Advanced Management

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

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:

  1. To analyse the impact of learning and skills development programmes (Ability) on employee performance in Nigerian PSEs.
  2. To investigate how financial and non-financial incentives (Motivation)  influence employee performance in PSEs.
  3. 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
 ABTMOTOPTEMP
N133133133133
Missing0000
Mean4.024.663.954.04
Median4.004.804.004.00
Standard deviation0.6880.8590.6730.563
Minimum1.001.201.602.00
Maximum5.005.005.005.00

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
  ABTMOTOPTEMP
ABTPearson’s r   
 p-value   
MOTPearson’s r0.472  
 p-value< .001  
OPTPearson’s r0.4800.781 
 p-value< .001< .001 
EMPPearson’s r0.6200.7640.771
 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
ModelRAdjusted R²Fdf1df2p
10.8490.7210.7141113129< .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
PredictorEstimateSEtp
Intercept0.8490.18114.69< .001
ABT0.2300.04415.22< .001
MOT0.2260.04964.56< .001
OPT0.3060.06364.82< .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) thatthere is no significant effect of learning and skills development initiatives (ability) on performances of employees in Nigerian PSEsis 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 thatthere 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) thatthere is no significant impact of the supportive work environment (opportunities) on performances of employees in Nigerian PSEsis rejected.

3.6 Summary of Findings

The results revealed the following major findings:

  1. 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.
  2. 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.
  3. 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.
  4. 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

  1. 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.
  2. Financial and non-financial incentive structures should be reinforced to counteract economic instability, ensuring that employees feel motivated and valued for their contributions.
  3. 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

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

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

Research Questions

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

Research 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.
  2. 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/NThe level of Emotional Intelligence of the Employers includes:ASRNx SDDECISION
1When I feel angry, I wait a bit, before lashing out to think.322817172.801.10HL
2When I feel angry, I wait a bit, before lashing out to think why I’m angry 391719192.811.18HL
3When I feel angry, I wait a bit, before lashing out to think if someone upset me.441515202.881.22HL
4When I feel angry, I wait a bit, before lashing out to think of what the emotion underneath my behavior will be301422282.491.22LL
5I do think about my strengths and weaknesses372616152.901.10HL
6I put in much effort to understand when people are communicating non-verbally302420202.681.14HL
7When I give instructions or directives, I consider the EMPLOYEES332222172.761.12HL
8I do communicate effectively and openly with my employees 401416242.731.26HL
9My main points are clear when I communicate.392118162.881.13HL
10I do give my full attention when someone else is speaking.301224282.471.22LL
11I do view things objectively, that is understanding my strengths and weaknesses and acting with humility.392416152.901.10HL
12I do appreciate and value my employees421215252.731.26HL
13I do consider how my employees feel 392018172.881.13HL
14I do consider what those feelings mean421718172.891.17HL
15I do consider how those feelings impact on their productivity331822212.671.18HL
 Grand Mean/SD    2.761.17HL

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.

GroupNMeanSDtdfSigDec
Non-Highly Educated532.780.290.326920.745NS
Highly Educated412.760.32    

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.

  EIEP
EIPearson Correlation (r)10.221
 Sig. (2-tailed) 0.032
 N9494
EPPearson Correlation (r)0.2211
 Sig. (2-tailed)0.032 
 N9494

            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
  EIEP
EIPearson Correlation(r)1.221*
 Sig. (2-tailed) 0.032
 N9494
EPPearson Correlation(r).221*1
 Sig. (2-tailed)0.032 
 N9494
*. 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

  1. 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;

  1. 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.
  2. More awareness of emotional intelligence should be created by appropriate authorities with an emphasis on its potential in an establishment.
  3. 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.

EMOTIONAL INTELLIGENCE AND EFFECTIVEMANAGEMENT OF OIL AND GAS SERVICINGCOMPANIES IN PORT HARCOURT Read More »

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

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;

  1.  What sustainable practices are adopted by bread manufacturers to promote customers’ purchasing interests in Awka?
  2.  What strategies adopted by manufacturers in Awka, sustain customers’ interest in bread purchasing?
  3. 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                                         ItemsXSDDec 
1.Innovations like adding fruits and vegetables. 0.660. 19NA 
2.Expanding distribution channels through sales agents2.550. 44A 
3.Online marketing through social media platforms 3.420. 28A 
4.Direct sales to consumers  3.250. 52A 
5.Sales through retailers 3.420. 43A 
6.Door-to-door sales to homes, offices, and business areas3.340. 47A 
7.Giving discounts to regular customers 3.270. 50A 
8.Compromising on raw materials to reduce the quantity and quality0.740. 48NA 
9.Adding more ingredients to increase the quantity and quality3.330. 51A 
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 vegetables1.970.36NA 
11.Expanding distribution channels through sales age2.950.43A 
12.Online marketing through social media platforms 2.800.41A 
13.Direct sales to consumers  3.140.42A 
14. Sales through retailers 3.700.45A 
15.Door-to-door sales to homes, offices, and business areas3.230.50A 
16. Giving discounts to regular customers 2.410.25NA 
17.Compromising on raw materials to reduce the quantity and quality1.200.51NA 
18.Adding more ingredients to increase the quantity and quality3.720.27A 
 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 3.300.51LE 
20.Expanding distribution channels through sales agents3.000.36LE 
21.Online marketing through social media platforms 2.480.34SE 
22.Direct sales to consumers  3.200.51LE 
 23.              Door-to-door sales to homes, offices, and business areas3.170.48LE 
 24.                Giving discounts to regular customers 3.290.46LE 
 25.            Compromising on raw materials. to reduce the quantity and quality1.630.19SE 
 26.             Adding more ingredients to increase the quantity and quality3.390.52LE 
27.CLUSTER MEAN/ SD2.930.35LE 

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.

Source Statical tool UsedF- RatioP-ValueLevel of SigDec
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)1.9470.1930.05Accept 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 AwkaAnalysis of variance (ANOVA)1.8220.0980.05AcceptHO2
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)1.7850.1210.05Accept HO3

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:

  1. 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;

  1. 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:

  1.  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.

  1. 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 SUSTAINABLEBUSINESS PRACTICES: CASE OF BREADINDUSTRIES IN AWKA, ANAMBRA STATE. Read More »

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

By

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:

  1. 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;

  1. 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.

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

How to Implement Successful Learning Initiatives in your Organization

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.

  1. 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.

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