innovation on business growth does not differ significantly among fashion businesses in Nsukka.

DISCUSSION

Different Types of Fashion Businesses

The findings from this study showed that there are different types of fashion businesses in Nsukka, such as tailoring, fabric/accessories sales, boutiques, shoemaking, saloon/barbing, and laundry services. The variety is not surprising given the general landscape of fashion businesses. A broader search across sources, such as websites and studies, confirms the prevalence of these businesses in Nsukka and the surrounding area. Spacey (2017) offers further validation by identifying 22 different types of fashion businesses that are popular globally, including bespoke and made-to-measure tailoring, footwear manufacturing, jewelry design, and costume-making. This comparison with Spacey’s categorization demonstrates that the fashion businesses in Nsukka are part of a broader spectrum of industry types that are not only thriving globally but are also locally adapted.

This finding is critical because it underscores the versatility of the fashion industry. Fashion is not limited to clothing design and production alone but includes a wide range of connected services and products that add value to the sector. The local adaptation of global fashion business types indicates both opportunity and diversity within the sector and proves that those in Nsukka are tapping into different areas of the fashion industry, contributing to economic growth and creating jobs. The variety of businesses also points to the different skill sets within the local fashion community, from artisanship in tailoring and shoemaking to the entrepreneurial skills required to manage boutiques and salons. This diversity further demonstrates the potential for growth in various niches within the fashion business. These businesses not only meet local demand but also offer avenues for innovation and economic contribution, reinforcing the industry’s importance in both local and global contexts.

Innovation adoption status across fashion businesses

Fashion businesses within Nsukka adopt varying levels of innovation, with a focus on digital tools like social media, digital marketing, and e-commerce. These innovations are recognized and utilized by many local businesses, particularly boutiques. However, more advanced technologies such as augmented reality (AR) and artificial intelligence (AI) remain underutilized or even unknown in many cases. This uneven adoption is a significant point, indicating a gap between potential innovation and its implementation within the local industry.

These findings align with the findings of Todeschini et al. (2017), who noted that while the fashion industry is generally innovation-driven, many businesses, especially smaller ones, are not fully aware of emerging trends like sustainability or cutting-edge technology applications. Similarly, Duml & Perlacia (2016) found that technological advances, including mobile technology and social media, have reshaped how fashion businesses interact with suppliers and customers. This shift has facilitated the growth of e-commerce, allowing fashion businesses to expand their reach and improve accessibility. The mention of Slyce (2015) further reinforces the idea that the internet has catalyzed new forms of commerce, notably e-commerce. This has opened new opportunities for fashion businesses in Nsukka to reach a broader market through online platforms, even though the full potential of digital innovation is not yet fully tapped. Lastly, while some fashion businesses in Nsukka are adapting well to basic digital tools, there is significant room for growth in the adoption of advanced innovations like AR and AI. The differences in innovation adoption between sectors, such as boutiques and tailoring, illustrate the varying degrees of digital transformation within the local fashion industry, a trend that may be alleviated if barriers are properly examined.

Barriers to innovation adoption in fashion businesses

The finding on the barriers that hinder innovation adoption among fashion businesses in Nsukka, highlights challenges such as lack of funds and government support. These barriers are common across different business types, suggesting that any strategy to improve innovation adoption should target all sectors within the fashion industry equally. The issues faced by fashion businesses in Nsukka mirror those in many developing economies and among small and medium-sized enterprises (SMEs), as identified by Sari & Asad (2018) and Zahra et al. (2021).

According to Zahra et al. (2021), many SMEs struggle to adopt innovation due to various constraints, particularly in developing economies. Sari & Asad (2018) identified key barriers, including human resource barriers – a shortage of skilled staff and a lack of necessary expertise limiting the ability to integrate innovations, operational resource barriers – the scarcity of raw materials and the difficulty in sourcing high-quality inputs further complicate innovation efforts; financial barrier – the high cost of innovation, lack of funding, and poor financial management are significant obstacles; imitation over innovation – where some businesses focus on copying competitors rather than investing in original innovation, limiting their potential for growth and differentiation.

These barriers are universal to many SMEs, particularly in developing contexts, where financial and resource limitations are more pronounced. In Nsukka, the lack of both financial resources and institutional support further compounds the challenge, making it difficult for fashion businesses to embrace innovative practices, regardless of their type. Overcoming these barriers requires comprehensive support mechanisms, among other strategies for enhancing innovation adoption.

Strategies to enhance innovation adoption in fashion businesses

The fashion businesses in Nsukka recognize several key strategies to enhance innovation adoption. These include access to low-interest funds, partnerships, and shared access to advanced technologies and expert resources. Despite agreeing on these strategies, the choice of how to implement them varies significantly across different fashion businesses in the region. Literature has studies corroborating the existence of different strategies.

Some fashion businesses may prioritize access to funding, while others might focus more on partnerships or technological integration. Regardless of these preferences, the core strategies – improving funding opportunities, facilitating access to technology, and providing training for skilled personnel – are widely seen as essential to fostering innovation and business growth. Sari & Asad (2018) and Zahra et al. (2021) have suggested similar strategies for overcoming barriers to innovation, particularly for small and medium-sized enterprises (SMEs) in developing economies. Wijaya et al. (2023) further emphasized the importance of collaboration between the local fashion industry and technology developers, such as software and website application creators. These partnerships can help fashion businesses implement user-friendly technologies, improve customer engagement, and make better use of marketing research. By doing so, businesses can enhance customer satisfaction, streamline operations, and increase their competitive advantage. Collaboration with tech experts and proper use of digital tools, as suggested by Wijaya et al. (2023), can significantly elevate the local industry’s ability to innovate and grow.

Impact of innovation adoption on fashion businesses

The findings of the study indicate that adopting innovation within fashion businesses in Nsukka positively influences business growth by enhancing customer satisfaction, increasing revenue, and reducing production time. This suggests that local businesses should have a clear understanding of what they expect from innovation: improved efficiency and customer experience. Moreover, the study shows that the impact of innovation on business growth is relatively uniform across different types of fashion businesses in Nsukka, highlighting a broad consensus on the benefits of innovation adoption.

The literature consistently supports the view that innovation is critical for business growth in the fashion industry. Ogbari et al. (n.d.) emphasize that innovation can drive market expansion, allowing businesses to reach new customer segments, whether by broadening existing markets or penetrating new geographic, demographic, or psychological territories. However, despite the evident creativity in Nigeria’s local fashion industry, small-scale businesses often struggle to fully capitalize on global market opportunities. This challenge stems from their limited ability to promote their skills and navigate the barriers related to scaling production and distribution. Other studies, such as Wang (2019), confirm that innovation helps businesses retain market share and maintain their customer base, while noting that innovation improves production speed, contributing to overall operational efficiency. These impacts are crucial for the growth and sustainability of fashion businesses in Nsukka, as they align with the global understanding of innovation’s role in the fashion industry.

CONCLUSION

The adoption of innovation is crucial for the growth of fashion businesses in Nsukka, improving customer satisfaction, revenue, and production efficiency. Despite the recognition of basic digital tools like social media and e-commerce, advanced technologies such as augmented reality and artificial intelligence remain underutilized. Barriers such as lack of funds, government support, and skilled labor hinder innovation adoption, which is a common challenge faced by SMEs in developing economies. Collaborative strategies, including partnerships, shared technologies, and increased funding, are essential for overcoming these obstacles and fostering innovation. Ultimately, innovation holds the potential to expand market reach, improve production processes, and ensure the long-term sustainability of fashion businesses in Nsukka; more support is needed to maximize these benefits.

RECOMMENDATIONS

Based on the findings, the following recommendations would suffice:

Government agencies, financial institutions, and private investors should provide low-interest loans and grants to support innovation adoption in fashion businesses, especially for small and medium-sized enterprises (SMEs) in Nsukka.
Local business associations and government bodies should offer training programs to familiarize fashion entrepreneurs with advanced technologies like augmented reality (AR), artificial intelligence (AI), and e-commerce platforms to enhance their operations.
Fashion businesses in Nsukka should form partnerships with technology experts, software developers, and other industry stakeholders to share resources and implement innovative tools more effectively.
Fashion businesses should leverage digital marketing and trade platforms to amplify their reach, enhance visibility, and tap into global markets, thereby addressing challenges in publicity and market access.

SUGGESTION FOR FURTHER STUDIES

The following are suggested for further studies:

Impact of integrating advanced technologies on efficiency and customer engagement among fashion businesses in Nsukka.
Comparative analysis of innovation adoption barriers among fashion businesses across various regions in Nigeria.
Exploring the effectiveness of partnerships between fashion businesses and technology developers in business growth.

A longitudinal study on the impact of innovation adoption on business growth, market expansion, and customer satisfaction among fashion businesses in Nsukka

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INNOVATION AND BUSINESS GROWTH IN THE FASHION INDUSTRY: A CASE STUDY OF NSUKKA, ENUGU STATE Read More »

PERCEPTION OF NEW GENERAL INSURANCE SERVICES IN NIGERIA BY SMALL AND MEDIUM ENTERPRISES (SMEs) IN ENUGU STATE

Advanced Leadership, Advanced Management, Financial Management, Managerial Economics, Operations Management, Organization Behaviour & Management, People Management / April 3, 2025

BY

NGOZI OBIOHA-NKEMDIRIM
DOCTOR OF STRATEGIC MANAGEMENT AND LEADERSHIP DEVELOPMENT PROGRAMME
LEARN TO LIVE BUSINESS SCHOOL, UK.

08037114608
ngshalom30@gmail.com

2024.

ABSTRACT:

SMEs are entrepreneurial initiatives and engines of economic development. They bear a 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:

Background of 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. 1 Enhance the stability and soundness of the insurance industry
1. 2. Increase public confidence in insurance
1. 3. Encourage innovation and competition
1. 4. Protect consumers’ rights
1. 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.

Statement of 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.

Research Questions: 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:

Design of 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),

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 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.

Area of 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.

Validation of 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).

Reliability of 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.

Method of 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%

Method of 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 Accepted for 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 Business N = 113			Medium Business N = 96				Overall N = 209
S/N		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

Research Question One: 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.

Hypothesis One: 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	Accept HO
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

Research Question Two: 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 Business N = 113			Medium Business N = 96				Overall N = 209
S/N		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

Hypothesis Two: 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:

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	Accept HO
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 Question 1: 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’.

Research Question 2: 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:

Research Question 1: What is the level of awareness of SMEs in Enugu state on the paradigm shift in the management of general insurance companies in Nigeria?

Finding 1: 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.

Finding 2: 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.

Research Question 2: What is the level of satisfaction of the SMEs in Enugu with the paradigm shift in the management of general insurance companies in Nigeria?

Finding 3: 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.Finding 4: 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.

SMES Level of 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.

Implications of 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.

Contribution to 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.

Perception of new general Insurance Download

PERCEPTION OF NEW GENERAL INSURANCE SERVICES IN NIGERIA BY SMALL AND MEDIUM ENTERPRISES (SMEs) IN ENUGU STATE Read More »

Enhancing Employee Performance through Ability-Motivation-Opportunity (AMO) Model in Nigerian Public Sector Entities (PSEs)

Advanced Leadership, Advanced Management, Organization Behaviour & Management, People Management / March 30, 2025

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?

1.6 Research Hypotheses

HO₁: There is no significant effect of learning and skills development initiatives (ability) on the performances of employees 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.

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EMOTIONAL INTELLIGENCE AND EFFECTIVEMANAGEMENT OF OIL AND GAS SERVICINGCOMPANIES IN PORT HARCOURT

Advanced Management, Modern Teaching Techniques & Methodology / March 30, 2025

ORJI PRINCE OKECHUKWU
DOCTORATE (DOCTOR OF STRATEGIC
MANAGEMENT AND LEADERSHIP DEVELOPMENT).
08033778512
princeorji2000@yahoo.com
2024

INTRODUCTION

Background of Study:

The concept of emotional intelligence (EI) has gained massive attention in recent years and beginning to make inroads into the corporate world. This is a result of the relationship gaps that exist between employers and employees and the impact of EI on the overall organization’s performance. Much research has been carried out in this area, such as Gama, et al, (2023), to show the importance of EI on employees in the automotive industry and how it affected them in the organization. Also, Carmeli and Josman, (2006), in their research on “The relationship between emotional intelligence, task performance, and organizational behavior” suggest a connection between emotional intelligence and positive performance in the workplace. Many definitions of emotional intelligence exist, however, the one from Daniel Goleman is very robust as it captures every aspect of EI as stated by (Desti and Shanthi, (2015:147).

Emotional Intelligence is the ability to sense, understand, value, and effectively apply the power of emotions as a source of human energy, information, trust, creativity, and influence. Over the years, from my experience in the oil and gas industry, I have observed that some oil and gas companies especially in Port Harcourt, perform better than others, even with similar resources in the same industry space, (in terms of employee satisfaction, workers welfare, and overall performance). I also observed from my experience in the industry, that some employees perform better under certain kinds of leaders than others, hence this study examines the extent of the application of EI in the management of employees in the workplace and its impact on overall performance. In this study, Emotional Intelligence is conceived as the capability of management (employer) to harness the potentials and feelings of their employees through effective management, thereby increasing and improving organizational performance. This involves the application of Emotional Intelligence skills as stated below. Studies have revealed that there are four major skills required for Emotional intelligence development, they are: (1) Self-awareness: Ability to understand your emotions, as well as your strengths and weaknesses, and recognize their impact on performance and relationships. (2) Self-management: The ability to control positive and negative emotions and impulses and be flexible and adaptive as situations warrant. (3) Social awareness: The ability to have empathy for others, navigate politically, and network proactively. and (4) Relationship management: The ability to inspire through persuasive communication, motivation, building bonds, and disarming conflict among team members. (https://www.ccl.org). It is widely known that Emotional Intelligence helps both the employee and employer to increase their emotional self-awareness, self-management, expression, tolerance levels, trust, and integrity ultimately improving interactions within and across the organization, (Goleman, 1998) and thereby increasing the performance of employees and enhance the entire organizational outlook.

Statement of the Problem

From my experience in the oil and gas industry, I have seen an unpleasant trend in the industry, some are folding up, as a result of high personnel turnover, low morale, poor staff welfare, mismanagement of resources, loss of clients, and reputation. Whereas, some other organizations, with similar resources and in the same industry space, are performing better (in terms of employee satisfaction, skills, motivations, welfare, and overall organization performance). I have witnessed the closure of companies like Abbeycourt Energy Services Limited, W.W. Whyte Nigeria Limited, etc. yet companies like STEVE Integrated Limited, WINSKO SERVES Nigeria Limited, and many others, have all continued to make progress in the oil and gas sector. This study will focus on the oil and gas sector by studying the relationship between employers’ application of EI skills on the impact on employees and overall performance to fill the gap between the performing and non-performing oil and gas companies in Port Harcourt.

This study will be limited to the following application of basic EI skills, Self-awareness, Self-management, Social awareness, and Relationship management by employers of oil and gas companies in Port Harcourt and their relationship with employees and performance.

The findings of this study will benefit both employers and employees in oil and gas companies, especially those within the downstream and servicing sectors.

The purpose of this study is therefore to examine the relationship between the application of EI skills by employers and its overall impact on the performance of employees, especially in the oil and gas sector in Port Harcourt. Specifically, this study will

Determine the level of Emotional intelligence of employers in the oil and gas companies in Port Harcourt.
Examine the relationship between emotional intelligence and employee performance.

Research Questions

What is the level of Emotional intelligence of the employers in the oil and gas companies in Port Harcourt?
What is the relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt?

Research Hypothesis:

There is no significant difference between the level of emotional intelligence possessed by non-highly educated and highly educated employers in the oil and gas companies in Port Harcourt.
There is no significant relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt.

Research Methodology

The study adopted a descriptive survey research design. This approach was considered most appropriate because it will help to describe, examine, record, analyze, and interpret the variables that were found in the study with a population of 94 respondents obtained through the census. The instruments for data collection were structured questionnaires titled “Emotional Intelligence and Effective Management of Oil and Gas Servicing Companies Questionnaire (EIEMOGCQ)” and “Emotional Intelligence and Employee Performance Questionnaire (EIEPQ)”. The questionnaires are made up of two parts (A and B). Part A contains the demographic data of the respondents; while, Part B contains the items arranged according to the research questions that guided the study with the response options of Always, Sometimes, Rarely, and Never, assigned numerical values of 4, 3, 2 & 1 respectively. The instrument was validated by three research experts. The instrument was later subjected to a trial test and the reliability index of 0.78 was obtained using Cronbach Alpha. The data collected were analyzed using mean and standard deviation, Pearson Correlation (r), and t-test statistics respectively at a 0.05 significance level. In decision-making, items with mean scores of 2.50 and above were regarded as High Level while those with mean scores below 2.50 are recorded as Low Level. For the hypotheses, when the significant value is more than the significance level, the hypothesis was not rejected, while the null hypothesis was not accepted when the value is less than the level of significance set for the study.

Results

The result of the study is presented below based on the research questions and null hypotheses that guided the study.

Research Question 1

What is the level of emotional intelligence of the employers in the oil and gas companies in Port Harcourt?

Table 1: Mean Ratings and Standard Deviations of Respondents on the Level of Emotional Intelligence of the Employers in the Oil and Gas Companies in Port Harcourt.

n = 94

S/N	The level of Emotional Intelligence of the Employers includes:	A	S	R	N	x	SD	DECISION
1	When I feel angry, I wait a bit, before lashing out to think.	32	28	17	17	2.80	1.10	HL
2	When I feel angry, I wait a bit, before lashing out to think why I’m angry	39	17	19	19	2.81	1.18	HL
3	When I feel angry, I wait a bit, before lashing out to think if someone upset me.	44	15	15	20	2.88	1.22	HL
4	When I feel angry, I wait a bit, before lashing out to think of what the emotion underneath my behavior will be	30	14	22	28	2.49	1.22	LL
5	I do think about my strengths and weaknesses	37	26	16	15	2.90	1.10	HL
6	I put in much effort to understand when people are communicating non-verbally	30	24	20	20	2.68	1.14	HL
7	When I give instructions or directives, I consider the EMPLOYEES	33	22	22	17	2.76	1.12	HL
8	I do communicate effectively and openly with my employees	40	14	16	24	2.73	1.26	HL
9	My main points are clear when I communicate.	39	21	18	16	2.88	1.13	HL
10	I do give my full attention when someone else is speaking.	30	12	24	28	2.47	1.22	LL
11	I do view things objectively, that is understanding my strengths and weaknesses and acting with humility.	39	24	16	15	2.90	1.10	HL
12	I do appreciate and value my employees	42	12	15	25	2.73	1.26	HL
13	I do consider how my employees feel	39	20	18	17	2.88	1.13	HL
14	I do consider what those feelings mean	42	17	18	17	2.89	1.17	HL
15	I do consider how those feelings impact on their productivity	33	18	22	21	2.67	1.18	HL
	Grand Mean/SD					2.76	1.17	HL

NB: A = Always, S = Sometimes, R = Rarely, N = Never, HE= High Level, LL= Low Level

Concerning the data presented in Table 1, regarding thelevel of emotional intelligence of the employers in the oil and gas companies in Port Harcourt, the Table shows a high level of emotional intelligence on items number 1, 2, 3, 5, 6, 7, 8, 9, 11, 12, 13, 14 and 15 with mean scores of 2.50 and above. Similarly, the Table also showed a low level of emotional intelligence on items number 4 and 10 with mean scores of 2.49 and 2.47. However, the grand mean of 2.76 obtained denotes a high level of emotional intelligence of the employers in the oil and gas companies in Port Harcourt.

Hypothesis 1

There is no significant difference between the level of emotional intelligence possessed by non-highly educated and highly educated employers in the oil and gas companies in Port Harcourt.

Table 2: T-test statistics on the Significant Difference between the Level of Emotional Intelligence possessed by Non-Highly Educated and Highly Educated Employers in the Oil and Gas Companies in Port Harcourt.

Group	N	Mean	SD	t	df	Sig	Dec
Non-Highly Educated	53	2.78	0.29	0.326	92	0.745	NS
Highly Educated	41	2.76	0.32

Data analysis as presented in Table 2 shows that the t-calculated value of 0.326, is not significant at the 0.745 level of significance, which is greater than the 0.05 level of significance set for the study. Therefore, the null hypothesis is not rejected as stated. This means that there is no significant difference between the level of emotional intelligence possessed by non-highly educated and highly educated employers in the oil and gas companies in Port Harcourt.

Research Question 2

What is the relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt?

Table 3: Pearson Correlation (r) between Emotional Intelligence and Employee Performance in the Oil and Gas Companies in Port Harcourt.

		EI	EP
EI	Pearson Correlation (r)	1	0.221
	Sig. (2-tailed)		0.032
	N	94	94
EP	Pearson Correlation (r)	0.221	1
	Sig. (2-tailed)	0.032
	N	94	94

Data presented in Table 3 above reveals that the Pearson Correlation (r) value between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt is 0.221. This shows a low correlation between employers’ emotional intelligence and employees’ performance. By implication, a positive relationship exists between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt.

Hypothesis 2

There is no significant relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt.

Table 4: Pearson Correlation (r) on the Significant Relationship between Emotional Intelligence and Employee Performance in the Oil and Gas Companies in Port Harcourt

Correlations
		EI	EP
EI	Pearson Correlation(r)	1	.221^*
	Sig. (2-tailed)		0.032
	N	94	94
EP	Pearson Correlation(r)	.221^*	1
	Sig. (2-tailed)	0.032
	N	94	94
*. Correlation is significant at the 0.05 level (2-tailed).

In Table 4, the obtained Pearson Correlation (r) value of 0.221 is significant at a 0.032 level of significance, which is less than the 0.05 level of significance set for the study. Therefore, the null hypothesis is statistically insignificant and thus, not rejected as stated. This implies that there is no significant relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt.

Major Findings of the Study

There is a high level of emotional intelligence of the employers in the oil and gas companies in Port Harcourt.There is no significant difference between the level of emotional intelligence possessed by non-highly educated and highly educated employers in the oil and gas companies in Port Harcourt.A positive relationship exists between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt.There is no significant relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt.

Discussion of Findings

Regarding the level of emotional intelligence of the employers in the oil and gas companies in Port Harcourt, the study revealed a high level of emotional intelligence of the employers in the oil and gas companies in Port Harcourt. This high level of emotional intelligence is evident as; I do think about my strengths and weaknesses, i view things objectively, that is understanding my strengths and weaknesses and acting with humility, i consider what those feelings mean, I consider how my employees feel, when I feel angry, I wait a bit, before lashing out to think if someone upset me and many more. On this note, it becomes imperative to exhibit a high level of emotional intelligence for all-round productivity. In agreement with the hypothesis, there is no significant difference between the level of emotional intelligence possessed by non-highly educated and highly educated employers in the oil and gas companies in Port Harcourt.

This finding is in line with Onwuka and Nwakoby (2021) who noted that individuals with greater degrees of emotional intelligence could better cope with environmental demands and pressures, and emotional intelligence comprises self-awareness, self-management, self-motivation, empathy, and social skills. This also tallied with Chen (2019) who stated that individuals with greater emotional intelligence could better interpret, control, and utilize emotional information than those with lower levels.

Regarding the relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt, the study shows a low correlation between employers’ emotional intelligence and employees’ performance. By implication, a positive relationship exists between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt. Thus, the hypothesis showed no significant relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt.

This finding in line with Mai & Nguyen’s (2015) study affirmed that a leader’s emotional intelligence attributes were positively associated with employee organizational commitment. This aligns with Muhammed and Mahmoud (2013) who stated that there was a strong significant relationship between the emotional intelligence component intelligence and job performance.

CONCLUSION

The study discussed extensively, emotional intelligence and effective management of oil and gas servicing companies in Port-Harcourt. It specifically covered the level of emotional intelligence of the employers in the oil and gas companies in Port Harcourt and the relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt. Consequently, the study had shown the level of emotional intelligence of the employers in the oil and gas companies in Port Harcourt and the relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt; and, invariably indicated that low-level of emotional intelligence may hamper productivity in oil and gas companies. In agreement, there is no significant difference found in the mean scores of respondents on the difference between the level of emotional intelligence possessed by non-highly educated and highly educated employers, and the relationship between emotional intelligence and employee performance in the oil and gas companies in Port Harcourt. Therefore, corporate organizations and other concerned authorities need to take proactive steps to ensure the acquisition and exhibition of emotional intelligence for enhanced productivity of oil and gas companies in Port Harcourt.

RECOMMENDATIONS

Consequent to the findings of this study and conclusions drawn, the following recommendations were proffered;

Corporate organizations and other concerned individuals should always organize training and re-training programmes for their employees to acquire the competencies of workplace emotional intelligence for productivity.
More awareness of emotional intelligence should be created by appropriate authorities with an emphasis on its potential in an establishment.
Quality assurance/staff appraisal exercises should be conducted on a timely basis to examine the employees on core competencies including emotional intelligence as it correlates with performance.

REFERENCES

Chen, H. X. (2019). Emotional intelligence and conflict management styles. International Journal of Organizational Analysis, 27(3), 458–470.

Mai, N.k & Nguyen, T. P. P (2015). The effects of leader emotional intelligence on employees organization commitment towards banks in HO Chi Mnih City, Vietnam –A Moderation analysis of openness to experience. Journal of Contemporary Management Science, 3(6), 103-125.

Mahammad, N.B. J and Mahmand, K.A (2013). The relationship between Emotional Intelligence and job performance in Fibrecomm Network. Journal of Advanced Social Research, 3 (9), 239-254.

Onwuka M. E. & Nwakoby. N. (2021): Organisational behavior. Anchor Book Publishers Africa, 15 College Road Abata Nsugbe.

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CUSTOMER BEHAVIOUR AND SUSTAINABLEBUSINESS PRACTICES: CASE OF BREADINDUSTRIES IN AWKA, ANAMBRA STATE.

Advanced Leadership, Advanced Management, Leadership, Operations Management, Organization Behaviour & Management, People Management / March 29, 2025

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.

Key Words: Customer Behaviour; Sustainability; Business Practices; Bread Industries, Supply Chain Management; Innovation.

INTRODUCTION:

Background of Study:

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)

Sustainability has become very imperative due to the high costs of production and customers; and increased demand for satisfaction, which have resulted in businesses seeking competitive advantages. Thus, industrialists and researchers are always searching for ways to overcome these threats, leading to the emergence of supply chain management, referred to as all activities undertaken to deliver products and services to customers from sourcing of raw materials to the delivery of the products and services to the final consumer, (Sukati, Baharun, & Said, 2011 in Kehinde, 2023). This is the essence of this study which aims to investigate Customer behavior and sustainable business practices: the case of bread industries in Awka, Anambra state.

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’ interest N=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.

Table 4: Summary of ANOVA Analysis of significant differences between male and female; old and new bread manufacturers on how sustainable practices promote customers’ purchasing interests in Awka.

Summary of Findings:

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.

Customer Behaviour and Sustainability business practices Download

CUSTOMER BEHAVIOUR AND SUSTAINABLEBUSINESS PRACTICES: CASE OF BREADINDUSTRIES IN AWKA, ANAMBRA STATE. Read More »

IMAMMADU (IM) RECRUITMENT MODEL and CHIEF EXECUTIVEOFFICERS’ PERFORMANCE IN SELECTED ORGANIZATIONS IN SOUTHEASTNIGERIA.

Advanced Leadership, Advanced Management, Leadership, Operations Management, People Management, Public Office Administration, Strategic Management and Leadership Development / March 29, 2025

Nelson, Kingsley, Chukwuma
+234 703 696 6382 learntolivebusinessschool@gmail.com

Gertrude-Theresa, Uzoamaka, Chiaha PhD
+234 803 334 4593 gerttyconsult@gmail.com

Nwakobi, Vitalis, Chukwuka
07030701045 chukskobys@gmail.com

Obioha, Okechukwu, Christopher
08037226917 ocobioha@yahoo.com

Nnanyelugo, Dan Onyishi
08067777368 onyishidan@yahoo.com

Ifeanyi, Eze
08035980266 ifeanyieze631@gmail.com

Nmadiya Iroha-Idika
+1 (862) 846-1742 Irohanmadiya123@gmail.com

Imaga Eke Idika
+1 (862) 357-1033 Imagaidika@gmail.com

Joshua Adewale Abioye
08033509855 pstjoshuaabioye@gmail.com

Adeola Folashade Abioye
08033993272 adeolaabioyef@gmail.com

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.

Key Words; Imammadu (IM); Recruitment; Model; Chief Executive Officers (CEOs); Performance.

INTRODUCTION

Background of the study:

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 explores the 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 the Imammadu (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 NOT ACCEPTED.

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.

3. IM Recruitment Model Download

IMAMMADU (IM) RECRUITMENT MODEL and CHIEF EXECUTIVEOFFICERS’ PERFORMANCE IN SELECTED ORGANIZATIONS IN SOUTHEASTNIGERIA. Read More »

How to Implement Successful Learning Initiatives in your Organization

Advanced Management, Strategic Marketing, Strategy Development / March 29, 2023

Author: Yewande Okemati

One of the most pressing issues for Learning Professionals is securing executive commitment to investing in learning and development initiatives. These six strategies will help you get buy-in from senior leadership to execute your learning initiatives.

People are every organisation’s most important asset and investing in them significantly increases the likelihood of business success, giving the organisation a competitive edge in its industry. You would think this should be an easy sell, but it never is the case. This is because business executives want to see a strong business case to secure their buy-in before committing resources to critical learning initiatives.

During challenging times, the budgets and resources of the L&D departments are usually the first to be axed. This action is primarily motivated by the fact that some business leaders cannot see a direct link between the investment in learning initiatives and business results and often do not immediately view Learning Professionals as business partners.

Getting executive buy-in not only facilitates approval and execution but also reinforces the importance of employee development as a direct correlation to business success. So, how do you go about obtaining executive buy-in?

Below are six strategies to help get buy-in from senior leadership to execute your learning initiatives.

Understand your Business Strategy::

Before designing a learning intervention, it is crucial to have a good understanding of your organisation’s business strategy. Some questions to take into consideration include the following.

What is the medium to long-term goals of the organisation?
What are the gaps that have been observed which are impeding the company’s performance?
How can my learning initiative address these gaps and facilitate the achievement of organisational goals?
How do I communicate my message to executives in the business language they understand?

2. Align Initiatives to Corporate Objectives and Goals and Required Investment:

Aligning your learning initiatives to the business objectives and goals is crucial towards gaining buy-in from top management. It is critical to demonstrate how the interventions contribute to the bottom line. Hence, it is essential to be aware of the business direction and demonstrate an understanding of the strategy. Ensure to clearly show the link between the initiatives and how it supports the firm’s strategy. It is also essential to show the needed investment to bring the initiatives to life. This way, business leaders become receptive.

3. Define Success Metrics to Monitor Effectiveness:

Once a good understanding of the business need has been established, the next step is to define the critical success factors. C-level executives are concerned with outcomes; they want to understand what success entails and how it will be measured. Hence, it is critical to directly connect learning interventions to a measurable return on investment (ROI). You can achieve this by ensuring that your learning interventions are couched using SMART principles (Specific, Measurable, Achievable, Realistic, and Time-Bound). Also, demonstrate a direct impact on the firm’s goals and strategy with a clear plan that shows the duration of the monitoring phase and how to track results. Providing senior leaders with this information paints a clearer picture of your proposition and shows how well-thought-out your initiatives are.

4. Get the Right Time to Communicate:

Now that your idea is aligned with the business strategy and expressed in metrics that will engage your executive audience, the next step is to get the right time to communicate it to the decision-makers. Getting the right time to share your ideas is vital to ensure you are heard. Observe business trends and internal activities, then request a meeting with executives when they will be in the best frame of mind to listen to you. Ensure your message is concise, easy to understand and well-expressed using charts, graphs, references etc. Present your intervention, what it addresses and what’s in it for the business. Business leaders tend to pay more attention to ideas centred around business growth and success; a high chance of success depends on how well you structure the conversation.

5. Be Confident:

You must exude confidence and competence when presenting your initiative. Spend more time explaining the value of the intervention to the business than the business challenge that gave rise to it. This action will draw the decision maker’s attention, increasing the likelihood of obtaining their buy-in and the necessary funding.

6. Accept Feedback:

Feedback is essential as it helps gauge the listener’s level of understanding. Therefore, it is crucial to accept positive and negative feedback politely. There is no easy way to obtain top-level support for learning initiatives. However, Learning Professionals must demonstrate a direct link between their learning initiatives and corporate success. With the proper support from top-level management, an effective learning initiative can be executed to drive business performance.

Please speak to one of our Consultants via info@llbsuk.com to get valuable insights and expert advice. Find out where your business is and learn steps to move forward, gaining top management buy-in to your learning initiative.

How-to-Implement-Successful-Learning-Initiatives-in-your-Organisation Download

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Source	Statical tool Used	F- Ratio	P-Value	Level of Sig	Dec
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.	Analysis of variance (ANOVA)	1.947	0.193	0.05	Accept HO₁
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	Analysis of variance (ANOVA)	1.822	0.098	0.05	AcceptHO₂
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.	Analysis of variance (ANOVA)	1.785	0.121	0.05	Accept HO₃

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