Nigerian Business Environment Research Articles

Workaholism and quality of work-life: a psychosocial pathway to brain-drain syndrome

PurposeThe cultural norm of compelling employees to work beyond the standard measure as a result of internal pressure from organisations is gaining popularity in the business environment today. This research is a pointer to a nuanced and dynamic understanding of workaholism, and this study aims to investigate factors that constitute an individual as a workaholic in the banking industry in Nigeria. This study aims to examine the influence of workaholism on the quality of work-life (QWL) of the workforce and how it led pockets of the workforce to migrate to an international workspace.Design/methodology/approachTo capture a good understanding of what describes an individual as a workaholic, and what influences the QWL among the workforce in the banking environment, this study utilised a longitudinal research design to survey bankers in corporate organisations in Nigeria. The study administered a battery of adapted scales to measure latent constructs of dimensions of workaholism and QWL on a random simple probability technique. The study surveyed 425 professional bankers in Nigeria's banking workspace. A structural equation model was used to analyse the data obtained from the banking workforce to establish the relationship that exists between the dimensions of workaholism and QWL.FindingsThe outcome of this study indicated an insightful one. The results of the study illustrated that long hours of work, workload, work pressure, financial challenges as well and the pursuit of career growth are determinants of workaholism in banking corporate business. The study illustrated that all the predictors of workaholism equally affect the QWL of the employees in Nigeria's banking industry.Originality/valueThe originality of this study is captured in the dynamics of the concept of workaholism which portends negative outcomes in the Nigerian business environment given the nature of banking business in Nigeria. The study elucidates that workaholism is not work engagement in Nigeria but the attitude of compulsion from the management of the organisations.

Nigerian Maritime

Abstract Maritime industry clustering has in recent years gained attention as a tool for strategic global and regional economic competitiveness policies, owing to their co-location synergies and agglomeration economies. The Nigerian maritime sector is known to have a large industry, which comprises shipping and logistics firms, shipyards, ship consultants and a suite of other firms, institutions and associations with maritime functions. However, nothing is known about the structural characteristics and environmental dynamics of this significant cluster. This article, capitalising on a critical and meta-analytic review of studies and conceptual modelling, explores for the first time the Nigerian maritime industry from a cluster perspective, underpinned by the foundational competitiveness of Nigerian microeconomic performance. It further evaluates broadly the quality of the Nigerian business environment, highlighting the challenges and opportunities for strategic foresight in decision-making. Targeted recommendations predicated on cluster-specific characteristics are provided to improve cluster competitiveness.

Financial Market Instruments and Economic Development in Nigeria (1988- 2020)

Financial market provide institutional and instrumental framework that facilitates the mobilization of short to long term funds from the surplus units (savers and lenders) and allocating such mobilized funds to the deficit and real sector of the economy for productive purposes. The main objective of this study is to examine the effect of financial market instruments on the economic development in Nigeria. The specific objectives are to determine, examine, ascertain and assess the effects of stock market instruments, debt instruments, commercial instruments and treasury instruments respectively on Economic Development in Nigeria which is proxied by Per Capita Income. Econometric techniques including Augmented Dickey Fuller (ADF) and the Philip Perron Tests for Unit Roots and Ordinary Least Square (OLS) were applied on data sourced from the Stock Exchange Daily Official Listing (SEDOL) and fact book. The result of the study show that stock market instruments, debt instruments, commercial instruments and treasury instruments have positive and significant effect on Per Capita Income. The study therefore concludes that financial market instruments have positive and significant effect on per capita income and standard of living of average Nigerian. This researcher recommends that the relevant regulatory agencies for the capital market should focus on enhancing the efficiency and transparency of the market in order to boost and strengthen investors’ confidence which had regrettably posed a major setback to the Nigerian business environment. Capital market growth inducement channels should be introduced to support the much needed robust and responsive financial system to achieve the desired effect on economic development. Regulators of the market and financial institutions should be actively involved in making systemic checks and appropriate policy innovations to ensure a capital market led economic development. Finally, government should give adequate

Characteristics and Performance of Family Businesses in Wuse Market, Abuja, FCT Nigeria

The unprecedented uncertainties in the Nigerian business environment is negatively impacting business operations and performance. Yet, literature on the association between business characteristics and the financial and non-financial performance of family trading businesses in the Nigerian context is overtly and seemingly scant. Again, family trading businesses are prevalent in Wuse market; one of the largest markets in Abuja, FCT. Taken together, this study seeks to investigate the effects of business characteristics on the financial and non-financial performance of family trading businesses in the market. A cross-sectional survey research design, and criterion and systematic sampling techniques were adopted to collect data from 211 founder/CEOs and the descendant/CEOs of family trading businesses in the market via questionnaire. The generated data were subjected to linear regression analysis. The results showed positive and significant effects. The study concludes that the computation of the overall performance of the businesses based on financial and non-financial performance measures show higher overall performance than when they are computed using financial performance measures alone. Education of the founder/CEOs and descendant/CEOs on how to keep financial records of business transactions, collect the non-financial data based on the non-financial performance measures, and how to use same for the computation of non-financial performance were recommended. The researcher advocates a replication of the study in other contexts using an expanded scope and qualitative or triangulation method.

Assessing E-business and Organizational Performance in Nigeria Today: Evidence from Jumia Ltd, Lagos

In the Nigerian Business environment, e-business is becoming an important initiative for companies to consider in every aspect of running a business. Business organizations have given their places to digital economies in a way that electronic technology interprets the language of every business transaction. E-business has gained prominence which has impacted much on the economy. This study aims at assessing e-business and organizational performance in Nigeria Today: Evidence from Jumia Ltd, Lagos. Three objectives were adopted for this study which are, to establish the effect of e-trading on performance of Jumia Ltd, Lagos, to examine the effect of e-marketing on performance of Jumia Ltd, Lagos. And to explore the effect of mobile commerce on performance of Jumia Ltd, Lagos. The research design adopted for this study was the descriptive research design. The target population of the study was 158 employees of the firm under study. This also served as the sample size. Data were obtained through questionnaire. Hypotheses were analyzed using multiple regression technique. The study revealed that e-business has positive effect on performance of Juima Ltd, Lagos. It was concluded that e-business if properly accorded a maximum attention by Jumia Ltd, Lagos would improve the organization marketing and objectives. It was recommended that Customers’ satisfaction should be the watchword for Jumia because customers are the king in any business organization. There should be free flow of information about Jumia and their products.

TRANSPARENCY: A GUIDE TO PRACTICING GOOD BUSINESS ETHICS IN NIGERIA

Purpose: This paper examines the relevance of transparency as a guide to practicing good business ethics in Nigerian business environment. It attempts to recognize and identify the role of transparency as a guide to ethics in contemporary business organizations in Nigeria. This is necessitated by the high level of corruption and relevance of business ethics to development in the country. It is, therefore, argued that if businesses are conducted ethically by genuinely embracing transparency, it would create value in the country’s corporate and business environment.
 Methodology: The paper adopts an eclectic approach by integrating ideas from different perspectives and organizing them systematically in accordance with the foregoing objective while situating Nigeria as the context of the study. Theoretical and empirical reviews are explored to justify the thematic findings and conclusion of the paper.
 Findings: The paper reveals that implementation of transparency would serve as the right guide for the practice of good business ethics. It was found as an informational mechanism necessary for trust, justice, and prudence. Transparency is also found as important to businesses because of its huge benefits such as capable of establishing trustand encouraging employees to be more engaged and committed to the vision of the organization, increasing productivity, and strengthening innovation.
 Unique contribution to theory, practice and policy: Theoretically, paper indicates that if a culture of work transparency is adopted, it is most likely to motivate innovation accountability within a business organization. Practically, transparency will make it possible for company to collectively solve problems beforehand and initiate new ideas in order to have a competitive advantage in the business world. The paper suggests transparency as a priority for the practice of good business ethics in Nigeria and concludes with relevant recommendations.

The Role of Risk Management, Sustainability Disclosure Practices, and Islamic Finance in Nigeria Business Environment

The Nigerian business environment is currently beclouded with various kinds of risks, fear, and uncertainty that culminate into the collapsing of so many businesses and the relocation of several multinational and local firms to other countries. The business and the environment are in a social contract that leaves them with both opportunities and threats hence the business cannot take place in a vacuum. The interconnectivity between businesses and their environment is that of mutuality. Mutual in the sense that the business influences its environment and the environment as well guarantees the legitimacy of the business considering the interest of all relevant stakeholders. That is, a business is influenced by its environment of operation such that its success depends on the ability to adapt to its immediate and entire environment to make the environment of businesses favorable. Therefore, the objective of this study is to explore conceptually the Nigerian Business Environment (NBE) considering the roles of risk management, sustainability disclosure practices, and Islamic finance. The method adopted by the study is the review of past investigations to gain insight into the NBE. Based on the insight from extant literature and in consonance with assumptions of legitimacy theory, the study concludes that risk management, sustainability disclosure practices, and Islamic finance promote the NBE. The study added to existing literature looking at the NBE from the present perspective (i.e. risk management, sustainability disclosure practices and Islamic finance). The study has implications for the government and policy-makers, companies, the business community, and other stakeholders in terms of creating a conducive business environment in Nigeria through the provision of infrastructure, effective corporate governance mechanisms, good stakeholder management.

Business Perception as a Strategy for Sustaining Entrepreneurship in the Face of Insurgency in Niger State, Nigeria

The Nigerian business environment is unfriendly considering the insecurity situation that characterized the atmosphere which resulted in many businesses being halted while others are forced to outright closure, especially in Niger state. As a result, government and policymakers in the state invest, support, and encourage entrepreneurs to sustain them. However, despite these huge investments and strategies adopted to promote and sustain entrepreneurship activities in the state by policymakers, entrepreneurs continued to perform below expectation. The study, therefore, examined perception as a strategy for sustainable entrepreneurship in the face of insurgency in Niger State. 315 respondents were used as the population as well as the sample size of the study. Simple linear regression was used to analyze the stated hypothesis. The study found a strong and positive relationship between business perception and entrepreneurship sustainability in Niger State. The study concludes that business perception is a strategy for sustainable entrepreneurship in Niger State and recommended that there should be proper orientation and encouragement to Niger State entrepreneurs to maintain or even improve on their current entrepreneurial mind- set, perceiving entrepreneurial opportunities amidst insecurity challenges.

ENTREPRENUERSHIP PRACTICES IN CONTEMPORARY NIGERIA: CHALLENGES AND A WAY FORWARD TOWARDS BUILDING A STRONG NATION

The aim of this research is to determine the entrepreneurs’ perception on the quality of their operation in Nigerian business environment in relation to building strong nation. It is no longer secret that most Nigerian goods cannot compete in terms of price and quality in the open international market. The problem lies in the cost profile of our manufacturing processes, inefficient design of entrepreneurship business, poor management of entrepreneurs funds which hardly been helped by the high cost of obtaining basic service that are taken for granted elsewhere. Effective implementation of policy is the best way out of these problems. The methodology adopted was conceptual in nature, intensive library work was carried out to explicate the theoretical issues, also the study relied heavily on Secondary data which is collected and published by CBN, SMEDAN, Text book, Journals, Periodicals and other related documents. The finding from the previous researchers revealed a positive relationship between entrepreneurship practices and nation building. Therefore, the study recommends appropriate authority should create a viable programme with aim of improving and enriching the effectiveness of those programmes as well as providing the necessary update to keep track of the pace of building strong Nation. And for Nigeria business environment to be salvaged from being the shadow of its former self, business policies must be backed up with appropriate funding, with commitment, Sincerity and consciousness of direction for greater good for all entrepreneur toward building a strong nation.

Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment

The study examined the severity of the five (5) major threats to compliance with code of ethics by auditors in Nigerian business environment. These threats are Intimidation Threats, Self interest Threats, Advocacy Threats, Familiarity Threats and self review Threats. Using survey research design, data for the study were obtained primarily through questionnaire deigned to reflect the five (5) point Likert scale. The internal reliability of the constructs on each item of the threats was done using Cronbach’s Alpha coefficient and value above 0.70 obtained for all items of the construct. With random sampling, questionnaires were distributed to 360 auditorsfrom three (3) states of Nigeria namely Kogi, Benue, and plateau states in private practice and in employment of organizations out of which 210 of them were returned with 195 found usable. Responses obtained on the extent to which respondent agree or disagree with the nature and severity of items of the construct on each threat were analyzed empirically using simple percentage of non – parametric statistics and ranking of percentages. Findings indicated that among the threats faced by auditors in the course of their duty, Intimidation Threats (ITs) ranked first and the most severe of all categories of threats. Further correlation analysis revealed a strong, positive and significant relationship between the threats. The study recommended among others that auditors should have adequate and sufficient regard for their career and reputation striving constantly towards objectivity, honesty, and probity. These are traits or character of complete virtue that enable auditors to stand firm against all odds of threats to the profession.

Prospects and challenges of entrepreneurship internationalization on the competitiveness of SMEs

Purpose Global presence pursuit by Nigerian firms has increased the inquiry into internationalization. While a few implement regional presence, the pros and cons of full internationalization are evaluated. Giving the scarce empirical research, this paper aims to add to scholarly works and knowledge on internationalization and establish regional internationalization as the feasible option for Nigerian firms. Design/methodology/approach Random and stratified sampling techniques were used. Data collection was conducted with questionnaire copies and analyzed with confirmatory factor analysis and structural equation model. Findings Internationalization strategy enhances small and medium enterprises (SME’s) competitive advantage, and full internationalization seems unrealistic for Nigerian firms; however, regional internationalization is the bedrock for full internationalization. Finally, the nature of the Nigerian business environment developed an increased value creation process in SMEs through increased flexibility and problem-solving abilities. Practical implications SMEs should internationalize partially, and critically evaluate socio-cultural and institutional environmental challenges in this study, to enable them to strategize for full internationalization. Originality/value The study demonstrates that the only way to fast track the internationalization drive of SME’s in Nigeria is first to embrace regional internationalization because it is difficult to achieve full internationalization at a go. Then, apply appropriate strategies to embrace full internationalization in the nearest future.

Asymmetric information, business environment, and transactions costs among business owners in Nigeria: Implications for female entrepreneurial sustainability transitions

AbstractThis article assesses the link between asymmetric information and transaction cost and how this can enhance or hinder female business owners from attaining entrepreneurial sustainability transitions in the Nigerian business space. The concept of information dissemination, business environment, and ease of doing business were scrutinized as a subdivision of asymmetric information and transaction cost theory among female entrepreneurs in Nigeria using the Enterprise Survey Data of the World Bank. Key indicators like regulations and taxes, gender, firm characteristics, finance, and infrastructure were highlighted as major business obstacles limiting female entrepreneurs. These were found to limit female entrepreneurs in accessing information, which can help them adequately flourish in the Nigerian business environment, as well as the attainment of entrepreneurial sustainability transitions.

Developing capabilities for sustainability in family owned SMEs: An emerging market scenario

The academic discourse on ‘family’ perpetuity in family-owned businesses (FOB) is still burgeoning. Current findings suggest the importance of family control and family inter-generational sustainability in family-owned businesses. Though literature in family perpetuity and sustainability is well documented from the advanced economies, there is a scarcity of insights from emerging markets where this research relates. The study, therefore, sought to investigate, understand and interpret the underlying drivers of sustainability in small and medium family businesses using the stewardship theory paradigm and relying on evidence from an emerging market economy the Nigerian family business environment. A qualitative method with 41 in-depth interviews involving owners and managers of family-owned small and medium businesses was conducted. The study empirically shows that there is an interrelationship between family structure and business sustainability, hence the practice of polygamy was found to be inimical to family business success and sustainability. The study also showed that the element of spirituality arising from the ideals and values of the owning family is a significant factor for ensuring family wellbeing and business sustainability, and founding owner characteristics (industry experience) and impacts positively on the business performance and continuity. The study confirmed that the stewardship of non-family member employees within the business is provisional stewardship as non-family members rely on other incentives from the owning family members to behave as stewards. Building on the stewardship theory, the paper develops a model of sustainability for small and medium family businesses. The study contributes to the theoretical literature on stewardship and family business sustainability

SMEs Management Success Determinants and its Implications on Their Performance in South West, Nigeria

Purpose: In developing nations, like Nigeria, Small and Medium scale Enterprise (SME) is supposed to be a catalyst for socio-economic development and employment generation. Eighty-five percent of the SMEs failed before their fifth anniversary. The study undertook to identify influential management success determinants and the concomitant effects on SMEs’ performance in Nigerian unstable business environment. Approach/Methodology/Design: The study used a cross sectional survey research design and probability sampling methods of stratified, random and proportional samplingto select 1102 CEOs. There were 988 completed questionnairesreceived back from respondents, giving and excellent response rate of 89.66%. Findings: The result of the study revealed significant difference in the evaluations of management success determinants to performance and management skills of the SMEs operators, organizational structure and innovation as being the most critical success factors for the SMEs in the Nigerian business environment. The most significant individual effects on SMEs performance are traceable to organizational structure, management skills and environmental scanning. There is a combined strong effect of the management success determinants on SMEs performance. Practical Implications: Apart from contributing to the existing literature on SMEs performance, the study also noted that new entrants into Nigerian market environment will succeed if the right organizational structure is put in place and innovation as well as management skills are taken seriously. Originality/Value: This study contributes by discovering that management skills of the SMEs operators, organizational structure and innovation are the most critical success factors for the SMEs in the Nigerian business environment.

Limited Liability Partnerships Under Nigerian Law

The Companies and Allied Matters Act, 2020 (“the Act”) introduced a myriad of changes to the Nigerian business environment and corporate sector. Among such changes is the creation of a novel business structure called Limited Liability Partnerships (“LLPs”) . This article will explore the legal framework for LLPs under Nigerian law including the: Definition of LLPs Capacity to be a partner in an LLP and minimum required number of partners Prerequisite for appointment of designated partners and their responsibilities Effects of incorporating LLPs Relationship between partners and the extent of their liability and Foreign LLPs

Globalization: Conflicts of Opportunities, Challenges & Constraint Factors in Nigerian Business Environment

Globalization: Conflicts of Opportunities, Challenges & Constraint Factors in Nigerian Business Environment

Internal Factors that Stimulates Business Startups in Southern Nigeria

In the face of unpredictable business environment, epileptic power supply, unstable government policies, poor infrastructural facilities, poor market network, inadequate capital among other factors affecting the Nigerian business environment which hinders motivation and has a great limitation to the functionality and development of entrepreneurship yet businesses are still being established. Hence, the aim of this study is to identify the internal factors that motivate such entrepreneurs in starting up businesses in Southern Nigeria despite the above challenges. Using a descriptive study, seventy one entrepreneurs were investigated. Findings revealed that passion, the desire to do something pioneering and innovative, and the feeling of accomplishment were the major factors that motivate the entrepreneurs in this context. Hence, government agencies and other empowerment institutions should take note of these factors if entrepreneurship is to be fostered.

Developing Capabilities for Sustainability in Family Small Enterprises

Though literature in family perpetuity and sustainability is well documented from the advanced economies, there is scarcity of insights from emerging markets where this research relates. The study, therefore, sought to investigate, understand, and interpret the underlying drivers of sustainability in small family businesses using the stewardship theory paradigm in the Nigerian family business environment. A qualitative method with 41 in-depth interviews involving owners and managers of family-owned small and medium businesses was conducted. The study empirically shows that there is an interrelationship between family structure and business sustainability; hence, the practice of polygamy was found to be inimical to family business success and sustainability. Building on the stewardship theory, the paper develops a model of sustainability for small and medium family businesses. The study contributes to the theoretical literature on stewardship and family business sustainability.

Technology usage and employee behaviour: controversies, complications, and implications in the Nigerian business environment

Organizations are among the key units of the society. An organization comprises of several people including employees. The behaviour of employees determines the performance and efficiency of the organization. Technology is an important factor that distinguishes one organization from the other. Employee’s acceptance, rejection, and adaptability to technology being used determine to a great extent how organizations will thrive in a business environment. The drive of technology usage is to ensure that work processes are made easier, faster and to improve the organization’s economic efficiency. In addition, technology usage greatly influences employee behaviour. The aim of this paper is to find out how technology usage affects employee behaviour and vice versa. It is important to understand that in order to improve employee’s usage of technology incorporated into the organization, individual behaviour of employees must be examined cum their attitude. The results of the study indicate that employee behaviour mainly affects technology usage, promotes individual learning, increases efficiency and effectiveness, and improves organizational performance. The paper therefore recommends periodic review of organizational policies and in addition, procure hardware and software to guide against hackers and scammers to avoid losing those important information.

The Management Challenge of Sustaining Competitive Advantage through Innovation in Nigerian Business Environment

Organizational learning refers to the sum total of individual and collective learning through training programs, experience, experimentation and work interactions within the organization. Thus, sustainable competitive advantage is the ability to offer superior customer value on an enduring or consistent basis, a situation in which competitors are unable to easily imitate the firm's capacity for value creation. It is worrisome that most literary works have not clearly linked organizational learning with sustainable competitive advantages, as is the case with intellectual capacity (knowledge-based resources) using the resource-based view of the firm. A survey approach was the research design used with particular reference to the South East Zone of Nigeria. Findings revealed that organizational innovation leads to sustained competitive advantage. The Z-statistic value with the corresponding probability value confirms that the organization to a large extent draws its competitive strength jointly from the following factors: creation of new products, changes in way of production, changes in architecture of production, improved ways of sourcing supplies, opening new market opportunities, providing goods and services that others are not yet offering or are not able to copy, being able to offer products of comparable quality at a lower price, maintaining a configuration of resources and capabilities that cannot easily be imitated by competitors, being able to attract customers from competitors due to a positive corporate image and encouraging employees to improve their personal skills. The results total Z-scores in absolute term shows that the listed factors pose challenges to the organization in the process of achieving sustainable competitive advantage through innovation. For further justification, we proceed to their joint significant analysis adopting the one sample Z-test. The proxies employed in this study for the measurement of sustainability agreed with resource-based view strategies on sustainability of competitive advantage in an unstable business environment.