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Vol -1, No. 7, October 2012

European Journal of Business &Social Sciences ISSN: 2235—767X

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Contents

1.

ASSESSMENT OF SHEA BUTTER PROCESSING AMONG RURAL DWELLERS IN ATISBO LOCAL GOVERNMENT AREA OF OYO STATE, NIGERIA

……………….……..Page 1 – 08

2. GENDER-ROLE ORIENTATION AND SELF EFFICACY AS CORRELATES OF ENTREPRENEURIAL INTENTION

…….………………..Page 09 – 26

3.

RISK ELEMENTS IN COMMUNICATING THE MANAGERIAL DECISIONS

……………………..7 – 33

4. EFFECTS OF NETWORK STRUCTURE ON PERFORMANCE OF MINOR EVENT MANAGEMENT VENTURES IN KENYA

……………………….Page 34 – 45

5. SECURITY EDUCATION IN COLLEGES: IS IT SUFFICIENT? ………………………..Page 46 – 55

6. STATUS OF EXPERIENTIAL INTEGRITY IN HIGHER EDUCATION AND ITS IMPLICATIONS FOR EDUCATIONAL TRANSFORMATION

………………………..Page 56 – 66

7.

MULTINATIONAL CORPORATIONS (MNC) AND EMPLOYMENT AND LABOUR CONDITIONS OF DEVELOPING COUNTRIES: THE NIGERIAN EXPERIENCE

………………………..Page 67 – 76

8. THE RIGHT TO PRIVACY – SOUTH AFRICAN AND COMPARATIVE PERSPECTIVES

………………………..Page 77 – 86

9.

EFFECTS OF DISTRIBUTIVE JUSTICE COMPLAINTS RESOLUTION STRATEGIES ON CUSTOMER SATISFACTION IN KENYA’S BANKING INDUSTRY

………………………..Page 87 – 96

10.

NEW PRODUCT DEVELOPMENT AND CONSUMER INNOVATIVE BEHAVIOUR: AN EMPIRICAL VALIDATION STUDY

………………………..Page 97 – 109

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EUROPEAN JOURNAL OF BUSINESS AND SOCIAL SCIENCES

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European Journal of Business and Social Sciences, Vol. 1, No. 6, pp 1-08, October 2012. URL: http://www.ejbss.com/recent.aspx ISSN: 2235 -767X

ASSESSMENT OF SHEA BUTTER PROCESSING AMONG RURAL DWELLERS IN

ATISBO LOCAL GOVERNMENT AREA OF OYO STATE, NIGERIA

A.O. Ademola,

(Corresponding Author)

Department of Agricultural Extension and Rural Development

Faculty of Agriculture and Forestry, University of Ibadan, Nigeria.

E-mail: [email protected]

[email protected]

O.B. Oyesola



S.O. Osewa



ABSTRACT iven the cost-benefit discrepancy of Shea butter production in Nigeria, this study aims to assess Shea butter processing among rural dwellers of Atisbo Local Government Area of Oyo State. Oyo

State is a major Shea butter producing state in Nigeria and Atisbo is the head quarter of the production. The population for the study comprised all Shea butter processors in Atisbo Local Government Area of Oyo State. Multistage sampling procedure was used to select 120 respondents for the study. Result reveals that the Shea butter processors are mainly females, middle aged, married, with no formal education. They have large household size, and have Shea butter processing as their primary occupation. However, the processing techniques are manual, time consuming, and highly demanding. There are limited market opportunities for the product, and the processors hardly seek information to improve their activity. Besides, limited credit facilities and processing equipments are the major constraints of the processors. It is concluded that Shea butter production in the area is lower than expected, and its quality is questionable. It is recommended that Shea butter processing should be vitalized by governments and NGOs by adopting it as a poverty alleviation initiative, because of its enormous potentials.

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Introduction Shea butter tree (Vitellaria paradoxa) is indigenous to Sub-Saharan Africa and belongs to the family Sapotaceae. It grows in the wild and has a huge economic and ecological potential. Shea butter is naturally rich in Vitamins A, E, and F (Okullo et al, 2010). Shea butter is widely utilized for domestic purposes such as cooking, skin moisturizer and commercially as an ingredient in cosmetic, pharmaceutical and edible products (Alander, 2004). The fruit when very ripe can be eaten raw. Traditionally, Shea butter are used as cream for dressing hair, protecting skin from extreme weather and sun, relieving rheumatic and joint pains, healing wounds/swelling/bruising, and massaging pregnant women and children. It is also used in treatments of eczema, rashes, burns, ulcers and dermatitis. Lovett (2004) concluded that Shea butter is a high–value export to Europe and the United States, where it is considered a luxury. Maranz and Wiesman (2003) stated that at least 500 million production trees are accessible in West Africa, which equates to a total of 2.5 million tonnes of dry kernel per annum (based on 5 kg dry kernel per tree). They also asserted that over two million people in 13 African countries process the commodity for cash and consumption. Shea butter is mostly processed manually in small villages in Nigeria. Shea butter processing is done by village women, and the method which they use is one passed down through generations. Moreover, there is no estimate of the overall balance between cost of input and the economic output of Shea butter, as the processing is not only arduous, labour-intensive and time consuming, it also requires large amounts of water and firewood. Bonkoungou (2005) estimated that the traditional processing of 1kg of Shea butter takes one person 20-30 hours, from collection to final product. It is also estimated that 8.5-10.0kg of fuel-wood is needed to produce 1kg of Shea butter. The traditional method involves the following activities: harvest the nuts from the farm, accumulate in piles or pits, heat the nuts – boil (preferred) or roast, dry the whole nuts (if boiled), de-husk the nuts to get kernels (usually cracked by hand), dry the kernels, crush the kernels, dry roast the crushed kernels, mill or pounded/grind into a paste, kneaded (water-boiled or pressed) to form an emulsion to separate fats, boil the oil (fat) to dry and clean by decanting to clarify the butter, prepare for use, sale , or storage (cooled oil will congeal into solid white/cream colored butter). The semi-mechanized method involves the use of grinders to take the place of pestle and mortars and these hand operated machinery reduce the amounts of firewood and water required. A nut crusher, roaster, a kneader or a hydraulic/screw press oftentimes complements the manual process and reduces drudgery of the traditional system. Fully-mechanized Shea butter processing method involves the use of − fermentation/parboiling tank, parboiled Shea fruit digester, bed drier, cracker/shell separator, roaster, milling machine, oven, basket oil presser, warehouses and/or chemical solvents to extract the oil. Comparatively, the extraction rate of Shea butter from Vitellaria paradoxa using the traditional method is about 20%, 35% to 40% using semi-mechanised method, and 42% to 50% using the fully mechanized method (Addaquay, 2004). Despite the huge and wide usage, Shea butter being processed in Nigeria is characterized by low quality and quantity. The inefficiency of the processing techniques lowers the quantity of Shea butter available in the market. Shea butter processing in West Africa involves minimum mechanical input, heavy drudgery and high input of firewood, which has a direct effect on the quality of Shea butter (Carette et al, 2009). The low quality of Shea butter is thus a concern, as it falls below international standard. Consequently, demand is decreasing and the potentials of Shea butter in alleviating rural poverty is dwindling, necessitating an assessment of the processing techniques. The following questions were answered by this study.

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1. What are selected personal characteristics of Shea butter processors in Atisbo LGA? 2. What are the Shea butter processing techniques utilized in the area? 3. What are the information sources of Shea butter processors in the area? 4. What marketing outlets do Shea butter processors in the area employ? 5. What are the processing constraints of Shea butter in the area? 6. What is the quantity of Shea butter processed in the area?

Hypotheses of the study Ho1: There is no significant relationship between marketing outlets employed and quantity of Shea butter processed Ho2: There is no significant relationship between processing techniques used and quantity of Shea butter processed Methodology The study was carried out in Atisbo Local Government Area of Oyo state because it is a major Shea butter producing area in the state. Atisbo is a rural Local Government located in the north-west of Oyo state, Nigeria, about 175km from Ibadan, the state capital. Its headquarters is in the town of Tede. The name Atisbo is an acronym of eight rural communities that made up the Local Government. Thus, Atisbo stands for Ago-are and Agunrege, Tede, Irawo, Sabe, Baasi, and Ofiki and Owo communities. It is predominantly agrarian with some mining land where precious stones such as tourmaline and tantalite can be found. There are 10 wards in the Local Government and bounded in the North by Saki East, South by Itesiwaju and Iwajowa, East by Orire and Republic of Benin to the West. It has a population of 110,792 going by the 2006 National Population Census. Among the cash crops widely grown include cashew, Shea butter and mango. The population for the study comprised all Shea butter processors in Atisbo Local Government Area of Oyo State. Multistage sampling procedure was used. Forty percent of the 10 wards were randomly selected to give a total of 4 wards. Each ward in the local government consists of an average of 20 communities and 40% of the communities were selected to make a total of 6 communities per ward. A snow ball sampling technique was then used to generate 5 Shea butter processors from each of the community to give a total of 120 respondents. The data for the study were collected through interview schedules with the Shea butter processors. The data collected were analyzed using both descriptive (frequency counts, percentages, and means) and inferential statistics (chi-square and PPMC). The independent variables for the study include selected personal characteristics, information sources, marketing outlets, processing techniques, and processing constraints. The dependent variable is Shea butter quantity processed. Results and Discussion Personal Characteristics of Shea Butter Processors Age is a crucial factor in agricultural production, as young, active and virile farmers are expected to be more productive than old farmers. Table 1 shows that 40.6% of the processors are between ages 56 and above, implying that weak labour and probable laggards dominate Shea butter processing. Most (82.5%) of the processors are married indicating that they have responsibilities of their households to meet. The predominance of married processors suggests that they are deriving some form of support from family members. Chalfin (2004) opined that education is a variable that determines the ability of a respondent to access and understand information. Result shows that majority (44.2%) have no formal education, inferring illiteracy and difficulties in accepting innovation. On the other hand, the productive activities of males and females in agriculture are very important and must be taken into consideration. Majority (96.7%) of the processors are female, corroborating Cocoa Research Institute of Ghana (2007) that women are more involved in the processing of Shea butter. Household size implies the total number of people staying under a

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roof and being fed. Higher number of children is an indication of family wealth in rural areas. Children are an added labour advantage for increased agricultural productivity because they do bulk of the farm work, 60.7% of the processors have between 7-10 household, which should result in increased production. Majority (81.7%) of the processors have their primary occupation to be Shea butter processing, showing the level of devotion to the vocation in the area. Table1: Distribution of selected personal characteristics of the processors (N=120) Variables Frequencies Percentages Age ≤ 25 2 1.7 26 - 45 33 27.5 46 - 65 80 66.7 ≥ 65 5 4.1 Sex Male 4 3.3 Female 116 96.7 Marital Status Single 9 7.5 Married 99 82.5 Divorced 5 4.2 Widowed 7 5.8 Educational Attainment Non Formal 53 44.2 Arabic 14 11.6 Primary 29 24.2 Secondary 21 17.5 Tertiary 3 2.5 Household Size 3-6 28 23.3 7-10 73 60.8 11-14 19 15.8 Primary Occupation Shea Butter Processing 98 81.7 Others 22 18.3 Source: Field Survey, 2011

Processing Techniques of Shea Butter Processors The processing techniques in table 2 are the ones found in practice in the study area. Every one of the processors harvest fruits themselves implying no division of labour. The hygiene practices in the processing is low, as the processors have little hygienic attitude, with 95.8% of them not washing the fruits before eating/de-pulping. Drying of seeds take a number of days, as the processors always have seeds being dried every day. Only the healthy seeds should be used in processing, but 30.0% of the processors do not select the best of seeds, but use all. About 6.0% of the processors crack the seeds with machine and not manually, showing the low level of mechanization in the process. Roasting, milling, boiling, and cold water mixing are done averagely either twice a month or once a week. Seventy seven point five percent of the processors do not do cold water separation, meaning that there is unacceptable moisture content in the finished product. Filtration, solidification, packaging, and standardization are fairly done once a week, twice a month, or once a month. Result shows the tedious nature of Shea butter processing, corroborating (Carette et al, 2009).

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Table 2: Distribution of processing techniques of the Shea butter processors (N=120) S/No Processing Techniques No (%) Yes (%)

Once a Month

Twice a Month

Once a Week

Twice a Week

Daily

1 Picking of fruits - - 0.8 1.7 95.8 1.7 2 Washing of fruits 95.8 - 0.8 1.7 1.7 - 3 De-pulping 3.3 - 4.2 21.7 57.5 13.3 4 Drying of seeds 0.8 - 0.8 3.3 8.3 86.7 5 Seed selection 30.0 2.5 14.2 21.7 15.8 15.8 6 Seed cracking by hand 5.8 9.2 23.3 43.3 10.8 7.5 7 Seed cracking by machine - 33.3 30.0 34.2 1.7 0.8 8 Roasting of kernels - 26.7 32.5 35.8 3.3 1.7 9 Milling of kernels - 27.5 35.8 38.5 0.8 - 10 Boiling of grounded kernels 7.5 25.0 31.7 34.2 1.6 - 11 Kneading into dough - 29.2 33.3 36.7 0.8 - 12 Cold water mixing 1.7 27.5 35.0 35.0 0.8 - 13 Cold water separation 77.5 5.8 7.5 9.2 - - 14 Filtration - 29.2 36.7 33.3 0.8 - 15 Solidification - 29.2 36.7 33.3 0.8 - 16 Packaging - 33.3 29.2 36.7 0.8 - 17 Standardization - 29.2 33.3 36.7 0.8 - Source: Field survey, 2011 *Multiple Responses Shea Butter Processor s’ Marketing Outlets Table 3 shows that marketing to wholesalers and retailers occur majorly (77.5% and 68.3% respectively) once a week. Consumers in the community hardly constitute part of the market, as Shea butter processing is an art known to almost all in the community; those that do not produce for the market produce for personal consumption. Also, there is little direct trade of the product as 70.0%, 99.2%, 65.8% of the processors do not sell to consumers outside their communities, food companies in cities, and cosmetics companies in cities respectively. None of the processors sell to traditional hospitals because the latter produces what it requires and they neither sell internationally. There is either little sensitization of the public and industries of the efficacy of Shea butter or distrust in its quality, as also opined by Hayes and Lence (2004). Table 3: Distribution of respondents’ marketing outlets (N=120) S/No Marketing Outlets No (%) Yes (%)

Once a Month

Twice a Month

Once a Week

Twice a Week

Daily

1 Wholesalers 5.0 16.9 - 77.5 - 0.8 2 Retailers 2.5 26.7 1.7 68.3 0.8 - 3 Consumers within community 89.2 3.3 0.8 4.2 - 2.5 4 Consumers outside communities 70.0 9.2 - 20.8 - - 5 Food companies in cities 99.2 - - 0.8 - - 6 Cosmetics companies in cities 65.8 25.8 - 8.3 - - 7 Traditional hospitals 100.0 - - - - - 8 Exports 100.0 - - - - - Source: Field survey, 2011 *Multiple responses Shea Butter Processors’ Preferred Sources of Information Radio still stands as the most preferred information sources in rural communities as opined by Oladeji et al (2011). The best way extension can remain relevant to rural dwellers is by adopting radio as the major channel of information, as ruralites will not go out of their way to seek information from extension. Result shows that Shea butter processors place little importance on information as a major resource in improving both their processing techniques and productivity, which can be explained to be due to their limited commercialisation.

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Table 4: Distribution of processors’ preferred information sources (N=120) Information Sources Frequencies Percentages Preferred Radio 63 52.5 1st Television 32 26.6 2nd Extension agent 9 7.5 3rd Video 8 6.7 4th Newspaper 3 2.5 5th Handbill 3 2.5 5th Postal 2 1.7 7th Sources: Field Study, 2011 Shea Butter Processors’ Constraints

Majority of the processors responded that inadequacy of credit is a very severe constraint in Shea butter production as it is often the case among rural practitioners as submitted by Oyesola et al (2010). Table 5 indicates that Shea butter nuts are in abundant supply in the area, but limited processing equipments is a constraint that limit both quality and quantity of Shea butter available for the market. Shelf life of Shea butter is not a constraint, because it last for a long time; and labour is also not a constraint, as household labour is sufficient. Processors do not have need for storage facilities, and unfortunately do not see a need for efficient information, as they do not regard it as a resource in their activity.

Table 5: Distribution of Shea butter processors’ constraints (N=120) Constraints No (%) Yes (%)

Not Severe Severe Very Severe Inadequate credit facilities 1.6 6.7 24.2 67.5 Limited supply of nuts 93.3 3.3 1.7 1.7 Inadequate transportation facilities 29.2 5.8 25.0 40.0 Limited processing equipments 9.2 2.5 18.3 70.0 Shelf life of Shea butter 97.5 0.8 81.6 - Increased competition among processors 30.0 9.2 25.0 35.8 Low demand 74.2 10.8 10.0 5.0 Limited labour 94.2 3.3 2.5 - Inadequate storage facilities 100.0 - - - Processing drudgery - 5.0 15.8 79.2 Limited information 100.0 - - - Source: Field survey, 2011 Quantity of Shea butter produced Table 6 reveals that 90.8% of the processors produce between 21kg and 40kg of Shea butter a month, given 252kg to 480kg per annum. This implies that there is a large room for increase in production, reinstating Bonkoungou (2005) that it cost too much to produce, so only little can be produced, given that Shea butter nuts are in abundant supply as shown in table 5 Table 6: Distribution of Shea butter processors’ production (N=120) Quantity of Shea Butter Processed per Month Frequency Percentage Below 10kg 2 1.7 11-20kg 6 5.0 21-30kg 70 58.3 31-40kg 39 32.5 41-50kg 2 1.7 Above 50kg 1 0.8 Source: Field survey, 2011

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Testing of Hypotheses Hypothesis One (Ho1): There is no significant relationship between marketing outlets and Shea butter production. Result in table 7 shows that Shea butter quantity produced is not dependent on the available marketing outlets. This implies that the processors produce for personal consumption and put the remaining up for market; or they already produce at maximum capacity and the market is not enough to motivate them to produce more. Table 7: PPMC results of correlation (N=120) Variables r-value p-value Remark Decision Marketing outlets / Quantity produced 0.100 0.277 Not Significant Accept Ho1 Processing techniques / Quantity produced 0.010 0.917 Not Significant Accept Ho2 Source: Field Study, 2011 Hypothesis Two (Ho2): There is no significant relationship between processing techniques and Shea butter production. Table 7 reveals that quantity of Shea butter produced by the processors is not a function of their processing techniques. This suggest that the processors are very accustomed to the drudgery involved in Shea butter processing, that it does not affect their level of production. It also implies that Shea butter processors do not put extra effort to produce more, indicating a comfortable status quo. Conclusion It is concluded that the Shea butter processors are mainly females, middle aged, married, with no formal education, have large household size, and have Shea butter processing as their primary occupation. The processing techniques are manual, take time, and highly demanding. There are limited market opportunities for the product, and the processors hardly seek information to improve their activity. Moreover, limited credit facilities and processing equipments are the major constraints of the processors. Shea butter production in the area is lower than expected, as it is their primary livelihood activity. Finally, the quantity of Shea butter produced is neither affected by available markets, neither the processing techniques. Recommendations It is recommended that Shea butter processing should be adopted by both governments and NGOs as a poverty alleviation initiative, given its enormous potentials locally and internationally. Federal government should curb importation of beverages and cosmetics to enable local industries increase their demand for Shea butter as raw material. This will lead to mechanisation and commercialisation of the sub-sector. National Shea butter Association of Nigeria (NASPAN), National Agency for Food, Drug, Administration and Control (NAFDAC), and Standards Organization of Nigeria (SON) should synergize to ensure Shea butter quality for international market. Extension should help locate Shea butter markets and motivate processors to meet specifications. The value-addition to the profession will also encourage young, energetic and dynamic youths to it, which will promote rural development and encourage urban-rural migration.

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References Addaquay, J. 2004. The Shea butter value chain: refining in West Africa. West Africa Trade Hub (WATH)

Technical Report No. 3. Washington, DC: USAID Alander, J. 2004. Shea butter – a multifunctional ingredient for food and cosmetics. Lipid Technology,

16(9): 202–205 Bonkoungou, E.G., 2005. The Shea tree (Vitellaria paradoxa) and the Africa Shea parklands. Proceedings of

the international workshop on processing and marketing of Shea products in Africa, Dakar, Sénégal, 4-6 March 2002. Roma: FAO, CFC Technical paper No 21:51-59

Carette, C., M. Malotaux, M. Leeuwen and M. Tolkamp, 2009. Shea nut and butter in Ghana opportunities and constraints for local processing. Hans Eenhoorn and Resilience Foundation. pp: 6-8. http://www.resilience-foundation.nl/docs/Shea.pdf (Accessed 12/8/2011)

Chalfin, B. 2004. Shea Butter Republic: state power, global markets, and the making of an indigenous commodity. New York, USA: Routledge

Cocoa Research Institute of Ghana (CRIG). 2007. Research and development of the Shea tree and its products. http://www.solutions-site.org/cat11_sol119.htm. (Accessed 21/9/2011)

Hayes, D.J. and S.H. Lence. 2004. Farmer-Owned Brands. Agribusiness 20:269-285 Lovett, P. N. 2004. The Shea butter value chain: production, transformation and marketing in West Africa.

West Africa Trade Hub (WATH) Technical Report No. 2. US-AID West Africa Programme Maranz,, S. and Z. Wiesman. 2003. Evidence for indigenous selection and distribution of the Shea tree,

Vitellaria paradoxa (Gaertner), and potential significance to prevailing parkland savanna tree patterns in sub-Saharan Africa north of the equator. Journal of Biogeography, 30(10): 1505–1516

Okullo, J.B.L., Omujal, F., Agea, J.G., Vuzi, P.C., Namutebi, A., Okello, J.B.A. and S.A. Nyanzi. 2010. Physico-chemical characteristics of Shea butter (Vitellaria paradoxa C.F. Gaertn.) oil from the Shea districts of Uganda. Africa Jounal of Food, Agriculture and Nutrition Development, 10:2070-2084

Oladeji, J.O., Oyesola O.B., Ogunleye K.Y. and K. Raji. 2011. Agricultural Information Needs of Root and Tuber Farmers in the Atisbo Local Government Area of Oyo state, Nigeria. Journal of Agriculture and Food Information, 12(2):199-205

Oyesola, O.B. and T.S. Kadiri. 2010. Effects of Rural Urban Interaction on Socio – Economic Status of Rural Dwellers in Oyo State, Nigeria. Global Approaches to Extension Practice, 6 (2):1-10

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GENDER-ROLE ORIENTATION AND SELF EFFICACY AS CORRELATES OF ENTREPRENEURIAL INTENTION

Dr. Barnabas E. Nwankwo Department of Psychology,

Caritas University, Amorji-Nike, Enugu, Nigeria

E-mail: [email protected] +2348023611991

Gabriel C. Kanu

Department of Psychology, Caritas University, Amorji-Nike, Enugu, Nigeria

Dr. Mary I. Marire Department of Business Administration,

Enugu State University of Science and Technology (ESUT), Enugu, Nigeria;

Prof. Shyngle K. Balogun Department of Psychology,

University of Ibadan, Ibadan, Nigeria.

Anayo C. Uhiara

Department of Social Sciences, Federal Polytechnic Owerri, Owerri, Nigeria

ABSTRACT he study investigated gender-role orientation and self-efficacy as correlates of entrepreneurial intentions. A total of 350 participated in the study, comprising of two hundred and six male

and one hundred and forty-four female students of Enugu State University of Science and Technology, Enugu, Nigeria. Participants responded to gender-role inventory, self efficacy scale and eentrepreneurial intention questionnaire. It was hypothesised that gender-role orientation and self efficacy will not be significantly related to entrepreneurial intention. One-way analysis of variance and Pearson correlation statistics were used to analysis the data. The results showed that significant difference existed among the gender-role orientation dimensions F(350)=19.42, P<.01, and self efficacy relates significantly with entrepreneurial intentions, r(350)=0.34,P<.01.The implications of the study were discussed and suggestions provided for further studies. Keywords: Self efficacy, gender-role orientation, entrepreneurial intention.

T

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INTRODUCTION There has been growing interest in undertaking and intensifying actions to promote and support the idea of entrepreneurship as an attractive alternative to wage unemployment among students around the globe (Gelard & Saleh, 2010). Nigeria as a nation is experiencing great economic challenges that include unemployment of her teeming graduates, which presents the need for entrepreneurial skills to be aquired to curb this menance. (Nwankwo 2011). Considerable attention is been devoted to understanding the determinants of an individual’s decision to engage in entrepreneurial activityies (Bird, 1988; Krueger & Sokol, 1982; Seibert & Lumpkin, 2010). Today, entrepreneurship has become one of the most dynamic forces in developing nations and reinforces world’s economic growth. According to Romer (1994), entrepreneurial activities are seen as engine of a nation’s long-term economic growth. Recent research literatures have focused on the role of intentions within the entrepreneurial process (Kruueger & Carsrad, 1993). Intensions and the intentions formation process are therefore considered within the entrepreneurship literative. The link between intentions and behaviour is very well explained in psychology. Intensions reflect the motivational factors that influence behaviour and are a reliable indicator of how hard a person is willing to try and how much effort he/she makes to perform a behaviour (Ajzen, 1991). As a result, intentions are widely seen as powerful predicators of behaviour, especially in the case of purposive, planned, and goal oriented behaviour (Bagozzi, Baumgartner & Yi, 1989). Entrepreneurial behaviour is typically seen as a purposive behaviour directed towards specific entrepreneurial event, such as the creation of a new company or new products. These intentions are seen as central in understanding the entrepreneurial intents developed from both rational and intuitive thinking, which in turn are affected by the entrepreneur’s social, political, and economic context, and his/her perceived history, current personality, and abilities (Mair & Noboa, 2003). Entrepreneurial intentions are defined as intentions toward starting a high-growth business (Venkataraman, Van de Ven, Buckeye & Hudson, 199,Hmieleski & Corbett, 2006). They adopted a high growth perspective for three reasons. The primary rationale being that high growth start-ups operate in turbulent environments (Venkataraman et al, 1990). This type of environment is characterized by factors such as time, pressure and novelty, which demand frequent improvisation as a requirement for survival. A secondary reason is that high – growth ventures are primary creators of new jobs (Reynolds, Bugrave, Autio, Cox & Hay, 2002). Thus, new knowledge relating to the process of creating high growth ventures is likely to have important –societal implications. Thirdly, small businesses, which are content to maintain the status quos, are fundamentally different from high growth ventures in terms of innovation, strategic orientation, and propensity for bearing risk (Carland, Hoy, Boulton & Carland. 1984). Accordingly, the characteristics of the founders for each type of business (low-growth and high-growth) are likely to be substantially different (Stewart, Watson, Carland & Carland, 1998,). According to Bird (1988) intentionality can be defined as a state of mind directing a person’s attention, experience and action towards a specific goal or a path to achieve something. Therefore, entrepreneurial action can also be classifies as an intentional behaviour or intention is a predictor or planned entrepreneurial behaviour (Kniger,1993). Shapero (1982) indicate that the entrepreneurial intentions streams from the perception of feasibility and desirability of a person and this path is affected by the cultural and social context. A growing area of entrepreneurship research seeks too identify underlying factors that motivate or encourage students to engage in entrepreneurial activity (Mueller & Dato-on, 2008). Having realised that entrepreneurs play a key role in economic growth and job creation of a country, entrepreneurial education has been argued as an effective way to promote and boster the interest of entrepreneurship among university students. Exposures to knowledge may instil positive attitudes towards entrepreneurship among students. Since entrepreneurial intentions has prove to be a primary predictor of future entrepreneurial behaviour (Tong, Tong & Loy, 2011; Basu & Virick, 2008; Karz, 1988; Reynolds, 1995; Krueger et al., 2000).

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However, recent attempts have been made by research on factors influencing entrepreneurial intentions and one consistent finding is the controversy surrounding societal gender role prescriptions (Mueller & Datoon, 2008). Women and men have historically assumed different roles in society. Certain jobs have traditionally been considered more appropriate for men and others more appropriate for women (William & Best, 1982). Underlying widely-held beliefs in the appropriateness of these conventional sex roles are male and gender stereotypes. These stereotypes assure patterned differences in the psychological characteristics of males and females (Williams, Satterwhite & Best, 1999). Studies show a persistence gap between men and women student in the motivation, desire and intentions to become an entrepreneur. Recent studies suggest that the intention to become an entrepreneur is more likely determined by an individual’s gender perception of self and values than by biological sex perse (Gupta, Turban, Wasti, & Sikolar, 2009; Mueller & Dato-on, 2008, 2010). Mueller and Dato-on (2010) studies MBA students to determine whether gender role orientations are consistent across cultures and discovered that gender –role orientation explains entrepreneurial behaviours across culture better than biological sex. Gender-role orientation is a personal trait or attribute conditioned by a traditional social system in which men are expected to think and behave as men (masculine) and women are expected to think and behave as women (feminine). Within such a social system, some behaviours, roles and careers are stereotyped as masculine while other are stereotyped as feminine (Williams & Best, 1982). Masculinity is a cognitive focus on getting the job done.Instrumental behaviours and attitudes that are stereotyped as masculine and aggressiveness. Femininity is an affective concern to the welfare of others and the harmony of the group expressive behaviours and attitudes that are stereotyped as feminine include submissiveness, dependence, deference, cooperation, caring and nurturing (Williams & Best, 1982). Based on the conceptualization of masculinity and femininity as independent dimensions of gender role orientation researchers explain variations among students in entrepreneurial activities (Mclabe, Ingram, & Dato-on, 2006) further researchers attribute differences in entrepreneurial intentions to variation in the prevalence of “potential entrepreneurs”- individuals with the propensity, motivation, and desire to start a business (Muller & Thomas 2001; Lee & Peterson, 2000; Beyelsdijk & Noorderhaven, 2004). Nevertheless, there still remain a persistent gap between males and females in desires and intentions to become an entrepreneur (Langouitz & Minniti, 2007). Longouitz and Minniti (2007) asserts that gender-role orientation matters more than biological sex in determining an individual’s self -efficacy in performing entrepreneurial tasks. A robust body of research emerged over the years extending the concept of self-efficacy to the entrepreneurship domain. Early pioneers in this research team, Boyd and Vozikis (1994) incorporated self-efficacy into Bird’s (1988) model of entrepreneurial intentions. They proposed that self-efficacy influences the development of entrepreneurial intentions among students and hence the probability of venture creation. They argued that few students from intentions about engaging in entrepreneurial activities if they believe there is a high probability of failure. By extension, a person will have the intention to create a new venture, or act upon an existing entrepreneurial intention, only when self-efficacy is high in relation to the perceived requirements of a specific opportunity (Mueller & Dato-on, 2011; Boyd & Vozikis, 1994). According to Bandura (1997) self-efficacy is the strong personal belief in skills and abilities to initiate a task and lead it to success. It is the perceptions of self-efficacy, rather than objective ability that motivates individuals to demonstrate entrepreneurial behaviours (Markhary Balkin, & Baron, 2002). Unlike other personality traits of entrepreneurship which are relatively static, self-efficiency is affected by contextual factors such as education and past-experiences (Holleabeck & Hall, 2004). Klood and Bandurer (1989) defined self-efficiency as the belief in one’s capabilities to mobilize the motivation, cognitive resources, and courses of action needed to meet given situational demands. It reflects an individual’s self –assessment as to whether they have the ability to perform a particular task as well as the belief that they convert those skills into a successful outcome (Wilson, Kickul & Marlino, 2009).

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Self-efficacy is domain specific advances across tasks and situations (Wilson et al., 2007) it can also be generalized to other related tasks or performance (Clien, Greene & Crick, 1998). Other than gender-role orientation, self-efficacy is considered another core factor in entrepreneurial intentions because if self-efficacy is how an individual will not act (Boud & Vozikis, 1994).Individual who show how self-efficacy inbit lower tendencies in engaging in entrepreneurial activity because higher entrepreneurial self- efficacy is associated with higher intention to become an entrepreneur (Segal, Borgia & Schoenfield, 2008). Hence improving student’s self-efficacy in entrepreneurship enables them to put more efforts over a longer time, persist the challenges and develop plans and strategies to achieve higher entrepreneurial goals (Shane, Locke & Collins, 2003). These variables, gender-role orientation and self-efficacy will be studied as factors in entrepreneurial intentions among students. It is well known that a career in entrepreneurship offers significant opportunities for individual’s to achieve financial independence, creates jobs thereby contibuting to the economy, innovations, and economic growth. Today’s students are tomorrow’s potential entrepreneurs, which may explain why a growing number of universities offer courses and programs in entrepreneurship (Souitaris, Zerbinati & Al-Laham, 2007). However, there is little understanding of the factors that affect student’s intentions of becoming entrepreneurs as many lack the necessary skills and abilities that is required in entrepreneurial activities. Similarly, little is known about differences in entrepreneurial intentions and attitudes among students who share different gender-role orientations and self-efficacy. Entrepreneurship is an essential driver of economic development, often representing in modern economies not only a badge of economic legitimacy but a harbinger of social prosperity. Therefore investigating what factors determine the entrepreneurial intentions of students is a crucial issue in entrepreneurship research. Thus, the purpose of this study is to investigate whether gender- role orientation and self-efficacy will be significantly related to entrepreneurial intention. THEORETICAL BACKGROUND Entrepreneurship has been described and is often defined as a process through which an individual exploit an opportunity and create value (Baron & Share, 2008). Potential entrepreneurs recognise an opportunity and evaluate whether or not they have the knowledge and skills needed to develop it. Based on the assumption that the entrepreneurship process is consciously engaged in by individuals, theories have been developed which explain what drives an individual to engage in this process. These theories revolve around the notion that the entrepreneur first forms the intention to begin a business and then, if the intention to act is strong enough, the entrepreneur tasks steps to carryout his or her intentions. The theory of planned behaviour (Ajzen, 1991; Ajzen & Fishbein, 1980) suggests that attitudes towards a behaviour (for instance, new venture creation) predict intentions, which in turn predict the actual behaviour. Ajzer’s model based on the theory of planned behaviour argues that intentions in general depend on perception of personal attractiveness, social norms and feasibility and Shapero’s model (1952) of the Entrepreneurial Event states that entrepreneurial intentions depend on perceptions of personal desirability, feasibility and propensity to act. Krueger, Reilly and Carsaod (2000) employed a competing models approach and compared the two intentions –based models using a sample of students were all facing career choice decisions. The results of the analysis offered strong support for both models leading to the conclusion that intentions are the single best indicator of any planned behaviour including entrepreneurship, and that personal and situational variables have an indirect effect on entrepreneurship through their influence on key attitudes and general motivation to cut. Krueger and Carsrad (1993) specify three key antecedents of entrepreneurial intention:(1) the attitude one holds with respect to venture creation, which develops from perceived desirability:(2) the perceived social norms for the engagement in venture creation and(3) the perceived control one maintains for entrepreneurial behaviour. Additional person/situational exogenous influences are predicted to affect an individual’s entrepreneurial intentions indirectly through their influence on one of these key altitudinal antecedents (Ajzen, 1991; Kolvereid & Isaken, 2006). The theory of planned behaviour is based on the premise that much human behaviour is planned and is therefore preceded by

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intention towards that behaviour (Fishbein & Ajzen, 1975). Understanding the intentions towards any purposeful behaviour is essential to our understanding of the antecedents of that behaviour (Ajsen & Fishbein,. 1980). Basu and Viriciz (2008) argued that intention is an accurate predictor of planned behaviour, especially in cases where behaviour is difficult to observe, rare, or involve unpredictable time lags, and the entrepreneurial intention fulfilled these characteristics. Robinson, Stimpson, Huefner and Hunt (1991) argued that planned behaviour can be changed both across time and across situations in virtue of the individual’s interaction with the environment. The theory states that the individual’s attitudes have an impact on behaviour via intention (Schwarz, Widoniak, Almer-Jarz & Breitenecher, 2009). Autio, Keeley, Klofsten, Parker and Hay (2001) pointed out that attitudes have been shown to explain approximately 50% of the variance in intentions. Attitudes have been recognised as independent variables that predicted the variance in entrepreneurial intention by previous researchers (Schwarz et al, 2001; Autio et al., 2001). Traits theory holds that entrepreneurs are born not made. Jacobwitz (1980) observed that entrepreneurs commonly share certain personality characteristics. These includes, restlessness, independence, a tendency to be a loner, extreme self confidence, innovative, action orientation, high on need for personal control and highly autonomous. Trait theories such as Jacobwitz (1980) suggest that entrepreneurial aptitude is static – that is, either people are born with the related characteristics or they are not. While personality and other individual differences may predispose individuals to entrepreneurial behaviour the dissatisfaction with the trait approach prompted a growing focus on identifying what the entrepreneur does (Bygrar & Ytafer, 1991; Gartner, 1988). Feminist theory by Greene, Hart, Gatewood, Brush & Carter, (2003) is concerned with women’s rights since it has along tradition of analyzing gender relations, it is a useful perspective for researching gender and entrepreneurship (Greene et al, 2003). Feminist theory comprises two major distinct branches – liberal feminism and social feminism – which have different assumptions regarding the nature and the reasons for gender differences (Vehail, 2005). Liberal feminism, holds that men and women will behave differently because of situational factors, while social feminism assumes that gender differences in behaviour are caused by dispositional factor (Fischer, Reuber & Dyke, 1993). Social feminism has its antecedents in differential, socialization perspective. It posits that men and women exhibit fundamentally different views of the world because of difference in their socialization. Different – socialization of men and women results in the appearances of feminine and masculine mode of knowing, which are equally valid for science and society. Thus according to this perspectives, male and female entrepreneurs might differ in their traits, behaviours, and experiences, while their ventures might differ in their characteristics and outcomes. Liberal feminist perspective assumes that both sexes posses equal capacity rationality. Although men and women are essentially the same, gender differences are due to the fact that women are deprived of opportunities such as education and discouraged to develop their full capacities. Gender differences in entrepreneurship may be explain through the fact that female entrepreneurs have unequal access to resources or face gender – based discrimination. Liberal feminism assumes that women will evolve and become like men when all forms of discrimination in a society are eliminated. Shapero and Sokol (1982) advanced a process model of new venture formation which include what they called a displacement event. They argued that inertia guided human action and as a result there needed to be a displacing event to push or pull on individual to change course, and in this case to found a business. This displacement has also been called the “trigger” or “precipitating” event. This model is more dynamic and suggests that entrepreneurial intention is based on the interaction between personal characteristics, perceptions, values, beliefs, background and environment (situational context). They base this approach on a model of the entrepreneurial event in which entrepreneurship is defined as “the pursuit of an opportunity irrespective of existing processes” (Kirzner, 1985).

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Shapero and Sokol’s (1982) entrepreneurial event theory is inherently an intention based model created with the entrepreneurial domain in mind. Within the model, an individual’s perceptions of feasibility and desirability to become an entrepreneur, in addition to one’s general propensity to act, predict entrepreneurial intentions (Peterman & Kennedy, 2003). Specifically, perceived feasibility is defined in terms of whether one feels capable of starting a business, while perceived desirability is concerned with the overall attractiveness of starting a business. The theory predicates that a general sense of inertia guides an individual’s behaviour until a specific entrepreneurial event” causes such inertia to be displaced (Shapero & Sokol, 1982). Unlike the traits theory, this approach incorporates the influence of environment, and the notion that entrepreneurial behaviour is planned and intention. This approach is process –focused in that the interactions of several factors are examined in order to predict behaviour. Beliefs, perceptions and assumptions are learned within the context of a given environment. These altitudes and perception predict intentions, which in turn influence behaviour. An entrepreneurial intention is thus mediated in the following manner: Environment or event causes an individual to form perceptions, attitudes and assumptions (consider the assumptions and beliefs that might be formed in a change –oriented environment as opposed to a static environment). These perceptions then translate themselves into intentions, or potential. Intentions or potential then are expressed through behaviour. Thus, this theory suggests that entrepreneurial characteristics not only can be learned, but also can vary across individuals and situations (Maalu, N-zuve & Magutu, 2010; Shapero & Sokol, 1982). Social cognitive career theory (Lent, Brown & Hackett, 1994: 2000) is an established theory of vocational psychology that has been used extensively to explain individuals’ career-related decision making behaviour. It is anchored in social cognitive theory and highlights the importance of self-beliefs and self-thought in fostering an individual’s motivation and subsequently guiding their behaviour (Seyal, Borgia & Schoenfeld, 2003). With its foundation in Banduras, (1989; 2001) social cognitive theory, SCCT asserts that the psychological process underlying career decisions and behaviours is dictated largely by the interplay of three key constructs; (1) self-efficiency, which is defined as the dynamic set of beliefs about one’s capacity to carry out a specific course of action within a given domain (2) outcome expectations, which are characterised as the expected consequences of a given behaviour, and (3) goals, which are specified in terms of one’s determination to engage in a specific behaviour (Bandura, 1986; Lent et al., 1994). This goal construct, moreover, encompasses an individual’s intention to engage in a specific behaviour. Social cognitive career theory further acknowledges that person and environment/contextual elements influence the career decision-making process, with self-efficiency, outcome expectations, and goals/intentions are predicted to mediate the relationships between individual and environmental experiences and outcome behaviour (Lent, Brown, Nota & Sores, 2003; Lent et al, 1994). Conceptualizing entrepreneurship as a career choice, scholars recognize the utility of key SCCT constructs as predictors of individuals’ intention to become an entrepreneur. For example, equal, Borgia and Schoenfeld (2002) found that self-efficiency beliefs and outcome expectations (operationalized in terms of earning potential, financial security, and independence) together explained over half the variance of students’ entrepreneurial intentions. The applications of social cognitive career theory to the entrepreneurial domain focuses solely on the subset of these three key models construct (Winkel, Vanevenhoven & Ehrhardt. 2011). Research conducted by Flacherty and Dusck (1980) discovered that androgynous and masculine individuals exhibit more desirable intentions to entrepreneurial behaviours. The study found that masculine individual’s show more psychological traits, including higher self-concept, self-esteem, and higher career self-efficacy (Flaherly & Dusck, 1980, Matsui & Onglatco, 1991). The study conducted Scberer, Brodzinski and Wibe (1990) found that masculine individuals perceived a greater degree of competency for performing entrepreneurial task associated with owning and managing a business than the feminine (Females). In a study by Zhao, Seibert and Hills (2005) they found that gender-role orientation was not significantly related to entrepreneurial intentions. Using a broad sample of MBA students at five US university, they found no difference in entrepreneurial intentions between male and females. According to the finding of Daron, Markman and

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Hirsa (2001) individual with masculine orientation don’t significantly differ in entrepreneurship activities from those that received feminine orientation. The research showed that both the masculine and feminine individual share the perceived characteristics required for entrepreneurial activities e.g. assertiveness, competitiveness, boldness and risk taking whether the (entrepreneur) is a male or female. Also, the results revealed by the national women’s foundation (2004) suggested that there is no significant difference in entrepreneurial intention between males and females. The study found that 48 percent of all privately hold businesses in US are owned by females. The study also estimated that 10.6 million businesses in US are at least 50 percent female owned. This shows that gender-role orientation is not a significant factor in entrepreneurial intention among US citizens. Studies conducted by Crant (1996), Rolvereid, (1996), Veciana, Aponte and Urbano (2005) found that feminine individuals (females) have lower entrepreneurial intentions than masculine individual (males). Carter, Anderson and Shaw (2001) found that feminine orientation individuals differ in entrepreneurial intentions from their masculine (male counterparts) individual in that they females are less likely to have prior business experience or training. Results revealed that they feminine individuals choose entrepreneurship as a result of experiencing glass ceiling in large organisations, and have difficulties to acquire resources such as financial, human and social capital (Carter et al., 2001). Gupta and Bharve (2007) demonstrated experimentally that the stereotype of “fewer entrepreneurial skill in women than in men” reduced female business schools student’s entrepreneurial intentions. An entrepreneurial intention was associated with instrumental behaviours and attitudes that are stereotyped as masculine such as assertiveness, competitiveness, independence and aggressiveness. Gupta and Bharve (2007) postulates that expressive behaviour and altitudes that are stereotyped as feminine including submissive, dependence, difference and caring are negative associated with entrepreneurial intentions among female students. Achterhager and Welter (2007) and Gheraodi and Poggio (2004) in their findings reported that gender-role orientation is a significant predictor of entrepreneurial intentions among students. They found that entrepreneurship is carried by individuals who show masculine orientation. Friedman and Tribunella (2009) in their empirical study found that gender-role orientation is a significant predictor of entrepreneurial intentions among MBA students. Their study showed that students who received the masculine orientation exhibit entrepreneurial behaviour more than those who showed feminine orientation. Cox, Mueller and Moss (2002) reported in their study that self-efficacy is a predictor of entrepreneurial intentions and behaviours. Their study showed that students who have high self-efficacy perform better than those who show low self-efficacy in entrepreneurial tasks. Also, they discovered that men have higher self-efficacy in performing entrepreneurial tasks than do women. Gender-role stereotypes, transmitted to women via socialization experiences, pose psychological barriers to entrepreneurial intentions and career choice (Cox et al, 2002). Scherer, Brodzinski and Wiebe (1990) found that men have higher self-efficacy than women in entrepreneurial intention; however more recent studies by Sequeira, Mchree, and Mueller (2005) did not support the findings. The results of Mueller and Dato-on (2008) also found no statistical significant difference in self-efficiency between men and women in entrepreneurial intentions using a representative sample of MBA students. Segal, Borgia and Schoenfeld (2005) found that higher self-efficiency is associated with higher intention to become an entrepreneurs. The empirical evidence showed that students who have high self-efficacy as a result of entrepreneurship education and training exhibited higher entrepreneurial intention than those who show low self-efficacy. They conclude that entrepreneurial education was effective in developing entrepreneurial self-efficacy and consequently intention of students to set up their own business. The study conducted by Zhao, Seibert and Hills (2005) also established a strong relationship between self-efficiency and entrepreneurial intentions. The result reveals a reliable correlation between high self-efficiency and entrepreneurial intentions among university students. They argued that entrepreneurship education should not only focus on technical aspects of entrepreneurship, but it also should strengthen student’s self-confidence to become entrepreneurs through offering them variety of learning opportunities.

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Through a longitudinal study over a period of 18 months, Audet (2002) found that entrepreneurial intention changes due to the impacts of some positive factors. Investigating entrepreneurial intention of 354 undergraduate students of Business Science and Economics in two public universities, found that intentions is a function of perceived self-efficiency. The research showed a significant relationship between high self-efficiency and entrepreneurial intention (Linan, Rodriguez & Rueda-Cantuche, 2005). Found and Smith (1996) lent, Brown, and Hachett, (1994, 2000), Lent, Lopez and Shen (2008) empirical research supports, that self-efficacy directly influences entrepreneurial intention with higher self-efficacy enhancing entrepreneurial activities. Found and Smith (1996), Lent et al (2008) found an average weichted correlation of 32 and 49 respectively between self-efficacy and entrepreneurial intentions. They assert that if an individual perceives control over a specific event, he/she will attempt to exert that control over that particular task. Boyed and Vozikis (1994) reported that self-efficacy influences the development of entrepreneurial intentions and hence the probability of venture creation. They revealed that a person will have the intention to create a new venture or act upon an existing entrepreneurial intention, only when self-efficacy in high in relation to the perceived requirements of a specific opportunity (Boyd & Vozikis, 1994). Empirically, several studies have been conducted by different researchers from the western societies. The limited interactive concerning the Nigerian sample and inconclusive research of these findings creates a vacuum which must be filed by further studies. Further research study will be conducted in these variables using Nigerian sample. HYPOTHESIS

1. People will not significantly differ on entrepreneurial intention on the basis of their gender role orientation.

2. Self-efficacy will not be significantly related to entrepreneurial intentions. METHODS Participants A total of 350 participants were used in the study. The participants were students of Enugu State University of Science and Technology, Enugu drawn from three faculties. One hundred and seventeen students were drawn from the faculty of Arts, one hundred and ten (110) were drawn from the faculty of Social Sciences and one hundred and twenty-three (123) were drawn from the faculty of management. These participants comprises of two hundred and six (206) males and one hundred and forty-four (144) female with ages ranging from 18 – 25 years. A convenience sampling technique was used to select the participants because this involves a non-probably sampling procedure in which the research chooses a number of respondents at will. Measures Three instruments were used in this study. They include Bem Sex Role Inventory (1974), New General self-efficacy (NGSE) by Chen, Gully and Eden (2001) and Entrepreneurial Intention question by Linan and Yi-Wen Chen( ). Gender-role Orientation Inventory by Bem’s (1974) BSRI scale was used to measure gender-role orientation. As anticipated, factor analysis result confirms two factors: masculinity and femininity. Both factors have strong reliability with a Cronbach alpha score of 0.88 for masculinity and 0.83 for femininity. A median split method was used to divide respondents into one of four gender-role orientation categories: masculine, androgynous, feminine and undifferentiated. For these data, the mean masculinity score above 4.43 and a femininity score above 4.02 respectively. Respondents with a masculinity score above 4.43 and a femininity score above 4.43 and femininity score below 4.02 were categorized as masculine (N = 56). Respondents with a masculinity score below 4.43 and femininity score above 4.02 were categorized as feminine (N = 62). Respondents with a masculinity score below 4.43 and a femininity score below 4.02 were

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categorized as undifferentiated (N = 44). Bem (1974) provided a construct validation for the concepts and a product moment correlations for the masculinity, femininity, androgyny and androgynous. The researcher revalidated the instrument to make a suitable for the Nigerian sample and obtained a reliability coefficient Cronbach alpha of masculinity 0.53 and femininity 0.64.

The second instrument used in the study is the self-efficacy scale. Self-efficacy of employees will be assessed through the New General self-efficacy (NGSE), scale developed by Chen, Gully and Eden, (2001). The questionnaire asked questions regarding self-efficacy in order to establish a qualitative measure of self-efficacy. The scale contains 8 items measuring the participants perceived level of self-efficacy. The response categories on each self-efficacy item ranged from “strongly agree” to “strongly disagree”, with numerical values of 1 through 5 assigned to each response. The items were reverse scored so that items numbers shaded 5, 4, 3, 2, 1 respectively are scored 1,2,3 ,4,5. The higher the score the higher the self-efficacy while the lower the score the lower the self-efficacy. Inter-item correlations ranged from .32 to .86 with internal consistency reliability estimate of Cronbach alpha = .91 (Gully and Eden, 2001). The scale was revalidated by Oji (2011) to make it suitable for the Nigerian sample. The result obtained from the items analysis shows no duplication. Item-total correlation of the 8-item ranged from .29 to .79 with reliability estimate for Cronbach alpha = 78 The entrepreneurial Intention Questionnaire (EIQ) developed by Linan and Chen (2007) focused on the probability that the respondent will start a new business at some time in the future. The EIQ measures the core Entrepreneurial Intention model events of becoming an entrepreneurial. Entrepreneurial intentions were measured by asking participants how interested they were in different careers including starting and owing their own business. Respondents rated their interest level on a 7-poin likert scale ranging from 1 = Disagree strongly to 7 = Agree strongly. An example of the items in the scale is “i am ready to make anything to become an entrepreneur”. The developers obtained a composite reliability of Cronbach alpha of 0.95. However, the researcher revalidated the instrument and obtained a reliability coefficient at 0.88. Procedure With the assistant of the class reps in the faculties involved in the study. The researcher was able to create report with the students which provided the necessary environment for the researcher to share the questionnaires to the students and their different classes. The questionnaires were distributed to the students few minutes before their lecture period. During the exercise that lasted for 15-20 minutes, instructed were dished out for clarity purposes and after the exercise the researcher also collected the questionnaire with the help of the class reps before their lecture commences. A total of 380 questionnaires were distributed to the participants and 362 questionnaires were recovered, 12 discarded for improper completion and the final 350 copies were used for the final analysis. Design/Statistics The researcher employed a cross-sectional survey design in the study and ANOVA and Pearson r correlation were used to analyse the data.

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RESULTS The result of the analysis shows the findings of the study which includes the inter inter-correlation between the independent variables and the dependent variable, their descriptive statistics and analysis of variance result obtained from the study. Table 1 shows the descriptive statistics and the inter-correlation between the variables studied, while table 2 showed the ANOVA analysis of the variables. Table 1: Descriptive statistics of Inter-correlation between gender role orientation (masculinity and femininity)

S/N Variables Mean SD 1 2 3 4 1 Entrepreneurial

intentions 5.27 1.41 1

2 Masculinity 5.11 .81 .32** 1 3 Femininity 5.23 .70 .24** .34** 1 4 Self efficacy 4.05 .73 .34** .29** .28** 1. ** P <.01 (2-tailed)

Table 1 revealed that there is a significant positive correlation between masculinity and entrepreneurial intention r(350)=0.32,P<.01. There is a significant positive correlation between femininity and entrepreneurial Intention r(350)=0.24, P < .01. There is a significant positive correlation between self efficacy and entrepreneurial intention r(350) =0.34, P < .01. The table also reputs a significant positive correlation between masculinity and femininity r(350)=0.34, P < 0.1. Masculinity and self efficacy r(350)=0.29, P < 0.1 and femininity and self efficacy r(350)=0.28, P < .01.

Table 2: ANOVA summary of gender role orientation and entrepreneurial intentions

Source SS quare Df M.sq F Gender R 100.682 3 33.56 19.42* Error 598.029 346 1.73 Total 698.711 349 Note: * P<.05

The results of the analysis, as shown in Table 2 a significant difference exist among the mean scores obtained in the gender role orientation dimension (masculinity = 5.75, femininity = 4.98, Androgyny = 5.72, in differentiated = 4.42) on entrepreneurial intentions. Thus, the null hypothesis that people will not significantly differ on entrepreneurial intention on the basis of their gender role orientation was rejected. DISCUSSION The result of the analysis showed that the first null hypothesis which states that people will not significantly differ on entrepreneurial intention on the basis of their gender role orientation was rejected. The result showed a significant prediction. The result corroborates with the findings of Naherly and Dusck (1980), Matsui and Onglatco (1999), Scberer, Brodzinski and Wibe (1990), Crant (1996), Rolvereid (1996), Veciana, Aporte and Urbano (2005), Carter, Anderson and Sharv (2001), Gupta and Bhawe (2007), Achterhager and Welter (2007), Gheraoodi and Poggio (2004), Friedmanard and Tribunella (2009), which reported that gender role orientation is a significant prediction of entrepreneurial intentions. On the contrary, the result disagrees with the findings of Zhoo, Seibert and Hills (1995), Dara, Markman and Hirsa (2001), and the national homes foundation (2004) which reported no significant difference in entrepreneurial intentions between people with masculinity and femininity orientation. The result revealed that differences exist in entrepreneurial intention between masculinity and femininity in gender role orientation. People who posses masculinity orientation are more inclined towards entrepreneurship compared to those who posses that family orientation in the society. The result shows that males engage in entrepreneurial activities more that the females because the orientation is that male posses personality characteristics that predispose them to aggressive act, assessments, risk taking and creative attitudes. Students, who manifest masculinity gender role orientation, have this feminine attitude in life activities and are always encouraged by the societal stereotype to be entrepreneurs. Most people believe that business activities, innovations and risk of behaviours are meant for males (masculine) while domestic

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chores and more subtle activities and services are meant for the females (feminine). The second null hypothesis which states that self-efficacy will not be significantly related to entrepreneurial intentions was also rejected. The study showed a significant positive correlation between self efficacy and entrepreneurial intentions. The study corroborated with the bindings of Zhao, Seibert and Hills (2005), Linan, Rodriguez & Rueda Cantuche (2005), Lent, Brown and Hachelt (1994, 2000) Lent, Lopez and Shen (2008), Smith (1996) and Boyed and Vozikis (1994) which reported that self efficiency positively correlates with entrepreneurial intations. Students who have strong belief and positive perception about their abilities are mostly entrepreneurial in nature. A student’s attitude and courage in himself/herself will go a long way in influencing his/her entrepreneurial intention. These intentions form the positive attitude required for entrepreneurial activities. The belief and courage in oneself (self efficacy) motivates at student to engage in risk taking behaviours. Those with low self-efficacy lack the courage and trust in themselves. Therefore, they are mostly dependent on those, who are achievers for survival. Self efficacy is a significant factor in entrepreneurial behaviour of students. Courageous individual strives to become creative, innovative and forerunners in activities that are challenging in the environment. The orientation and perception of a creative and courageous student is always different from the dependent students who believe that he/she is not in control of his life events. Students with high self efficacy show that the environment can be exploited and subdued. Several implications have been deduced from this study. The study revealed that people significantly differed in entrepreneurial intention on the basis of their gender role orientation. This implies that males are known for aggressive, creative and risk taking role that differentiate them from the females who are known for their submissive, dependent and caring behaviour. Since gender role orientation is a personal trait or attribute conditioned by a traditional social system, it is expected that these stereotypes attitude and behaviour will influence the role ad career decisions every student will make in his/her society. The male (masculine) who think and behave as breadwinners will always want to go for job that will befit their status as males, thereby, choosing a particular vocation is stereotyped as masculine. In order words, the males (masculine) knowing their responsibilities are more ignited to think more about becoming self-sustaining and independent. This attitude in turn, stimulated intention of becoming entrepreneur. However, self efficacy being a strong personal belief in skills and abilities to initiate a task, strengthens entrepreneurial intentions and behaviour. Self efficacy is affected by education and past experiences therefore; students who are dedicated to their academic activities acquired different relevant skills and abilities necessary for entrepreneurial activities. When the skills and abilities are acquired the individual self efficacy is boosted and thoughts of innovating, creating and exploring the environment become paramount. A student with high self efficacy will always believe that he/she will succeed in any business venture he/she participates in. Students who find themselves in entrepreneurial environment will also strive to add value to themselves so as to be able to make impact in any competitive environment. Entrepreneurs are people with competitive mind and therefore will be people with positive belief of achievement. Summary and Conclusion This study investigated gender-role orientation and self efficacy on entrepreneurial intentions. Three instruments were used in the study.Two hypothesis were postulated and tested by the research. The first hypothesis which states that people will not significantly differ on entrepreneurial intention on the basis of their gender role orientation was rejected. The result proved significant. The second null hypothesis which states that self efficacy will not be significantly related to entrepreneurial intensions was also rejected. The result should a significant positive relationship between self-efficacy and entrepreneurial intentions.

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From the result, gender-role orientation and self efficacy are significant factors in entrepreneurial intentions. Students with masculine orientation engage more in entrepreneurial activities compared to those who manifest to feminine gender-role orientation. Males posses the personality characteristics that predispose them to entrepreneurial activities. They are dominant in nature, possessive and more assertive than the female students who are more caring, independency and submissive in nature. This is mostly as a result of the fact that our social system has stereotyped some behaviours, roles and careers as masculine, while others are stereotyped as feminine. In order words, male student behave as males, striving to fulfil their social responsibilities as males (masculine). This predisposes them to the thought of being independent, and they must achieve this by engaging in entrepreneurial activities while the females are made to think as females (feminine) who mostly depend in the males for survival and assistance. Also, the belief that one has the necessary skills and abilities to excel in a particular task motivates the individual towards pursuing such task and this encourages the thought and intentions of becoming an entrepreneur. Demographic variables like ethnic group, age and socio-economic status were not considered in the study. Further researches are encouraged to increase their sample size while conducting similar study for better analysis. Variables like age, socio-economic status of parents and ethnic group of students should be studied as control variations in similar studies to easily assess more information about the study. The inclusion of such variable will help provide more information in the study.

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RISK ELEMENTS IN COMMUNICATING THE MANAGERIAL DECISIONS

PhD I.C. Dima,

University “Valahia” of Targoviste, Romania

Assoc. PhD S. Vladutescu,

University of Craiova, Romania

ABSTRACT he place and role of risk in managerial activity must be analysed by taking into account the relation where the two concepts about risk are, namely: The concept suggested by the decision theory

and concept suggested by managers. It is necessary to take into account managers’ behaviour towards the risk defined by the theory of choice, which leads to the following conclusion: managers actually assume risks and express preferences in terms of risk, using techniques and procedures – other than the traditional ones – such as media, variation of probabilistic distributions of possible outcomes, etc. Key words: risk, uncertainty, risk assessment / information engineering, decision, intelligence of complex systems.

T

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JEL Classification: AD 21 J50 Transmission of decisions taken by the manager to the performers is a specific form of hierarchic

communication Influence on Decision Theory

The researches on adopting the decision have shown that in practice decisions are made, which are in contradiction with the perceptions of the theory. [4] But, they partly set contradiction on the limits of the theory and not simply on the limits of human behaviour. For example, a rigid joint between the information and decision is not useful in ambiguous situations where preferences, causal structures and meanings are vague and changeable. As it has been previously shown, this type of situation is frequent. And if numerous decision problems of the contemporary systems fall without difficulty within the theory of decision and are suitable to its laws, those most interesting of these decision problems mostly do not fall into this frame.

The difficulties arose from the ambiguity of preferences, pertinence, intelligence and meaning can be illustrated by a reflection on some aphorisms suggested by decision theory:

• Never start an action unknowingly. To the extent where it is operated inside the anticipative and consequential framework of rationality, it is important to know what is desired before acting. But, it is obvious that intelligent decision makers often behaved as if they would not believe in this need. They see in action a way to discover and elaborate preferences, rather than a modality to operate based on them;

• Refrain yourself under ignorance. One of the axioms of the theory of rational choices is that actions are justified by understanding and anticipating their consequences. Even if it is admitted that this understanding of consequences cannot be total, the optimal amplitude of ignorance is determined by its expected consequences. But, it is certain that a decision maker can act intelligently without explicitly knowing the “consequential” reasons of his/her actions, but following his/her intuition, complying with his/her rules and duties or following his/her peers’ notice;

• Do not ask a question if its answer cannot change your decision. In the decision theory optics, the value of an information is related to reducing the uncertainties which surround choice. Or, the essence regarding the information collected, purchased or communicated does not have this direct pertinence for decisions. It enables the creation of a background of knowledge and meanings, usable for possible actions or to explain the experience. The participants understand the collection of information as an investment into a collection of knowledge and as an aid to define and choose preferences and options;

• Do not speak before knowing what you want to say. Certain communication theoreticians say that a message must be fully understood by its issuer before being sent, as accurately as possible, to its addressee. But a large part of the effective communication in systems overcomes the ambiguous formulations and leads to answers representing the message and seeks its possible meanings.

The conclusion is simple; an information system can be designed based on a static and precise decision structure and this is a good idea. But the information engineering has a more difficult and more important duty: designing a system for imprecise decision structures and which modify.

In some cases, the problems can be reduced to a standard problem variant, supposing that the distribution of probabilities of uses and possible users is known or can be assessed, which is proved to be of limited utility. [5] Taking into account that an explicit solution of a complex problem is of a completely different difficulty level than that of the initial problem, this solution shall not solve the deeper problems of ambiguity.

These more general problems have been discussed before, but not really solved in the institutes related to the knowledge systems of advanced cultures. It is possible, at least in principle, to imagine a system for generating and diffusing the knowledge that explicitly identifies the probable decisions to adopt, the knowledge needed to these decisions and expected marginal output of other knowledge tools. This approach has already been suggested for decisions of assignment within the knowledge systems like science, journalism or education. But it is clear in each of these cases that the “ex-ante” connection between the

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information forecasted uses, its generation and actual uses is rather a connection of weak intensity. In general, one may notice that preferences are developed during the problem solving and construction

of interpretations asking the question how this more intelligent elaboration is stated. It shall be noticed that rules contain the essence of an inoperable historical experience. A way to estimate and increase the probable value of information of certain inexplicable rules shall also be sought. One can also highlight that the best approach to such problems is often achieved by a resolution of problems, slightly structured and exporatory. Influences on Decision Makers’ Activities

These remarks regarding the ambiguity of the information-decision adoption connections also reappear frequently in the recent behaviour of systems. If they are exact even partially, they shall have consequences concerning the reflection on the information systems. Actually, they must take into account the characteristics of the elements, even though they are in causality relations.

Three classical approaches may be distinguished when dealing with the human deficiencies through engineering, and namely:

• The first approach consists in adapting the system to the observed features of human beings. Instead of a supporting system in decision making, disconnected from the world, as decision makers want it and which they do not use, the system may be designed to provide them with the information in a familiar and useful form. The main difficulty for this approach consists in understanding the users’ demands and in adapting the system to these requests. This is not as easy as it seems;

• The second approach consists in changing the how the decision makers adopt their decisions and attitude in relation to the information. In over three decades of training and consultancy, scientific management and operational research have operated important changes in the field of adopting the decisions in modern systems. Recent researches regarding the decision behaviour have been related to the strategies of improving the capacities of information processing by the human brain. Decades of efforts for determining the decision makers to adopt a behaviour closer to the decision theory precepts have proven that this is not an easy duty because the prejudices, “a priori” reasoning and decision makers’ wisdom are resistant to decision theory attacks and modern statistics;

• The third approach consists in replacing human beings with machines, mainly computers accompanied by logicians. Replacing the information electronic processing by human processing is frequent nowadays, as phrases like “artificial intelligence”, “knowledge engineering” and “expert systems” are too. Even if the speed at which the machines shall replace humans in adopting the complex decisions was all the time more exaggerated, progresses have been achieved for situations where the problems can be decomposed into hierarchical structures or where the amount of available pertinent information exceeds the human memory operation capacities. The perspectives of improving man’s decision adoption through a form of computer software seem promising in the case where a decision involves the storage and operation of a large number of data or modelling the complex processes and where the organisation structure directs this effort.

We should also emphasise the problem of capacities of storage and data processing which the computer-based information systems have available, which considerably lowers the advantages of carefully prepared classical data collection. Contemporary researches in the field of data processing seem to show that the exploratory analysis of the data collected, without reference to a precise use, clearly progresses to prior formulation of the needs for information. This shall verify the arguments according to which future information systems are not supported anymore by the idea of a close connection between the collection of information and anticipation of its use.

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Definition of risk In the classical theory of decision, risk reflects the variations of distributing the possible results,

their subjective probability and values. It is measured either by the non-linearity of the money relevant utility, or by the variation of distributing the probabilities of possible winnings and losses for every particular choice. According to the latest formulation, a risky option is that which variation is large for and the risk is one of the assessment elements in order to achieve the expected value of the various possible options. Of course, the notion of risk is included into the vaster notion of choice according to the output expected from a certain option. Virtually, all theories of choice start from the premises that those who decide prefer an increased output rather than a weaker one provided that all other factors (for example the risk) are considered to be constant. They also imply emphasising a smaller risk, when all other factors are constant (the expected value, for example). Thus, the expected value is considered to be a positive element in assessing an option, and the risk as negative element. Therefore, it has not been easy to formulate a satisfactory definition of risk within the limits of a rudimentary framework (media, variation of probabilistic distributions of the possible results, etc.). For these reasons, efforts were needed to develop a new concept about risk, especially for the study of financial markets. Defining the risk according to variation was criticised for the confusion it maintains between the negative risk and positive opportunity. This criticism is at the origins of elaborating the patterns based on semi-variation. But these have also been criticised, because they fulfil Von Neumann’s axioms, just in certain very limited circumstances. This unsuccessful attempt has incited researchers to try a pattern to assess risk and preferences in terms of risk, based on the prices observed. Most of the contemporary publications dedicated to the risk of financial markets reflect this concept (the pattern of setting the asset price that proved a high closeness to financial analysis, for example). This pattern defines the systematic risk as being the co-variation degree between a given price and market price, and regression is defined as unsystematic or specific risk. Although these mouldings have contributed to a better understanding of financial markets, the risk – output relation suggested by this pattern has not been confirmed through facts.

Using the concept of “risk” outcome from the theory of decision as means to describe the actual behaviour mechanisms in terms of choice raises many additional complications in practice. Thus, there is the possibility that who decides to show a tendency of not taking into account the very unlikely or very far events, whichever their possible consequences would be. There are also situations where just a small part of the possible results is taken into account, the decision being made only according to the extent of the variation of these results in a few hypotheses. Thus, those who decide seem to prefer verbal feedback rather than numerical ones concerning the risk, even if the transformation of the first ones in numerical terms show their high degree of variation and dependence in relation to the context of the problem, and the probabilities of results and their values are independently taken into account, rather than their mathematical product.

All these situations tend to prove that those who decide have a concept of the risk that is very different from the definitions suggested in specialised literature and that various decision makers shall have a different concept for the same situation.

Risk in Decision Theory

For the conventional theory of decision, choice involves a compromise between risk and hoped output. Those who make the decision and who are a little adventurous prefer to minimise risks being prepared to scarify part of the hoped output in order to reduce the range of the possible results. On the contrary, those who have the taste of risk shall consent to a reduction of hoped output in order to increase this range. In theory, decision makers begin by assessing the risks before making a choice between the various possible risk-output combinations.

Obviously, it is not always how this is done in practice. It happens that decision makers deny the existence of a risk or consider it to be negligible. This negation often associates an acceptance of the risk actuarial reality to a refusal to integrate this reality. Without being psychological or pathological, this refusal

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may mean a philosophical rejection of probabilistic judgement applied to a unique case, or the trust in the casualty of events.

Various experiments have enabled emphasising in certain people the tendency to see a casualty in the random events and therefore a possibility to master them, as well as a tendency to establish connections from the cause to effect between events which were established to be purely accidental. The Risk – Component of the Decision Making Process

The importance of risk in making a decision is given by the location it occupies in the theory of decision, by the rank in the managerial ideology and by the – ascending – interest to assess the management risks. Different from such an approach, most of the empirical studies about decision making did not lead to highlighting a clear concept about manager’s attitude towards risk or about accepting the risk in the managerial action. Researching the role of risk in decision making rarely also had the managerial behaviour as object, which has lead to the existence of clear difference regarding the concept of “risk” suggested by the theory of decision and that suggested by the manager. Attitudes Towards Risk

Most opinions start from the principle that those who decide have an aversion to risk. Between an option that certainly goes towards a given result and another option offering the same expected value, but without a safe certitude, they shall choose the first one.

This would imply that those who decide would obtain a compensation for the variability of possible results. Thus, the more the resulted income after the investment is increased for an option, the more important should such a variant be. Thus, by studying the investment through placement funds, it has been established that investors detest the variation of outputs, but it is doubtful that managers determine a positive correlation between risk and output. This is why the studies carried out about mergers rather prove the opposite, and the assembly of data collected about this subject leads to some ambiguous results.

The attitude in relation to risk is often described as a stable characteristic of each individual, perhaps related to its personality development and culture. The taste of risk could be associated with certain aspects of personality, such as the desire to succeed. But it is always difficult to discern precisely what differentiates risk amateurs from the other members of the same culture or of the same profession.

If it possible for the taste of risk to be a stable element of personality, certain variables such as humour, sentiments or how problems are presented can change the perception of risk and attitude towards risk. Particularly, subjects disdain the acceptance of risks before a risky alternative whose possible results are good as a whole (positive results) compared to the temptation to accept a risky alternative whose possible results are risky. This dependence in relation to the context is familiar to those who study the acceptance of risk by managers.

Unsolved problems however remain. We may even admit the idea that adversity favours risk taking, but history does not show that the great changes and major innovations can be the result of an unfavourable context. Managers’ Definition of Risks

Managers’ view of risk is different than the one existing in the theory of decision, particularly being less accurate. Managers rarely measure the risk of an option according to the variation of distributing the probabilities of possible results.

There appear at least three characteristic features: Most managers do not consider the uncertainty of a positive output to be an important aspect of

risk. The possibilities to win have an essential importance in assessing the attraction of an option, and the idea of "risk” is related to a negative result;

For managers, risk is not a probabilistic concept. Most managers consider the uncertainty to be a

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risk factor, and the amplitude of possibly bad results an outstanding element. There is the possibility to define the risk in terms which would define what could be lost and not the moments of distributing the results (”I assume high risks to probabilities but not to total amounts”, “I do not look at the probability of a success or of a failure, but the amplitude of risk”). This tendency to ignore or minimise the probability of a loss after its moment reveals more repugnancy to loss than to risk. It is obvious that managers assess the risk they assume more depending on a few key values and not depending on the support provided by the computer or probability theory;

Most managers do not want to reduce the risk to a single figure element, although they seek a certain accuracy in assessing the risk based on numerical calculations (“Nobody needs a ciphered assessment”, “Do not cipher the risk, you must be capable to discern it”). Aware of the multiple aspects of risk, managers say that risk cannot be expressed by a single figure or by a statistical series, and quantifying the risk by a single figure is almost impossible, because risk is a multidimensional phenomenon.

Managers’ Attitude Towards Risk

Managers’ tendency to assume risks varies depending on individuals and contexts. Individual behaviour variations originate from experience and existing context. Thus, certain individuals like risk less than others, and certain motivation elements related to risk are integral part of a certain personality. These differences from one individual to another are however less important compared to those resulting from the incentive measures and from the managerial behaviour standards.

According to certain studies, the average staff have the tendency to say “the more they climb hierarchically, the less people are willing to assume risks”, and senior staff believe that new managers able to assume risks must be trained.

Managers admit that risk assumption is also a need and a pleasure in leading positions, observing it is rather a personal motivation than an incentive measure. There are three essential motivations in assuming calculated risks, namely:

Risk assumption is essential to the success of the decisions made; Risk assumption is for managers rather a matter of professional obligation than a personal incline; Manager’s risk assumption has an emotional content due to anxiety, fear, excitement and joy, due to

the danger of providing delicate chills. Variations attributable to the context differences can be added to these three essential motivations.

Thus, managers’ attitude in relation to risk is that of the staff in general, it can vary according to the conditions, meaning that risk assumption depends on the relation between the position at a given moment and certain critical reference points, such as: profit level, size of liquidities and sales at a reference level, current position of the organisation and its possible disappearance, etc.

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Bibliography Baranger P., Management et techniques de gestion, Editions Sirey, Paris, 1993

Dima I. C., Elements of industrial operational management, Wydawnictwa Wydzialu Zarzadzania Politechniki Czestochowskiej Czestochowa, 2010

Dima I. C., Elements of logistics used in industrial operational management, Apeiron Eu Presov, 2010

Dima I. C., Using multiservice of industrial operational management, Wydawnictwa Wydzialu Zarzadzania Politechniki Czestochowskiej Czestochowa, 2010

Dima, I.C., Grabara, J., Pachura, P., Kot, S., Modrak, V., Marcincin, I.N., & Man, M. (2011). Multiserving – Operational management system of the production achieved in flexible manufacturing cells. Czestochowa, Poland: Wydawnictwa Wydzialu Zarzadzania Politechniki Czestochowskiej.

Dima, I.C., Marcincin, I.N., Grabara, J., Pachura, P., Kot, S., & Man, M. (2011). Operational management systems of the production achieved in flexible manufacturing cells. Presov, Slovakia: Techinical University of Kosice.

Dima, I.C., Macris, M. (2012). Theoretical Approach of Managerial Risk in Internal Auditing & Risk Management, University Atheneum, Bucharest.

Dima, I.C., Man, M. (2012). Information Engineering and its Influence on Adopting the Decision in Economic Organisational Entities in Studia Universitatis Petru Maior, Targu Mures.

Modrak, V. & Pandian, R.S. (2010). Operations Management Research and Cellular Manufacturing Systems. Hershey, USA: IGI Global.

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EFFECTS OF NETWORK STRUCTURE ON PERFORMANCE OF MINOR EVENT

MANAGEMENT VENTURES IN KENYA

Jacqueline Korir

School of Business and Economics, Department of Hotel and Hospitality Management,

Moi University, P.O. BOX 3900-30100Eldoret-KENYA

Tel: +254720528759; E-mail: [email protected]

Loice Maru

School of Business and Economics, Department of Marketing and Management Science,

Moi University, Eldoret-KENYA

Nehemiah Kipruto

School of Business and Economics, Department of Tourism and Tour Operations Management, Moi University, Eldoret-KENYA

David Koskei

School of Business and Economics, Department of Marketing and Management Science,

Moi University, Eldoret-KENYA

ABSTRACT

he purpose of this research was to establish the relationship between network structure and performance of event management ventures (EMVs). Explanatory design was adopted. 271

entrepreneurs from three selected counties participated in the study. Data was collected using questionnaires and nominal group technique (NGT) schedules from all the entrepreneurs. However, 22 ventures that had been in existence for over ten years were interviewed using the NGT schedule. Data was analyzed using Analysis of Moment Structures (AMOS 18) software. Confirmation of the factor structure was done using Confirmatory Factor Analysis (CFA). The fit indices of the structural model indicated that the model was acceptable (GFI=0.979; AGFI=0.944; NFI=0.918; CFI=0.952; RMSEA=0.067). Therefore, the hypothesis that network structure affects venture performance was not supported (β=0.026, p<0.05). Based on the findings, the study concluded that network structure does not affect venture performance.

Keywords: Event Management, Kenya, Minor Events, Network Structure, Performance, Ventures

T

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Introduction A network structure consists of multiple actors where one actor is connected to other. Network structure is herein defined as the pattern of relationships that are created from network contacts and where differential network positions have a crucial effect on the resource flow affecting entrepreneurial endeavors (Hoang and Antoncic 2003). Thus, if a venture engages in networking it would be in a better position in achieving access to important strategic information critical to the success of its commercialization (Mazzarol and Reboud 2006). Network structures as patterns of relationships that are created from network contacts and as observed by Hoang and Antoncic (2003) have a crucial effect on the resource flow within entrepreneurial endeavors.

Shafer (1991) argue that small entrepreneurial businesses tend to use informal and personal sources of information more frequently than larger organizations. Additionally, smaller companies use more informal methods to collect more immediate market information such as customer, supplier, and competitor information (Brush 1992). It appears that entrepreneurial managers perceive value in engaging in social networking activities because they tend to spend a considerable amount of time establishing and maintaining such networks (Birley, Cromie, and Myer 1990). Dubini and Aldrich (1991), for example argue that successful entrepreneurial managers are more likely than others to consciously spend time and energy developing and nurturing their personal and extended networks.

Given that ventures typically lack structure, are small in size and have poor access to resources such as capital, information, and personal networking is particularly important for the requisite growth infrastructure. Often, ventures are faced with resource constraints, which hamper their competitiveness, and ultimately, their performance. To overcome these constraints, Watson (2007) and Cooper (2002) suggest that ventures should engage in networks and alliances. It is by engaging in networks that ventures get hold of essential complementing or scarce information, competencies and resources to improve their competitiveness, which in turn enhance their performance in terms of increased market share and profitability. However, in Kenya, entrepreneurs of EMVs perceive ventures of competitors negatively and engage in wars by employing unethical marketing strategies in order to beat competitors. Entrepreneurs do not operate in an environment of trust and integrity but that of suspicion, exploitation and fear of sharing information which they view as giving out vital information to benefit a competitor to their detriment. Consequently, these reduce profitability and chances of attaining return on investment and enhanced performance.

Literature Review 2.1 Concept of Network Structure

Network Structure refers to the pattern of relationships that are created from network contacts and where differential network positions have a crucial effect on the resource flow affecting entrepreneurial endeavors (Hoang and Antoncic 2003). It is all of a venture’s relationships and the content of those ties (the strength and trust within each tie). A network organizational structure is more complicated and complex than any other structure because it consists of multiple organizations that work together to produce goods or provide services (Granovetter 1995). A network structure should reflect the appropriate culture the company is trying to instill in their workplace; this is crucial in a network structure because organizations are accountable for the business ethics of all partners in their supply chain (Smelser and Baltes 2001). The primary function of a network structure is to complement and support the business strategy used to accomplish the objectives and goals of the organization. Network organizational structures are flexible and highly efficient because of the selection and use of the best partners available that provide specific needs.

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The importance of network structure in gaining entrepreneurial competitive advantages has attracted attention majorly from two streams of research. One stream, based on research by Granovetter (1995), argues that the social structure is an interconnected embedded network consisting of either weak or strong ties, where weak ties, among other things, are means to make the venture competitive. The other stream, based on research by Burt (1992) says that it is a matter of optimizing structural holes where the holes are keys to information benefits and thus more favorable in gaining competitive advantages. Networking with the right people is a crucial aspect in any network structure. Koch (1998) stated that a firms’ success mainly derives from professional relationships. Koch (1998) argues that a person cannot succeed alone thus there is a trade-off between quality and quantity in business relationships and argues that the highest value is found in a small percentage of people in the personal network. The right people are not only those who possess expertise rather business associates also have to match the personality of the entrepreneur. The right business relationships are those where a good mutual understanding arise (Edwards et al. 2007). Ford et al. (1998) and Koch (1998) argue that it is important to identify the right business partners to build and maintain good relationships. These relationships, the right business contacts, are most valuable and should be target with the highest attention to maintain (Koch 1998). Networking should be done with those people who can provide service for the company and where the entrepreneur can give something back (Edwards et al, 2007). Key allies help because of the strong relationship (Koch 1998) that consists of mutual enjoyment of each others’ company, respect, shared experience, reciprocity, and trust. Strong relationships have to be based on all of these attributes.

A network of important contacts can provide help and resources to the company (Wallace 2006). Networking, collaborations, partnerships, or alliances will provide the entrepreneur with access to other people’s contacts (Edwards, Edwards and Benzel 2007). This will lead to an expanded web of contacts which will eventually result in recognition of new opportunities and a larger network of clients and customers. Entrepreneurship is a dynamic process and requires links and relationships to both individuals and institutions (Smilor and Gill 1986). In fact, an entrepreneur with a strong, complex and diverse network of relationships is more likely to have access to more opportunities, the chance of solving problems faster is greater, and the chance of success is greater (Smilor and Gill 1986). Ventures should establish the number of non-redundant contacts in the network, in order to maximize connections with different people beyond the network that gives higher benefits because of more and preferably diverse contacts. As a result more diverse sources of information, resources and competences necessary for the venture to be efficient are ensured. In addition, ventures should recognize connections as ports of access to more diverse and separate clusters of people that are beneficial for a venture. Here the actor or the venture maintains the primary contacts who in turn reach other people (secondary contacts) in other clusters so that an extension to include new clusters of the ventures own network can be made. The venture is then free to focus on primary contacts and thus has more time for effectiveness that is, to do the right things. As Burt (1992) puts it that information screen provided by multiple clusters of contacts is broader, providing better assurance of the players being informed of opportunities and impending disasters.

2.2 Strength of Ties

Granovetter (1995) argues that institutions or organizations can be analyzed by their ongoing social relations where the networks can be argued to be of significant importance in accessing information. Granovetter (1973) talked about the strength of weak ties; meaning that bridges to knowledge, information and resources are crucial to the ventures’ opportunities and to their integration into societies consists of loose interpersonal ties. Additionally, strength of a tie is defined as a combination of the amount of time, emotional intensity, intimacy and mutual services between the parts in a network. Consequently, a network consisting of weak ties has bridges to clusters of information, whereas the connections within a cluster merely consist of strong ties. The bridges that provide information benefits, namely connections with non redundant ties beyond a

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cluster are (as Burt argue), more likely to be weak than strong. This means that information, knowledge and resources obtained through weak ties can reach a large number of people over great social distance (Granovetter 1973).

The influence of a venture’s network structure in terms of the type of partners, resources possessed by the partners, the strength of the ties, and the amount of trust between the firm and the partner should have a great influence on the venture’s performance in a market. The more diversity that exists within a network, the more benefits should result for a venture’s entrepreneurial opportunities and performance. However, collaborations are not always easy to accomplish. It could be difficult for a firm to find suitable partners to cooperate with, and the interactions could be difficult to manage due to the shared decision-making, need for control, conflicting objectives, and a partner’s possible opportunistic behavior (Teng 2007).

According to Hamill and Gilbert (2009), there is a cost associated with the number of connections one actor has. Hamill and Gilbert (2009) argue that an individual cannot have too many people in their personal network because of the cost associated with maintaining the network. Newman et al. (2006) point out that some individuals have much larger networks than others. These individuals are often connected to one another because their degree of connectivity is higher. Ties are described as both strong and weak in theory (Granovetter 1973; Smelser and Baltes 2001; Varey 2002; Krebs and Holley 2008). The strength of a tie is defined differently among social network researchers. Granovetter (1973) defines it as a mix of the amount of time, emotional intensity, the intimacy and the characteristics of reciprocal services. Johannisson (1986) in his definition of strong ties, put emphasis on the degree of trust and experiences of previous interaction, how often the relationship is active, and the level of maturity. Strong ties are very valuable for the individual, not because they can lead to a high level of goal fulfillment but because of the person it involves (Granovetter 1973). Strong ties can be relationships between close friends and family. They create a sense of belonging to a group whose group needs are more important than the individual itself and sharing depends on these needs. Weak ties are different compared to personal relationships (Varey 2002).

Weak ties are less clustered and better described as long term relationships, where the relationship is more instrumental than personal (Smelser and Baltes 2001). The weak ties are more focused on goal fulfillment for both parties. Strong ties were once weak and the weak ties are therefore also important connections. Day-to-day interactions between an individual and the company, which the individual makes business with, are typically a part of the individual’s network of weak ties (Varey 2002). Granovetter (2004) further shows the importance of weak ties between relationships since the tie to another clique, even though it may be weak, can enable opportunities which a clique of closer relationships might not. Krebs and Holley (2008) share this view by describing how dense and cohesive networks miss out on ideas and innovation due to lack of information entering the network. According to Burt (1992), the most suitable network structure for an organization trying to find creative solutions, consists of loose relationships which are none overlapping with the relationships of others in the network.

The type of favorable resource, capability or information that a venture obtains access to through its capabilities will however depend also on the strength of the relationships (Granovetter 1973). New information is more likely to derive from weak ties where the network relationship is not well known and contact between them is infrequent. Strong ties, on the other hand, are more frequent contacts based on trust (Krackhardt 1992), facilitating the partners to share crucial and confidential information (Nicolaou and Birley 2003b), which is critical for a venture to be established. Kim and Aldrich (2005), however, argue that employing only the latter network mode severely limits a venture’s networking prospects. Besides developing and using weak ties, ventures could obtain competitive advantage by achieving access to a wider network through the frequent relationships they already have. Rather than being limited to a small set of strong ties, a venture can gain new, and sometimes indirect, contacts through their frequent partners’ networks, which is a central reason for entrepreneurship researchers’ great interest in the concept of social networks (Kim and Aldrich 2005).

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Entrepreneurs from the same ethnic group get easier access to business networks in the enclave than with outsiders. They are in an advantageous position to exploit ethnic networks. Those that are established in ethnic networks can do best (Salaff et al. 2003). This study sought to establish the effects of ethnic affiliation as a dynamic indicator of network dynamics. Ethnic affiliation especially in Kenya has become a factor that can enhance or prevent relationships.

2.3 Venture Performance

Even though literature on performance is very extensive, Johannessen, Olaisen, and Olsen, (1999) note that there is still a lack in consensus about the meaning of the term hence the concise definition of performance has remained difficult. A wide variety of definitions of firm performance have been proposed in existing literature (Barney 2002). Nonetheless, some clear definitions of firm performance in the market definition context could be put forward. In some cases, performance measures such as percentage of sales resulting from new products, profitability, capital employed and return on assets (Selvarajan et al. 2007; Hsu et al. 2007) are used. Besides, return on investment, earnings per share and net income after tax can also be used as measures of venture performance (Grossman 2000).

According to Murphy, Trailer, and Hill (1996), the use of the term “performance” includes 71 different measures of performance. However, in the recent past, a majority of studies have used financial and non-financial indicators to measure performance (Johannessen et al. 1999; Murphy et al. 1996). Examples of financial measures are return on investment, return on assets, and earnings per share (Sapienza, Smith, and Gannon 1988). The use of financial measures is more common, even to some extent in certain organization, financial reports have been produced on a daily basis (Gummesson 1998). The reason is that financial performance is usually found at the core of organizational effectiveness and it is also the most easily quantifiable parameters (Johannessen et al. 1999). However, after extensive reviews on financial measures, Johannessen et al. (1999) highlighted several limitations to financial measures. Firstly accounts in general are difficult to interpret. Secondly, absolute scores on financial performance are affected by industry-related factors and directly comparing these data would be misleading. However, this study used both financial and non-financial measures of performance.

2.4 Research Hypothesis H01: There is no significant effect of Network Structures on performance of event management ventures

Methodology The study was undertaken in three counties in Kenya namely; Kisumu, Nairobi and Uasin Gishu counties. The target population was 313 entrepreneurs of event management ventures who provide services such as outside catering, decorating, event planning, banqueting and conferencing, confectionary and ventures that hire grounds, equipment, furniture, tents and public address systems. The entrepreneurs engage in events such as weddings, funerals, corporate functions, parties, business events, conferences among other events. A census of all the 313 entrepreneurs formed the sample size. However, 271 questionnaires were returned which yielded 86% response rate. Nominal group technique (NGT) schedules were used to interview 22 entrepreneurs of ventures that had been in existence for over ten years. Data was analyzed using Structural Equation Modeling (SEM) to assess the hypothesized relationship between network structure and venture performance. Results and Discussion 4.1 Confirmatory Factor Analysis Figure 5.2 displays the standardized regression weights of the common factor of network structure and the corresponding segregated indicators of Strong Ties (STP), Weak Partners (WEP), Resource-based Partners (RBP) and Ethnic Partners (ETP). From the above figure, it is clear that the three factors of weak partners,

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resource-based partners and ethnic partners with factor loadings of 0.81, 0.66 and 0.60 and R2 Values of 0.66, 0.43 and 0.36 respectively are the best indicators of network structure. Consequently, network structure explains 66% of the variace in weak partners, 43% of the variance in resource-based partners and 36% of the variance in ethnic partners. Strong Partners (β=0.17, R2 =0.03) is a poor indicator of network structure.

Figure 1: Confirmatory Factor Analysis - Network Structure Source: Survey Data (2011)

4.2 Structural Model

The initial measurement model of network structure and venture performance indicated that the model did fit the data well. Although the chi square value of 17.839 with 8 degrees of freedom was statistically significant at p<0.05, indicating inappropriate fit, the other fit statistics indicated that the model was acceptable (χ2 / df = 2.230; GFI = 0.979; AGFI = 0.944; NFI = 0.918; CFI = 0.952; RMSEA = 0.067). However two observed variables (STP and NOF) had very poor reliabilities as their squared factor loadings were less than 0.20. However, no post – hoc modifications were indicated in the analysis thus, the model was fit.

Figure 2: Structural model for network structure and venture performance

Source: Data Analysis

4.3 Covariance

Further examination of the standardized residual covariance indicates that none of them exceeded the cut-point. With the highest being 1.981 it confirms that the modified model does fit the data well. The covariance between network structure and venture performance (r = 0.36, p = 0.096) was not significant at p<0.05. Therefore the hypothesis that there is a significant covariance between Network structure and venture performance was not supported. The residual covariance is shown in table 1.

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Table 1: Standardized Residual Covariance’s - Venture Performance and Network Structure

FIN NOF ETP RBP WEP STP

FIN .068

NOF .079 -.049

ETP -1.184 -.228 .000

RBP .037 -.323 .086 .000

WEP .332 .085 .030 .005 .000

STP .384 1.981 -.076 .403 -.524 .000


4.4 Hypothesis

The study posited that there was no significant effect of network structures on performance of EMVs. The results indicated that this postulation was supported. On the basis of these results, it means that network structure may have no significant influence on performance of EMVs. The standardize path coefficient of 0.026 was not significant as shown on table 2. Indeed, there was a very minimal positive relationship between network structure and venture performance (β=0.026). This finding is surprising considering that it is contrary to the findings by Granovetter (1995) and Mazzarol and Rebound (2006). According to Mazzarol and Rebound (2006), if a venture engages in networking, it would be in a better position for achieving access to important strategic information critical to the success of its commercialization. Granovetter (1995) had earlier argued that social structure is an interconnected embedded network consisting of either weak or strong ties, where weak ties, among other things, are means to make the venture competitive.

Table 2: Hypothesis Tested and Hypothesized Path

Hypothesized Path Estimate (β) Standard

Error

Critical

Ratio

P value

Network Structure and Venture Performance .026 .020 1.289 .197


Discussion of Findings The finding that network structure has no significant influence on performance of event management ventures is however consistent with findings of Teng (2007) that it could be difficult for a firm to find suitable partners to cooperate with and the interactions could be difficult to manage due to shared decision making, need for control and conflicting objectives thereby affecting performance. The views advanced by Teng (2007) are further supported by Hammill and Gilbert (2009), when contending that there is a cost associated with the number of connections one actor has. These authors argue that an individual cannot have too many people in their personal work because of the cost associated with maintaining the network.

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Analyses of the effects that tie strength and trust between relationships have on ventures’ performance resulted in an additional explanation of improved performance. Krackhardt, (1992) argue that frequency in contact and level of trust between ventures and its partners were significant for the ventures’ performance. The stronger the ties were, and the more trust the relationships contained, the better competitive advantages the venture obtained from the contacts. Moreover, achieving improved venture performance through strong ties was also shown to increase the ventures’ performance. On the other hand, strong ties often provide comfort and reliability in uncertain settings, facilitating the share of crucial and confidential information as well as trustworthy cooperation based on solidarity and mutual influence (c.f Krackhardt, 1992; Aldrich, 1999; Adler and Kwon, 2002; Nicolaou and Birley, 2003b).

People have both friends and acquaintances. Friends are often a part of a close-knit group who largely know one another while acquaintances are far less likely to know one another. In terms of connection with general society and staying in touch with what is going on in the wider world, the weak ties with acquaintances are paradoxically much more important than the inwardly-focused conversations with closer friends. Indeed, the information discussed with friends often comes from wider sources. These results are in contrast to prior network-based research, where Granovetter (1973) and Oviatt and McDougall (2005) amongst others argue that it is the sporadic contacts with weak ties that result in more competitive advantages due to the new and dissimilar information they possess. This study supports the findings of Granovetter (1973) and Oviatt and McDougall (2005) which showed that weak partners were the most important in achieving social capital and enhanced venture performance. Also, Granovetter (2004) argues on the importance of weak ties between relationships since the tie to another clique, even though it may be weak, can enable opportunities which a clique of closer relationships might not.

Similar to Birley (1985); Oviatt and McDougall (2005) network ties, especially strong ties from friends, was in this study important for venture performance, and thus increased venture performance. The importance of friends may be natural for the ventures under study since they were privately owned ventures but there were significant views that relatives were not very important. However, the importance of weak ties in obtaining improved performance was noted by the respondents. Prior research emphasized weak ties to be the relations providing new ideas and information strongly affecting superior performance (cf. Granovetter, 1973; Gulati et al., 2000).

Strong ties are, on the other hand, considered to reduce the flow of new ideas (Adler and Kwon, 2002). This study supports this view as respondents viewed relatives as not being very beneficial sources of business and also they had little contact with them. This may be due to the fact that relatives are frequently around entrepreneurs and have a lot of information about their plans and progress, thus do not provide any new creative ideas to entrepreneurs. In addition, conclusions from nominal group technique discussions revealed that relatives may work against the progress of ventures out of jealousy or inability to help due to lack of ideas and lack of exposure resulting from shared experiences. Evident from the NGT discussions was the fact that ventures are more receptive to working with new ventures than existing ones due to poor communication between old ventures resulting over time from frequent conflicts. Additionally, ventures indicated that they viewed old ventures with suspicion and perceived them as threats hence would prefer to know what new ideas the new ventures have in order to either copy them or undercut them.

Nevertheless, strong ties provide trust and strong economic motivations to collaborate in uncertain settings (Granovetter, 1995; Krackhardt, 1992), critical for a venture’s product development and performance. Although weak ties were important in this study, strong ties are still effective means for ventures attaining improved venture performance. With little expense ventures can get hold of new and vital information increasing their competitiveness, particularly, as the results from this study show. However, the link between increased venture performance and weak ties was significant when the trust between the venture and its contacts also were high, implying trustworthiness and reliability (Aldrich, 1999; Adler and Kwon, 2002) to

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be important not only within strong ties but among weak ties too. Hence, it can be argued that network ties in general enhance ventures’ performance.

Other conditions also affected ventures’ access to competitive advantages through network relationships. Resource-based partners and ethnic partners are crucial elements in networking. Entrepreneurs easily network with those ventures endowed with resources either more or equal to their own. Discussions using NGT revealed that most entrepreneurs pegged resources to financial resources and failed to consider other resources that would otherwise be beneficial to the venture. This means that ventures appreciate those ventures that have a solid financial base and hence have little or no value for other forms of resources which could have otherwise been beneficial to them such as human capital.

Those that are established in ethnic networks can do best (Salaff et al., 2003). Entrepreneurs from the same ethnic group get easier access to business networks in the enclave than with outsiders. They are in an advantageous position to exploit ethnic networks. Ethnic affiliation especially in Kenya is fast becoming a factor that can enhance or prevent relationships. The finding from this study failed to support this view as ethnicity seemed not to affect network relationships. Based on the findings, entrepreneurs networked with members irrespective of their ethnic affiliations. However, benefits from ethnicity in networking can be double-edged sword depending on the circumstance.

Conclusion The finding that network structure does not influence performance of EMVs in this study should be viewed skeptically. EMV entrepreneurs should find ways in which to alleviate cost implications involved in creating network structures. This is because other prior research has shown that partnerships have influence on growth of both financial and non-financial benefits. This finding may therefore be as a result of limitations arising from this particular study. However, from the findings, weak partners, resource-based partners and ethnic partners in EMVs are important in enhancing venture performance while strong partners were not crucial determinants of venture performance.

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Smelser, N. J., & Baltes, P. B. (2001). International Encyclopedia of the Social & Behavioral Sciences. Exeter, UK: Cambridge University Press. Smilor, R., & Gill, M. (1986). The New Business Incubator: Linking Talent, Technology, Capital, and Know-How. Massachusetts: Lexington Books DC Health and Company.

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SECURITY EDUCATION IN COLLEGES: IS IT SUFFICIENT?

Mark Ciampa

Western Kentucky University 1906 College Heights Boulevard,

Bowling Green, KY 42101

Ray Blankenship

Western Kentucky University 1906 College Heights Boulevard,

Bowling Green, KY 42101

Email: [email protected] Tel: 1-270-745-5952 (USA)

ABSTRACT

s attacks on computer security continue to increase it is important that security awareness, education, and training be used as an important defense, and increasingly colleges are being looked

upon to provide this instruction. Yet an examination of higher education regional accrediting bodies and accrediting agencies for colleges of business indicate that there are no specific requirements that current security topics be taught in the curriculum. A random sample of the Association to Advance Collegiate Schools of Business (AACSB) accredited schools shows that fewer than half teach any computer security topics to college of business students. This is despite the fact that a survey of students indicates that they are indeed concerned about security; however, these concerns are not being met. The results of this study can be used by faculty and administrators to work towards creating standards and improving computer literacy courses where computer security is not being taught. (Keywords: computer security, pedagogy, business education, & accreditation)

A

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Introduction Computer security continues to be a primary concern of all computer users today. The breadth and

depth of attacks is such that it now impacts all economic sectors, units of government, and individuals. For example, the number of malware attacks against online banking is increasing annually by 60,000, and 85 percent of banks reported that they have sustained losses based on these attacks (Lohrmann, 2010). Over $41 billion dollars have been lost by victims to the Nigerian General scam, which is the number one type of Internet fraud and is growing at a rate of 5 percent (419 Advance fee fraud statistics 2009, 2010). Over 20 million new specimens of malware, including new malware as well as variants of existing families, were created a single eight-month period, and the average number of new threats created and distributed each day has increased from 55,000 to 63,000 (Santana, 2011). And due to the increased power of desktop computers to crack passwords, researchers now claim that any password of seven or fewer characters is “hopelessly inadequate" (Case Study - Teraflop troubles: The power of graphics processing units may threaten the world's password security system).

It is recognized that technology alone cannot prevent attacks; instead, security awareness, education, and training is a critical defense component (Ciampa, 2011). A growing number of entities are calling for this security training to be part of an overall college experience for all users and not limited to those students seeking a degree in information technology security. For example, the U.S. National Institute of Standards and Technology (NIST) draft National Initiative for Cybersecurity Education (NICE) plan, which came from the White House's Comprehensive National Cybersecurity Initiative of 2008, has as its goal is to improve cybersecurity by focusing on education, awareness and training. A strategy for Objective 1.1 is to “deliver resources that enable educators to competently communicate cybersecurity awareness to students during all classroom interactions with cyberspace” (National Initiative for Cybersecurity Education, 2011).

The current questions become, what are colleges and universities doing in providing computer security instruction as a requirement for higher level education? Do higher education regional accrediting bodies and/or accrediting agencies for colleges of business require security education, and if so, what is it? How many colleges are teaching about computer security? What security topics are most important? And do students even care about learning security?

The purpose of this paper is to take a random sample of the Association to Advance Collegiate Schools of Business (AACSB) accredited schools and determine what--if any--computer security topics are being taught to college of business students. In addition, in order to establish a baseline of what students consider important, a survey of students at university and community college was conducted regarding their perceptions of the importance of specific security topics. Literature Review

A comprehensive model of information security was originally developed for the National Security Telecommunications Information Systems Security Committee (NSTISSC) and is known as the Comprehensive Model for Information Systems Security or the C.I.A. triad (Mensch & Wilkie, 2011). The three critical characteristics of information in this model are: confidentiality, integrity, and availability (NSTISSC, 1994). It is these characteristics that users need to be informed about trained to understand. The need for security training is emphasized by many researchers because it is frequently maintained that the user is weakest link in computer security, by Long (1999), Mangus (2002), Tobin and Ware (2005), Werner (2005), Witson (2003), Yang (2001) and others. Observations ranged from a mild statement of “certain user practices contribute to information systems vulnerabilities” by Mangus (2002) to a sharp rebuke of “the average home user is clueless about security and should be required to obtain a license to log on to the internet” by Werner (2005). Werner indicated that support for pointing a finger at users is found in a National Cyber Security Alliance (NCSA) and American Online (AOL) survey, in which 77 percent of respondents indicated that they felt safe from online threats. However, when their computers were actually inspected, over 20 percent of computers were infected with at least one virus, 49 percent of broadband users

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lacked firewall protection, 67 percent of computers lacked current anti-virus software, and 80 percent of computers were infected with spyware or adware (Werner, 2005).

Valentine (2005) noted that the National Strategy to Secure Cyberspace (NSSC) document, created by the U.S. President’s National Infrastructure Advisory Council, calls for a comprehensive national awareness program to empower all Americans, including the general population, “to secure their own parts of cyberspace.” Specifically, the Department of Homeland Security, through the NSSC, calls upon home users to help the nation secure cyberspace “by securing their own connections to it.”

Educating general users on security also has additional benefits. First, it can provide future users with the critical thinking and basic skills to collaborate with vendors and IT professionals who provide security tools (Werner, 2005). A second benefit is that it may serve to deter attackers. Long (1999) stated that countermeasure strategies to reduce systems risk fall into four distinct and sequential activities: deterrence, prevention, detection, and recovery. General deterrence theory has been used in the study of criminals and other anti-social personalities and maintains that individuals with an instrumental intent to commit anti-social acts can be dissuaded by the administration of strong disincentives and sanctions relevant to these acts. General deterrence theory has also been applied successfully to IT by Straub (1990) and Straub, Carlson and Jones (1993). Educating users can be a form of deterrence by providing information about the risks of security and penal actions that can be taken against attackers.

The benefit of training and instruction to deter attackers can also be seen in other studies. Skinner and Fream (1997) used social learning theory as a framework for exploring computer crime and security among college students. Social learning theory is organized around four concepts, one of which is differential association. Differential association refers to the process by which individuals within different social contexts become exposed to learn normative definitions favorable and unfavorable to legal and illegal (Mangus, 2002). Analysis revealed strong support for social learning theory as a conceptual framework for understanding computer crime (Skinner & Fream, 1997). One of the major predictors of computer crime was associating with other students who engage in the activity, meaning that learning computer crime is peer driven. Training and instruction regarding computer security may prove to be a deterrent not only to primary individuals but also secondarily by reducing the peer support for attacking systems.

Although Long (1999) advocated that security instruction should begin as early as kindergarten, most researchers state that institutions of higher education (IHEs) should be responsible for providing security awareness instruction, including Crowley (2003), Mangus (2002), Null (2004), Tobin and Ware (2005), Valentine (2005), Werner (2005), and Yang (2001). This instruction and training is important not only to meet the current demands of securing systems but also to prepare students for employment in their respective fields. Werner said that as employees, new college graduates will have access to critical data to perform their jobs, yet they could be the weakest link in a secure computer system primarily because of inadequate education, negligence, and inexperience (2005). Long (1999) maintained that the need for organizations to develop appropriate policies requires all decision makers to have a certain level of awareness of standards for security.

Support for making IHEs the primary source for security awareness training comes from several different sources. The Action and Recommendation 3-4 of the NSSC calls upon colleges and universities to model user awareness programs and materials (Valentine, 2005). Frincke and Bishop (2004) summarized several of the major groups and efforts currently involved in computer security education with IHEs. These include the Colloquium for Information Systems Security Education (CISSE), the International Federation of Information Processing Working Group 11.8 on Information Security Education (IFIP WISE), and the Workshop on Education in Computer Security (WECS). The National Security Agency (NSA) also had developed an effort aimed at creating a larger core of computer security trained professionals known as the National Centers of Academic Excellence in Information Assurance Education, which even provides large numbers of college scholarships under its “Cyber Corps” program.

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The location of security awareness instruction and training in a college curriculum should not be isolated in upper-level courses for IT majors, according to Tobin and Ware (2005), Werner (2005), and others. This instruction should be taught to all graduates as a “security awareness” course (Valentine, 2005) along with integrating it across through the curriculum (Yang, 2001).

Different approaches exist for training and educating users regarding security. These approaches can be classified as contextual training and embedded training (Sheng, et al., 2007).

Contextual training involves incidences of instruction separate from the course of normal activities. One common approach is to post articles regarding fishing on Websites and encourage users to read them. E-commerce sites (Tutorial spoof (fake) e-mail), software vendors (Recognizing phishing scams and fraudulent/hoax e-mails, 2006), nonprofit organizations (Consumer advice: How to avoid phishing scams), universities (Anti-phishing Phil) and government entities (How not to get hooked by a 'phishing' scam, 2006) all post anti-phishing material.

Embedded training involves instruction during the course of normal activities. Kumaraguru et al. (2007) recommended that instead of sending periodic security notices to users, organizations should use an embedded training approach that teaches users how to protect themselves from phishing during their regular use of e-mail. In this approach, users were periodically sent fake phishing e-mails from the researchers; if a user clicked on an embedded link an intervention that provided immediate feedback and steps that the user should have taken appeared. Methodology

The purpose of this study is to take a random sample of accredited schools to determine the computer security topics that are being taught. In addition, in order to establish a baseline of what students consider important, a survey of students at a university and community college was conducted regarding their perceptions of the importance of specific security topics.

Several higher education accrediting bodies all require that students be exposed to the use of current technology in society. These include the New England Association of Schools and Colleges Commission on Institutions of Higher Education (NEASC-CIHE) (Standards for accreditation - 2011, 2011), the Southern Association of Colleges and Schools (SACS), and the North Central Association of Colleges and Schools (NCA) (North Central Association Resources, 2011). However, there are no specific requirements for computer security as it pertains to the use of technology. Accrediting agencies exist for colleges of business such as the Accreditation Council for Business Schools and Programs (ACBSP) (ACBSP standards and criteria for demonstrating excellence in baccalaureate/graduate degree schools and programs - 2011, 2011), International Assembly for Collegiate Business Education (IACBE) (Self-study manual - 2011, 2011), and the AACSB (AACSB eligibility procedures and acreditation standards for business accreditation association to advance collegiate schools of business, 2011). Again, these agencies also require that the most current technology be taught to business students but there are no specific requirements that current security topics be taught in the curriculum.

A random selection of AACSB accredited schools were selected for this study because of the explicit technology requirements stated in the standards by this accrediting agency.

To establish a baseline of what students consider to be an important security topic a group of information technology experts were asked to list what computer security topics should students know. The agreed upon topics are using anti-virus software, using a firewall, security wireless networks, using spam filters, and protection from phishing. Students where then asked to rank the importance of these topics on a Likert scale from 1 (Very Important) to 6 (Unfamiliar with the Topic).

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Results A survey was conducted of students at a mid-western university and community college. In order to

minimize any influence on student responses, the survey was conducted on the first day of an Introduction to Computers course. Students had received no prior instruction about security and had no previous computer courses at their school. They were asked if specific security items were important to them.

The number of students participating in this survey was 348. The age ranged from 17-58 and there were 183 males and 165 females. Table 1 lists the number of student responses for each topic. Table 2 lists the percentage response for the topics.

To determine what security topics are being taught in AACSB accredited business schools a random

sample of 32 business schools were selected from the list of AACSB accredited business schools that have their required technology course syllabi listed on the Web. The syllabi were then analyzed to see what computer security topics were covered in these classes. Table 3 lists the results of this analysis.

Discussion

Students in the survey clearly indicated that security was an important topic. Over 90 percent of the students said that using anti-virus software was an important or very important security topic. Securing wireless networks was second with 89.5 percent of the student stating that this was a very important or important security topic. The remaining topics were considered important or very important by over four out of five of the students. These findings are consistent with the recommendations of the technology experts who listed these topics as important for students to know. An interesting finding in this area is that nearly 8 percent of the students were unfamiliar with the topic of phishing and additionally almost 7 percent of the students were neutral about whether this topic is important or not. Phishing appears to be a security topic with which students are the most unfamiliar.

When syllabi were analyzed to see what type of security topics were being covered in a required computer class for an AACSB accredited schools no specific information could be found. Fewer than half of the syllabi examined mentioned any security being taught at all in the classroom. This would seem to indicate that many schools may not be teaching students about computer security and how to prevent harmful attacks from outsiders. Since these results are for a business college where a computer technology course is required the authors can only assume that the results for other colleges would be much worse where there is no computer technology requirement for their curriculum.

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Recommendations Due to the steady increase of attacks security awareness, education and training are becoming

increasingly important. Colleges and universities are being viewed as one of the primary sources for conducting this training for all students. However, our study indicates that there is a serious lack of education in computer security among colleges. The survey results from students strongly indicate that students are concerned about security and may be looking to colleges for that training—yet it is not to be found.

It is recommended that the higher education regional accrediting bodies and accrediting agencies for colleges of business work to establish minimum standards of computer security instruction. This would help provide users with the skills and knowledge they need to use technology in a responsible and safe fashion, both at home as well as on the job.

Another recommendation is that colleges examine their curriculums and begin to identify areas in which computer security education can take place. Suggestions include an Introduction to Computers course, a freshman orientation course, a one-hour technology safety course, or similar area.

Finally, it is recommended that additional study be conducted regarding what security topics students are the most deficient in. In our study nearly 8 percent of the students were unfamiliar with the topic of phishing and additionally almost 7 percent of the students were neutral about whether this topic is important or not. Phishing appears to be a security topic with which students are the most unfamiliar and thus this topic, along with other topics, need special attention in training.

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Works Cited How not to get hooked by a 'phishing' scam. (2006, October). Retrieved December 12, 2007, from Federal

Trade Commission: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt127.shtm

Recognizing phishing scams and fraudulent/hoax e-mails. (2006, September 14). Retrieved December 12, 2007, from Microsoft: http://www.microsoft.com/protect/yourself/phishing/identify.mspx

419 Advance fee fraud statistics 2009. (2010, January). Retrieved February 2011, 2011, from Ultrascan-agi: www.ultrascan-agi.com/public_html/html/public_research_reports.html

AACSB eligibility procedures and acreditation standards for business accreditation association to advance collegiate schools of business. (2011, January). Retrieved August 15, 2011, from AACSB: http://www.aacsb.edu/accreditation/standards-2011-revisions-jan2011.pdf

ACBSP standards and criteria for demonstrating excellence in baccalaureate/graduate degree schools and programs - 2011. (2011). Retrieved August 15, 2011, from Accreditation council for business schools and programs: http://www.acbsp.org/download.php?sid=29

(2011). National Initiative for Cybersecurity Education. Washington: National Institute of Standards and Technology.

North Central Association Resources. (2011). Retrieved August 15, 2011, from North Central Association: http://www.ncacasi.org/resources/

Self-study manual - 2011. (2011). Retrieved August 15, 2011, from International Assembly for Collegiate Business Education: http://www.iacbe.org/doc/self-study-manual-10.doc

Standards for accreditation - 2011. (2011). Retrieved August 15, 2011, from New England association of schools and colleges commission on institutes of higher education: http://cihe.neasc.org/standards_policies/standards/standards_html_version

Anti-phishing Phil. (n.d.). Retrieved December 12, 2007, from CMU Usable Privacy and Security Laboratory: http://cups.cs.cmu.edu/antiphishing_phil/

Case Study - Teraflop troubles: The power of graphics processing units may threaten the world's password security system. (n.d.). Retrieved February 28, 2011, from Georgia Tech research institute: http://www.gtri.gatech.edu/casestudy/Teraflop-Troubles-Power-Graphics-Processing-Units-GPUs-Password-Security-System

Ciampa, M. (2011). Security+ guide to network security fundamentals 4ed. Boston: Course Technology.

Committee, N. S. (1994, June). The Committee on National Security Systems. Retrieved January 25, 2012, from http://www.cnss.gov/Assets/pdf/nstissi_4011.pdf

Consumer advice: How to avoid phishing scams. (n.d.). Retrieved December 12, 2007, from Anti-Phishing Working Group: http://www.antiphishing.org/consumer_recs.html

Crowley, E. (2003). Information systems security curricular development. Conference on Information Technology Education (pp. 249-255). Lafayette, IN: ACM.

Frincke, D., & Bishop, M. (2004). Joining the security education community. IEEE Security and Privacy, 2(5), 61-63.

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Kumaraguru, P., Rhee, Y., Acquisti, A., Cranor, L. F., Hong, J., & Nunge, E. (2007). Protecting people from phishing: the design and evaluation of an embedded training e-mail system. CHI 2007 Procedeedings (pp. 905-914). San Jose: ACM.

Lohrmann, D. (2010, July 30). Should governments join banks in seeking customer's help online? Retrieved February 28, 2011, from Government Technology Blogs: http://www.govtechblogs.com/lohrmann_on_infrastructure/2010/07/should-governments-join-banks.php

Long, C. L. (1999). A socio-technical perspective on information security knowledge and attitudes. Ph.D. dissertation, The University of Texas at Austin, United States-- Texas.

Mangus, T. (2002). A study of first-year community college students and proposed responsible computing guide. Ph.D. dissertation, Union Institute and University, United States--Ohio.

Mensch, S. &. (2011). Information Secutiy Activities of College Students: An Exploritory Study. Academy of Information and Managment Science Journal, 14(2), 91-116.

Null, L. (2004). Integrating security across a computer science curriculum. Journal of Competing Science is in Colleges, 19(5), 170-178.

Santana, J. (2011, January 25). Panda security insight blog. Retrieved February 28, 2011, from European commission suspends CO2 credit trading due to cyberattack: http://www.pandainsight.com/en/

Sheng, S., Magnien, B., Kumaraguru, P., Acquisti, A., Cranor, L. F., Hong, J., et al. (2007). Anti-phishing Phil: The design and evaluation a game that teaches people not to fall for phish. Symposium On Usable Privacy and Security. Pittsburgh, PA: CMU.

Skinner, W., & Fream, A. (1997). A social learning theory analysis of computer crime among college students. Journal of Research in Crime and Delinquency, 34, 495-518.

Straub, D. (1990). Discovering and disciplining computer abuse in organizations: A field study. MIS Quarterly, 45-55.

Straub, D. W., Carlson, P., & Jones, E. (1993). Deterring cheating by student programmers: A field experiment in computer science. Journal of Management, 5, 33-48.

Tobin, D., & Ware, M. (2005). Using a windows attack intRusion emulator (AWARE) to teach computer security awareness. 10th Annual SIGSCE Conference on Innovation and Technology in Computer Signs Education (pp. 213-217). Caparica, Portugal: SIGSCE.

Tutorial spoof (fake) e-mail. (n.d.). Retrieved December 12, 2007, from eBay: http://pages.ebay.com/education/spooftutorial/

Valentine, D. W. (2005). Practical computer security: A new service course based upon the national strategy to secure cyberspace. Conference on Information Technology Education (pp. 185-189). Newark, NJ: ACM.

Werner, L. (2005). Redefining computer literacy in the age of ubiquitous computing. Conference on Information Technology Education (pp. 95-99). Newark, NJ: ACM.

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Whitson, G. (2003). Computer security: Theory, process and management. Journal of computing sciences in colleges, 18(6), 57-66.

Yang, T. A. (2001). Computer security an impact on computer science education. Journal of Computing Sciences in Colleges, 18(6), 233-246.

Table 1: Importance of Security Topics

Topic

Very

Impo

rtan

t

Impo

rtan

t

Neu

tral

Som

ewha

t U

nim

port

ant

Uni

mpo

rtan

t

Unf

amili

ar w

ith

Topi

c

Resp

onse

s

Using anti-virus software

223 102 15 2 1 2 345

Using a firewall 154 142 33 3 3 10 345 Securing wireless networks 191 117 28 3 2 3 344 Using spam filters 156 138 34 4 4 8 344 Protecting yourself from phishing

176 114 23 1 2 27 343

Table 2: Importance of Security Topic by Percentage Response

Topic

Very

Impo

rtan

t

Impo

rtan

t

Neu

tral

Som

ewha

t U

nim

port

ant

Uni

mpo

rtan

t

Unf

amili

ar w

ith

Topi

c

Using anti-virus software 64.6% 29.6% 4.3% 0.6% 0.3% 0.6% Using a firewall 44.6% 41.2% 9.6% 0.9% 0.9% 2.9% Securing wireless networks 55.5% 34.0% 8.1% 0.9% 0.6% 0.9% Using spam filters 45.3% 40.1% 9.9% 1.2% 1.2% 2.3% Protecting yourself from phishing 51.3% 33.2% 6.7% 0.3% 0.6% 7.9%

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Table 3: Syllabi Topics Covered in an Introduction to Computers Class Taught in an AACSB Accredited School

Topics # of Schools that covered the topic Percentage

Excel 22 68.8%

Access 22 68.8%

Hardware 17 53.1%

software 17 53.1%

Ethical Topics 17 53.1%

Networking 15 46.9%

Security 15 46.9%

PowerPoint 13 40.6%

Word 12 37.5%

internet 12 37.5%

Databases 11 34.4%

Strategic Role of IS 10 31.3%

HTML 9 28.1%

Ecommerce 9 28.1%

SDLC 8 25.0%

Database Queries 7 21.9%

OS 7 21.9%

Email 6 18.8%

Knowledge Management 5 15.6%

Programming 4 12.5%

Customer Relationship Management 4 12.5%

ERP 4 12.5%

Dream Weaver 3 9.4%

Supply Chain Management 3 9.4%

Content Management Systems 1 3.1%

Expression w\Web 1 3.1%

Desk Top Publishing 1 3.1%

AI DSS 1 3.1%

Computer Crime 1 3.1%

Collaborative tools 1 3.1%

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STATUS OF EXPERIENTIAL INTEGRITY IN HIGHER EDUCATION AND ITS IMPLICATIONS FOR EDUCATIONAL TRANSFORMATION

Endalew Fufa Kufi (Ph D Scholar)

School Of Education Sciences and Technology Teacher Education

Cell-phone: +251-0915- 83 29 19

Email: [email protected]

ABSTRACT

his research dealt with the status of experiential integrity in higher education where implications for educational transformation were set as reflections. It investigated the status

of experiential exchange, and consistent utilization of experiential resources among the teaching staff of Adama Science and Technology University. In that, descriptive survey method was used for its viability in investigating status. Target of the research were purposively selected instructors in four schools of the university such being schools of Education Science and Technology Teacher Education, Business, Engineering and IT, and Natural Science (N=20). The purposes underlined were experiences in teaching and roles they had in their respective schools. The sample parameter held 10 expatriate and 10 domestic staffs, who were contacted through both closed and open-ended questionnaire. While open-ended questionnaire helped in-depth data gain, closed-ended questionnaire helped to make the data regulated in line with the guiding points. Focal points of the inquiry were teachers’ experiential exchanges on planning, implementing, evaluating and improving educational activities and interactions in due accord. Data for the research were collected and interpreted on the basis of the respondents’ consents after clear purpose-identification and discussion. Key findings were that, the staff had some kind of exchange in terms of planning (courses and outlines), informal discussions on implementation and evaluation of learning activities but had no research, project and wide-range exchanges besides the academic lines. Their experiences in touring and exchanging innovative models were also limited. By and large, the experiential exchanges between and within groups of the concerned staff were more informal than formal. That indicated the likely loss of experiential resources which may be exposed to wastage with the disappearance of the holding staff owing to retirement, death, transfer or any other form of migration. In so far as smooth educational transformation is realized through integrity among the academic taskforce, the researcher recommends concerned agents to pay keen attention to inter-staff and intra-staff experiential exchanges in terms of planned and productive integrity. Key Terms: experiential integrity, educational transformation, higher education

T

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Background , Objectives of the Research and Problem Statement 1.1 Background of the Research In the process of education, human elements have the role of communicating, sharing, promoting; and, above all, of transforming experiences (Warier, 2003). Such a promotion is made possible when knowledge and experiences are converged, interpreted and used in a meaningful way (Kok, 2007). Reforms in education require respective higher institutions to design activities that match the real world tasks of professional development and productivity in diverse fields (Mohanty, 2007). Besides personal competencies, teachers in higher education need to act integrally in order to be actors working for changes and transformation in education (Dubois & Wilkerson, 2008). Ethiopia, with its development and transformation plan, has entered the world championship in education whereby universities are increasingly acting to develop huge number of trained and educated human resources which could be the pillar for economic development. Studying experiential integrity was essential as a viable means of networking potentials in human elements and creating consistent means of domestic knowledge resources with minimum of indifference and wastage. Hence, this study was conducted to explicate the status of experiential integrity among teaching staff in higher education, based on the investigation of interactions and exchanges among diverse teaching staff in Adama Science and Technology University which was chosen for its familiarity and economic handling of data. 1.2 Research Objectives The research aimed at explicating the status of experiential exchange and collaborative interactions among teaching staff to the grand, the specific aims being to identify status of experiential integrity; to verify mechanisms used for experiential exchange and integration; and to ascertain the transformative status of such an integrity. 1.3. Problem Statement and Basic Questions As important as the availability of human resources in education is the extent to which respective institutions practically integrate and use experiences gained from the existing diverse staff. It is obvious that, teaching and learning do not take place in a vacuum. It is grounded on the active and hospital roles of the teacher, the students and the experiential contexts. In that, circle individualistic competencies or one-shot interchanges alone may not guarantee the development of large scale reforms in teaching and learning. the implication goes for sure that, making integrated use of experiences is vital since it builds co-planning, co-acting and reciprocal exchange which, all together, brings about concerted success in goal-achievement. Ethiopian higher education has had long history of involving diverse staff in teaching-learning and research, and such an involvement is taken as the signifier of being transformative. Yet, the extent to which experiences are integrated and used in bringing about transformation in education is an issue of big concern that needs research and discussion. This issue of concern is not only with respect to teaching and learning but also the entire development in socio-economic realms to which education is responsive. Hence, the research underway was based on answering the succeeding questions. For the purpose of clarity, the research questions were divided into general and specific as follows: To what status do diverse teaching staffs of Adama Science and Technology University integrate their experiences in the realm of planning, implementation, assessment, social interchanges, and problem-solving? The specific questions were also stated as under:

To what extent do the teaching staffs work collaboratively and interactively? What possibilities are there for such collaborations and interactions? What implications does this have for educational transformation?

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Review of Related Literature

2.1 Experiential Integrity in Higher Education Two of the greatest challenges higher educational institutions face today are those of harnessing the power of digital technology and responding to the information revolution (Mohanty, 2007). The opportunities and challenges technology presents are far greater than at any other time in the history of higher education. Regarding this, Evans (2003) asserts that, integrated network capabilities are essential for the development of distributed specialties, for which multifunctional and multifaceted team-working are a function. Education, as the grandest human attribute and instrument of social change, requires transformation of experiential partnership which is of paramount importance to the staff and the institutions (Kozma, 2010). Packer (2004) states certain factors that are related to experiential integrity and partnership such being personal goals, capability beliefs, context analysis and situational incentives. Experiential integrity pertaining to education, as a transformative and change-oriented business, must be shaped in line with socio-economic changes (Kozma, 2010). Such changes are manifest in terms of task teams, flexible work arrangements and development of follow-up schemes. Changes in education are effected in people’s cognitive and experiential gains (Goel & Goel, 2005), and the overall development is affected by the quality and motivation associated with human skills. Quality and motivation are, in turn, affected by the extent to which people gainfully exchange experiences. It is to such an affective reflection that Mohanty (2007) traces teaching in higher education in relation to philosophical and sociological trends, and the challenges in leading and illuminating the change dimensions. The creation of “Knowledge Society”, earmarked in Swamy (2002), is also indicative of the need to build a society rather than educating a person as an individual pursuant. In the writer’s very words, the 20th Century marks development in social, political and economic realms where overwhelming advancements and changes are observed to come in the realms of creating and building the knowledge society. Alstete (1996) asserts the demands on higher institutions of education in terms of responsiveness to changing needs of society, greater and consistent competition and reflective effects of education to the society. Ng (1997) states also that, organizations need creative modalities in terms of interactive and productive aspects. Skills in global leadership in terms of innovative pedagogy (Brown & Atkins, 1988) and outreach experiences (Ashcroft & Foreman-Pack, 1994) are also expected to further solidification and solidarity in education in the footprints of global educational change dimensions. 2.2 Importance of Teachers’ Experiential Integrity According to McClure (2008), school leaders who foster collaboration among novice and veteran teachers can improve teacher retention and teacher satisfaction. Fry, Ketteridge and Marshall (2003) characterize professional learning communities as groups of educators who work together to analyze and improve their classroom practice engaging in an ongoing cycle of questions that promote deep team learning. Wheelock (2000) states also that, collaboration helps teachers to question their activities in group circles, and the questions never remain mare. Fry, Ketteridge and Marshall (2003) assert also that, teachers’ having different levels of qualification and expertise in teaching make higher educational institutions look for some means of enabling their staff to get engaged on tasks interactively and learn from one another. 2.3 Problems in Experiential Integrity There are identifiable challenges on illuminating the path for experiential integrity. Both identification of problems and seeking sound methods of facing the challenges are traced in this part of the review. Pampering to the past experiences of quantitative shortages come qualitative snares on higher educational institutions in the world, and more specifically on those in developing countries (Aarts, 2012). The most perplexing feature tangling higher education today is failure to be in the pipeline of innovative pedagogy where problem-based and project-based learning are a matter of urge rather than preference.

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Methodology of The Research This research took a descriptive survey method, whereby primary sources of data were used for the realization of the study. Respondents were twenty purposively selected teachers in selected schools (Business, Education, Engineering and Natural Science) of Adama Science and Technology University. The purpose of selecting the destined respondents was their experiences in teaching. In the collection of data, closed ended questionnaire was employed which addressed five key issues such being planning, implementation, assessment, social interchange, and problem-solving. Each key issue embraced sub-issues which stood to elaborate the necessary details (to the manageable scope) thereby serving as important hooks for drawing experiential data at ease. Both open-ended and closed-ended questionnaires were used to collect data provided that, contacting the respondents through interview was not convenient. Since reference was made to a homogeneous group, data collection took place at each staff venue. Data were also rechecked for consistency, and verified for validity, in line with the preselected questionnaire guides. In the analysis, reference was made to percentage for its convenience to display data for direct implications.

Presentation and Analysis of Data This part of the research dealt with the presentation and discussion of major findings. The presentation had its onset with the arrangements of key experiential focuses such as planning, implementation, assessment, social interchange and problem-solving.

4.1 Experiential Integrity on Planning Teachers’ experiential integrity on planning was based on the treatment of the following tabulated points to which the staff reacted in due accord:

No. Points of Focus Indicators

Most Average Least

No. % No. % No. %

4.1.1 Planning intents 2 10% 3 15% 15 75%

4.1.2 Planning tasks of focus 3 15% 4 25% 13 65%

4.1.3 Planning resources and means - - 2 10% 18 90%

4.1.4 Planning assessment modes 3 15% 1 5% 16 80%

4.1.5 Devising feedback loops - - - - 20 100%

Table 4.1 Experiential Integrity Index on Planning in Teaching-Learning

From the data provided to 4.1 above, it could be clear that, three-fourth of the target teachers’ experiences denoted the least integrity on making collaborative decisions on intents. Various theoretical assertions support however that, every instructional decision and activity chain must start with the formulation and clear statement of objectives (Dick, Carey & Carey, 2005). Regarding integrative organization of learning tasks and planning resources and means of lesson-delivery,, teachers’ experiences indicated the least co-action, and that showed the likely effect of not having consensus on accomplishments. Coming to planning assessment modes, the highest number of responses tilted to the least. The respondents indicated their being individually acting in that realm as well. Regarding feedback scheme, the responses indicated no integrity at all which implied that, teachers hardly discussed on what type and how to give feedback to students, and how to develop their undertakings based on the feedback gained.

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4.2 Experiential Integrity on Implementation

No. Focal issues Most Average Least No. % No. % No. %

4.2.1 Team teaching 2 10% 3 15% 15 75%

4.2.2 Programmed discussion 4 20% 2 10% 14 70% 4.2.3 Innovative interchanges - - 3 15% 17 85% 4.2.4 Shared use of resources 6 30% 3 15% 11 55%

4.2.5 Comprehensive lesson handling - - 7 35% 13 65%

Table 4.2 Experiential Integrity on Implementation

From the table data above, it could be known that, the least involvement was manifest in terms of team-teaching, planned discussion on the improvement of programs, innovative experiential interchanges, sharing of resources, and comprehensive handling of lessons. In the researched case above, team situation was not yet worked on. Programmed discussion among teachers of different experiences was rated to have been used to the most next to resource sharing whereas comprehensive lesson-handling was rated the least used. 4.3 Experiential Integrity on Assessment

Regarding collaborative integrity on assessment, respondents to the research issue above had the following experiences, as set in the table.

No. Focal points Most Average Least No. % No. % No. %

4.3.1 Producing valid assessment modes 2 10% 3 15% 15 75% 4.3.2 Making collaborative uses of assessment modes - - 3 15% 17 85%

4.3.3 Having cooperative roles in revisiting assessment modes

- - 2 10% 18 90%

4.3.4 Collaborative improvement of assessment modes - - 1 5% 19 95% 4.3.5 Making modes lifelike by redeveloping 2 10% 18 90%

Table 4.3 Teachers’ Experiences on Developing, Using and Improving Assessment Models

Teachers’ reflections on producing valid assessment modes indicated (75%) the least involvement in collaborative production and use of assessment techniques. The implication is that, such a lessened integrity implies that, each teacher had his/her own mechanisms and that bore the feature of being all aloof to what was happening to the integral. Teachers’ collaborations in revisiting assessment modes was also ascertained to have been worked on minimally.

Collaborative improvement of assessment modes was also earmarked as the least integrally dealt with. Making assessments as lifelike as possible was also traced as the least worked on. The other issue of experiential integrity was social interchange, for which the respondents’ reactions went as under: 4.4 Experiential Integrity in Social Interchange

No. Focal Points Most Average Least

No. % No. % No. %

4.4.1 Touring programs - - 2 10% 16 80%

4.4.2 Research symposia 2 10% 2 10% 16 80%

4.4.3 Enrichment training 3 15% 3 15% 14 70%

4.4.4 Presenting model works - - 1 5% 19 95%

4.4.5 Fieldwork and visits 5 25% 2 10% 13 65%

Table 4.4 Teachers’ Experiences on Social Interchange

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As indicated in the above table (Table 4), touring experiences were worked on collaboratively to an average status as denoted by 10 percent of the responses, whereas it was stated to have been the least considered, as denoted in 80 percent of the responses. Besides stating touring to have been the least worked on, two of the twenty respondents, both inpatriate, denoted non-existence of inter-staff touring and social interchange.

The rate of touring was marked the least by the expatriate staff than the inpatriate (disparity not traced for focus), though case explication for the disparity is beyond the coverage of this research. Enrichment training was also the least worked on aspect, as indicated by 70 percent of the responses, and presenting model works was marked to be the least worked on as denoted by 95 percent of the responses. The implication is that, the target staff did not have uniting threads.

4.5 Experiential Integrity on Problem-Solving

Under this grand issue, five selected sub-issues were set for scrutiny, such being experiential integrity on academic, social, moral, technical and status-oriented issues. Academic issues were related to instructional aspects, social issues to group role-assumption, moral issues to ethicality, and technical issues to means of adjusting learning-teaching resources in collaboration. Issues related to status-quo addressed gaps in interaction backed-up by academic status to which teachers’ reactions were looked into.

Data presentation and reflection ran as under:

No. Focal Issues Most Average Least

No. % No. % No. %

4.5.1 Integrity on solving academic problems 8 40% 5 25% 7 35 %

4.5.2 Integrity in solving social interaction problems

- - 3 15% 17 85%

4.5.3 Integrity in solving disciplinary problems 7 35% 3 15% 10 50%

4.5.4 Integrity in solving technical problems 9 45% 4 20% 7 35%

4.5.5 Integrity in solving status-quo barriers. - - - - 20 100%

Table 4.5. Experiential Integrity on problem-solving

From the above table (Table 5 ), it could be inferred that, the staff integrity in solving social problems or interactive problems was indicated to have been the least worked on, and the least of all the least was witnessed in terms of solving status-quo barriers (barriers pertaining to academic ranks). The respondent teachers’ experiences denoted (45%) the most partaking in terms of solving technical problems (such as supporting one another on using instructional technology or other complementary gadgets) and on solving academic problems (40%) which related to teachers’ instructional roles in terms of subject-matter handling. But, even the so asserted integrity in the academic aspect was not explicated in terms of the teachers’ subject-mastery, pedagogical competencies and psychological cope up since that was out of the catchment of this research.

Discussion of Major Findings

This research , reference to experiential integrity implied the wholeness of parts, the expectation being that, all teaching staff were not only birds of a feather but also threads of the same yarn, though not products of the same fabric. In this research, focus was made on integrity in terms of interaction, exchange and collaboration among the teaching staff in terms of sharing and building experiences in planning, implementing, assessing, communicating experiences and problem-solving. In this part, reflections gained from the data treated in the research were presented and discussed.

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5.1 Regarding Integrity in Planning

For the purpose of clarity, reference on planning was made to academic core points, provided that, other alterations would become confounding. Accordingly, experiential explications were made on teachers’ collaborations in terms of intents, tasks, resources and means of teaching and learning, assessment modes, and mechanisms of providing feedback for clients. In that, intents and tasks held the highest attention whereas feedback mechanism, resources and means held the least. The implication, by and large, was that though the staff had some bright starts with shared vision on intents and tasks, they did not keep tracking on integral path to the end.

5.2 Regarding Integrity in Implementation

Experiential explications regarding implementation were made on team teaching, resource sharing, programmed discussion, comprehensive lesson handling (diversification), and innovative exchanges. The teachers’ responses denoted the most experienced ties in terms of resource sharing and discussion and the least in team teaching and innovative interchanges. Comprehensive lesson handling was not tried at all. So, teachers’ experiential exchange and integrity were highly won by individualistic accomplishments except temporary physical contacts witnessed in resource-sharing and discussion.

5.3 Experiential Integrity on Assessment Techniques

Regarding interchanges on assessment, the extent to which the concerned teaching staff produced valid tools by exchanging experiences, made comprehensive use of the assessment tools and techniques, had cooperative roles in revisiting, redeveloping and improving assessment tools and techniques was looked into throughout. In that, producing assessment tools held the most part whereas revisiting, improving and redeveloping of assessment tools and techniques were those worked on to the least status consecutively.

5.4 Experiential Integrity on Social Interchange

Regarding social exchanges, reference was made to experiences pertaining to academic tours and internships, research seminars and discussion, enrichment training (inter-/intra-national), presenting model works at symposia, and practical field work and site visits in and out. The teachers’ experiences indicated most practices in terms of field work visits, especially in the technology areas, whereas least practices were explicated in terms of presenting model works, research, and academic touring and internship.

5.5 Experiential Integrity on Problem-Solving

Issues under this sub-part were related to academic, social, disciplinary, technical and status-quo barriers in teaching and learning. while the concerned teachers witnessed to have had the most interaction and self-reliance in terms of academic, disciplinary and technical aspects, they indicated having the least participation in breaking problems of social interaction and of status-quo barriers.

Summary, Conclusion and Implication

6.1 Summary

The research underway was held to look into the status of experiential integrity in higher education, reference being to exchanges in planning, implementation, assessment, social involvement, and problem-solving. In that, improvement of assessment modes, planning and execution of feedback loops on two-way bases, presenting model works, researches and holding academic tours, and status-quo barriers and related roadblocks to social interaction still project out as the “raw” materials demanding untiring commitment and deep processing.

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6.2 Conclusion

In this research, it was found out that, experiential integrity in higher education, as explicated from teachers’ experiences in Adama Science and Technology University, had bright features in terms of having common goals, technical provisions, resource-sharing, producing and using similar assessment modes, holding field works and visits, and attempts made to alleviate academic and disciplinary problems.

6.3 Implications for Transformative Action in Higher Education

Though it becomes ecologically and individually sound to dedicate this research to Adama Science and Technology University, more viably to the target groups, the researcher believes that, some, if not all, of the above issues may have relatedness to practices and experiences among the teaching staff of the other universities. So, findings from this research could be indicative of the fact that, how higher educational institute handles, organizes, values and utilizes human experiences, and promotes integrity with diversity has a lot to do with transformative education now and in the prospect (Feinstein, 2008; Dede, 2007). Further research could also be held on the factors which hinder good communication among the staff in higher education for pragmatic effects to come in the transformative realms of education.

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MULTINATIONAL CORPORATIONS (MNC) AND EMPLOYMENT AND LABOUR CONDITIONS OF DEVELOPING COUNTRIES: THE NIGERIAN EXPERIENCE

Vincent .A. Onodugo, PhD, FCAI, MNIM

Department of Management, University of Nigeria, Enugu Campus.

Tel: 234-8035-487-972

eMail: [email protected]

ABSTRACT

his study set out to primarily investigate the extent to which the operations of the Multinational Corporations in Nigeria affect the employment opportunities and whether or not decisions taken at

the international headquarters affect conditions of work and labour management relations in locales where they operate. The survey research design was adopted by this study. A sample size of 385 personnel was derived from the total population of 13,446 of the selected 6 multinational firms from oil, banking and manufacturing sectors. Data were collected using questionnaire and interview instruments. Statistical techniques were employed using SPSS to aid analysis. Findings show that the activities of the multinationals have led to the employment of more foreigners than is good for our soaring unemployment situation. Data supports that decision taken at the international headquarters of these MNCs impact on the local conditions of work. However, contrary to expectations, these decisions do not affect the activities of trade unions among sampled organisations. Key Words: Multinational Corporations, Unemployment and Labour conditions

T

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Introduction The world in the last couple of years has been besieged by a spectre called globalisation. This is the integration of the world economies into one in a phenomenon aptly called “global village”. The implication is that individual firms and nations act locally but are assessed and judged globally. There is consensus among scholars that technological changes and globalization agents are forces that have and will continue to transform the economic and social fabrics of the various nations (Chaykowski, 2002; Ohamea, 1990; Lipsey, 1993; and Thurow, 1999.) and for the most part is irreversible. (Adei, 2004; Wolfensohn, 2001). Knor (2003) rightly observes that while economic globalization is a very uneven process, with increased trade and investments being focused in a few countries, almost all countries are greatly affected by this process. The agents and purveyors of globalisation dividends are the Multinational Corporations (MNC). These MNCs have changed methods of operations variously in the light of the changing character and dynamics of global economic trend. They have had to move from operating and controlling activities of their international headquarters to actually locating their business activities to where resource inputs are mostly available and as a result cheaper. The latter has led to the spread of these MNC to resource rich and yet poor developing countries of African, South American and some Asian countries. The way and manner these MNCs are received and treated differ with countries according to their understanding of the impact of their operations on the economy of the host countries. The first usual impulse is for these countries to embrace these companies on the premise that it will facilitate the inflow of Foreign Direct Investment (FDI) and also hold prospects for generating income and employment. Nigeria has played host to MNCs long before independence till date. The number and activities of these MNCs have grown over time as Nigeria struggles to develop socio-economically as a nation. After over fifty years of nationhood, the economic growth trajectory of Nigeria is at best chequered in spite of the growing presence of these MNC in its core sectors of oil, banking and manufacturing sectors. According to National Bureau of Statistics (2009:238; 2010:2), the national unemployment rates for Nigeria between 2000 and 2009 showed that the number of unemployed persons constituted 31.1% in 2000; 13.6% in 2001; 12.6% in 2002; 14.8% in 2003; 13.4% in 2004; 11.9% in 2005; 13.7% in 2006; 14.6% in 2007; 14.9% in 2008 and 19.7% in 2009. Study reports by Next Generation Project (2010) and Awogbenle and Iwuamadi (2010) suggest that the future of Nigeria’s prosperity lies with the effective utilisation of the abundance and growing youthful population. An excerpt from Next Generation Projects (2010: 1) reads thus; “Nigeria stands on the threshold of what could be the greatest transformation in its history. By 2030, it will be one of the few countries in the world that has young workers in plentiful supply. Youth, not oil, will be the country’s most valuable resource in the twenty-first century.” It is against this background that this study sought to assess how the activities of these MNCs affect the employment conditions and labour union activities of the Nigerian workforce. 1.1 Study Objectives, Hypotheses and Methodology Study Objectives There are two main objectives of this study which are:

I. To critically appraise the extent to which the activities of MNCs has led to the employment of more expatriates in Nigerian organisations; and

II. To assess the extent to which global forces have influenced labour- management relations and union activities in Nigeria

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Hypotheses This study is guided by the following hypotheses:

1. Globalization has led to the employment of more expatriates in Nigerian organizations than Nigerians.

2. Activities and decisions at the headquarters and other branches of the multinational corporations do have strong impact on labour management relations and union activities in Nigeria

2.0 Theoretical framework and models There is no gainsaying the fact that international human resource management has several challenges owing to several varying differences in the milieu of operations. These challenges notwithstanding, multinational companies must operate and are left with no choice than to on balance select the model and/or strategies that will maximally impact on their ability to realize their corporate objectives. Bernadine (2003:26) identifies four possible models/ strategic approaches in international HRM. They shall briefly be discussed below: Ethnocentric model: This model works within the assumption that management and human resource practices are critical core competence to a firm’s competitive advantage and as such should not be trifled with nor compromised (Bird et al, 1998:159). Under this model, the foreign subsidiaries tend to have little autonomy and operations and decisions are typically centralized at the headquarters. The bulk of the management staffs are usually sent from the headquarters and comprise mainly the Parent Company National (PCNs). Most Japanese and American organizations are known to use this approach in recruiting and deploying international staff. There is usually pay disparity between the management staff which are paid in foreign currency and the rest of the staff usually members of the Host Country National (HCNs) that receive their pay in local currency and according to local market trend. This could be problematic if not properly managed. Firms that use this model usually have the onerous task of ensuring that local personnel acquire the necessary competencies and skills to help them perform optimally. Polycentric Model: Compared with the ethnocentric model, the Polycentric model lies at the polar end of the continuum. This model treats subsidiary as a distinct entity with some level of decision making authority. The essential thrust of this model is that international subsidiaries operate in a different environment (legal, socio-economic, political and cultural) conditions from that of the parent company and as such should be allowed to evolve its own HR management systems unique to it. Under this model both the management and the supporting staff are usually selected competitively from the local labour market. The only challenge is that in most cases, these local personnel are hardly ever promoted to work outside their local environment either in other countries where the company has subsidiaries or in the headquarters. This model is cheaper in addition to being more adaptable to local conditions. Geocentric Model: This model tries to remove the boundaries and separating lines between the parent company and the subsidiaries scattered all over the globe. It strives to integrate its businesses with the relationships based on collaboration and mutual reciprocity. Under this model, the organization begin to see itself as having a global workforce that can be deployed and utilized in a variety of ways throughout the world. Key positions tend to be filled by the most qualified individuals regardless of nationality. For cost effective purposes, among others, most of the lower and middle level personnel could be sourced from the HCN, key management positions are sourced from anywhere-PCNs, HCNs and Third-Country National (TCNs). Staff remunerations in companies that are geocentric are generally based on global market rates and standards. Pay and work considerations are sorely based on individual contributions to the organization rather than country of origin.

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Regiocentric Model: This is a modified version of geocentric model. The main difference is in scope; while the latter is global in scope the former is regional. In other words, African subsidiaries will be managed by Africans, just as European subsidiaries will be managed by Europeans. To function properly, there is usually a strong regional headquarters that is vested with the power and authority to manage its operations in the particular region. These regional headquarters integrate and collaboratively manage the subsidiaries within its region. The only challenge is that there is usually limited flow between the regions and the global headquarters. In some cases some use this model as a prelude and preparation to full-scale geocentric model. It is important to note that within the contextual needs of developing countries any model chosen must strike a balance between maximizing its huge labour potential and providing opportunities for technology transfer. A critical look at the models presented above shows a clear trade-off between the twin goals of maximizing labour potentials of the host countries and technology transfer. For instance, ethnocentric and geocentric models increases the chances of technology transfer while minimizing the chances of utilizing local labour. While the regiocentric and polycentric models maximize the use of labour and reduce chances of technology transfer. The best strategy is for developing countries to initiate policies that will achieve a proper mix between the two goals. Another important lesson for developing countries could be gleaned from the growth strategy of most Asian economies. Nissanke and Thorbecke (2008:12) note that the “growth –accompanied by a substantial reduction of abject poverty –in East Asia can be explained in terms of the region-wide comparative advantage recycling in the production of labour-intensive goods. The process involves a strong demand for unskilled and semi-skilled labour, driven by exporting labour intensive goods and pro-trade FDI through effective knowledge skill transfer.” 3.0 Methodology Data for this study was sourced from both primary and secondary sources. Personnel (especially those from the human resources department) from the sampled firms were the major source of primary data while reports of previous studies and literature were the source of secondary data. A sample size of 385 personnel was derived from the total population of 13,446 of the selected 6 multinational firms from oil, banking and manufacturing sectors. Survey method of design was used and data were collected using questionnaire and interview. The interview was mainly carried out on the human resources managers of these organisations. The analysis of data, interpretation and test of hypotheses was done with SPSS. 4.0 Analysis, Results and findings 4.1 MNC and the Employment of Expatriates in Nigerian Organisations This section presents and interprets data on the impact of MNCs on the employment of more expatriates among Nigerian organisations. This is a major research objective of this study and has a corresponding hypothesis.

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Fig. 1: 2: Data on the Employment of more Expatriates Due to MNCs

Data in Figure 1.2 show that there is increased employment of expatriates in the sampled Nigerian organisations due to the activities of the MNCs. Approximate 65% agreed, about 29% disagreed and 6% were undecided. 4.2 The Impact of MNCs on Labour-Management Relations and Union Activities In this section, data on the relationship between MNCs and labour-management and union activities were presented and analysed. It is a major study objective and has corresponding research question and hypothesis. Table 2.1 Data on Areas of Personnel Decisions that cannot be taken without Reference to the

International HQ

Response Category Frequency %

Undecided 8 6.15

Strongly disagree 5 3.85

Disagree 25 19.23

Agree 41 31.54

Highly agree 51 39.23

Total 130 100

6.15 4.62

23.85

34.6130.77

0

5

10

15

20

25

30

35

40

undecided stronglydisagree

disagree agree stronglyagree

% R

espo

nses

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Fig. 2:2 Data on Areas of Personnel Decisions that cannot be taken without Reference to the International HQ

Data in Table 2.1 and Figure 2.2 show that there are quite a number of personnel decisions that cannot be taken locally without recourse to the international headquarters. Approximate 71% of the respondents either agreed or highly agreed, 23% either disagreed or highly disagreed and 6% were undecided. Table 2.3 The Impact of Internationalization of HR Decisions on Labour-Management Relations and Union Activities

Response Class Frequency Percent

Undecided 86 22.34

strongly disagree 69 17.92

Disagree 42 10.91

Agree 163 42.34

strongly agree 25 6.49

Total 385 100.00

6.153.85

19.23

31.54

39.23

05

1015202530354045

Undecided Stronglydisagree

Disagree Agree Highly agree

% R

espo

nses

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Fig. 2.4 The Impact of Internationalization of HR Decisions on Labour-Management Relations and Union Activities

Table 2.3 and Figure 2.4 show that the impact of internationalization of HR decisions on labour-management relations and union activities is not significant. Approximate 49% agreed, about 29% disagreed and a substantial 22% were undecided. Test of Hypotheses Hypothesis 1 Hypothesis one is stated in null and alternate forms as follows: H0: MNCs has not led to the employment of more expatriates in Nigerian organizations than Nigerians. H1: MNCs has led to the employment of more expatriates in Nigerian organizations than Nigerians. The above hypothesis was also tested using t-test. A t-value of 5.71 and 3.47 were obtained for the variable on increased activities of MNCs like merger and acquisition leading to increased number of expatriates in Nigerian organisations at p<0.05, respectively. These results as shown in Table 2.4 below are all in support of the alternate hypothesis. We therefore conclude that; MNCs activities have led to the employment of more expatriates in Nigerian organizations than Nigerians.

Table 2.4 T values for hypothesis 1

Question item Mean Std. Deviation t-value df

Sig. (2-tailed)

Correlation Sig.

Do you think that global factors like mergers and acquisitions have increased number of expatriate? 3.78 1.13 5.71 118 0.00

0.40

0.02

more expatriates are employed by MNcs now that before the era of globalization 3.53 1.25 3.47 118 0.00

22.3417.92

10.91

42.34

6.49

05

1015202530354045

undecided stronglydisagree

disagree Agree strongly agree

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Hypothesis 2 H0: The activities and decisions at the headquarters and other branches of multinational corporations do

not have strong impact on labour-management relations and union activities. H1: Activities and decisions at the headquarters and other branches of the multinational corporations do

have strong impact on labour management relations and union activities in Nigeria. Data for the test of this hypothesis were obtained from responses from the questionnaire. Hypothesis 2 was tested using t-test, which was applied on the variables reflecting personnel decision that cannot be taken locally and on whether activities of trade unions have been hindered by decisions at the headquarters. Tables 4.38 below reveals that while the t-test result shows the existence of significant result on the first variable (t = 6.7 at p< 0.05). Different result was obtained for the variable on hindrance of the activities of trade unions (t = 1.07 at p>0.29). These results show that while there are areas of internal personal decisions that cannot be taken locally, the activities of trade unions are not hindered by activities and decisions at the headquarters and other branches of the multinational corporations. Based on the findings above we partially accept both the alternate and null hypothesis. We conclude therefore, that activities and decisions at the headquarters and other branches of the multinational corporations do have strong impact on labour management- relations but do not hinder union activities in Nigeria.

Table 4.38: Values for Hypothesis 2

Variables Mean Std. Deviation T

Sig. (2-tailed)

Correlation Sig.

Are there areas of personal decisions that cannot be taken locally? 3.92 1.16 6.70 0.00

-0.04

0.83 The activities of trade unions have been hindered 2.83 1.28 -1.07 0.29

5:0 Implications of Findings/Results 5.1 MNCs and the Employment of Expatriates in Nigerian Organisations The finding that the activities of MNCs have resulted in the employment of more expatriates in the Nigerian organisations has a lot of implications to management of business in Nigerian economy of today. First, this finding, no doubt, will worsen the unemployment situation of the country which is bad enough presently. It is the desire of Nigerian government to attract venture capitalists but certainly not more expatriate employees. For a labour resource rich nation like Nigerian, this is a very disturbing development. Second, most of these expatriates are paid in foreign currency or its local equivalent. The implications are threefold. The first is that it leads to an increase in the cost of production of the organisations where they work; second, is that it is a veritable source of capital flight as they may be repatriating most of their earnings to their country of origin; and finally it worsens the income gap leading to conflicts with trade unions. The result is that the average income of even local employees in such organisations spirals out of industrial average leading to discontents, strikes and search unemployment (Nwaba, 1995). Search unemployment is a situation where people refuse to take jobs in sectors other than the ones they prefer. In Nigeria, a number of people will not seek for nor take employment in any other sectors but oil and gas, banks and other sectors where multinationals hold sway. This may be one of the far-fetched reasons that slows the diversification of the Nigerian economy. Most highly skilled personnel move to these preferred sectors instead of going to try their hands in virgin areas.

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5.2 The Impact of MNCs on Labour-Management Relations and Union Activities This study has as one of its objectives to investigate how the operations of MNCs have impacted on labour management relations and union activities of the selected Nigerian organisations. Findings revealed that though most of the decisions taken by these MNcs in the country of operations are influenced by the headquarters it does not hinder or interfere with union activities. This finding partly supports and contradicts the claim by Tickly (2001) and Farazmand (1999) that the consequence of globalization was the enthronement of multinationals and NGOs to dictate the codes and ethics of work ( this is supported by the findings). They also claim that environment fostered by globalization will weaken individual and collective representations by unions in the work place (this is contradicted by the findings). It definitely requires another study to highlight the reasons for this trend. One plausible reason however, could be the increased tendencies on the part of citizens to expect and demand a fair hearing by organisations that operate in their environment. This is particularly the case with organisations in the oil and gas sector. In most cases, violent activities including abducting their workers, picketing and destruction of work equipment are used to receive the required attention from the companies. 6:0 Recommendations and Conclusion Based on the study findings, this paper makes the following brief recommendations:

1. The Nigerian Local Content policies1 should be adapted and applied to ensure a proper mix between local and expatriate employees among Nigerian business organisations. This should be done in such a way that venture capitalists are not scared from coming to invest while ensuring that Nigerian employees are not displaced in preference to foreigners.

2. Ministry of labour and productivity in liaison with organized private sector should initiate labour laws for passage at the national assembly that will protect Nigerian workers in multinational organisations and ensure that local decisions are not unduly influenced from outside.

This study after review and analysis of the field data concludes that MNCs in Nigeria adopts ethnocentric model to hiring of personnel which see them have more foreigners in their employ than is necessary. It was also found out that most of the local decisions taken by MNCs operating in Nigeria is influenced by policies in the international headquarters. However, contrary to expectation MNCs do not interfere with the activities of trade unions these organisations.

1 These are Nigerian policies that require foreign organisations to procure certain proportion of their inputs are obtained from the locality of their operations.

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References

Adei, S. (2004). “Impact of Globalisation on Management the African Perspective,” Management in Nigeria, Oct 2003-March 2004, Vol. 39/40.

Aimiuwu l.E.A. (2004). “Globalisation- The Human Resource Challenge,” Management in Nigeria, Oct 2003-March 2004, Vol. 39/40.

Awogbenle, A.C. & Iwuamadi, K.C. (2010). Youth Unemployment: Entrepreneurship Development Programme as an Intervention Mechanism. African Journal of Business Management, 4(6), 831-835.

Bernardin,H. J. (2003). Human Resources management An Experiential Approach, New York: MacGraw- Hill Incorporation.

Bird, A., Taylor, S. and Beechler, S. (1998). “A typology of human resource management in Japanese multinational corporations: Organizational Implications,” Human Resources Management, 37(2).

Chaykowski, R.P. (2002). “Globalisation and Canadian Labour Policy,” Canadian Public Policy, Vol. 28, No 1.

Farazmand, A. (1999). “Globalization and Public Administration,” Public Administration Review, Vol. 59, No.6 (Nov.-Dec).

Khor, M. (2003). Globalisation and the South, Some Critical Issues, Ibadan: Spectrum Books Limited.

Lipsey, R. (1993). “Globalisation, Technological Change, and Economic Change,” Canadian Business Economics 2(1).

Nigeria- Next Generation Final Report, August 17, 2010

National Bureau of Statistics. (2009). Social Statistics in Nigeria. Abuja: The NBS Publication . National Bureau of Statistics. (2010). Statistical News: Labor Force Statistics No. 476. Abuja: The NBS Publication.

Nissanke, M. and Thorbecke, E. (2008). Globalisation-Poverty Channels and Case Studies from Sub-Saharan Africa, Oxford: Blackwell Publishing ltd.

Nwaba, G.N. (1995). Macroeconomics for Nigerian Students, Enugu : Department of Management, Faculty of Business Administration, University of Nigeria, Enugu Campus.

Ohamae, K. (1996). “Putting Global Logic First,” International Business 96/97.

Tickly, L. (2001). “Globalisation and Education in the Postcolonial World: towards a conceptual framework,” Comparative Education, Vol. 37 No. 2.

Thurow, L. (1992). Head to Head, New York: William Morrow.

Wolfensohn, J.D. (2002). “Opening Address,” Annual World Bank Conference on Development Economics 2001/2002, New York: Oxford University Press.

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THE RIGHT TO PRIVACY – SOUTH AFRICAN AND COMPARATIVE PERSPECTIVES

C.M. van der Bank

Vaal University of Technology Private Bag X021

Vanderbijlpark, Gauteng South Africa.

eMail: [email protected] Tel: +27169509240

ABSTRACT person’ s right to privacy entails that such a person should have control over his or her personal information and should be able to conduct his or her own personal affairs relatively free from

unwanted intrusions. Information protection is an aspect of safeguarding a person’s right to privacy. It provides for the legal protection of a person in instances where such a person’s personal particulars are being processed by another person or institution. Processing of information generally refers to the collecting, storing, using and communicating of information. The processing of information by the responsible party threatens the personality in two ways: First the compilation and distribution of personal information creates a direct threat to the individual’s privacy and Second, the acquisitions and disclosure of false or misleading information may lead to an infringement of his identity. Effective information protection will only be achieved through regulation by legislation Key words:Privacy, infringement, reasonableness, action injuriarum and fundamental

A

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1. Recognition of the right to privacy The privacy of individuals has to be respected. The right to privacy is recognised by social scientists as essential for the preservation of an individual’s human dignity, including his physical, psychological and spiritual well-being (Burns, 2001). In legal terms, privacy is described as an individual condition of life characterised by exclusion from publicity (Neethling, Potgieter and Visser, 2005). Even in a constitutional democracy this right can never be absolute. One of the main problems confronting us in the information era is the threat that technology poses to an individual’s right to privacy (Britz and Ackermann, 2006). Privacy is also at the core of our democratic values and therefore an individual has an interest in the protection of his or her privacy. According to Jerry Kang (Kang, J 1998) the term privacy encompasses a number of ideas which can be put into three clusters:

spatial privacy- the extent to which a person’s individual territorial space is shielded from invasion privacy related to choice – the right to make a choice without state interference privacy relating to flow of personal information.

There was no sophisticated concept of privacy in the Roman law, but the Roman jurists recognised a number of specific instances where a remedy was provided for a wrong which could be interpreted as an impairment of privacy: for instance, invasions of sanctity of the home. Although privacy concerns are deeply rooted in history, privacy protection as a public policy question can be regarded as a comparatively modern notion. The right to privacy has, however, become one of the most important human rights of the modern age and is today recognised around the world in diverse regions and cultures. 2. The protection of privacy 2.1.1 International Law The right to privacy is also dealt with in various other international instruments such as Article 12 of the Universal Declaration of Human Rights of 1948 which states that no one may be subjected to arbitrary interference with his privacy, family or correspondence. At regional level, a number of treaties make this recognition of the right to privacy legally enforceable. Article 8 of the European Convention for the Protection of Human Rights and Fundamental Freedoms states: 1) Everyone has the right to respect for private and family life, his home and his

correspondence. 2) There shall be no interference by a public authority with the exercise of this right except as in accordance with the law and is necessary in a democratic society in the interest of national security, public safety or the economic ell-being of the country, for the prevention of disorder or crime, for the protection of health or morals, or for the protection of the rights and freedoms of others. The American Convention on Human Rights Article 11 and 14 and the American Declaration on Rights and Duties of Mankind contain provisions similar to those in the Universal Declaration and International Covenant. It is, however interesting to note that the African Charter on Human and People’s Rights does not make any reference to privacy rights. 2.1.2 National law In South Africa the right to privacy is protected by both our Common law and the Constitution (Bill of Rights section 2). Section 14 of the South African Constitution, which protects the right to privacy, reads as follows: Everyone has the right to privacy, which includes the right not to have: (a) Their person or home searched; (b) Their property searched; (c) Their possessions seized; or (d) The privacy of their communications infringed.

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Section 14 (a), (b) and (c) protects an individual from unlawful searches and seizures, whilst section 14(d) encompasses a broader protection of privacy, similar to the common law action iniuriarum of South African law. The entrenchment of fundamental rights (also the right to privacy) strengthens their protection and gives them a higher status in the sense that they are applicable to all law, and are binding on the executive, the judiciary and the state organs as well as on natural and juristic persons. There is no South African legislation dealing specifically with the protection of the right to privacy. It is therefore important to evaluate the right to privacy in the light of both the common law and the Constitution. In S v Nkabinde the court found that the accused’s right to privacy had been violated when the police monitored conversations between him and his legal representatives (S v Nkabinde 1998 8 BCLR 996 (N). Although authorisation had been obtained under the Monitoring Act, the interception of this type of communication is not covered by the Act. Further, the monitoring had continued beyond the date when the authorisation had lapsed. The entrenchment of the right to privacy in section 14compels the Government to initiate steps to protect neglected aspects of the right to privacy in South Africa, such as data privacy or the protection of personal information. Section 7(2) of the Constitution provides that the state must respect, protect, promote and fulfil the rights in the Bill of Rights. 3. Privacy as an expression of core values Although the individual’s right to privacy is protected in most democratic societies, it cannot be regarded as a natural right like, for example, the right to freedom or the right to life (Britz and Ackermann, 2006). Two reasons are relevant here. Firstly, one should consider that the tendency to protect privacy by statutory means is a relatively recent phenomenon. Most foreign laws dealing with the privacy of individuals were only formulated during the 1960’s. Secondly, privacy is a relative notion. Some cultures, for example, value privacy more than other cultures. The right to privacy is not absolute. As a common law right of personality it is necessarily limited by the legitimate interest of others and the public interest. (Neethling, Potgieter and Visser, 2005). Core values are the values shared by humanity which are crucial to survival and development. According to Moor the importance of privacy should rather be sought in its relation to the core values of society (Moor, 1997). Core values include aspects such as freedom, security, knowledge, happiness and ability. In this sphere, privacy can be seen as expression of the core values of security and freedom. Privacy then becomes a natural expression of the need for security as societies become bigger and increasingly interactive. It is also inevitable that the desire for privacy will increase dramatically in a highly computerised and networked society, where a great deal of personal and private information is communicated electronically. In terms of section 39 of the Constitution, when interpreting the Bill of Rights, the values which underlie an open an democratic society based on human dignity, freedom and equality, should be promoted. This means that an exercise is required analogous to that of ascertaining the boni mores or legal convictions of the community in the law of delict. Of importance is Ackermann J’s dictum in Bernstein ao v Bester NO ao where he stated: “The nature of privacy implicated by the right to privacy related only to the most personal aspects of a person’s existence, and not every aspect within his or her personal knowledge and experience”. Neethling critises this meaning of privacy as too “restrictive”. Especially in regard to data protection where individual bits of information viewed in isolation may not be private, but where the sum total is of such a nature that an individual may want to protect it. Thus in principle compiling record and obtaining knowledge thereof constitutes an intrusion into the private sphere (Neethling, 2005). Hi criticism was validated by Langa DP in Investigating Directorate: Serious Economic Offences v Hyundai Motor Distributors (Pty) Ltd ao; in re Hyundi Motor Distriburors (Pty)Ltd v Smit NO ao where the court held that the statement in Bernstein characterises the right to privacy as lying along a continuum, where the more a person inter-relates with the world, the more the right to privacy becomes attenuated. The right to

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privacy should therefore not be understood to mean that persons no longer retain such a right in the social capabilities in which they act. Thus, when people are in their offices, in their cars or on mobile telephones, they still retain the right to be left alone by the State unless certain conditions are satisfied. 4. Nature and scope of the right to privacy Of all the human rights in the international catalogue, privacy is perhaps the most difficult to define. Definitions of privacy vary widely according to context and environment. In Bernstein ao v Bester NO ao Ackermann J stated: ”The concept of privacy is an amorphous and elusive one which has been the subject of much scholarly debate”( Bernstein ao v Bester NO AO 1996 (2) SA 751 (CC); 1996 (4) BCLR 449 (CC). The lack of a single definition should, however, not imply that the issue lack importance. The need to understand the nature of the right to privacy in order to have legal certainty and protection has always been emphasised. In 1996 Harms JA accepted the following definition of privacy (as proposed by Neethling) in National Media LTD ao v Jooste “Privacy is an individual condition of life characterised by exclusion from the public and publicity. The condition embraces all those personal facts which a person concerned has determined him to be excluded from the knowledge of outsiders and in respect of which he has the will that they be kept private”. True democracy implies that personal privacy is protected from state intervention. And yet, owing to the data explosion in this country and elsewhere, the private sector poses an even greater threat to the privacy of individuals. “Big brother” today may be wearing a pinstripe suit and corporate title (Britz and Ackermann, 2006). The right to privacy can never be a shield to absolute measurements. The state use FICA legislation to involve banks and other institutions in the battle against crime: an employer monitors employees’. Internet activities to ensure compliance with company policies; an individual will provide personal details and may undergo polygraph testing to obtain employment; and credit records are kept to protect interests. Section 14 will, however, not only have an impact on the development of the common law action for invasion of privacy. It may also create a new constitutional right to privacy. In giving content to the general substantive right to privacy, courts will, in the first instance, be guided by common law precedents. Secondly, they will be influenced by international and foreign jurisprudence. Recognition of new ideas of the right to privacy may also give rise to new actions for invasion of privacy which will include not only the interests protected by the common law but also a number of important personal interests as against the state. Every reasonable person will agree that invasions of privacy are justifiable at times, certain very important preconditions apply:

The invasion must have a legal foundation, such as law which is applied properly or an employment contract.

The invasion must be reasonable, in other words there must be a relation between method and purpose.

The information may not be used for a purpose other than the one for which it was obtained. All reasonable steps must be taken to ensure the correctness of the information, and it must be

updated from time to time. Neethling has argued that privacy should be regarded as an independent right of personality wider than “dignity”, but that for convenience privacy has been delineated… within the dignitas concept (Neethling, 2005).

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5. Infringement of the right to privacy The elements of liability for an action based on an infringement of a person’s privacy are in principle the same as any other injury to the personality, namely unlawful and intentional interference with a legally protected personality interest- here the right to privacy. Although the courts have not analysed the specific meaning of “dignity” and “privacy” a number of crystallised categories of impairments of dignity have emerged from the decisions of the courts (Burchell, 1998). Ackermann J in Bernstein draws a distinction between the two-stage constitutional inquiry into whether a right (such as privacy) has been infringed and then whether the infringement is justified, as opposed to the single inquiry under the common as, as to whether an unlawful infringement has taken place. 5.1 Personal Information The major factor that neutralises claims that information is confidential is that privacy has been waived, for instance where a person applies for employment (especially a position subject to security clearance), an account or a loan. These waivers are not absolute, and a bank can still be taken to task for passing on such information to other commercial institutions. A Phenomenon of the present time is that information of commercial value is being sold (quite often by the employee within an organisation) to marketers and other people with similar commercial intentions. Many people find it irritating to receive telephone calls and e-mails at work. Employers should provide for this when drafting their disciplinary code by prohibiting the selling or leaking of employer-privy information. 5.2 Work situation An employer cannot claim access to communication-related information about employees at the workplace (detailed billing, e-mails) as of right even though the communication facilities may be provided by the employer. Although the law does make some provision for regulating the interception of communications, the employer must secure a contractual basis for such access in the employment contract per se, or by incorporating certain directives, policies or rules in the employment contract which provide for the monitoring of communications and the policing of Internet behaviour. Information may be used or communicated only for the protection of the legitimate interest(s) involved, and that the use of information in a manner incompatible with this purpose is wrongful. Accordingly, there should be a duty of confidentiality on a data controller in so far as the processing of information is not in accordance with the defined purpose. Even if it is certain that the processing is for the protection of a legitimate interest, it must still be exercised in a reasonable manner (Neethling, Potgieter and Visser, 2006).

Polygraph testing is another controversial issue which may lead to abuse in what many people regard as the unequal relationship between employer and employee. Polygraph testing is a means of measuring (often hidden) bodily reactions and then drawing conclusions as to whether the verbal reactions to accompanying questions are to believe.

It has been widely accepted by the Labour Court and the CCMA in cases such as Sosibo & others and CTM (2001) 10 CCMA 2.5.2 that, polygraph testing in the workplace is highly contentious and the admissibility of its results remains moot. The sole reliance by the employer on unspecific polygraph results is insufficient to discharge the onus in terms of section 192 of the Labour Relations Act 66 of 1995 to prove that the dismissal was fair. To discharge this onus, the test of a balance of probabilities is used. To only present polygraph evidence is not enough to show that the dismissal was fair because there is no corroborating evidence.

A person embroiled in a dispute of some kind may declare his willingness to undergo polygraph testing, challenging the adversary to do the same. Exponents say that polygraph testing is an indicator and can never be absolute. Therefore polygraph test results are insufficient, in and of themselves to establish guilt and it

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can therefore be said that results of such tests cannot be the sole and only indicator of guilt, other corroborating evidence must be present before reliance can be place on such evidence for a guilty finding.

The circumstances under South African law which would justify an intrusion into the private sphere will be developed casuistically under the broad, flexible under the broad, flexible criterion of unlawfulness, and in terms of the constitutional definition of the bounds of privacy, including the interface with freedom of expression (Burchell, 1998). 5.3 Spamming

The spammer or sender of junk e-mail will usually try and invite the recipient to engage in some electronic deal or visit a certain website, a method often used by pornography and gambling websites. In order to ensure that the recipient will open the message, the spammer will disguise the heading and origin. Cyber crimes are not limited to the acts as contained in the ECT, but there are also other statues that are applicable in the prosecution of cyber crimes. For instance, in terms of the Prevention of Organized Crime Act (POCA) and FICA Act, the prevention of all the crimes listed (as applicable to the cyber environment) is highlighted (but in an organized fashion). Additionally, the prohibition of money laundering and other financial related crimes which are done online these days and may also contravene the Exchange Control Regulations. Also noteworthy is the National Gambling Act and Lotteries Act. In terms of s89 of the National Gambling Act, any form of unlicensed gambling is unlawful and may be imprisoned for period of 2 years. Similarly s57 and s59of the Lotteries Act, also states that “any unlicensed lotteries or anyone participating in a foreign lottery is liable to a criminal offence”. With reference to foreign anti-spamming legislation, Ebersὃhn concludes that specific actions that constitute or lead to spamming should be outlawed. This includes the prohibition of e-mail address harvesting and the use of false e-mail headers, and the requirement that the subject line should contain an indication that the message contains as advertisement. This will enable service providers to filter incoming messages (and guarantee clients a spamming free service) and allow recipients to delete a message without having opened it (Ebersὃhn, 2003). 5.4 Unwanted commercial approaches Not all unsolicited commercial approaches are electronic in nature. It is most annoying and time-consuming for working people to receive phone calls from fundraisers or people seeking new business. The least (and perhaps all) that can be done in this regard is for employers to address this by means of codes that prohibit the selling of employee information by employees. 5.5 Whistle – blowing The Protected Disclosure Act 26 of 2000 is intended to protect employees who “blow the whistle” on employers or fellow employees so that they do not become the object of revenge or intimidation. The measure is yet another in the attack on crime and corruption, and is also based on the fundamental labour rights, including the right to fair labour practices and a safe and trouble-free work environment. An employee who makes a dis closure as set out above will be protected from any occupational detriment for doing so. The employee may not be dismissed, suspended, transferred, withheld benefits or references or disadvantaged in any other way in relation to the workplace. In Grieve v Denel (Pty) Ltd the employee was successful in bringing an urgent application to stop his employer from instituting disciplinary proceeding s against him following the preparation of a report on alleged wrongdoings by a senior manager. The court found this to be a protected disclosure, and although the charges did not relate to the intended disclosure, the timing of the charges justified the invoking of the Act.

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5.6 Privileged information The interest which is protected must indeed be a legitimate one, in other words, an interest recognised and protected by law. An accused has the right to remain silent, and a witness in criminal or civil proceedings may not be forced to provide answers to questions that might be self-incriminatory and expose the person to civil and criminal liability. As a rule a spouse is a competent but not compellable witness in criminal proceedings against the husband or wife. Exceptions to the rule include charges of assault in the marriage, child abuse and neglect, bigamy, abduction and certain sexual offences. The important form of privilege is the professional privilege that covers all confidential communications between legal representative and client for the purpose of legal assistance. Thus the prosecution may not use such information to bolster its case, provided the said elements are present, viz. that the communication must have been made in the course of a professional relationship and in confidence. This does not mean that the communication must have taken place with a view to a pending or forthcoming court case. The professional advice of a corporate legal adviser in the ordinary course of his duties will also be shielded in this way. Privilege is also relevant to freedom of expression in the sense that utterances during “Privilege” occasions such as parliamentary debates and court cases may not be used against a speaker in later defamation proceedings provided the latter did not exceed the bounds of reasonableness. 6. The origins: The protection of privacy in the United States

It can be tracked back to an article by Warren and Bandeis published in the 1980 Harvard Law Review. The concept of privacy in that country has developed to such a degree that it now embraces not merely the right to seclusion but the right to individual autonomy or free choice – the right to make certain personal decisions relating to marriage, procreation, contraception, family relationship, child-rearing, education and even death (Burchell, 1998).

United States privacy law embodies several different legal concepts. One is the invasion of privacy, a tort based in common law allowing an aggrieved party to bring a lawsuit against an individual who unlawfully intrudes into his or her private affairs, discloses his or her private information, publicizes him or her in a false light, or appropriates his or her name for personal gain. Public figures have less privacy, and this is an evolving area of law as it relates to the media. The essence of the law derives from a right to privacy, defined broadly as "the right to be let alone." It usually excludes personal matters or activities which may reasonably be of public interest, like those of celebrities or participants in newsworthy events. Invasion of the right to privacy can be the basis for a lawsuit for damages against the person or entity violating the right. The right o privacy is not specifically mentioned in the United States Constitutions or its Amendments and the protection of privacy was, initially at least, a common-law one. However, more recently, as the right has been interpreted by courts to cover not merely freedom to decide what information about oneself can be revealed to a wider public but also to include freedom to make certain intimate personal decisions, some constitutional backing has been sought. In the United States the same rules apply to privacy as to defamation. Example a public figure has to approve actual malice as well as falsity to recover damages from a newspaper for invasion of privacy. In Cantrell v Forest City Publishing Co private individuals can recover for invasions of privacy when newspapers negligently print false statements about them. To make the First Amendment freedom to report the news turn on subtle differences between common-law malice and actual malice is to stand the Amendment on its head. Those who write the current news seldom have the objective, dispassionate point of view - or the time - of scientific analysts. They deal in fast moving events and the need for "spot" reporting. The jury under today's formula sits as a censor with broad powers - not to impose a prior restraint, but to lay heavy damages on the press. The press is "free" only if the jury is sufficiently disenchanted with the

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Cantrell’s to let the press be free of this damages claim. That regime is thought by some to be a way of supervising the press which is better than not supervising it at all. But the installation of the Court's regime would require a constitutional amendment. Whatever might be the ultimate reach of the doctrine Mr. Justice Black has embraced, it seems clear that in matters of public import such as the present news reporting, there must be freedom from damages lest the press be frightened into playing a more ignoble role than the Framers visualized. The Warren and Bandeis concept of Privacy (protection of the individual from unwarranted intrusions by the media) ha in fact become subsumed, in the United States, into a much broader concept of privacy which incorporates the autonomy of individuals to make personal decisions. Furthermore, the original concept of privacy was not really suited to deal with the threat of organised record-keeping (Burchell, 1998). 7. The English experience protection of privacy In the United Kingdom, it is not possible to bring an action for invasion of privacy. An action may be brought under another tort (usually breach of confidence) and privacy must then be considered under EC law. In the UK, it is sometimes a defence that disclosure of private information was in the public interest. There is, however, the Information Commissioner's Office (ICO), an independent public body set up to promote access to official information and protect personal information. They do this by promoting good practice, ruling on eligible complaints, giving information to individuals and organisations, and taking action when the law is broken. Bailey, Harris & Jones consider that the threat posed by the computer has declined somewhat Calcutt Committee report, 1990). The weakness in the English law approach to privacy is revealed in Kaye v Robertson. The case involved Gorden Kaye, a well-known actor who suffered life-threatening injuries in a car accident. Kaye attempted to obtain an order to restrain publication of photographs of the injuries he suffered in the crash. These photographs were obtained by deception when a tabloid journalist entered the hospital while he was undergoing treatment.A friend of Mr Kaye had been granted an interlocutory injunction preventing the editor (Anthony Robertson) and the newspaper (the Sunday Sport) from using the material, which they appealed. Lord Justice Glidewell said "It is well known that in English law there is no right to privacy, and accordingly there is no right of action for breach of a person's privacy. The facts of the present case are a graphic illustration of the desirability of Parliament considering whether and in what circumstances statutory provision can be made to protect the privacy of individuals."In the absence of the right to privacy, Mr Kaye's advisers based their claim on libel, malicious falsehood, trespass to the person and passing off. The Court of Appeal ruled that none of these torts was applicable except malicious falsehood, and on this basis the only remedy available was that the newspaper was prohibited from stating any inference that Mr Kaye had consented to the story. The academic response to this ruling has been negative, e.g. "Kaye remains a compelling demonstration of the limits of both existing English law and of the limitations of an approach that relies upon inadequate existing remedies to protect privacy." The public concern regarding alleged media involvement in the tragic circumstances surrounding the death of Princess Diana and the imminent incorporation into domestic law of the European Convention on Human Rights, including protection of privacy, can only serve to hasten the introduction of some legal regulation of invasions of privacy in the United Kingdom.

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8. Safeguarding the right to privacy Information protection is an aspect of safeguarding a person’s right to privacy. The principles based on the ordinary delictual principles as influenced by the Constitution (the principles regarding the action injuriarum). Information protection should be seen merely as a particular application of those principles. The inherent conservatism of the courts, as well as the fact that the protection of privacy is, in a sense, still in its infancy in South African law, it would be improbable that the application of the information principles by the courts would occur often or extensively enough in the near future to ensure the protection of personal information. The major engine for law reform should be the legislature and not the judiciary, particularly so in this case because the introduction of an information protection regime would merely involve incremental changes of the common law but radical law reform. The individual should also be able to exercise a measure of active control over his or her personal information. The traditional protective measures would have little value if there is no active individual control over the possessing of personal information. The active control principles, however, differ completely from traditional privacy protection under the action iniuriarum and therefore are unique in the field of personality protection. 9. Conclusion Effective information protection will only be achieved through regulation by legislation. The proposed Protection of Personal Information Bill, will have a very wide ranging effect and will substantially improve information handling as well as reduce unwarranted intrusions into privacy (especially by private entities seeking personal gain). The cost of defending one’s right to privacy by way of litigation are so high that the average [person cannot afford to do so. Enacting proper legislation will therefore prevent the abrogation of the right to privacy through disuse. A balance between privacy rights and the requirements for information in normal business operations within the Act will be achieved, especially as it affects the banking sector. Implementation of new processes and systems and changes to client contracts, it is in line with international standards and to this end, is a necessary piece of legislation. The proposed bill will bring South Africa into line with international requirements and developments, and therefore ensure that South Africa is on par with international best practice. There is an increase in compliance complexity for businesses that operate globally. A list of principles should be recognised in order to secure the balance between the interest of data subjects and the compliance burden associated with this protection. A balance needs to be maintained between the constitutionally right to privacy and the constitutionally right to freedom of economic activity. Privacy like dignity and reputation, cannot be viewed therefore in isolation. The rights to an unimpaired personality have to be weighed, against the equally important right of others to express themselves freely.

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References: Britz,H and Ackermann, M Information, Ethics and the Law, Van Schaik, 2006. Burchell, J Personality Rights and Freedom of Expression the modern Actio Injuriarum, Juta 1998.

Burns,Y Communications law, Butterworths, Durban, 2001.

Ebersὃhn, G. Journal for Business law 12(3) “An analysis of Spam Legislation” 2004.

Kang, J Information Privacy in “A Cyberspace Transactions” Stanford Law Review April 1998.

Moor, JM Towards a Theory of Privacy in the Information Age. Computers and Society 1997. Neethling, J., Potgieter, JM and Visser, PJ, Neethling’s Law of Personality, Butterworths, Durban, 2005.

Neethling, J., Potgieter, JM and Visser, PJ, Law of Delict , Butterworths, Durban, 2006.

Neethling. J The Concept of Privacy in South African Law 2005 SALJ.

International law African Charter on Human and People’s Rights.

Article 12 of the Universal Declaration of Human Rights of 1948.

Article 8 of the European Convention for the Protection of Human Rights and Fundamental Freedoms.

Harvard Law Review 1890.

Justice Report privacy and the Law, Younger Committee report and the Calcutt Committee report Report of the Committee on Privacy and Related matters Cmd 1990

National Law Prevention of Organised Crime Act 121 of 1998.

Electronic Communicationa and Transactions Act 25 of 2002.

Lotteries Act 1997. National Gambling Act 7 of 2004.

The Constitution of South Africa 108 of 1996.

The Protected Disclosure Act 26 of 2000

Cases Bernstein ao v Bester NO AO 1996 (2) SA 751 (CC); 1996 (4) BCLR 449 (CC).

Cantrell v Forest City Publishing Co 419 US (1967).

Grieve v Denel (Pty) Ltd [2003] 4 BLLR 366(LC).

Investigating Directorate: Serious Economic Offences v Hyundai Motor Distributors (Pty)Ltd ao; in re Hyundi Motor Distriburors (Pty)Ltd v Smit NO ao 2001 (1) SA 545 (C).

Kaye v Robertson [1991] FSR 62 Court of Appeal.

National Media LTD ao v Jooste1996b(3) SA 262(A).

Sosibo & others and CTM (2001) 10 CCMA

S v Nkabinde 1998 8 BCLR 996 (N).

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EFFECTS OF DISTRIBUTIVE JUSTICE COMPLAINTS RESOLUTION STRATEGIES ON CUSTOMER SATISFACTION IN KENYA’S BANKING INDUSTRY

Joel Chepkwony

School of Business and Economics, Moi University, Eldoret, Kenya

Michael Kirwa Korir

School of Business and Economics, Moi University, Eldoret, Kenya

Charles Lagat

School of Business and Economics, Moi University,

Eldoret, Kenya

Hazel Miseda Mumbo

Tropical Institute of Community Health and Development,

Great Lakes University of Kisumu, Kenya

Odhiambo Odera (Corresponding author)

University of Southern Queensland, Australia and Masinde Muliro

University of Science and Technology, Kenya eMail: [email protected]

ABSTRACT

aintaining a loyal customer base has witnessed banks invest in various marketing strategies among them complaint resolution strategies so as to have an ever satisfied clientele.

The purpose of this study is to establish the effect of customer complaint resolution strategies on customer satisfaction. The study utilizes an explanatory survey design and focuses on all the 20 banks based in Eldoret, Kenya as at June 2010. Additionally, 2300 customers are targeted for the study. A sample of 372 customers was selected using systematic sampling techniques. A self-administered questionnaire was used to collect primary data and both descriptive and inferential statistics were used for data analysis. The study reveals two dimensions of complaint resolution strategies; Equity and Need and explained 57% of the total variance hence distributive justice theory on complaint resolution is valid in Kenya. Results of the Hypothesis testing indicated that distributive complaint resolution strategies are significant (p<0.05) and accounts for 17% of customer satisfaction. The study concludes that distributive complaints resolution strategies are an important feedback mechanism to establish customer satisfaction levels and banks are advised to invest in them. Keywords: Distributive justice, complaints resolution, customer satisfaction, banks, Kenya

M

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INTRODUCTION Customer satisfaction is a much sought after phenomenon in today’s highly competitive and globalized market place. Today's consumers seek more than price bargains and want useful purchasing information, high quality, reliable and safe products, dependable servicing and fair sales practices. A company's failure to fulfill these expectations can breed dissatisfaction and antipathy, unless that business helps resolve resulting consumer complaints fairly and promptly. Satisfied customers are less sensitive, buy additional products, are less influenced by competitors and stay loyal longer (Zineldin, 2000). Bejou et.al, (1998) propose that customer satisfaction can be enhanced through relationships provided they are developed and managed to customers’ satisfaction. Companies are adopting market-driven strategies guided by the logic that all business strategy decisions should start with a clear understanding of markets, customers, and competitors.

Customer satisfaction is important for most marketers and consumer researchers (Dabholkar et.al., 1996; Meuter et al., 2000). However, despite the importance of customer satisfaction in the performance of the organizations, there exist evidence that all is not well in Kenya’s banking industry. The economic growth momentum that started in 2003 was restrained by a number of both internal and external factors. These factors included the global financial crisis, the high fuel and food prices among others. Combined, these factors slowed the economic growth from 7.1 percent to 1.7 percent in 2008 (Economic Survey, 2009). In response, many retail banks are directing their marketing strategies towards increasing customer satisfaction and loyalty through enhanced customer service. Complaint resolution strategies refer to strategies firms use to resolve and learn from service failures in order to establish the organization's reliability in the eyes of the customer. According to Cravens & Piercy (2003), a company can be market-oriented only if it completely understands its markets and the people, and that complaint resolution strategies are important particularly in managing customer relationships in service business. The study sought to establish the effect of distributive justice complaints resolution strategies on customer satisfaction amongst bank customers. This study hypothesizes that there exists no significant effect of organizational distributive justice on the level of customer satisfaction.

Kano’s customer satisfaction model is used which is a two-dimensional model of the relationship between performance (expressed as performance measures) on one hand, and value (expressed as customer satisfaction) on the other to be used as a tool to establish the relationship between what an organization does and how this is perceived by the customer (Kano et al., 1984). Nyer (2000) investigates the relation between consumer complaints and satisfaction; and establishes that encouraging consumers to complain increased their satisfaction. Johnstone (2001) claims that complaints management does not only results in customer satisfaction, but also leads to operational improvement and improved financial performance. Athanassopoulos (2000) indicates that product innovations, staff service, price, convenience and business profile are all determinants of customer satisfaction. Satisfaction increases customer retention, and customer retention depends on the substance of the relationship between parties (Eriksson & Vaghult, 2000). RESEARCH METHODOLOGY The study adopted an explanatory survey design to assess respondents' perceptions of complaint resolution strategies on most recent service-related complaint. The study was undertaken in Eldoret town, Rift Valley Province of Kenya. The town’s economic growth is evidenced by a growing banking and insurance sector. The town has 20 banks with an estimated population of 500,000 (Korir, 2008). The study targeted two population groups; firstly, the registered, licensed and operating banks in Eldoret as at June, 2010 (Kenya Bankers Association records, 2010; Central Bank of Kenya records, 2010). Secondly, the study focuses on the employees of Moi University, Eldoret as consumers of bank services and May 2010 payroll acted as the sampling frame where 3,343 employees were captured. Out of this, a population of 2302 employees were customers of targeted banks. The study utilized various sampling techniques such as census method was conducted on the banks in Eldoret. Non-probability purposive sampling was used in the selection of respondents where bank branch managers participated in the study as respondents. In the sampling for

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customers, Israel (2000) provides a formula for calculating the customers sample size:

341)05.0(23021

2302)(1 22

eNNn

Table 1: Bank customers sample size determination

Name of bank Target population Proportionate sample size National Bank 810 119 Transnational Bank 11 11 Family Bank 32 5 Cooperative Bank 194 29 KCB Bank 182 30 BBK 330 49 Fina Bank 3 3 Guardian Bank 9 9 CBA Bank 1 1 Equity Bank 287 43 Post Bank 6 6 HFCK 33 5 Standard Bank 121 18 ABC Bank 3 3 K.REP Bank 280 41 Total 2302 372

Source: Research data (2010)

Systematic sampling was further employed which allowed every Kth element in the population to be sampled, beginning with a random start of the element in the range of 1 to K. However systematic sampling was only used in banks with customer bases of more than 30. Where the banks’ customer base was less than 30, a census was taken thus resulting to an adjusted sample size of 372. The study utilized the use of both primary and secondary data. Primary data was collected from selected bank managers and bank customers. Secondary data was obtained through review of published and unpublished materials such as journals, theses and government documents in libraries and internet. Two sets of questionnaires were used to collect the data; bank managers’ and customers’ questionnaire.

The questionnaire contained both structured and unstructured questions. Data was analyzed by both descriptive and inferential statistics. The employment of descriptive statistics allowed for the reduction and summary of data as well as analysis of items or variables so as to provide greater insight as to the characteristics of sample. Descriptive analysis was utilized as a basis for inferential statistical analysis such as Analysis of Variance (ANOVA), explanatory factor analysis, correlation analysis and multiple regression analysis. Furthermore, Chi-square (χ2) test of independence was performed to test relationship between categorical variables, where the (χ2) statistics, degrees of freedom (df) and significant values (p-values) were used to interpret the results.

Factor analysis was deemed appropriate for the study in that it allows for the confirmation of validity of the factors of the various complaint resolution strategies. Factor analysis was also used to reduce data (factor items) which were subsequently used as constructs of the independent variables. The results of the orthogonal Varimax rotation with Keiser Normalization method generated by factor analysis were used as a basis for interpreting factors accordingly. For each factor component extracted, items with a loading of >0.5 were picked and combined to form a factor component as they were deemed to be conceptually valid (Tabachnic & Fidel, 2007). Correlation analysis was performed to determine the relations amongst the independent variables as a prerequisite for multiple regressions. Multiple regression analysis was utilized to

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test the relationship between customer satisfaction (dependent variable) and complaint resolution strategies (independent variables). Y = 1 + a1x1 + a 2x2 + e1 Where: Y is customer satisfaction x1,x2, are the factors of Equity and Need respectively (Distributive strategy factors) 1 is the amount of y not associated with the independent variables a1, a2, represents increase/decrease in the dependent variable (y) associated with a unit increase in independent variables x1x2, respectively. e1 is the Error Term for the model. DATA ANALYSIS The respondents targeted for the study were 392 consisting of 20 bank managers and 372 bank customers. 340 questionnaires were filled translating to a response rate of 86.7%. All indicators of distributive justice were found to be significant (p<0.05) amongst bank customers. Amongst bank manager’s three indicators: Bank treats all customers equally (χ 2 = 4.85, df= 3 p= 0.183), Bank understands the needs of complaining customers (χ 2 = 2.71, df=2 p= 0.257), and Bank regularly visits its customers (χ 2 = 2.71, df= 2 p= 0.257), were found to be significant (p<0.05) as summarized in Appendix I. In measuring customer satisfaction three indicators of happiness, contentment and delightment were used. As depicted in Appendix II, all the indicators of customer satisfaction were significant (p<0.05) amongst the bank customers while insignificant (p>0.05) amongst bank managers. Factor analysis on distributive strategies Six items measured distributive justice on a 5-point Likert scale type questions (see Appendix IV). Composite reliability analysis on the 6 items showed an internal consistency result that was above the threshold of 0.5 (α = 0.632). Factor analysis using principal component, Varimax rotation method with Kaiser Normalization performed, reduced the data and provided structures within the variables. The Kaiser-Meyer-Olkin of sampling adequacy was above the threshold of 0.5 (KMO= 0.656). This indicates that the sample size was adequate for the variables entered into analysis. The Berlet’s Test of Sphericity was statistically significant (χ2= 340.6, df= 15, p= 0.00) suggesting that factor analysis using principal component was relevant for the data set.

Rotations converged in three iterations and two components with Eigen values greater than unity extracted accounted for 57.122 of the variance (See Appendix III). This is above the threshold of 50% and indicates that the two-component factor model derived fits the data appropriately. Items loading greater than 0.5 for each component combined to form two factors namely, Equity (x1) and Need (x2) as depicted in the rotated component matrix for distributive justice factors (Appendix IV).

As a prerequisite for regression analysis correlation analysis was used to establish the degree of independence of complaint resolution factors. With the guideline that if Pearson’s correlation coefficient r value was ≤0.40 at 0.05 level of significance, then the association between variables would be deemed low hence in order to perform multiple regression analysis. From the results of correlation analysis it can be concluded that multiple regression analysis (MRA) was tenable and suitable to test the hypotheses of the study. This is in view of the fact that the VIF threshold of 10 was observed. Moreover, Durbin-Wattson statistics were all below the threshold of 2.00 and above 1.30 thus indicative of non-existence of collinearity. In order to test the relationship of variables under study, the following Null hypothesis was formulated; H01: There exists no significant effect of organizational distribution justice on the level of customer satisfaction.

Y = α1 + a1X1 + a2X2 +

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From the results of regression of distribution justice as depicted in Appendix V and VI, Equity (X1) and Need (X2), have an R=0.421 which indicates that distribution justice factors have a positive effect on customer satisfaction. The model further indicates that the factors of equity and need explained 17.7% of change in customer’s satisfaction as depicted by the R2 (Coefficient of determination). These results are significant as explained by the F-ratio of 36.323 at a P value = 0.000. If the coefficient of the independent variables are not all zero then the F-ratio should be significantly larger than 1.0 which in our case F – ratio = 36.323 with a P –value = 0.000 hence the independent variables had a significant effect on the dependent variable.

The t-satisfaction depicts the factors of equity being 7.044 and that of Need being 3.315 significant at p-value = 0.000 and 0.001 respectively hence these two factors had a significant effect on customer satisfaction (Y). Specifically, if Equity (X1) changes by 1 unit then customer satisfaction (Y) level will change by 0.355 units. On the other hand if Need changes by 1 unit, then customer satisfaction will change by 0.167 units. Hence, the regression model of distributive justice strategies can be stated as follows:

Y=0.890 + 0.355X1 + 0.167X2 + 0.83127. FINDINGS The key results in relation to the specific objective and hypothesis test of the study that there is no significant effect of distributive justice strategies on customer satisfaction indicated that distributive justice factors were all significant (p<0.05) amongst bank customers and that factors like equal treatment of customers, understanding the needs of customers and visiting customers were not significant according to bank managers. The results indicates that distributive justice strategies have a significant positive effect on customer satisfaction (R=0.421, F-ratio=36.323, R2=0.177; p<0.000). It is also clear that distributive justice strategies explained 17.7% of customer satisfaction as depicted by the R2.

As a first step to hypothesis testing, it is important to establish the validity of the complaint resolution theories and concepts used in the study. The study adopted the use of fairness’ theory and particularly justice theory that has largely been used in conflict resolution. Exploratory factor analysis was performed to validate distributive justice strategies. This process yielded two factors underlying distributive complaint handling strategies on customer satisfaction and accounted for 57.122% of total variance with Eigen value greater than unity. These findings underscore the applicability of distributive justice theory in resolving customer complaints as propounded by (Deutsh, 1985) and supported by Tax & Brown (1998). This is contrary to Reis (1986) who suggested three principles of distributive justice i.e.; equity, equality and need. Further results indicates that one out of the two factors extracted (Need) accounts for 37.726% of the variance implying that the sampled customers prefer need complaint resolution strategies more than Equity (19.396%) based complaint resolution strategies. The overall factor analysis results on distributive complaint resolution justice strategies illustrates that 43% of variance were not accounted for. This implies that while the distributive justice theory is a valid model in resolving customer complaints, the factors identified were inadequate

Descriptive results presented in Appendix I indicate that all indicators of distributive justice strategies are significant (p<0.05) amongst bank customers. However results from bank managers’ demonstrates that three indicators: Bank treats all customers equally (χ 2 =4.85, df=3 p>0.183 ); Bank understands the needs of complaining customers(χ 2 =2.71, df=2, p>0.257 ) and Bank regularly visits its customers(χ 2 =2.71, df=2, p>0.257 ), are not significant (p>0.05). This implies that while all distributive justice strategies are significant amongst bank customers’, all the strategies are not significant amongst bank managers hence suggesting the existence of contradicting views on the significance of complaint resolution strategies amongst customer and managers.

Further, individual factor performance as depicted by t-statistics expresses that equity has a t-value of 7.044 and that of Need is 3.315 both significant (p<0.05). Specifically, if Equity (x1) changes by 1 unit then customer satisfaction (Y) level will change by 0.355 units. However, if Need changes by 1 unit,

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customer satisfaction will change by 0.167 units. Despite the fact that distributive justice strategies (Equity and Need) explain a relatively small percentage of only 17% as it’s predictive power on customer satisfaction, their role cannot be underestimated since they are statistically significant.

On the overall, the findings suggest that complaint resolution strategies are important in achieving customer satisfaction. Levesque & McDougall (1996) confirm that service and complaint handling enhances customer satisfaction and that service and complaint handling are the most important customer satisfaction determinants in banks. According to Levesque & McDougall (1996) satisfaction can be restored, but not enhanced, when a complaint is properly handled, which is why attempts to make it right the first time are preferred. Rust & Subramanian (1992) recommend that complaint handling also improve satisfaction. In addition, the results are supported by Nyer (2000) who investigated the relationship between customer complaints and satisfaction and found that by encouraging consumers to complain increased their satisfaction especially amongst dissatisfied customers. Johnston (2001) asserts that complaint management not only results in customer satisfaction, but also leads to operational improvement and improved financial performance. In an effort to come up with effective complaints resolution strategies, banks’ management must identify the source of complaints and subsequent fluctuations in customers’ relationship otherwise known as triggers (Roos & Gustafsson, 2007). Tax et al., (1998) demonstrate that effective resolution of customer problems can have a positive impact on customers’ trust and commitment. The complaint handling, therefore, is a critical "moment of truth" in maintaining and developing the customer relationships (Berry et. al., 1985; Dwyer et.al., 1987). Successful service companies recognize that while attracting new customers is vital, retaining current customers in a closer relationship is perhaps more essential for profitability (Johnson & Selnes, 2004).

By understanding the complaint process and the customer complaint behaviour, the service company can learn how to reduce the impact of an unfavourable service experience or complaint. Unhappy customers often voice their displeasure in the form of negative word-of-mouth to other current and potential customers (Ah-Keng & Loh, 2006; Richins, 1983; Singh, 1988; Voorhees et al., 2006). On the other hand, if the complaint is properly handled the customer may engage in positive word of- mouth (Helm, 2003; Shields, 2006).

The importance of complaints raised by customers in improving service delivery should not be overlooked. Customer complaints may be useful in many ways: providing marketing intelligence data (Harrison-Walker 2001), identifying common service problems (Harari, 1992; Johnston & Mehra, 2002; Rickhins & Verhage 1985; Tax & Brown 1998), learning about organizations (Hoch & Deighton, 1989; Johnston & Mehra, 2002; Tax & Brown, 1998), improving service design and delivery (East 2000; Marquis & Filiatrault, 2002; Tax & Brown, 1998), measuring and enhancing the perception of service quality (Edvardsson, 1992; Harrison-Walker, 2001; Marquis & Filiatrault, 2002), and helping strategic planning (Dröge & Halstead, 1991; Johnston & Mehra, 2002). CONCLUSION Services are central to the economic activity and are therefore not peripheral activities but rather integral parts of society including Kenya. They are central to a functioning and health of an economy. Customer complaints should therefore be treated as an important opportunity for service providers (banks included) to improve their service offerings to the market place in a timely and spontaneous fashion (Barlow & Moller, 1996). Customer complaints should be transformed into knowledge about the customer so as to provide a valuable amount of capital for enterprises (Gonzalez, 2001). To exploit this capital, organizations must design, build, operate and continuously upgrade systems for managing customer complaints. Therefore customer centricity in the 21st century in view of competitive market place occasioned by globalization should to be the goal of every bank world-wide and more so in developing countries like Kenya. Complaint handling can be a significantly superior investment for a service company and can generate 30- 150 percent return on investment (Brown 2000).

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The effect of distributive justice strategies on customer satisfaction is well documented in literature. However, the present study establishes that there are only two factors as far as distributive justice is concerned. These include the factors of need (x2) and equity (x1). Distributive justice strategy as originally defined by Deutch (1985) and Reis (1986) encompassed the factors of equity, equality and need. However the study ascertains two factors; equity and need as measures of distributive justice strategies. The study therefore calls for a review of distributive justice theory components especially in developing countries such as Kenya. Hence, justice theory provides a solid and grounded framework in resolving conflicts not only in social circles but also in business and more so in the service sector.

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Appendix I: Summary Table: Respondents rating on distributive strategies towards customer satisfaction Item Description

Respond.1 2 3 4 5 Statistic Skewness Kurtosis Test statistic

Skewness

f % f % f % f % f % M SD M χ 2 df p

Bank values all its customers

C M

24 7.1 57 16.6 102 30 122 2

35.9 14.3

35 12

10.3 85.7

3.26 4.8

1.076 0.363

-0.367 -2.295

-0.510 3.792

106.147 4 0.0 7.14 1 0.008

Bank treats customers equally

C M

16 2

4.7 14.3

66 2

19.4 14.3

101 29.7 118 3

34.7 21.4

39 7

11.5 50

3.29 3.79

1.053 1.578

-0.247 -0.961

-0.616 0.759

104.97 4 0.000 4.85 3 0.183

Bank treats all customers without discriminating them

C M

28 8.2 95 27.9 104 2

30.6 14.3

74 2

21.8 14.3

39 10

11.5 71.4

3.00 4.57

1.135 0.756

0.128 -1.526

-0.386 0.936

66.21 4 0.000 9.14 2 0.01

Bank understands the needs of its complaining customers

C M

26 7.6 148 43.5 115 2

33.8 14.3

40 7

11.8 50

11 5

3.2 35.7

2.59 4.21

0.909 0.699

0.536 -0.321

0.117 -0.633

211.85 4 0.000 2.71 2 0.257

Bank regularly visits its customers

C M

126 37.1 115 33.8 43 7

12.6 50

30 8.8 26 2

7.6 14.3

2.16 3.64

1.231 0.745

0.966 0.731

-0.049 -0.637

138.32 4 0.000 2.71 2 0.257

Bank systematically registers and analyses customers’ complaints

C M

130 38.2 78 2

22.9 14.3

78 2

22.9 14.3

33 1

9.7 7.1

21 9

6.2 2.23 4.21

1.228 1.188

0.684 -1.12

-0.533 -0.413

109.97 4 0.000 11.71 3 0.008

Key: Measurement scale range between 1 and 5: 1 = strongly disagree, 2 = disagree, 3 = moderately agree, 4 = Agree, 5 = strongly agree C = Customer M = Manager Source: Research data (2010)

PP. 87 – 96


Appendix II: Customer satisfaction indicators Item Description Respond 1 2 3 4 5 Statistic Skewness Kurtosis Test Statistics

f % f % f % f % f % M SD M x2 df p

Customers are generally delighted with the bank’s C.R.S.

C M

73 21.5 122 35.9 74 21.8 62 10

18.2 71.4

7 4

2.1 28.6

2.46 3.29

1.177 1.541

1.352 -0.853

6.881 -1.-49

184.59 4.00

5 2

0.000 0.135

Customers are generally happy with the bank’s C.R.S.

C M

36 10.6 116 34.1 116 2

34.1 14.3

65 8

19.1 57.1

7 4

2.1 28.6

2.68 3.93

0.969 0.997

0.111 -0.925

-0.595 0.327

137.67 6.00

4 3

0.000 0.112

Customers are generally contented with the bank’s C.R.S.

C M

55 16.2 134 2

39.4 14.3

87 3

25.6 21.4

52 4

15.2 28.6

12 5

3.5 35.7

2.51 3.86

1.046 1.027

0.428 -0.669

-0.469 -0.355

121.73 3.140

4 3

0.000 0.370

Key: Measurement scale range between 1 and 5: 1 = strongly disagree, 2 = disagree, 3=moderately Agree, 4= agree, 5= strongly agree C = Customer M = Manager Significance: p ≤ 0.05 Source: Research data (2010)

PP. 87 – 96


Appendix III: Distributive justice strategies factors total variance explained Component

Initial Eigen values Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative % 1 2.264 37.726 37.726 2.264 37.726 37.726 1.825 30.420 30.420

2 1.164 19.396 57.122 1.164 19.396 57.122 1.602 26.702 57.122

3 .993 16.554 73.675

4 .645 10.743 84.419

5 .524 8.739 93.157

6 .411 6.843 100.000

Extraction Method: Principal Component Analysis. NB: Two components factors with Eigen values>1.0 were extracted Source: Research data (2010)

PP. 87 – 96


Appendix IV: Rotated component matrix a for distributive justice factors

Component

X1 X2

Banks values all its customers .831 Banks treats all customers without discrimination .697 Banks treats customers equally .534 Bank regularly visits its customers .802 Bank systematically registers and analyses customers complain .705 Reliability Test: Cronbachs α values (Composite α=0.632) 0.537 0.408

Banks values all its customers .831 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 3 iterations. Source: Research data (2010)

PP. 87 – 96


Appendix V: Organizational distributive justice complaint resolution strategies effects on customer satisfaction.

Model Summary

ANOVA Summary

Model R Adjusted Std. Error of the Estimate

Durbin-Watson df F P

1 .421a .177 .172 .83127 1.531 2 36.323 0.000

Appendix VI: Coefficients of regression model between organizational distributive justice factors and customer satisfaction

B

Std. Error Beta t sig

Lower Bound

Upper Bound Tolerance VIF

1. (Constant) .890 .200 4.446 .000 .496 1.283

EQUITY .413 .059 .355 7.044 .000 .298 .529 .961 1.040

NEED .157 .047 .167 3.315 .001 .064 .250 .961 1.040

PP. 97 – 109

EUROPEAN JOURNAL OF BUSINESS AND SOCIAL SCIENCES 97


NEW PRODUCT DEVELOPMENT AND CONSUMER INNOVATIVE BEHAVIOUR: AN EMPIRICAL VALIDATION STUDY

ABSTRACT he purpose of this study was to access empirically the extent to which new product development influences consumer adoption and innovative behaviour in the high-tech consumer durable

electronics companies in Rivers State of Nigeria. The nomothetic methodology was adopted and forty copies of structured questionnaire were our primary data collection instrument which was distributed to five functional and registered high-Tech consumer durable electronics marketing companies in Port Harcourt. Moreso, from the forty copies of questionnaire distributed, thirty five copies were retrieved and qualified for use. However, the postulated hypotheses were tested by employing the Spearman’s Rank Correlation Coefficient Statistical Tool (SRCC) which was facilitated by the Statistical Packages for Social Sciences (SPSS) version 15.0. The study revealed that a significant relationship exists between NPD and CIB and also, that amongst the measures of CIB, that consumer personality and perception impacts more significantly on NPD. The authors therefore concludes that electronic home appliance companies should always take into cognizance consumer personality, perception and learning when evolving new products as these will always influence consumer adoption behaviour. However we recommended that the companies should always evolve product that matches with customer personality and intensify marketing communication strategies to continuously create an enduring perception of their products in the minds of their targeted customers. Key Words: Product Innovation, Consumer Adoption and Innovative behavioural indicators.

DR. AMUE, G.J. (MNIMN)

Senior Lecturer, Department of Marketing Faculty of Management Sciences,

University of Port Harcourt, Nigeria.

Email: [email protected]

KENNETH C. ADIELE (MNIMN)

Lecturer, Department of Marketing Faculty of Management Science

Rivers State University of Science and Technology. Port Harcourt, Nigeria

Email: [email protected].

T

PP. 97 – 109


INTRODUCTION Launching new products and services in the market represents an important source of increasing the

size of a business and the profits of a company. The success of introducing new product on the market is a critical issue of the current marketing programs (Mccole, 2005, and Hoffman, 2005). New Product Development (NPD) speed is critical because product life cycles are shrinking and obsolescence is occurring more quickly than in the past while competition also has intensified. Consequently, to grow, it has become imperative for firms to move new product to market faster. Companies such as Gillette, Honey well and Xerox are often citied as examples of firms that compete on development speed. Firms that succeed in speeding new products faster to market than competitors can obtain first-mover advantages. These advantages stem from the firms competitive start over rivals and are expected to result in dominant market position (Fred and Erik 2009; Hoechst 2000). In this present economic environment where technological advances happen very quickly and products life cycle is cut short, companies need a strategy for new product development, but also need to know the factors that determine the market success of new products, (Roenrich, 2004). In this paper, the authors analyzed and conceptualized new product, its development processes, the indicators of consumer innovative behaviour and the association between new product development and consumer innovative behaviour LITERATURE REVIEW CONCEPTUALIZATION OF NEW PRODUCT

A new product concept as defined by (Crawford and Benedetto, 2003), is “a statement about anticipated product features (form or technology) that will yield selected benefits relative to other products or problem solutions already available”. According to Belliveau, et al (2002), a new product is defined as “a product (either a good or service) new to the firm marketing it. It excludes product that are only changed in promotion”. Cooper, (2001), explains that a new product is defined as new if it has been on the market for five years or less, and includes extensions and major improvements. (Booz-Allen, 2005) have identified approximate percentages of new product types and they are outlined and discussed as follows: 1. New-to-the-world Products: Products that are innovations “New-to-the-world products revolutionize existing product categories, or define wholly new ones” (Crawford et al., 2003). These new products may include an innovative technology and require consumer instruction. Cooper, (2001) states that these new products are the first of their kind and create an utterly new market. This category represents only 10 percent of all new products. For example, new-to-the-world products are Polaroid camera, Rayon fiber, and Sony Walkman. 2. New category entries (New product lines): Products, not new to the world, that take a firm into a new category. The new category is an imitation of an existing product (me-too”) and provides entrance into new markets for a company. Even though the product already exists in the market, if a firm introduces the identical product into the market, it can be considered a new product. About 20 percent of all new products fit into this category (Cooper, 2001). This category, for instance, includes Procter and Gamble’s first shampoo, Hallmark gift items, AT&T Universal card and Luvs® diapers. 3. Addition to product lines: Products that are line extensions: According to Cooper, (2001), these categories are new items to the firm, but they fit within an existing product line that the firm already produces. Kumar and Phrommathed (2005), report that these categories are the new products that supplement the firm’s established product lines. Thus, this category contains products that are line extensions or flankers such as TideTm liquid detergent, Bud LightTm, Apple’s Mac llsi® and DKNY® (Crawford et al, 2003). This category is one of the largest categories of new products and accounts for approximately 26 percent of all new product launches in the nineties (Cooper, 2001; Im, et al, 2003).

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4. Product improvements: Current product made better: Practically, every product on the market today has been improved. These ‘not-so- new” products can be replacements of existing products in a company’s product line. However, they provide enhanced performance or greater perceived value over the old product (Crawford, et al, 2003). These products make up 26 percent of all new products (Cooper, 2001) and examples include Honda Civic Hybrid, Microsoft (Window) XP, Netzero high-speed 3G, and Shima Seiki’s First® seamless knitting machine. 5. Repositioning: Products that are targeted for a new use or a new application: Repositioning, a new application for an existing products, is selecting a new market place, solving a new problem and/or serving another market need. Aspirin, for instance, was the standard headache and fever reliever. However, since a new medical benefit was discovered for aspirin, aspirin is now positioned as a headache reliever as well as a preventer of blood clots, strokes and heart attacks (Cooper, 2001). As one example in the textile field, the American Fiber & Yams Company applied polypropylene fiber, whose main application has been upholstery and industrial textiles, into new market segment, the knitted apparel market. This repositioned category accounts for about 7 percent of all new products (Cooper, 2001). 6. Cost Reductions: Products that are designed to replace existing products at lower cost: New products that provide a cost reduction, can replace existing products in the line, but can offer similar benefits and performance at a lower cost. They represent 11 percent of all new product launches in the late nineties (Cooper, 2001). Examples of this category are eMachines® desktop computer, Flying Tiger® hand knitting machine, and acrylic. For instance, acrylic fiber that approximates the hand of wool can replace wool (Im et al 2007) and is offered at a lower cost in the market. NEW PRODUCT DEVELOPMENT

New product development is the development of original products, product improvements, product modifications, and new brands through the firms own R and D efforts (Kotler and Armstrong 2010). Development and launch of successful new products is one of the most critical yet, most challenging task managers face (Hauser, et al 2005). From a strategic point of view, new products well attuned to the voice of the customer, with perceived technical superiority, developed within budget and launched ahead of the competition provide real competitive advantages for the firm (Nikolaoes, et al 2004). Furthermore, new product development is the lifeblood of numerous firms, and represents the best hope for future growth. Over the years, it has been refined with attention paid to the consumer. (Hoffman, et al 2010; Fuchs, et al 2010), the development process (Cooper, 2009), the nature of the product (Decker and Scholz, 2010), the channel (Lan, et al, 2007); the nature of marketing venue (Fuller et al, 2009, Arakji, and Lang, 2007), and the source of the product concept (Whyld, 2010). Despite the evidence of attempts at continuous improvement, the need for change still exists. (Szymigim, et al, 2010). NEW PRODUCT DEVELOPMENT PROCESSES/STAGES The NPD process is guided by new product strategy that aims to align the NPD efforts of the firm with its strategic imperatives (Hargadons, 2003). This alignment warrants that the new products planned will support the strategic objectives of the firm and make the best use of its strategic competencies. (Nikolaos, et al 2004). However, Kotler and Armstrong, (2010), opine that in order for any company to evolve new products, it must understand it’s consumers, markets, deliver superior value to customers. Furthermore, it must carry out strong new-product planning and set up a systematic new products development process for finding and growing new products. According to them, the major eight stages in new-product development are: idea generation; idea screening, concept development and testing; marketing strategy development; business analysis, product development; test marketing, and commercialization. Let us now briefly-examine each of these stages.

PP. 97 – 109


1. Idea Generation: This is the systematic search for new product ideas. A company typically has to generate many ideas in order to find a few good and useful ones. Product idea generation could be sourced either internally (R and D efforts, executives, scientists, engineers, manufacturing staff, sales people) or externally (customers, competitors, distributors and suppliers). Idea generation, at individual or team level, emerges as an essential component of creativity and consequently of the innovation process. The most innovative firms usually exploit various sources of ideas from new products as well as various means to process those ideas. They also need to stimulate employees’ imagination to feed the pipeline that nourishes the design and development of new products. Creative capabilities of organization are essential to their ability to innovate and survive in today’s competitive environment. (Galanakis, et al 2006). The idea creation phase (creativity) is usually much less costly than the later development stages of the new product development process. It thus make sense to maximize its output by providing a large number of ideas for further exploitation by the organization. The greater the number of ideas at the start of the new product development process, the greater the probability of ending up with successful products. 2. Idea Screening: This is the first evaluation of new product idea. It involves screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible. In this stage, only product ideas that will turn into profitable products are adopted. 3. Concept Development and Testing: Here, the product idea is drafted in verbal or pictorial form, further explaining the nature of the concept, with initial ideas of impediments, materials and technologies. Moreso, in concept testing, new product concepts is been tested with a group of target consumers to find out if the concepts have strong consumer appeal (Fong, 2003). 4. Marketing Strategy Development: This involves the design of an initial marketing strategy for a new product based on the product concept. The marketing strategy statements consist of three parts; description of the target market, the planned product positioning, and the sales, market share, and profit goals for the first few years (Flynn, 2003). 5. Business Analysis: This involves a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company objectives. Moreso, at this stage, a decision is made to ascertain the technical feasibility of the product, the products market potential and ultimately, the products financial contribution to the company (Nikolaos et al 2004; Sandmeiere et al 2010) 6. Product Development: At this stage, the product concept is being developed into a physical and several product prototypes in order to ensure that the product idea can be turned into a workable product. 7. Test Marketing: This is the stage of new product development in which the product prototype and marketing program are tested in more realistic market settings (Kotler and Armstrong 2010). 8. Commercialization: This stage simply involves the introduction of a new product into the market through any of the promotional tool of marketing. In commercializing a product, such new products could be distributed intensively, exclusively or selectively.

PP. 97 – 109


2.4 A CONCEPTUAL FRAME WORK DEPICTING NEW PRODUCT DEVELOPMENT AND CONSUMER INNOVATIVE BEHAVIOUR

ASSOCIATION BETWEEN NEW PRODUCT DEVELOPMENT AND CONSUMER INNOVATIVE BEHAVIOUR

New product development is one of the riskiest, but most critical strategies in any competitive industry. (Cooper, 2001; Clark et al 2006). Many companies have built competitiveness and obtained tremendous profits through new product development. The impact of NPD on consumer adoption and innovative behaviour cannot be over-emphasized. Launching new products and services on the market represents an important source of increasing the size of a business and the profits of a company (Alves, et al 2004a). Organizations that regularly innovate new products attract consumer innovators and other members of the social system to adopt the innovation (Roger 2003). Moreso, consumer innovative behaviour explains the degree to which members of a social system are quick to adopting or purchasing a new product. Today firms and organizations have to deal with a dynamic environment within which innovation and creativity have become vital competencies (Mathisen & Einarsen, 2004). Firms and organizations needs to keep a constant flow of ideas if they want to compete favorably and attract improved customer patronage. To keep a head of competitors, firms need to generate a high volume of ideas and translate them into commercial and technical success. This when efficiently and competently carried out will resultantly attract different categories of product adopters with innovative behavioural competencies. However, let us now examine the relationship between the predictor and criterion variables. New Product Development and Consumer Personality New product development (NPD) speed is critical because product life cycles are shrinking and obsolescence is occurring more quickly than in the past while competition also has intensified. To grow, it has become imperative for firms to evolve a new product that reflects their customer or target-market personality. Each persons distinct personality influences his or her buying behaviour (Hoyer, et al 2010). Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment. Personality can be useful in analyzing consumer behaviour for certain product or brand choices (Martins, et al 2003). For example, coffee marketers have discovered that heavy coffee drinkers tend to be high on sociability. Thus, to attract customers, coffee houses and marketing companies need to create environments in which people can relax and socialize over a cup of steaming coffee (Kotler, and Armstrong 2010). Personality is innate and has the tendencies to influence individual product choices and adoption behaviour.

CONSUMER INNOVATIVE BEHAVIOUR

NEW PRODUCT DEVELOPMENT

Personality

Perception

Learning

(CIB)

(NPD)

Source: Researcher’s Conceptualization of New Product Development and Consumer Innovative Behaviour.

PP. 97 – 109


Therefore, the identification of specific personality characteristics associated with consumer behaviour has proven to be highly useful in the development of a firm’s market segmentation strategies. (Schiffman, and Kanuk 2007), consumer’s ability to adopt an innovation is a function of his/her individual, intellectual, perceptual, personal and attitudinal characteristics. An individual who sore high on this traits is open to new experience and places a premium on different and novel stimuli particularly of meaningful sort not just thrill seeking, (Harmsen, et al 2000; Fuller, 2010). New Product Development and Consumer Perception Companies, in developing new products are expected to exhibit some high level of creativity and innovativeness which is consistent with their customer perception of both their product and company image. Customer’s perception of a company and product will influence his/her purchase behaviour. Perception may be defined as the process by which an individual selects, organizes, and interpretes stimuli into a meaningful and coherent picture of the world. Moreso, it can be described as how we see the world around us. Individuals act and react on the bases of their perception not on the basis of objective reality. Thus, to the marketer, consumer’s perceptions are much more important than their knowledge of objective reality. Furthermore, since individuals make decisions and take actions based on what they perceive to be real, it is imperative that marketers understand the whole notion of perception and its related concept to more readily determine what factors influence consumers to buy (Schiffman, and Kanuk 2007; Alves et al 2005). New product development and consumer learning Firms in evolving new products must take into cognizance the impact of consumers learning and all the elements involved in consumer learning. Some consumers learn of a product’s existence faster while others learn very slowly. Learning can be thought of as “the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour (Schiffman, & Kanuk 2007). Moreso, consumer learning, can be defined as connecting categories to behaviours that have adaptive value in terms of consumer goals. Fundamental to this definition is that learning is adaptive and determined by the value systems, desires, and needs of the learner (Ekerete, 2000). Also, it depends on what the learner already knows. That is, new information is assessed in terms of existing beliefs and past experiences (Arnold, et al 2010). The reason that marketers are concerned with how individuals learn is that they are vitally interested in teaching them, in their roles as consumers, about products, products attributes and their potential benefits; where to buy them, how to use them, how to maintain them, and even how to dispose of them. They are also vitally interested in how effectively they have consumers to prefer their brands and to differentiate their products from competitive offerings (Schiffman, & Kanuk 2007).

Market orientation and entrepreneurial drive provides cultural foundation for organizational learning, which enables an organization to achieve a high level of performance and better customers value (Liu, et al 2005). Research has also shown that organizational learning is associated with the development of new knowledge which in turn improves firm performance. (Tse, et al, 2003) Furthermore, innovation could be seen as the “creative destruction” for growth while (Im et al 2007) defined Innovation as “any new idea that recombines existing ideas, a scheme that challenges the present order formular, or approach”. In the views of (Tidd et al 2001), Innovation is the core process concerned with renewing what the organization offers and optimizing the way it generates and delivers its outputs.

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Correlations

1.000 1.000**

. .

5 5

1.000** 1.000

. .

5 5

Correlation Coefficient

Sig. (1-tailed)

N


Sig. (1-tailed)

N

New Product Development

Consumer InnovativeBehaviour

Spearman's rho

New ProductDevelopment

ConsumerInnovativeBehaviour

Correlation is significant at the 0.01 level (1-tailed).**.

STUDY METHODOLOGY This study mainly adopted the objectivist research strategies where major decisions of the study

were based on the nomothetic methodology. Primary data were drawn from five functionally registered technology based electronic companies in Rivers State of Nigeria, which constitutes our level of analysis. These technology based companies are registered with the corporate affairs commission (CAC) and federal ministry of commerce and industry Nigeria. Forty copies of Structured Questionnaire was our primary data collection device which were distributed eight copies per firm and thirty-five copies were retrieved and qualified for use. Our units of analysis were the most senior product development managers, general manager, marketing/sales manager, customer care manager, and operations managers of the firms. The questionnaire was designed carefully by ensuring that the study objectives are considered. Furthermore, the generated data were statistically subjected to test the null hypotheses by employing the Spearman’s Rank Correlation Coefficient (SRCC) statistical tool, which was facilitated by window’s II programme of the Statistical Packages for the Social Sciences (SPSS). Version 15.0 DATA PRESENTATION Table 1.1 COMPUTING SPEARMAN’S RANK CORRELATION COEFFICIENT BETWEEN NEW PRODUCT

DEVELOPMENT (x) AND CONSUMER INNOVATIVE BEHAVIOUR (y)


Consumer Innovative Behaviour d =

Response Options X Y Rank-x Rank-y Rank-x - Rank-y d2

Strongly Agree 10.733 4.700 4 4 0.0000 0 Agree 22.067 27.400 5 5 0.0000 0 Neutral 1.467 2.500 3 3 0.0000 0 Disagree 0.067 0.400 2 2 0.0000 0 Strongly disagree 0.000 0.000 1 1 0.0000 0 SUM 34.333 35.000 15.0000 15.0000 0.0000 0.0000 Σd2

Source: SPSS ver. 15 Output window


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Correlations

1.000 .894*

. .020

5 5

.894* 1.000

.020 .

5 5


Sig. (1-tailed)

N


Sig. (1-tailed)

N


Customer Perception

Spearman's rho


CustomerPerception

Correlation is significant at the 0.05 level (1-tailed).*.

TABLE 1.2: COMPUTING SPEARMAN’S RANK CORRELATION COEFFICIENT BETWEEN NEW PRODUCT DEVELOPMENT (x) AND CONSUMER PERSONALITY (y)


Consumer Personality d =

Response Options X Y Rank-x Rank-y Rank-x - Rank-y d2 Strongly Agree 10.733 10.000 4 4 0.0000 0 Agree 22.067 21.000 5 5 0.0000 0 Neutral 1.467 4.000 3 3 0.0000 0 Disagree 0.067 0.000 2 1 1.0000 1 Strongly disagree 0.000 0.000 1 1 0.0000 0 SUM 34.333 35.000 15.0000 14.0000 1.0000 1.0000 Σd2



TABLE 1.3: COMPUTING SPEARMAN’S RANK CORRELATION COEFFICIENT BETWEEN NEW PRODUCT DEVELOPMENT (x) AND CUSTOMER PERCEPTION (y)


Customer Perception d =

Response Options X Y Rank-x Rank-y

Rank-x - Rank-y d2

Strongly Agree 10.733 1.000 4 4 0.0000 0 Agree 22.067 34.000 5 5 0.0000 0 Neutral 1.467 0.000 3 1 2.0000 4 Disagree 0.067 0.000 2 1 1.0000 1 Strongly disagree 0.000 0.000 1 1 0.0000 0 SUM 34.333 35.000 15.0000 12.0000 3.0000 5.0000 Σd2

Source: SPSS Vers. 15 out put Source: SPSS ver. 15 Output window

Correlations

1.000 .975**

. .002

5 5

.975** 1.000

.002 .

5 5


Sig. (1-tailed)

N


Sig. (1-tailed)

N


Consumer Personality

Spearman's rho


ConsumerPersonality

Correlation is significant at the 0.01 level (1-tailed).**.

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Correlations

1.000 .783

. .059

5 5

.783 1.000

.059 .

5 5


Sig. (1-tailed)

N


Sig. (1-tailed)

N


Customer Learning

Spearman's rho


CustomerLearning

TABLE 1.4: COMPUTING SPEARMAN’S RANK CORRELATION COEFFICIENT BETWEEN NEW PRODUCT DEVELOPMENT (x) AND CUSTOMER LEARNING (y)


Customer Learning d =

Response Options X Y Rank-x Rank-y

Rank-x - Rank-y d2

Strongly Agree 10.733 20.000 4 5 -1.0000 1 Agree 22.067 15.000 5 4 1.0000 1 Neutral 1.467 0.000 3 1 2.0000 4 Disagree 0.067 0.000 2 1 1.0000 1 Strongly disagree 0.000 0.000 1 1 0.0000 0 SUM 34.333 35.000 15.0000 12.0000 3.0000 7.0000 Σd2



HYPOTHESES TESTING/RESULT In order to empirically validate this study the followings hypotheses were postulated and tested. H01: There is no significant relationship between new product development and consumer

innovative behaviour. H02: There is no significant relationship between new product development and consumer

personality. H03: There is no significant relationship between new product development and consumer

perception. H04: There is no significant relationship between NPD and consumer learning. DISCUSSION OF THE FINDINGS

The relationship test between New Product Development and consumer innovative behaviour in the population of technology based electronic companies in Rivers State of Nigeria indicated significant. The strength of this proposition is anchored in the positive value of rho (1.000*), indicating a perfect positive rank correlation between NPD and consumer innovative behaviour. Hence P – value (=0.000), is less than the level of significance. (See Table 1.1). This establishes that there is a significant relationship between NPD and consumer innovative behaviour. In the population of technology based electronic companies in Rivers State Nigeria organizations. This finding supports the view of Rogers (2003); organization that regularly innovate new products attracts consumer innovators and other members of the social system to adopt innovation. Today’s successful firms learn and re-learn how to deal with the dynamics of consumers, competitors and technologies all of which require companies to review and reconstitute the product and services they offer to market.

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Furthermore, in ascertaining the level of relationship that exist between New Product Development and Consumer Personality the results shows that a significant relationship exist between the two variables. This is evidenced from the fact that rho value (0.975*) establishes a strong positive rank correlation while the P – value of (0.002) is less than the acceptable significant level of (0.05), as shown in (Table 1.2).

More so, the result from the test of hypothesis three indicated that a significant relationship exist between NPD and consumer perception, as shown in the rho positive value of (0.894*) and p-value (0.020) is less than (0.05) the acceptable level of significance as evidenced in (Table 1.3). This finding lends supports to the findings of (Bretani, 2006; Im et al 2003; Schiffman, & Kanuk, 2007), that individuals act and react on the bases of their perception not on the basis of object reality. Hence, it is imperative that marketers understand the whole notion of perception and it’s related concept to more readily determine what factors influences consumers to buy.

Finally, the result from the test of hypothesis four shows that there is no significant relationship between new product development and consumer learning as evidenced in the P – value (0.059) which is greater than (0.05) our significance level as shown in (Table 1.4). Moreso, the value of correlation coefficient is (0.783). Research has shown that organizational learning is associated with the development of new knowledge which in turn may improve performance or not significantly influence consumer adoption behaviour (Schiffman & Kanuk 2007). When people act, they learn, learning describes changes in an individual’s behaviour arising from experience. CONCLUSION AND RECOMMENDATIONS

Customers today are highly informed and more demanding than before. Responsiveness to customer needs and changing market conditions has become more important for the success of firms and calls for the introduction of new products and services together with innovation capacity for a firm (Robertson and Yu, 2003).

From the forgone discussions and observed findings and analysis, we confidentially conclude that a significant relationship exist between new product development and consumer innovative behaviour in the population of consumers of technology based electronic products in Rivers State of Nigeria. Furthermore there is a strong positive correlation between the criterion and predictor variables. Customer personality and perception significantly impacts on new product development and adoption; while customer learning do not have any significant relationship in new product development in the context of this study. Hence, concerted effort should be directed at improving company product brand and image that are consistent with consumer perception and personality since they contribute highest and are also significant to the adoption of innovations as evidenced in the P-value (0.020). Consequently, based on the findings and conclusion of this study, the following recommendations are provided: (1) Technology based electronic companies in Nigeria should always look at ways of

evolving new products that will attract and enhance consumer adoption behaviour. (2) Nigeria technology based electronic home appliance companies should always take

into cognizance the individual consumer personalities and preferences in the designing and evolving of new products.

(3) The companies should regularly improve product brand/image and intensify marketing communication strategies to positively and continuously create an enduring perception of their products on the minds of the consumer.

(4) There should be periodic sales promotional activities and efficient use of the promotional mix-elements to inform, educate and remind prospects/customers of product features, advantages and benefits. This when strictly adhered to will increase customer learning which will resultantly enhance innovation patronage and adoption.

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REFERENCES Alves, J. Marques, M. J. Saur, (2004a): “Role of Networking in Innovation promotion and cluster

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