Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No.2, Dec. 2019 ISSN: p. 2006-0300 e. 2334-5708
An Open Access Journal Available Online
Covenant Journal of Business & Social Sciences (CJBSS)
Vol. 10 No. 2. Dec. 2019
Publication of College of Business & Social Sciences, Covenant University, Canaanland.
Editor-in-Chief: Prof. Rowland E. Worlu [email protected]
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019
Articles
Managing Health Records in the Context of Service Delivery: Issues and Challenges Kamorudeen Adegboyega & Hadiza Sa’eed Musa 1
Nationalization and Privatisation of Petroleum Industry: An Evaluation of the Pros and Cons Cidália Cossa; Iracema Mondlane; Jónia Baguandji; Luciano Cordeiro; Télio Numaio; Vicente Sitoe 12
Social Media Marketing and Consumption of Nutrition and Dietary Information among Youths in Abia State, Nigeria Oteh, O. U., Obasi, R. O., Udodirim, C., Amah, J & Oteh, A. Q. 26
Accounting Software and Resolution to Financial Insolvency in Nigeria: A Meta-Analysis Onyia Valerie, Falana Abolade & Worlu Rowland 45
Service Recovery Tactics and Brand Trust Among Service-Based Small & Medium scale Enterprises (SMEs) in Nigeria: A Review Akahome, Joy E. & Jackson Cyprian 65
Terrorism, Sexuality and Sexual Violence in North-Eastern Nigeria: A Psychosexual Analysis Adejoh Sunday Ph.D 76
Influence of Risk Perception on Marketing of Chemicals in Nigeria Onwubiko N. Dike, Ph.D & Nneka N.Dike, MSc. 88
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019
Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No.2, Dec. 2019 ISSN: p. 2006-0300 e. 2334-5708 DOI:
An Open Access Journal Available Online
Managing Health Records in the Context of Service Delivery: Issues and Challenges
Kamorudeen Adegboyega & Hadiza Sa’eed Musa
Department of Sociology, Ahmadu Bello University, Zaria – Nigeria [email protected]
Received: 18th October, 2019 Accepted: 18th November, 2019 Date of Publication: December, 2019
Abstract: Records are considered as the memory of health organizations. Therefore, their management constitutes important component towards efficient delivery of service to clients. It is through records management that accurate data are made available for patients’ care and administrative purposes. In spite of the roles of records in health organizations, the way they are managed in various health facilities is of serious concern. Accordingly, poor records management leads to the failure of health facilities to deliver efficient services. Health records in this article include detailed documented patient’s information, which cover health problem, diagnosis and treatment over a period. This article therefore examines the issues and challenges associated with records management in the delivery of services to clients in health setting. In terms of methodology, the article employs secondary source of data/information where scholarly publications were reviewed to illustrate the subject matter. The article reveals that health records, if properly managed could perform important functions. These include provision of detail information about the patients’ health conditions; serve as platform for detecting and neutralizing the incidence of medical errors and useful for health facilities in response to complaints from the clients about health services, among others. The article also discussed the challenges associated with records management in health sector. They include poor record keeping, inadequate/poor storage facility and ineffective medical records management policy. The article concludes that priority should be given to efficient records management to enhance appropriate service delivery in healthcare organizations.
Key Words: Records, Healthcare, Facilities, Service Delivery and Litigation
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Introduction users. Luthuli (2017) also notes that The main goal of health institutions is records management involves the provision of efficient services that accountability, security, integrity and enhance health and prolong life of comprehensiveness. Records patients. Achieving this goal therefore Management is therefore considered as requires that there is presence of reliable the process of controlling and governing and accurate health records. Records are important records of an institution in a used to hold health institutions comprehensive and complete cycle. The accountable for the service delivery. process includes identifying, Mogli (2009) considered health records classifying, prioritizing, storing, as documents used by health institutions securing, archiving, preserving, and caregivers to record patient history, retrieving, tracking and destroying of illness, illness narratives and treatment. records. Health records management Luthuli and Kalusopa (2017: 2) also involve appraisal, retention and conceived health records as written disposal, which eventually eliminate account of patients’ examination and ephemeral records that are no longer treatment that include the patients’ useful to healthcare institutions. The medical history, illness narratives and objectives of records management as complaints; the physician’s findings; highlighted by Feather & Sturges (2003) and the results of diagnostic tests, include cost reduction, improved procedures, medications and productivity by quick access to needed therapeutic procedures. Connectedly, records, enhanced litigation avoidance the World Health Organization (2006a) and support, increased audit classified health records to include compliance. The WHO (2006b) also doctors’ clinical notes; recording of illustrated that health records may be discussion with patient /next of kin as either in paper or in electronic forms. regards disease; referral notes to other Where medical records exist in both specialist(s) for consultation; laboratory paper and electronic forms, it is referred notes; imaging reports; clinical to as hybrid records. As a process, photographs; drugs prescriptions; records management begins the moment nurses’ reports; consent forms; a patient is admitted into healthcare operation notes; video recordings; and facility until s/he is discharged. printouts from monitoring records. Delivery of service is central to the Advancing the importance of health establishment of health care institutions. records, Adeleke (2014) stresses that Mdluli (2008) conceives service health records are needed for delivery of delivery as activities performed by an services in health institutions. Among organization, in line with its mandate other purposes, records management aimed at satisfying, responding and provides availability of reliable and resolving community or citizen timely information to various end users. problems. Service delivery in healthcare
The International Records Management therefore, is considered as a contact Trust [IRMT] (2009) defines records between service providers and management as the task of ensuring that consumers. Service delivery in all recorded information, regardless of healthcare institutions manifests in form and medium, is managed in a forms of appropriate illness diagnosis, proper and efficient manner to enhance accurate laboratory tests, correct effective service delivery to the end medication and follow-up treatment. 2
Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019
Connectedly, Kemoni & Ngulube Methodological Approach towards (2007) opine that effective records Understanding Issues and Challenges management is a key factor in the of Managing Health Records in the delivery of service in health institutions. Context of Service Delivery Thus, achieving service delivery The article adopts integrative approach requires that health organizations of literature review. Through this develop, promote and implement approach, available publications effective records management focusing on health records management philosophy and ideology. in different health facilities were
There are agencies and professional accessed and reviewed. The articles associations saddled with the were sought from Medline, PubMed responsibility of ensuring that records Science, Google Scholar and other generated by medical practitioners online resources. While searching for involved in the provision and delivery articles, proper attention was given to of services to patients are efficiently diversity, coupled with comprehensive managed in the best interest of patients explanation of the issues and challenges and healthcare institutions. With associated with managing health records reference to Nigeria, Osundina, in different health institutions across Kolawole & Abolaji (2016) identify different countries. This was done to Health Records Officers Registration provide readers with better ideas of the Board of Nigeria; Nigeria Medical subject matter. Council, Nurses and Midwifery Council The Historical Development of Health of Nigeria, among others as agencies Records and associations that regulate the This section of the article illustrates the practice of medical records context that influenced the emergence management. of health records. For centuries, scholars
Against this background, this article have always been interested in provides proper knowledge and understanding the need for systematic orientation of the subject matter of documentation of health records in health records management in the various health facilities. Historically, context of service delivery in healthcare Akuso (2014:3) attributed the institutions. It is divided into six emergence of medical records sections: the methodological approach management to the seventh century towards understanding the subject through a hospital set up by Benjamin matter, the historical development of Franklin in 1752 A. D. The hospital is medical records, issues of medical known as Pennsylvannia hospital at records management and service Philadelphia, United States of America. delivery in health organizations and the The hospital introduced medical records challenges associated with medical by preparing file cases where patient’s records management in healthcare name, admission date, discharge date, institutions. The last section is the etc were written. With this conclusion. development, it was recommended that
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 no health facility should operate without advanced countries are migrating from establishing a medical records section. It paper method of records management to also enabled health practitioners to electronic format characterized with the analyze health data of patients. introduction of information technology Consequently, the development (IT) resources, such as computer-based encouraged hospital-accrediting bodies records, clinical information systems to insist on the availability of accurate, and telemedicine. well-organized medical records as a In the case of Nigeria, Akanji (2005) condition for accreditation and traced the act of health records certification. Similarly, Flexner’s (1910) management to the Second World War, report on medical education in the which occurred in 1945. Following the United States and Canada was the first devastating effects on the victims of the formal statement made about the world war, it became imperative for the functions and contents of health records. Nigerian government to collate The report also compelled physicians to comprehensive and systematic keep a patient-oriented medical record. documentation of records and treatment
Health records are available either in received by the victims. This was paper or electronic formats. Gartee considered as a motivating factor for the (2007) explains that paper format health Nigerian government to introduce records management had been in National Health Care Services for the existence for quite a long period. It war victims. In addition and having manifests in forms of handwritten notes, realized the importance of health typed reports and test results, usually records management, some Nigerian stored in a file. The paper format health health researchers in collaboration with records management is fraught with their Finnish counterparts in the late many challenges. First, it is time 1990s decided to expand their consuming and difficult for different rudimentary hospital information health workers to interact concurrently system with the aim of developing with patient facing complicated health efficient and comprehensive system conditions. Secondly, paper based suitable for use in all Nigerian Teaching medical records are easy to misplace, Hospitals and medical centers’. The thereby leading to disruption or expectation then was that by 2001 all discontinuity of treatment. Third, the Teaching Hospitals in Nigeria would moisture, water, fire and insects can have health informatics units, which easily damage paper records. With the could make use of standardized emergence of computers in late 1960s, a software. Unfortunately, the project was new form of health records management not successful, partly due to paucity of evolved, thereby neutralizing the funds on the part of government to challenges associated with the manual purchase the enabling software. It is medical records management (Weed, worthy of note to state that in spite of 1969). Today, more and more health the spread of modern technology facilities in the world and especially in globally, especially in advanced
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 countries, the management of health Mihiotis and Dikopoulou (2010) also records in Nigeria is still characterized submit that health institutions keep by filing of health records in paper records to enhance accountability and format. This is largely because most of proper planning. the health facilities in Nigeria have not A study conducted by Polit, Beck & yet embraced the use of modern Hungler (2001) establish that there is a technology for the management of strong relationship between efficient health records. records management and Issues of Health Records communication among clients and Management and Service Delivery in health professionals while in the view of Health Organizations Berg (2001) records management This section highlights the importance constitutes tool for monitoring and of records management in healthcare reporting patients’ progress. Similarly, facilities towards better delivery of the World Health Organization (2006a) needed services to clients and for highlights that health records contain administrative purposes. Hospitals facts about a patients’ health status with generate, receive and preserve records specific emphasis on events affecting as part of their functions, activities and them during their admission at the mandates. Record serves as an health care facility. Comeford (2003) important source of information in order also alluded that the purpose of medical to enhance sustainability and continuity records management is to provide of organizations. Records management evidence of the quality of patient care. is therefore considered as integral Other important information accessible component of health institutions used to from health records provided they are facilitate the achievement of their properly managed include patient’s routine activities. The purpose of history, medical prescription, medical records management includes the processes adopted, decisions made, provision of relevant information to the actions agreed and sometimes where end users. Relatedly, Hufman (2001) there is disagreement, who is taking opines that health records are the decisions and who is agreeing to the lifeblood and essential tools in running decisions, among others. When these the day – to – day services in health care are done, they provide a platform for institutions while Ngoepe (2004) continuity of care among several health considers it as the heart of service practitioners to measure and determine delivery, as interventions by healthcare the patient’s past and current health providers rely on access to reliable and conditions. By implication, when there up-to-date records. Similarly, Osundina, is efficient records management, various Kolawole & Abolaji (2016) notes that individuals involved in the delivery of health care institutions depend on health health services to patients will have a records for knowledge generation and good understanding of challenges faced dissemination, administrative and by patients, coupled with pathways financial purposes. Dikopoulou, towards neutralizing the identified
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 challenges. It also means that without negatively affect the record retrieval proper records management, lives of process. The absence of efficient health patients are at risk; whereas physicians’ records management therefore, can practice may suffer and may also lose cause adverse effects including deaths credibility and trust. and injuries that could have been
In addition, proper records management avoided. acts as legal document that gives details Challenges associated with the of a client’s management, especially Management of Health Records in when patient treatment in healthcare Health Care Institutions facilities is questionable. In view of this This section of the article x-rays the development, medical records can be challenges confronting the management used to prove the innocence or of health records in different contexts. otherwise of healthcare providers This is done in order to state in clear (Wetter, 2005). When this happens, terms that managing health records in documented health records become the context of service delivery requires defense shields for the health clearly defined efforts and commitments practitioners in the court of law or from concerned individuals and medical tribunals. Importantly, medical healthcare institutions. One of the major records assist hospitals in identifying challenges affecting the management of competency of medical practitioners. health records is poor records Therefore, medical negligence litigation management by people who are saddled is built around comprehensive and with the responsibility in various health accurate health records; hence, proper institutions. Wong and Bradley (2009) maintenance of such records is critical. reveal that an efficient medical records
Establishing the relationship between management is often lacking in most of records management and patients’ the developing world characterized by health conditions, Maponya (2013:6) lack of requisite infrastructure. A study reported that Polokwane Hospital in conducted by Ojo (2009:95) also reveals Limpopo, South Africa failed to provide that staff with inadequate or poor medical records for a cervical cancer knowledge of information and patient, thereby having negative impact communication technology manages on health conditions of the patient. health records in most of the health Similarly, Marutha (2011:3) revealed facilities in Africa, while some facilities that doctors could not operate on a are faced with inadequate well-trained patient because of missing file at personnel. Similarly, Gunnlaugsdottir Nkhensani Hospital, Limpopo, South (2008:33-34) documents that lack of Africa; thereby worsening the health management support, lack of effective condition of the patient. Marutha (2011) system training to employees and also established that, in the Limpopo resistance to change contribute to poor Province, public hospitals are using records management in various health manual records management systems, facilities in developing countries. A reported to be hectic and tended to study by Al-azmi, Al-enezi &
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Chowdhury (2009) reveal that records Conclusion officers saddled with the responsibility This article examines medical records of managing health records in Kuwait management in the context of service took long time in locating records. A delivery, where evidence from the study by Zulu (2008) attributed epileptic existing studies affirms that medical electricity supply in various health records constitute a crucial segment of facilities in Africa makes it impossible patients’ management. The literature to maintain a conducive and sustainable reviewed was in relation to the role of technological environment suitable for medical records management in the electronic health records management. delivery of healthcare services in Thus, a country that is faced with health facilities. The article shows epileptic power supply will not be able clearly that the importance of accurate, to deploy good Information and comprehensive and objective Communication Technology (ICT) management of health records cannot be services for efficient management of over-emphasized. Health records are an health records to its people. integral part of healthcare and their
The safety and security of medical proper management aids the records is a challenge to personnel in- performance of healthcare institutions. charge of records in various health Medical records constitute tools for the facilities. This is linked to abuse of promotion and sustenance of patient information. Inadequate security accountability, ethical and legal in the management of medical records requirements in health institutions. may expose the patients’ records to Hence, the way and manner records are several dangers including unauthorized managed in healthcare setting has a access. Nicholson (1996) revealed that significant influence on the ability of there were numerous instances where healthcare institutions to achieve their case notes were not kept in secure goals and optimize their philosophy. conditions, as they were found The article therefore submits that unattended to; left in clinic areas efficient management of health records because records management unit had will enhance the efficiency of medical closed. In addition, the occurrence of practitioners, as well as welfare of disasters such as fire, water damage, patients. Thus, those individuals saddled ants and vandalism poses a challenge to with the responsibility of managing proper medical records management in health records must be given adequate various health facilities. With specific supports, such as the provision of focus on Nigeria, Yaya, Asunmo, routine training and technological Abolarinwa & Onyenekwe (2015) facilities capable of promoting and highlighted that preservation and sustaining proper records management conservation of hospital documents to enhance effective service delivery. and records has posed a serious problem.
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of Teaching, New York, NY, Africa. Master’s dissertation, USA, 1910. University of Zululand. A. Flexner, Medical Education in the Retrieved from: United States and Canada: A http://sajlis.journals.ac.za. Report To the Carnegie (Accessed 12/10/2019). Foundation For the Advancement Lithuli, L. P. & Kalusopa, T. (2017). of Teaching, The Carnegie The management of medical Foundation for the Advancement records in the context of service of Teaching, New York, NY, delivery in the public sector in USA, 1910. KwaZulu -Natal, South Africa: A. Flexner, Medical Education in the the case of Ngwelezana hospital. United States and Canada: A South Africa Journal of Library Report To the Carnegie and Information Science, 83 (2): Foundation For the Advancement 1- 11. Retrieved from: of Teaching, The Carnegie http://sajlis.journals.ac.za Foundation for the Advancement doi:10.7553/83-2-1679. of Teaching, New York, NY, (Accessed 10/11/2018). USA, 1910. Maponya, F. (2013). ‘No medical Hufman, E. (2001). Health information records, no treatment’. Sowetan management: Physician’s records newspaper, 10 April, p. 6. company, Illinos, 780. Marutha, N. S. (2011). ‘Records International Records Management management in support of service Trust (IRMT). (2009). delivery in the public Understanding the context of health sector of the Limpopo electronic records management. province in South Africa’. Thesis London: International Records submitted to the school of Management Trust. postgraduate studies, University Kemoni, H.N. & Ngulube, P. (2007). of South Africa. Retrieved from: National Archives and the uir.unisa.ac.za (Accessed effective management of 17/10/2019). public sector records in Kenya. Mdluli, L. P. (2008). The role of Mousaion, 25(2): 120–140. traditional leaders in service Retrieved from: delivery: A case study of https://search.ebscohost.com/logi the Bushbuckridge Local n.aspx?direct=true&AuthType=ip Municipality in the Mpumalanga ,url,uid&db=lih&AN= 32160306 Province. MDEV Thesis, &lang=es&site=ehost-live. University of Limpopo, (Accessed 15/10/2018). Polokwane: EDUPARK. Luthuli, L. P. (2017). Medical records Mogli, G. D. (2009). Medical records management practices in public role in healthcare delivery in 21st and private hospitals century. Blueprint, 17(4): 209– in Umhlathuze Area, South 212.
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Ngoepe, M. S. (2004). Accountability, utilization (5th edition). transparency and good Philadelphia: Lippincott potential. governance: The United States Department of Health and National Archives and Records Human Services. (2006). Service of South Africa’s role in ‘Consumer awareness, addressing helping government to better healthcare connectivity as a service delivery to the South matter of life and death’. Africans. Paper presented at the Retrieved seventh LIASA annual national from http://www.hhs.gov/healthi conference, Polokwane, nformationtechnology/consumer September-October. Retrieved Awareness.html.(Accessed 22/9/2 from: 018). http://www.liasa.org.za/conferenc Weed, L.L. (1969). Medical records, es/conference2004/papers/LIASA medical evaluation and patient _Conference_20 04_Ngoepe.pdf. care: The problem- (Accessed 29/08/2018). oriented record as a basic tool. Nicholson, L. (1996). Setting the Chicago: Year Book Medical records straight: A study of Publishers. hospital medical records Wetter, D, (2005). The best defense is a undertaken by the Audit good documentation offense. Commission. Records Retrieved from: Management Journal, 6 (1): 13- http://www.corexcel.com/courses 32. /documentation. Ojo, T. (2009). ‘Communication WHO (2006a). Electronic health records networking: Information manual for developing countries. communication technology and Retrieved from health information in Africa’. http://whqlibdoc.who.int/wpro/2 Information Development, 22(2): 006/9290612177_eng.pdf.(Acces 94–101. Retrieved sed 15/5/2018). from https://doi.org/10.1177/0266 WHO. (2006b). The global shortage of 666906065549 (Accessed health workers and its 15/11/2018). impact. Retrieved from: Osundina, Kolawole & Abolaji (2016). www.who.int/mediacentre/factsh Legal issues in the management eets/fs302/en/index.html. of patients’ records in tertiary (Accessed 10/11/2018). hospitals in Nigeria. IOSR Wong, R. E. X. & Bradley, E. H. Journal of Nursing and Health (2009). Developing patient Science, 5(5): 82-90. registration and medical records Polit, D. F., Beck, C. T. & Hungler, B. management system in P. (2001). Essentials of nursing Ethiopia. International Journal research: Methods, appraisal and for Quality in Health Care, 21(4): 253–258.
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Yaya, J. A., Asunmo, A. A., Zulu, S. F. C. (2008). Intellectual Abolarinwa, S. T. & Onyenekwe, property rights in the digital age. N. L. (2015). Challenges of In Aina, L. O., et al. (Eds.) record management in two health Knowledge and information institutions in Lagos State, management in the digital age: Nigeria. International Journal of Concepts, technologies and Research in Humanities and African perspectives. Ibadan: Social Studies, 2 (12): 1-9 Third World Information Service.
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No.2, Dec. 2019 ISSN: p. 2006-0300 e. 2334-5708 DOI:
An Open Access Journal Available Online
Nationalization and Privatisation of Petroleum Industry: An Evaluation of the Pros and Cons
Cidália Cossa, Iracema Mondlane, Jónia Baguandji, Luciano Cordeiro, Télio Numaio & Vicente Sitoe
Department of Oil and Gas Economics and Management, Faculty of Economics, Eduardo Mondlane University, Maputo, Mozambique.
[email protected], [email protected], [email protected], [email protected], [email protected] [email protected]
Received: 13th November, 2019. Accepted: 30th November, 2019. Date of Publication: December, 2019
Abstract: The purpose of this piece is to evaluate the overall pros and cons of the nationalisation and privatisation of the petroleum industry. According to Georg Erdmann (n/d), the economists assume that nationalized companies are usually less efficient than private companies. This belief has been confirmed by HARTLEY (2007) for the upstream oil industry. But we see today that governments tend to take over the control of oil, gas, uranium and power industries by restricting energy business rights in the company to national companies or by controlling the businesses of private companies by a significantly more restrictive regulation; whereas in the last two decades, many Governments did just the opposite when privatizing state energy companies. Nationalization of the petroleum industry is a pertinent topic for several reasons. Today, state owned companies hold around 85 percent of oil and gas reserves (Erdmann, n/d). As of 2012, between 73 and 95 percent of global oil reserves are controlled by national oil companies (NOCs) (Mahdavi, 2014). In fact, and according to Francisco Monaldi (2010), there are various factors leading countries to nationalize their petroleum industries, such as the civil society, regionalism, and the potential conservation and economic benefits from nationalizing the industry. According to Carneiro et al. (2003), deregulation of the oil and gas industry has led to privatization of the former state-
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019
owned oil and gas companies, in several countries. As a result, the competitive environment has become more hostile. The changes of ownership, together with modification in the competitive environment, have caused significant modifications in the competitive strategies. Companies were not used to clear competitive strategies; but after privatization they started to follow clear patterns of differentiation strategies while at the same time they seek cost parity in the industry. (Carneiro et al., 2003).The methodology for this paper was based only on literature review, with a view to improving our knowledge on the pros and cons of nationalisation and privatisation of the petroleum industry. We conclude that countries which possess natural resources such as oil prefer to nationalize the companies in anticipation of the high revenues that come with the high fluctuations of price of this commodity. Of course this fluctuation of prices is driven by some factors such as high demand of the resource and industrialization. The World Bank estimates that privatization is either under way or being planned in at least 50 countries.
Keywords: Nationalisation, Privatisation, Evaluation, Pros and Cons.
1. Introduction way of evaluation as well as the Nationalization and privatization are implications of government decisions in two very pertinent topics to discuss at such economic environment. the moment because with the price of 2. Conceptual Framework oil increasing steadily since its collapse Concept of Nationalization – refers to in 1998, oil is becoming a more when a government takes control of a expensive commodity and the company or industry, which generally organizational structure of that industry occurs without compensation for the will always affect how it is extracted loss of the net worth of seized assets and and distributed. potential income. This action may be The present essay is meant to approach the result of: in a very simple manner the issues of - A nation's attempt to consolidate nationalisation and privatisation of power; companies in the Oil Industry, and in - Reduction of foreign ownership of the perspective of evaluating the pros industries representing significant and cons of such government decisions importance to local economies; or in pursuit of either of the options. - To prop up failing industries. The structure used is also very simple, According to Monaldi (2010), beginning with the conceptual nationalisation is the policy by which an framework of the main subjects: namely asset is placed under state-control.On a nationalisation and privatisation, from time scale, nationalization phases in the which we describe using a theoretical oil industry correspond to periods of framework that leads to our high crude prices and high revenues. methodology of study. In a comparison, (Erdmann, n/d). The author emphasises two case studies will help us to bring up a higher degree of nationalization in the pros and cons of each subject by extraction than in refining, which
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 corresponds to the profitability author, the latter includes international differences along the value chain of the retaliation and domestic political oil and gas industry. constraints. According to John Wirth (1985), state Using a novel longitudinal dataset on owned control is defined as the policy the establishment of national oil by which governments own, control, companies (NOCs), the empirical manage and exploit natural resources evidence presented in Mahdavi’s paper for national ends, in the name of lends support to four primary findings. common good. Thus, in the definition States are most likely to establish alone, there is an implication of NOCs: nationalization being for the benefit of - In periods of high oil prices, when the society as a whole. If one imagines a the risks of expropriation are continuum of organisational structure, outweighed by the financial benefits; nationalisation and privatisation would - In non-democratic systems, where be at opposite ends. executive constraints are limited; However, nationalisation could include - In “waves”, that is, after other joint ventures where the state controls countries have nationalized, the industry but allows for private reflecting reduced likelihood of companies to participate in the resource international retaliation; and, though extraction and retain some of the profit. with weaker empirical support, It is also important to pay attention to - In political settings marked by the so-called creeping nationalisation; resource nationalism. which is the impending threat of Concept of Privatization nationalisation before the policy is made When a government-owned business, official. This kind of nationalisation has operation, or property becomes owned not taken as drastic a form in the first by a private, non-government party. two decades of the 21st century as According to Moye Ajao (2008), from outright expropriations have done in the The Technical University of Berlin, 1970’s, but it does seem highly privatization is the sale of state owned prevalent. Actions indicative of assets; or the transfer of a majority creeping nationalisation include ownership of state-owned enterprises to cumbersome labour and environmental the private sector by the sale of ongoing regulations, taxation, and price and concerns or assets following liquidation. monetary controls. The author adds also that privatization Nationalisation of the Petroleum refers to the sale of all or parts of a Industry government’s equity in state-owned So why do leaders nationalize the oil enterprises to the private sector. Define industry? In line with a general utility- finally privatization as the divestiture by maximizing theory, (Mahdavi, 2014) the state of enterprises, land or other argues that leaders nationalize to assets. maximize state revenues while minimizing costs. According to this
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Privatisation of the Petroleum efficiency, success or failure of a Industry company or product. Some authors According to Carneiro et al. (2003), in define profitability as a business's the oil industry, privatization represents ability to produce a return on an a reversal of the nationalization investment based on its resources in processes that took place at the comparison with an alternative beginning of the last century, resulting investment. from the advance of communist 3. Theoretical Framework thinking and the restructuring of Utility-Maximizing Theory economies after the two World Wars. Mahdavi (2014) is aligned with a Privatized firms, once accustomed to a general utility-maximizing theory, in predictable environment - monopolistic which he argues that leaders nationalize or tightly regulated - come face to face assets to maximize state revenues while with the challenges and opportunities of minimizing costs. increased competition. As a result, these Leaders nationalize to maximize state companies change their attitude and revenues while minimizing costs. The attitude towards the market and latter includes international retaliation competition in order to adapt to the new and domestic political constraints. environment. Using a novel longitudinal dataset on
Concept of Petroleum Industry the establishment of National Oil Petroleum is considered a global companies (NOCs), the empirical commodity and the main reason of the evidence presented in this paper lends development of the word we see today. support to four primary findings state It is considered the biggest Industry that States are most likely to establish sector in the world in terms of capital NOCs: investment and value, and also it - In periods of high oil prices, when products are used in almost all the areas the risks of expropriation are of industrialization globally. In addition outweighed by the financial benefits; to that, drives thousands of hundreds - In non-democratic systems, where workers worldwide, generating executive constraints are limited; hundreds of billions of dollars globally - In “waves”, that is, after other each year. The Industry is divided 3 countries have nationalized, categories or sectors named Upstream, reflecting reduced likelihood of Midstream and Downstream, and the international retaliation; and, though companies operating in this industry are with weaker empirical support, divided in NOC (National Oil - In political settings marked by Company’s) and IOC (International Oil resource nationalism. Company’s) The Positive Theory of
Concept of Profitability Nationalization Profitability is a financial and economic Erdmann (2007) is aligned with the concept originated from the word profit, positive theory of nationalization; which used to measure or determine the emphasizes on “the basic business of
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 politics, the transfer motive”; as well as higher public cost of capital), would the economic theory of firm. implicitly be willing to overpay for the This theory is based on a similar interest firms acquisition, thus accepting a loss of private investors and the State in the of resources in the process (an cash flow of firms, and does not unfavourable trade with private necessarily assume inefficiency in the investors). This loss of resource, and the state owned firms, nor a sudden, associated loss of political support that unexplained reversal in ideological it determines, constitutes the preferences. Both private investors and opportunity cost of pursuing a political the State are rational but their respective objective contrary to the rational, cost of capital can and will diverge over valuation ratio determined, policy of time, changing the private/public support maximization. The higher this valuation ratio, the basic determinant of opportunity cost, the lower the the exchange of firm ownership. Both probability of a government following the state and the private investors want such an unconditional – or to control firms in order to use their ‘‘uneconomic’’ – strategy. cash flows either for increasing the Economic Theory wealth of shareholders and managers, or Carneiro et al. (2003) also applied for government consumption and basically the economic theory of firm, transfers to politically influent emphasizing Porter’s competitive clienteles. strategies; as well as economic It also provides a view of the regulation theory. privatization and the nationalization Here the concept of “externality” is waves, the possible reversals of policy considered unnecessary and the from one to the other, as well as advantage of “detrimental effects” is differences in the allocation of emphasized, which can be examined as ownership between the public and the any other factor of production. Coase is private across countries. Other local not in favor of State action, since it political variables can also influence assumes that it is related to high costs, these policies, to amplify or dampen although it admits the possibility that them since they reflect the ultimate “most externalities should be allowed to redistributive aims of the government. exist if we want to maximize the value But that influence will only be effective of production”. In this sense, for Coase as far as the privatization or the (1994, 27) the concept of externality nationalization does not decrease the imposes a governmental intervention government’s overall resources. (tax and regulation), even before that Otherwise, for instance, a government other options, such as non-action, pursuing a nationalization policy in abandonment of previous government order to reduce unemployment, whereas action or simply the facilitation of the valuation ratio implies that the state commercial transactions, may be valuation of firms is less than the considered private investors’ valuation (due to a
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The new economy of regulation deals 4. Methodology with the agency problem that arises as a Aiming to maximize the research and consequence of an asymmetrical provide answer to the problem, we used structure between the principal and the the following methods: agent. In other words, regulation is an • Nature – The research was application of the principal-agent theoretical and based on the methodology in the contractual collection of secondary data as well relationship between the regulator and as reviewed bibliographies. Again, the regulated agent, as proposed by the archival study aimed to improve Laffont and Tirole (1994). The principal the extant literature in this is the State (the regulatory agency) that knowledge area. Technical does not have all the information and dimension involved the use of case holds the property rights of an asset or studies. the most relevant administrative 4. Findings: Evaluation of Pros & function. The regulated agent is the Cons operator of the service that administers An evaluation of the efficiency of a the ownership of the assets and is nationalisation policy requires an therefore the part informed about the evaluation of the particular industry’s details of its specific contents (inputs, industrial efficiency which requires very technology and cost structure). Thus, detailed information and a long time the problem of regulation is related to scale to collect the data, which are both transaction costs, problems of political beyond the scope of this project. economy and incomplete information. Analysing the energy efficiency of a Economic regulation has its origin in the country proved too difficult due to the need to control market failures inability to disaggregate the inputs and (normative approach). However, when outputs of energy in order to focus the State intervenes to correct these solely on the energy efficiency of oil failures, some difficulties arise, and natural gas. especially for the handling of Nationalization information4 2, the capture of the Pros: regulator by the private sector and - It ensures that a government can stay inefficiency. These basic theories of homogenized and the economy can economic regulation are briefly be nationalized. discussed below: (1) regulation based - Increases the chances of on public interest (normative approach), maximization of state revenues while (2) private interest regulation or minimizing costs. Reduces the regulator capture) and, 3) the new likelihood of international retaliation economy of regulation from the position and domestic political constraints. of the new institutional economy. Cons: - Failure due to different political and economic objectives between government and state officials -
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officials may rely on the natural Comparative Analysis resource revenue to fulfil their The following two case studies are objectives. drawn from the work of Monaldi - Natural resources are often located in (2003), and we present them as they areas where marginalized minorities were initially presented by the author.
live who have poorly defined Case 1 – Venezuela property and user rights - Ever since Venezuela began exporting marginalizing these communities oil in 1917, Venezuelan leaders have further could result in repercussion. sought to extract greater compensation. - Governments suffering from budget In 1943, Venezuela worked out a “50- deficits may have difficulty securing 50” policy where private companies additional capital for the needs of the provided half of their profits to the NOC. Venezuelan government in exchange for
Privatization long-term operating contracts. As time Pros: progressed, companies had to provide a - Privately-owned companies run greater share of their profits to businesses more economically and Venezuela. According to Grayson, by efficiently because they are profit the 1970’s this partially nationalized incentivized to eliminate wasteful system left Venezuela dependent on the spending. international economy and aggravated - These companies usually ensure they income disparities within the country. improve their operational efficiency Venezuela’s nationalistic policy was in order to reduce their costs and altered in 1998 when Venezuela improve on profits. increased privatization. After the oil - Privatization reduces the boom of the 1970s, Venezuela began government’s political interference. reform efforts leading to growth of state Cons: enterprises. These efforts began in 1971, - Government loses out on potential when Congress passed the Gas dividends after privatization; Nationalization Law. In this law, - Exposure to strict local laws, Venezuela was entitled to collect all regulations, taxes; associated gas for which the - Increased competition – existence of concessionaire had no economic use for policies to allow more firms to enter at the price of its collection cost. the industry and increase the Reservoirs of free gas were also competitiveness of the market. nationalized. - These companies do not directly In 1973, Congress passed the Domestic deliver the government revenue, and Market Nationalization Law. Under the they also have more freedom to law, hydrocarbons were considered pursue their own interests, which basic commodities. The 1973 law was may negatively affect consumers, different from the 1971 in that it without government involvement. increased the government’s hold over
the economy rather than expropriate
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 concessions as the 1971 law did. The a loss to Petroleum de Venezuela, S.A. state intervened in the domestic market (PDVSA). Prices eventually fell below to lower prices and protect national technical costs after 1983. Prices in the consumers from rising world market domestic market were the sole domain prices. Because they were owners of the of the government. Prices were natural resource, national consumers disassociated from the international were not to be subject to the increase of market and were lower for domestic the international ground-rent. consumers. Venezuelan consumers as Venezuelan nationalization occurred on resource owners felt they did not have January 1, 1976. By the late 1970s, state to pay ground-rent. enterprises accounted for 85.9% of all Furthermore, since the country had public-sector investment. Globally, abundant energy resources, low prices nationalization had two consequences: were supposed to foster development of the collapse of the rent capitalism (the energy-intensive industries. The rent that foreign companies pay for the issuance of low prices made it difficult use of the land in the oil producing host for governments to decide on reasonable country) and the country left on its own prices. After 1986, due to could not find new energy mismanagement and failure, there was infrastructures (the technological and no link between fiscal oil revenues and structural capacity necessary for development. Thus, in the mid-1990s efficient energy production and Venezuela made efforts to privatize its distribution). national industries leading to the Oil The oil-exporting countries raised Aperture policy. ground-rent and prices which hurt the In 2002, Hugo Chavez, however, took oil-consuming countries. The state political control of PDVSA. He diverted enterprises were criticized for lacking funds of PDVSA to finance clear objectives, technocratic expertise government’s social programs. In 2004 and coordination in planning, and the job of Energy and Oil Minister and unsuccessful implementation and PDVSA Chairman became the same evaluation of projects. Lack of control increasing presidential control of over spending of public monies and company. As a result, PDVSA is absence of bureaucratic accountability currently underinvesting (investing led to low-level corruption and insufficient amounts to adequately mismanagement. perform a task) in exploration and In Venezuela, the assured flow of oil production. PDVSA is even revenues to state managers left little underinvesting in comparison to other incentive to maximize efficiency of state-owned oil companies. state enterprises. When nationalized, the This recent creeping nationalization that oil industry could not tax multi- Chavez has been employing since he nationals to pay for their mistakes, as took office is seen as an affront to the they could only tax themselves. U.S. Chavez is, moreover, using Domestic consumption on a whole was Venezuelan oil as a foreign policy
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 instrument to form regional alliances government’s actions. This brief seeks with his neighbours by offering them to explain what the decree actually does preferential oil leases. With a possible provide some historical context; discuss energy crisis ahead, analysts believe that some of the issues the decree raises; and Chavez is trying to position Venezuela note what developments to watch for in (which has the largest oil reserve in the the months ahead. Western Hemisphere) into a spot where Bolivia privatized its oil sector in the an energy thirsty world would be forced mid-1990. Prior to that, the state owned to integrate according to Venezuela’s oil company Yacimientos Petrolíferos terms. If Venezuela were to stop selling Fiscales Bolivianos (YPFB) divested oil to the U.S., an $11 per barrel crude most of assets. After privatization, oil price spike could result. PDVSA is foreign companies owned most of still considered to be one of the most Bolivia’s oil sector. Bolivia also successful large national oil companies privatized its natural gas sector in the in the Third World. mid-1990’s which resulted in more
Case 2 – Bolivia foreign investment leading to an On May 1, 2006 Bolivia’s president, increase in exploration resulting in an Evo Morales, issued an executive decree increase of 600% of proven natural gas (#28701) declaring the “nationalization” reserves between 1997 and 2005. In of Bolivia’s oil and gas reserves. The May 2006, Morales declared the decree was accompanied by a set of renationalization of the country’s images aired worldwide of Bolivian hydrocarbon reserves giving control of troops sent to many of the nation’s oil reserves back to YPFB. fields by Morales to “protect” the On May 1, 2006 President Morales gave nation’s oil and gas. the oil companies 180 days to sign new The popular demand for gas and oil contracts with the state guaranteeing nationalization is a long-standing one in public control and management of Bolivia, and has been at the forefront of activities. He also issued a profit sharing national politics for three years. In July arrangement where companies that have 2004 more than 90% of the voters in a operation in the biggest fields will national referendum supported a resign 82% of their profit to the state measure to recover control of Bolivia’s and keep the remainder and companies gas and oil reserves. Nationalization in the smaller fields will resign 60% of was also a central pledge by Morales their profit to the state and retain the during the 2005 elections. remaining 40%. In general, foreign media coverage of The Spanish company Repsol-YPF and Morales’ announcement has the Brazilian company Petrobras will be significantly overstated what the decree the companies most affected by actually does, and painted the move as arrangements in Morales’ proposals for one far more radical than is evidenced nationalization. In the case of Bolivia, by the content of the decree and the this recent nationalization of its natural gas industry on May 1, 2006 might have
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 serious repercussions considering that Looking at a general picture of foreign companies accounted for 20% nationalization, Asher poses a number of the country’s gross domestic product of reasons for why the policy often and approximately 20% of its tax seems to fail. One particular cause for revenue. Bolivia had previously the failure is different political and nationalized oil production in 1937 and economic objectives between 1969. government and state officials. Even However, this time around, Bolivia has among government officials there is not kept to its six-month timeline that it disunity in objectives. When there is laid-out to restructure its state oil such a difference, officials may rely on company in its current nationalization the natural resource revenue to fulfill process, though it seems likely that their objectives. Bolivia will follow through. One theory Furthermore, a problem for natural behind President Morales’s motives is resource extraction regardless of the that he is trying to embrace a regional organizational structure is that natural perspective, combining forces with resources are often located in areas President Chavez of Venezuela, where marginalized minorities live who ignoring a more global one88. Rising have poorly defined property and user earnings from natural gas exports is the rights. Marginalizing these communities driver of Bolivia’s economic growth. further could result in a backlash as has Nationalization reportedly deterred occurred in Nigeria, where communities foreign investment in natural gas sector who have been neglected by the profits in 2005 after the approval of a made from the resource in their land referendum calling for renationalization demand a greater share of said profit. of the once state-owned Andina and Since officials can easily direct financial Chaco oil and natural gas operators. The flows, government officials that are referendum also declared greater taxes trying to increase accountability and on foreign Hydrocarbon producers. transparency in the industry find it Bolivia had 440 million barrels proven difficult to do so. Thus, many of the crude oil reserves in 2006. Bolivia also reasons for nationalization’s failure are possessed proven natural gas reserves of due to human actions and not 24.0 trillion cubic feet (Tcf) in 2006. It necessarily policy failures. Even so, produced 64,000 barrels per day of oil nationalization enables government and during the first three-quarters of 2006 state officials to manipulate the and consumed about 48,000 bbl/d of oil revenues easier than they would be able in 2006. Bolivia has two refineries but to if the industry were privatized and both are operated by Petrobras (the where financial institutions and Brazilian oil company). Due to the governance are weak there is no means nationalization decree, YPFB is seeking of ensuring proper accounting. to appropriate the majority stake in both The difficulty lies in finding the proper refineries. control measure. Too much government control means that a NOC is just an
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 extension of civil service, but government. Suffice it to say that both insufficient control means a NOC may the state and the national oil company lose interest in non-commercial need to work together to achieve objectives and become like any oil efficient operations in either entity. multinational company that focuses 6. Findings solely on commercial success but not From the cases of study, we found that necessarily on a larger socio-economic both states are highly reliant on oil or and nationalistic objective. other minerals for their economic, and However, without competition, a NOC the low human development ratio may become complacent and lazy and contribute to weak political policies and develop goals of its own as opposed to decisions. They also rely on old and those which it was created for. It is weak fiscal or regulatory institutions. generally found that NOCs are likely to This association with the international be: overstaffed and pay more than high prices contributed positively in the market wages, located in politically nationalization of Oil companies in desirable rather than economically Bolivia and Venezuela. In addition to desirable regions, charge prices either the high oil prices, the governments of significantly below marginal cost to win these countries began to act with political support or monopolize prices authority in minimizing the freedom of when political objectives dictate it to do expression; thereby fueling extremist so, lack environmental concern and are protests and the power of other often the worst polluters. companies in their soil. Again, the Furthermore, NOCs tend to lack budgeting for public spending on managerial and technical expertise education diminished. because NOCs recruitment policies are Furthermore, it seems that the more governed by tribal and religious governments of these countries were considerations than merit. However, the fooled by high revenues of these inefficiencies of NOCs cannot all be nationalized companies due to high blamed on the companies themselves. prices of oil, forgetting their main goal Governments have been found at times as a state is increasing Gross Domestic to provide insufficient resources to Product and human capital). and started NOCs hindering the companies’ ability to act more as a company (with the to undertake tasks and halting single objective of making profit). production or any increases in Maybe this is the main reason that the production. Dutch Disease is well known all over Governments suffering from budget the world, especially on underdeveloped deficits may have difficulty securing countries. This is probably the reason additional capital for the needs of the why many authors consider the Gift of NOC. It is difficult to say though, Oil as a curse, and it is clearly shown as whether governments are the culprits for an example here. the challenges facing NOCs or whether NOCs are adversely affecting the
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7. Implications privatization policies and programmes. As a result of the overall instability of Privatization works most successfully supply, oil became an instrument of where it is backed up by social foreign policy for oil-exporting consensus and support and not just countries. Nationalization increased the political or economic will. Therefore, stability in the oil markets and broke the whether from the point of view of vertical integration within the system. political commitment to giving higher Vertical integration was replaced with a priority to social and employment goals dual system where OPEC countries or from that of creating the right controlled upstream activities such as environment for the economic success the production and marketing of crude of privatization and restructuring oil while oil companies controlled programmes, it makes sense to downstream activities such as incorporate the technical, social and transportation, refining, distribution, and employment dimensions throughout the sale of oil products. process, from goal-setting to The nationalization of oil supplies and implementation, evaluation and follow- the emergence of the OPEC market up. caused the spot market to change in Also in parallel it must be built on both orientation and size. The spot strong fiscal and regulatory institutions. market changed in orientation because it These institutions will increase started to deal not only with crude oil transparency and accountability and but also with refined products. The spot create a check on the government to market changed in size because as the ensure that it does not spend the revenue OPEC market declined the number of frivolously and ensure that the economy spot market transactions increased. The is not vulnerable to the volatile nature of development of the spot market made hydrocarbon prices. oil prices volatile. The risks involving The resource will still remain under oil investment increased. To protect domestic control and it is believed that a against these potential risks, parallel privatized environment with markets such as the forward market competition and no barriers to entry will developed. foster transparency and since the
8. Conclusions & Research Agenda government will want to tap into the Although Privatization and revenues of those private organizations nationalization are most likely to it will develop rules to regulate the maximize social and local employment private sector. In economics we can find benefits, it must balance between the various suggestions on how to improve various objectives of privatization. Human development and GDPlevels: Financial, economic, social and - One is increase production of other technological considerations are an goods, reducing external essential component of this process. dependence of the products and They should form an integral part of the importations. design and implementation of
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- Investing in education, will create reflecting reduced likelihood of an impact on the man force at all international retaliation; and, though levels, reducing importation of with weaker empirical support, (4) in technology and man intelligence; political settings marked by resource - Lead by example by creating very nationalism. rigid and effective politics to Mahdavi’s statistical findings show that discourage corruption and results from empirical analysis lend impunity; strong support for the revenue - Create partnerships and chamber of maximization, resource nationalism, and commerce and exchange in various diffusion (international retaliation) areas (education, agricultural hypotheses, and weak to modest support production, mineral resources, for the domestic constraints hypothesis. etc.). We also keep in mind Erdmann’s Looking specifically at the experiences conclusion that the appetite of of both Venezuela and Bolivia, we can governments to nationalise or regulate conclude that the empirical evidence energy industries increases with the presented by Mahdavi apply profit rate. He adds that by extrapolating consistently: States are most likely to the determinants for nationalization and establish NOCs (1) in periods of high privatization, we can predict the oil prices, when the risks of associated trends for different energy expropriation are outweighed by the sectors and the associated productivity financial benefits; (2) in non-democratic developments. Even more important is systems, where executive constraints are the identification of conditions under limited; (3) in “waves”, that is, after which trend changes are likely. other countries have nationalized,
9. References http://paashamahdavi.com/Determining Reports and Links NOCs_RR.pdf https://www.cairn.info/revue- https://www.enotes.com/homework- economique-2007-1-page- help/advantages-disadvantages- 277.htm# privatization-airlines-455874 https://dukespace.lib.duke.edu/dspace/h https://www.economicshelp.org/blog/50 andle/10161/290 1/economics/advantages-of- https://democracyctr.org/archive/gas-in- privatisation/ bolivia/gas-and-oil-nationalization/ Books and News papers https://www.investopedia.com/terms/n/n Monaldi, Francisco (2010), A economia ationalization.asp Politica do Petróleo e do Gas Na https://www.investopedia.com/terms/p/p América Latina, working paper nr. rivatization.asp 9, July 2010. https://connectusfund.org/advantages- Mahdavi, Paasha (2014), Why do and-disadvantages-of- leaders nationalize the oil industry? nationalisation The politics of resource
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expropriation, University of Industry, Berlin University of California, Los Angeles. Technology. Ajao, Moye (2008), Nationalization vs. Carneiro, Jorge Manoel Teixeira et al. Privatization in the Upstream Oil (2003), Impactos da Privatização sector (Power Point Presentation), sobre as Estratégias Competitivas Technical University of Berlin. de Empresas de Petróleo: um Erdmann, Georg (2007), Nationalization estudo de casos, RAE electron, and Privatization in the Energy vol.2 no.2 São Paulo.
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No.2, Dec. 2019 ISSN: p. 2006-0300 e. 2334-5708 DOI:
An Open Access Journal Available Online
Social media marketing and consumption of nutrition and dietary information among youths in Abia state, Nigeria
Oteh O. U., Obasi R. O., Udodirim C., Amah J. & Oteh, A. Q.
Michael Okpara university of Agriculture, Umudike, Nigeria Corresponding author: [email protected]
Received: 20th October, 2019 Accepted: 20th November, 2019 Date of Publication: December, 2019
Abstract: Malnutrition has persisted due to lack of nutritional information. Social media (SM) provides a platform to narrow communication/information gap world over. The overall objective of this study is to examine the effect of the use of social media platforms and consumption of nutritional and dietary information among youths. The central idea is that SM platforms can leverage to improve nutritional and dietary outcomes. Therefore, specifically, the study seeks to ascertain the information need of youths from the use SM platforms; various SM platforms and effect of SM platforms on consumption of nutritional information. The study was conducted in Abia state, using a sample distribution of 240 respondents. Statistically, descriptive and inferential statistics were adopted. Results revealed that youths mostly seek most information about fashion and news report. The major factors that motivate youths to seek information from social media in the study area were learning and personal development. The regression analysis revealed that Facebook, WhatsApp, Twitter and Instagram were the most widely used medium and could be vital in enhancing nutritional and dietary information. The logistic regression analysis revealed that sex, marital status and awareness of nutrition and dietary information on social media, though significant, had negative signs indicating a negative influence, while location and recommendation by experts were significant and positive variable influencing the use of social media for the consumption of nutritional and dietary information. The major militating factor in the study area are lack of awareness of nutritional information and poor economic power to buy internet data bundle. The study recommends that since the influence of SM is positive, firms can tap its
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youthfulness to improve knowledge and exposure. Therefore, experts can leverage on it, but must find a strong appeal that mesh into youths existing lifestyle to relate nutritional and dietary information to promote consumer familiarization, knowledge and change behaviour for a positive outcome.
Keywords: consumption, dietary transition, nutrition information, marketing and social media
1.0 Introduction (Agwu, 2011; Pambo, Oheno & Okello, Besides climate change, insecurity and 2014). hunger, malnutrition is one of the major In order to address this challenge, challenges facing the world today. The government and donor agencies have consequences of poor food and nutrition intensified awareness creation to deepen manifest in malnutrition and/or hidden information dissemination at both upper hunger - an extreme consequence and and lower level especially among the far more dangerous than mere hunger. most vulnerable in the society. According to Meenakshi, Banerji, Unfortunately, most of the platforms Manyong, Tomlins, Hamukwala, Zulu have not resulted in the desired and Mungoma, (2010), more than 2 outcomes. This implies that these billion people around the world, that is vehicles are not adequate to steer one in three people globally, are participation in dietary transition and affected with micronutrient deficiencies deepen information penetration (Ezeh & which are the major causes of hidden Nwachukwu, 2007). Information is hunger. This causes death and low important to create positive responses productivity with spiral effect on social, and in addressing the challenges caused economic and other performance by malnutrition. Information is vital in indicators. Micronutrient deficiencies dietary transition especially in knowing lead to the death of between 3.5 – 5.5 what exactly to eat and what not to eat million children world over. In Nigeria, in order to live a healthy life. Informing more than 14 million people youths on how to make choices about representing over 8.5% of the total food, and drink could give them the population are undernourished. confidence to make the nutritional Micronutrient deficiencies are linked to decisions that can influence the rest of poor productivity as it causes increased their lives (Marks, Campbell & Ward, mortality rates, especially in women and 2006). Information is crucial in terms of children; poor pregnancy outcomes; influencing the way youths perceives increased morbidity; impaired mental and consumes healthy food items as it and physical development in children; has been confirmed that perception is and reduced work productivity in adults fueled by information available or (Black, et al., 2008). This situation provided to the decision maker persists due in part to poor awareness of (Robbins, 2008; Agbonifoh, Ogwo, dietary requirement, feeding practices Nnolim & Nkamnebe, 2007). and high level of poverty in societies Information that is provided to consumers can play an important role in
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 their perception of products especially process without consideration of for products with unobservable resources from Information and attributes such as nutritional and dietary Communication Technology (ICT). products (Smed, 2012). The Infact, ICT is now a revolutionary absoluteness of decision is dependent on information machine and SM is one of the limit of information available as its revolutionary tools. This tool has provided information can increase been widely accepted among millennials people’s knowledge about the as not just a revolutionary technology product/services concerned (Schaar, but as an educational platform. 2016). According to Oteh and Eleodinmuo Conventionally, companies have used (2016), the core benefit of this traditional communication methods educational vehicle is its ability to bring such as face to face meeting, written about behavioral change by providing a communication, print adverts, platform for shared information and television, radio, newspapers and so on, experience. This transfer of information which has limitations such as lack of is akin to flow of electricity current that two-way communication flow or supplies power to an object. Therefore, immediate feedback (Karimova, 2011; social media and other communication Nwachukwu, Obasi & Oteh, 2015). platforms have advanced understanding These methods are increasingly been and attitude towards sustainable living replaced and complemented by practice around the world (Andrew, technological innovations leveraging on 2015). It is now an acceptable platform identified limitations of old system to to promote and advance knowledge enhance value of information, thus about products and services globally. enhancing access to information and Generally, SM platforms are group of pushing for transition from poor dietary online applications that allow for the orientation to rich, good and adequate creation and exchange of user-generated nutritional and dietary content use in promotion of product, information/orientation to promote idea, person, service etc. This includes healthy living. New information and collaborative projects, blogs or communication technologies have microblogs, content communities, social increased the possibilities for how networking sites and virtual gaming or people can send and receive social worlds. These tools are a part of information. The use of computer and what was, in 2004, termed Web: the Internet-based technologies has utilization of the World Wide Web as a intervened in the promotion of healthy platform where content is continuously nutritional diets (Hersey, Khavjou & modified by all users in a collaborative Strange, 2012). This has helped enhance fashion (Kaplan & Haenlein, 2010). consumer knowledge, perception and There are different social media acceptance of nutritional items with platforms; the popular ones are high risk and uncertainties. It is perhaps Facebook, YouTube, Instagram, difficult to think of product decision Twitter, WhatsApp and MySpace
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(Hughes, Rowe, Batey & Lee, 2012; As a result of its acceptance and high Taggart, Grewe, Conserve, Gliwa and utilization by youths, social media and Isler, 2015). These networking sites are its platforms are becoming a suitable used for diverse purposes like for platform to share information about chatting, connecting or making new burning issues such as health friend, uploading pictures and sending information and communication (Mpofu of messages. It is increasingly used in & Salawu, 2014). The use of these modern days to create, advance and platforms for health information promote product or services among purposes will no doubt continued to people. The advent of this new media gain momentum as more institutions has solved the geographic problem of and organization subscribe to its use distance that usually impact on thereby increasing on its influence on marketing communication. This is health awareness campaign (Fox & because users can connect with one Jones, 2009). However, inspite of its another for hours irrespective of their popularity in Nigeria, there are still distance (Kaplan and Haenlein, 2010; increases in the number of people Hughes et al., 2012). The powers of SM vulnerable to malnutrition and nutrition platforms have gone beyond social to related diseases (UNICEF, 2015). The include economic, political, education World Health Organization (WHO) and more resourcefully, health issues. (2012) reported that nutrition-related Many institutions and organizations are diseases account for about 60% of all leveraging on the power of SM deaths, and 43% of the global burden of platforms to promote their brand and disease, and that by 2020, the impact of image. SM is a super highway nutrition-related non- communicable information block that advance value diseases is expected to rise to 73% of all beyond the recognition of many SM deaths and 60% of the global burden of addicts. It is a widely recognized fact disease. This a major concern among that SM platforms give impetus to viral nutrition and health practitioner, marketing and brand visibility because aaccording to WHO (2011), the (Nwachukwu et al., 2015). The list is conditions that promote unhealthy endless; thus, experts project that more eating practices among individuals is advances in technology will see to mainly due to lack of and/or inadequate further refinement and improvement on access to health and nutritional this information gateway in promoting information and knowledge, and the business value especially in marketing acquisition of misinformation about of products and services. Already, most health and nutrition matters. SM platforms have continued to make Although, SM platforms provide an changes in their offering to enhance important vehicle to transmit nutritional user-generated contents that are real information, one of its challenges is the with improve security features to poor utilization of social media platform position them for greater value for as a medium for information and subscribers and competition. proliferation of fake news due to poor
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 checks and effective control. This and factors that determine the technology is prone to abuse and have influence. been somewhat misused by youth in 2.0 Concept of Social media terms of seeking relevant information as marketing regards healthy living (Njoroge, 2013). SM is a 21st century information The pivotal role of SM and influence revolutionary and communication, among youth is of major interest to which has gained wide acceptance all researchers and hence this this study over the world enhancing the examined the effect of social media communication flow between people, platforms on the youths in terms of business and society (Okoye, 2011). accessing and consuming nutritional and Consequently, over the years, several dietary information from marketing conceptual and empirical literatures firms and institutions in the food have focused on SM and how it industries. influences beliefs and action on a wide In the light of the above, the study range of issues. Many businesses have objectives specifically seeks to: found this platform a veritable tool to i. ascertain the various SM promote their business and generally platforms available in the study commerce. In marketing, SM platforms and their level of usage among are technologies that create, facilitate youths to access promoted and share contents on social media nutritional and dietary platforms, with the purpose of ehnacing information. This objective is marketing objectives and brand goals. it anchored on the fact that you also involve social interaction and cannot use, what does not exist. It possible collaboration by stakeholders prepares the study to highlight the across boundaries, time and space. It important platforms of influence includes but not limited to the use of among youths in the study area, blogs, wikis, media (audio, photo, which will form the basis for video, text) sharing tools, networking strategic decision, platforms and virtual worlds (Bryer & ii. ascertain the kind of information Zavatarro, 2011) to achieve both these youths seek out of SM economic and non-economic goals of platforms, marketing.
iii. factors that motivate their choice With improvement in this of information need from SM communication technology, and its wide platforms. This is a key block in acceptance, there is a proliferation of designing appeals that can change SM platforms in the last decade behaviour and desire for attracting millions of users especially information. youths who has since identified this iv. effect of SM platforms on the platform as an effective way to promote consumption of nutritional and fashion, entertainment and other dietary information among youths business interest (Boyd, & Ellison, 2007). Today, SM platforms are
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 veritable tools and outlets for promoting public health issues and organized news, information, business and other health-related activities on leading issues of concerns to youth ranging social media platforms such as from health, politics and education. The YouTube, Twitter, and Facebook. The structure of these sites is same from quality of health information available allowing users to create personal to users on these platforms is highly profiles, while connecting with other variable raising some concerns that users, posting and uploading of contents social media users are exposed to such as information and photographs at unopposed viewpoints that counter core any given time (Pempek, Yermolayeva, public health recommendations and & Calvert, 2008) and creating values for contemporary medical science, such as businesses. The social media platforms those opposing immunization and by their nature have the capabilities of promoting smoking (Obukoadata & promoting, educating, informing, Abuah, 2014). These concerns are entertaining and inflaming the audience. endless more because of unrestricted Above all, they possess a contagious access to post contents that contradicts and outreaching influence which the established protocols.
. conventional media lack. This potential 2.1 Youth participation in the social is most likely what Osahenye (2011) media refers to as unstoppable power of the Based on United Nations classification, social media. youths constitute people less than 35
In recent time, the transformational years of age. Demographically, youths power of SM has advanced beyond for make up bulk of developing country social interaction to include promotion population with the highest prevalence of business, education and politics to of malnutrition. In addition, they healthcare and other information need. provide potential demand and pool of The concomitant realization is that skills to confront challenges and meet institutions and organization have sustainable development goals such discovered this platform to be a key climate change, reduction in vehicle to promote, transform, enhance environmental waste among others. and change consumer behavior in According to 2008 Nigeria society. The increasing acceptance and Demographic and Health Survey, they participation of greater number of represent more than 55% of the total youths has altered its intent, hence it is population and constitute a large has become a powerful source of other consuming population and market for information today. Although there is a goods and services. This by implication great deal of interest in using social means that their consumption power media platforms as a tool for public could negatively affect the environment health communications, the research in either positive or negative way. evaluating its utility is still in its Given this, they are the power of infancy. There is an abundance of both sustainable development. To effectively informal health conversations related to do this, they require knowledge of what
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 works, and social media provides a 2.2 Empirical review vehicle to access large amount of The influence of SM on behaviour have information following deregulation of been a subject of interest among social many developing nations policy makers. Several researchers have telecommunication sector. written extensively on the subject
Evidence has shown that the youth matter. Njoroge (2013) conducted a constitute a bulk of social media users study that sought to find out the impact (Wiley & Sisson, 2006). This apparently of social media among the youth on is a direct result of the fact that the behavior change in Kenya. The goal of internet is dominated by young people the research was to address the impact (Salako & Tiamiyu, 2007). Statistics of SM on the Kenyan youth especially globally have continued to show a university students on various SM positive link between youth and platforms and its consequences on their technology especially use of internet. behaviour. The study revealed that the This fact may be attributable to early youth in Kenya use social media a lot exposure to technology and dynamic and they spend more time on the multimedia character which lends itself computer (on an average they spend 2-5 to all manner of uses and users. And hours a day on the computers). Majority given that the youth are naturally of the student spend more time surfing adventurous, willing to experiment on the internet, and more time is expended all manner of innovations, the internet on Facebook, WhatsApp and Twitter. mesh perfectly into this lifestyle. The Most of these respondents used their validity of this fact has been empirically mobile phones to access the internet demonstrated in relation to various especially on WhatsApp - a mobile climes including Nigeria. Even a mere phone application. Furthermore, the casual observation is likely to convince result shows that younger people prefer one that Nigerian youths constitute the technology enabled means of core of the internet-using population in communication than the traditional the country. A significant segment of method. This is because messages are the youth users of the internet in Nigeria received real time, faster and more are students, both of secondary and convenient. tertiary levels of learning (Salako & The study further revealed that social Tiamiyu, 2007). media had various effects on the
Given the above and its implications on behavior of the respondents. For national development, it will be suicidal instance, it is indicated that, 63% either to consider a growing appeal to harness agreed to a large extent or to a very the resourcefulness of SM in promoting large extent that social networks help nutritional and dietary information them in maintain contacts with old without shared cooperation and friends and create new friends. This responsibility from younger generation. finding is consistent with Livingstone This is because youth represent the hope (2008) who posited that, social of the future of any nation or society. networking sites enable communication
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 among ever-widening circles of giving special attention to the role of the contacts, inviting convergence among internet in that process. Adolescents’ the hitherto separate activities of email, behaviors and opinions relevant to messaging, website creation, diaries, finding nutrition information were photo albums and music or video investigated using Kuhlthau’s (1993) uploading and downloading. One major iterative model of information-seeking negative drawback to this finding is the as a theoretical foundation. Since many revelation that SM makes the youth lazy skills are required to search, engage and most of them admitted to a waste of with, and use online information sources time that would otherwise have gone and information, the information- into other productive activities like seeking process was investigated in reading. relationship to an applied context of
Adum, Ekwugha, Ojiakor and Ndubuisi eHealth literacy (Norman & Skinner, (2016), investigated social media 2006), referred to as eNutrition literacy. participants’ response to health posts on From six in-depth interviews and a brief epidemics. The study seeks to measure paper-and-pencil questionnaire with influence of information obtained from seventy-nine adolescents aged 12-16 SM platforms on participants beliefs two trends emerged: 1) these and actions regarding epidemics in adolescents were primarily presented South-east Nigeria. The study revealed with and fulfilled nutrition information that the influence of SM, going by the needs in formal settings such as school position of the media system and 2) these adolescents used the dependency perspective, would be even internet to fulfill primarily personal stronger in urgent, threatening and needs. Therefore, a conflict existed uncertain situations such as epidemic between the ways they used the internet outbreak, as people are likely to be and the ways they were presented with a under pressure to relieve their nutrition information-seeking task. uncertainty, hence their ready recourse Nutrition-specific information literacy, to the media for information and media literacy, health literacy, and guidance (Baran, 2010). The experience scientific literacy, created challenges in of Nigerians about salt therapy during stages of the information-seeking the 2014 Ebola epidemic reinforces the process as well. Fundamentally, this influence of SM during emergency affected their overall engagement with situations (Obukoadata, & Abuah, online nutrition information and their 2014). Consequently, there is an urgent ability to receive the maximum benefits need for health communicators and from the online information-seeking policymakers to begin to appreciate the process. place of social media in informing and Ayodele, Wambui, and Ndeti (2017) influencing the health choices of people. carried out a study to evaluate factors
Larsen (2010) conducted a research to that affect use of social media for HIV examine the ways adolescents find and and AIDS communication among make sense of nutrition information, federal university undergraduates in
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South western Nigeria. The study seeks and strategic reasons. It is a federal to examine the usefulness of social university that comprises students from media in HIV and AIDS information various cultural and ethnic background, and communication machinery. The which gives the study the needed study adopted a cross-sectional research diverse opinion to make informed method and revealed that blogs (41.1%), conclusion. This is also one public twitter (25.4%) and WhatsApp (17.7%) institution where it is possible to find were the social media sites preferred by youths from varying background. male and female respondents for sharing Importantly, more than 90 percent of and accessing HIV and AIDS students in MOUAU fall within the age information. The use of these social bracket of youths. This makes the media sites for HIV and AIDS choice of the university very apt for this information communication was study. influenced by privacy and neutrality. It In addition to the above, MOUAU is also showed that majority of the surrounded with other sister federal and undergraduates affirmed that HIV and state institutions such as National Root AIDS information on social media Crop Research Institute (NRCRI) and platforms was very useful because it National Open University of Nigeria facilitated access to quality tips on HIV. (NOUN) and Abia State University, A significant percentage of the Uturu (Umuahia Campus). This respondents also affirmed that the use of therefore makes this location very social media was hugely affected by important and strategic for this study. epileptic nature of power supply, poor Given the large population of MOUAU network connectivity, ICT skills and and to ensure that all students have cost of subscription. The study equal chance of selection, the study suggested the campaign on prominent adopted a multi-stage sampling HIV/AIDS discussion sites and ICT technique. The first stage involved a skill acquisition to enable youth to purposive selection of six (6) Colleges connect and effectively make use of from the nine (9) Colleges in MOUAU. social media for HIV information The second stage involved a random communication selection of four (4) departments, one
3.0 Methodology from each of the six Colleges, while the The study adopted a survey research third stage involved the selection of design given its insight into behavior of forty (40) students from different levels the respondents of interest. The study comprising 20 students for each gender. was carried out in Michael Okpara This aggregates the total sample size for University of Agriculture, Umudike this study at 240. This method no doubt (MOUAU), Abia State, Nigeria. The involved element of authors discretion University is one of the three in order to select youths that are specialized universities of agricultural in competent to give the right information Nigeria established in 1992. The choice on the subject matter. This did not in of this MOUAU is both for convenience any way invalidate the outcome of the
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 study. Out of the total of 240 X5 = Youtube usage (Mean Score) questionnaires distributed, the study X6 = Google+ usage (Mean Score) makes use of only 149 (62.08%), after X7 = Linkedin usage (Mean Score) analysis of the responses. Data was X8 = Snapchat usage (Mean Score) sourced with the use of questionnaire U = Error term designed, pretested and validated by experts to ensure reliability with 4.0 Result and discussions Available social media platforms and instrument and subject of interest. usage among youth Analytically, the study adopted multiple There are various social media regression and descriptive statistics to platforms available on the internet that analyze data obtained. The data was specializes on their kind of activities. analysed with the aid of the computer Their usage depends on a lot of things software, statistical package for social which includes awareness of such science SPSS version 20. The explicit platforms, recommendations from form of the regression equation is given friends/family, personal interest (hobby) below etc. Like any other information, it is Y = β + β X + β X + β X + β X + 0 1 1 2 2 3 3 4 4 necessary to identify the most used to β X + β X + β X + β X + U 5 5 6 6 7 7 8 8 enable decision makers design strategies Where to reach a wider spectrum of the youth Y = Consumption of nutrition and with message about a given dietary information (Mean Score) phenomenon. Table 1 presents the X = Facebook usage (Mean Score) 1 various SM platforms and usage among X = Whatsapp usage (Mean Score) 2 youths. X3 = Twitter usage (Mean Score) X4 = Instagram usage (Mean Score)
Table 1: Social media platforms and usage among youth (n =149) Platforms Very Often Often Not Often Mean Facebook 56.8 31.8 11.5 2.45 Accept WhatsApp 59.3 35.2 5.5 2.54 Accept Twitter 68.4 19.5 12.0 2.56 Accept Instagram 37.3 41.8 20.9 2.16 Accept YouTube 35.3 38.3 26.3 2.09 Accept Google+ 33.3 45.0 21.7 2.12 Accept LinkedIn 23.0 30.1 46.9 1.76 Reject Snapchat 23.9 26.1 50.0 1.74 Reject Source: Field Survey Data, 2018 Cut-off score: If > 2.0 = Accept as more used, < 2.0 = otherwise reject
Kinds of information youths seek information these youths seek for in from SM and factors that SM. This result is not surprising given motivate them that youths are the target of most Table 1 indicated that fashion, news fashion and entertainment industry. report and business are the three major Fashion and entertainment support
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 youth positive vibes and lifestyle. Most is because you do not dedicate time and youths learn their styles from their role resources to ventures you are not models and other celebrities on SM. interested in. This may have been partly Observable evidences on the internet responsible for negative lifestyle of shows that most youth finds SM as a youths in our society. The energy of the platform to showcase their talents and youth is important in the fight for business. They are using such platform malnutrition. Hence it is vital to to advertise their businesses and look understand what appeals they seek for in for contacts too. This has severe SM and redesign strategies that will implication on harvesting nutritional enrol them into the path of dietary information for positive outcome. This transition for the good of all.
Table 2: Information need of youths from SM Information Mean Rank Fashion 1.3379 1st News Report 1.3379 1st Business information 1.3356 3rd Health 1.3333 4th Education 1.3239 5th Relationship 1.3219 6th Chat 1.3169 7th Entertainment 1.1879 8th Source: Field Survey Data, 2018
Of course, nothing happens in a implies that millennials acquire vacuum. Certain forces motivate and experience through learning, change behaviour to action (Kotler & consciously or unconsciously. This Armstrong, 2008). The decision to seek result is anchored on the importance of for more information is motivated by carrying out this study in a higher certain forces which is presented in institution of learning to highlight the Table 2. The major reason is learning. goal of literacy and education According to Nto, Mbanasor and qualification of these youths. The Ihendinihu (2010), education is a importance of education in achieving propelling force to the adoption of an the learning process cannot be over- innovation and leads to positive change emphasized. Education is the pathway in the environment. This reinforce the through which the goal of awareness view of Kotler expressed above about creation can be realized. The finding is learning. Experience is acquired through in line with other studies such as Oteh, the process of learning and doing things. Ibok and Nto (2017) and kolkaih, Chio Although there may be seemingly and Hume (2012). Other factors that difference between experience and motivates their information search are education, their relationship is not in personal gain, recommendation by doubt. Experience is acquired through experts, community and social formal and informal education. This engagement.
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However, it is important to note that The implication of the recommendation learning is a relative word. Its meaning from expert is that a product/service is peculiar to situations. Students are information source is key in consumer exposed to many activities that may not perceptual learning development. This be nutritionally related. It becomes is because channel of product important to optimize nutritional information is assumed to provide information channels that meet their inputs on product description, which information need. The ranking of aids in evaluation of the product based learning and personal gain makes the on the following source characteristics - consideration of emarketing tools to expertise, trustworthiness, and ensure visibility of nutritional attractiveness. The source of a product information very vital. Importantly, message affects its credibility and image recommendation by expert remains one (Kotler & Armstrong, 2008). From the pathway to bridging information gap perspective of persuasion theory, source due to the trust and power element in is important given that it enhances the the expert. value of information in a message (Solomon, 2011).
Table 3: Factors that motivate youths to seek such information Factors Mean Rank Learning 0.95 1st Personal gain 0.95 1st Recommendation by experts 0.93 3rd Community interest 0.88 4th Social engagement 0.86 5th Altruism 0.84 6th Empathy 0.83 7th Social Network (peer group influence) 0.83 7th Enjoyment 0.81 9th Reputation 0.56 10th Reciprocity 0.50 11th Source: Field survey data, 2018
Social Media platforms and their result posted R2 of 0.947, which implies effect on nutritional information that about 95% of the variations consumption. observed in the dependent variable Table 4 is a reconfirmation of Table 1. (consumption of nutritional and dietary It highlights the platforms that will information) were accounted for by the guarantee the best outcome for independent variables included in the nutritional and dietary information model, with an equally statistically among youths in the study area. The significant F-value of 310.228.
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Table 4: SM Platforms and their effect on consumption of nutritional and dietary information Variables B T-value Constant 0.888 8.281*** Facebook 0.894 8.801*** WhatsApp 0.356 4.326*** Twitter 0.051 2.043* Instagram 0.096 3.641*** YouTube -0.486 -4.636*** Google+ 0.002 0.200 LinkedIn 0.095 1.596 Snapchat -0.077 -1.282 R2 0.947 F-ratio 310.228*** Source: Field Survey, 2018 *** = Significant at 1%, ** = Significant at 5%, * = Significant at 10%
From the result, Facebook, WhatsApp, and health-related motivational Twitter and Instagram were significant messages on dietary transition, coaching and positive in influencing consumption lifestyle tips among others. Ayodele et of nutritional and dietary information al., (2017) confirms the use of SM in among youth while YouTube was modifying behaviour and passing significant but with a negative sign. information about HIV/AIDS. The Both Facebook and WhatsApp were benefits are endless. positively significant at 1% confidence Although Twitter was significant at level, implying that these platforms are 10% level. It shows that it is equally has strong in influencing information a strong relationship with consumption because users are mostly connected to of nutritional and dietary information sources that they trust who could be among youth. Many institutions that are family, friends and others. This result is waging war against malnutrition are in line with Morris et al., (2011), who active on Twitter such as Global has a similar outcome. They posited that Alliance for Improve Nutrition (GAIN), Facebook holds a great potential to Bill Gates Foundation, Food and influence individuals’ health behaviors Agriculture Organization (FAO). Their by shaping their perceptions of social presences have in no small measure norms and the expectations that they set continue to improve interaction and for themselves, or by improving their education about nutrition literacy, food access to personally relevant safety and nutrition security. It is information. Again, Maged, Dean and equally important to mention that these Steve (2016) observed that WhatsApp institutions are also active on other could involve groups members who platforms such as Facebook. This agrees holds and receive information relevant with studies by Freifeld et al (2014); to their health needs. This information and Han and Kavuluru (2016); who could range from healthcare services demonstrated Twitter’s potential in
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 improving health literacy. The complemented with YouTube and significant level of Instagram traditional methods of communication. reconfirms the study by DeMers (2017) SM has shown over the years that it is that the platform is very vital in complementary communication engagement in contrast to Facebook. machinery and effective tools in This may be due to the fact comparative promoting and changing consumer study shows that age of Instagram behaviour and also a bridge in managing audience is younger than users of millennial expectation and modifying Facebook based on report of 2nd these expectations. However, unlike its Quarter Sprout-Social Index. Although utilization among youths for fashion, this is controversial, it may be right to news report and business information, it argue that both platforms are not can be use much more for other mutually exclusive of each other in purposes such as promoting and pushing for a better nutrition and diet advancing nutrition and dietary outcome outcome in their little ways. in our society. SM platforms therefore The negative significant level of provide a learning ground for YouTube highlights that the platform promotion, educating youth and old may not be a good platform to consume about health and nutrition which is an nutritional and dietary information in important element of the SDG. It is the study area. The platform is mostly however, important to highlight that associated with movies and videos. In expert advice is vital in pushing for most cases, these youths are reluctant to nutritional information. This is because expend their internet data watching of their knowledge, credibility and video in this platform because of high expertise about subject matter and data consumption. Therefore cost prevalence of fake news common in this increases negative perception of platform. Unfortunately, one cannot streaming/watching videos. An average give what does not exist hence it is Nigerian is cost/price sensitive. This is important to create awareness about this also true about data cost. information, source and link where
Conclusion and recommendation necessary. Today, SM and its platforms can be It is on the strength of the findings that used for a lot of things; from business to the study recommends that since the politics, advocacy to marketing and not influence of SM platforms are positive, very recent nutrition promotion and firms can tap its youthfulness to health outcome. No doubt, SM improve knowledge and exposure. platforms will continue to witness Therefore, experts can leverage on it, improvement and enhancement to but must find a strong appeal that mesh promote SGDs and more specifically into youths existing lifestyle to relate Agenda 2030. Among the many nutritional and dietary information to platforms, Facebook, Twitter and promote consumer familiarization, WhatsApp stand out as the most widely knowledge and change behaviour for a used in the study area. This is positive outcome. In addition, it is
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 important for government to improve provide more trusted channels for regulatory policy and accommodate nutrition literacy and education to more network operators to create room achieve SDGs. for more competition that could The youth as the future should look improve service delivery and cost. beyond fashion and be open to other Regulatory agencies and services possibilities that SM presents. The use operators and other stakeholder need to of celebrities to highlights and work together to improve image of SM recommends nutrition information is especially with regards to fake news and also recommended in this study.
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https://www.forbes.com/sites/jays personality predictors of social ondemers/2017/03/28/why- media usage. Computers in instagram-is-the-top-social- Human Behavior, 28(2): 561– platform-for-engagement-and- 569. how-to-use-it/ Kaplan, A. M & Haenlein, M. (2010). Fox, S. & Jones, S. (2009). The social Users of the world, unite! The life of health information: challenges and opportunities of Americans’ pursuit of health social media. Business horizon; takes place within a widening 53:59–68. network of both online and offline Karimova, G. Z. (2011). Interactivity sources. Pew Internet and and advertising communication. American Life Project. Retrieved Journal of media and from communication studies, 3(5):160- http://www.pewinternet.org/~/me 169 dia//Files/Reports/2009/PIP_Heal Kolkailah, A. J. Chio, W. U. & Hume, th_2009.pdf. E. R. (2012). Attitude towards the Freifeld, C. C., Brownstein, J. S., environment and green products: Menone, C. M., Bao, W., Filice, consumers’ perspective. R., Kass-Hout, T., & Dasgupta, Management Science and N. (2014) Digital drug safety Engineering, 4 (2): 2 – 39. surveillance: Monitoring Kotler, P. & Armstrong, G. (2008). pharmaceutical products in Principles of marketing. Boston, Twitter. Drug Safety, 37(5):343– USA: Pearsoneducation Inc 350. Kuhlthau, C. C. (1993). Seeking Han, S. & Kavuluru R. (2016). meaning: A process approach to Exploratory analysis of marketing library and information and non-marketing e-cigarette services. Norwood, NJ: Ablex themes on Twitter. Proceedings Corporation. of the 8th International Larsen, J. N. (2010). Adolescent and conference on social informatics, nutrition information seeking: Springer, 307–322. The role of the internet. Masters Hersey, J. C., Khavjou, O. & Strange, L. thesis submitted to department of B. (2012). The efficacy and cost- journalism and technical effectiveness of a community communication, Colorado State weight management intervention: University, Colorado. Accessed a randomized controlled trial of on 24/1/2019 from the health weight management https://mountainscholar.org/bitstr demonstration. Preventive eam/handle/10217/38609/2010_S Medicine, 54:42–9. pring_Larsen_Jesa Hughes, D., Rowe, M., Batey, M., & pdf?sequence=1 Lee, A. (2012). A tale of two Livingstone, S. (2008). Taking risky sites: Twitter vs Facebook and the opportunities in youthful content
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creation: Teenagers’use of social university students in selected networking site for intimacy, universities in Nairobi, Kenya privacy, and self-expression. New (Unpublished Masters thesis). media & society, 10(3), 393–411. University of Nairobi. Maged, N. K. B., Dean, G. & Steve, W. Norman, C. D., & Skinner, H. A. (2016). Instagram and WhatsApp (2006). eHealth literacy: essential in health and healthcare: An skills for consumer health in a overview. Future internet, networked world. Journal of 8(3):37 medical internet research, 8(9). Marks J. T., Campbell M. K & Ward D. Nto, P. O. O., Mbanasor, J. A., & S. (2006). A comparison of web Ihedinihu, J. U. (2010). and print media for physical Discriminant analysis of arable activity promotion among crop farmers under rural adolescent girls. Journal of banking scheme in Abia State, adolescent health; 39:96–104. Nigeria. International journal Meenakshi, J. V., Banerji, A., Manyong, of agriculture and rural V., Tomlins, K., Hamukwala, P., development, 2(2), 37-40. Zulu, R., &Mungoma, C. (2010). Nwachukwu, I.N. & C.I. Ezeh (2007). Consumer acceptance of pro- Impact of selected rural vitamin A orange maize in development programmes on ruralZambia. Working Paper poverty alleviation in Ikwuano No. 4. International Food Policy LGA, Abia State, Nigeria. Research Institute African journal of food, (IFPRI).Washington DC. agriculture, nutrition and Morris, M. E., Consolvo, S.,Munson, S., development 7(5): 1 – 17 Patrick, K., Tsai, J., & Kramer, Nwachukwu, I. N., Obasi, R. O. & A. D. I. (2011) Facebook for Oteh, O. U. (2015). E-Business: health: opportunities and E-Marketing Conceptual challenges for driving behavior Approach. Nigeria: Rhamat change. In CHI EA’11. ACM, Printing Press NewYork, NY,USA, 443–446 Obukoadata, P. O. & Abuah, F. A. Mpofu, N. & Salawu, A. (2014). (2014). Media surveillance Contributions of HIV AND AIDS function within the context of social networking sites towards the Ebola outbreak in Nigeria: awareness and prevention of the Influences and perceptual frames. pandemic among students of International journal of RhodesUniversity, South Africa. scientific research and innovative Mediterranean journal of social technology, 1 (5): 53 – 66 sciences, 5 (6): 191 – 202. Okoye, J. S. (2011). Online newspaper Njoroge, R. (2013). Impacts of social readers and response to feedback media among the youth on invitation: A survey of behavior change: A case study of regular readers of The Punch, The
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Sun, The Guardian and Daily doi:10.1016/j.appdev.2008.12.01 Trust. UNILAG journal of 0 communication, 3(5):1 – 21. Robbins, S. P. (2008). Organisational Osahenye, K. (2011, February 25). The Behavior,5th edn, Pearson social media challenge. The education Australia, French Guardian, pp. 52. Forest. Oteh, O. U. & Eleodinmuo, P. (2016). Salako, O.A., & Tiamiju, M.A. (2007). Re-industrializing Nigeria’s Use of search engines for agriculture: implication for research by postgraduate agripreneurship development and students of the University of youth engagement in Eyisi, J. and Ibadan, Nigeria. African journal Ituma, A. I. Building of library, achieves and Entrepreneurial Universities in a information science, 7(2):103- developing economy: issues, 115. challenges and prospects. Schaar, S. V. (2016). The influence of Ikwo: FUNAI Press Federal information on consumers risk University Ndufu-Alike, Ikwo, and benefit perception of pp. 193 205 nanotechnology. Project Oteh, O. U., Ibok, I. N. & Nto, C. P. submitted to Marketing and (2017). Adoption and usage of e- consumer behavior group, banking channels in Nigeria: Wagenien University implication for deepening Netherland. financial inclusion. International Smed, S. (2012). Information and business andmanagement journal, consumer perception of the 14(3):1-8 organic attribute in fresh fruit and Pambo, K. O., Otieno, D. J. & Okello, J. vegetables. Agricultural J. (2014). Prospects for economics, 43: 33-48 biofortification reducing Solomon, M. R. (2011). Consumer micronutrient deficiency in behaviour: buying, having and Kenya: Lessons from sugar being. 10th edn. Boston, USA: fortification programmes. Pearson educational inc Proceedings of the 18th IICABR Taggart, T., Grewe, M E., Conserve, D. conference and 130th EAAS F, Gliwa, C. & Isler, M. R. seminar on bioeconomy and (2015). Social media and HIV: a development. Nairaobi, Kenya. systematic review of uses of Pempek, T. A., Yermolayeva, Y. A., & social media in HIV Calvert, S. L. (2009). College communication. Journal of students' socialnetworking medical internet research, 17 experiences on facebook. Journal (11): 2248 of applied developmental United Nations International Children psychology, 30(3), 227-238. Emergency Fund (UNICEF). (2015). Nutrition – the situation.
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Accessed on 21/01/2019 from World Health Organization (WHO). https://www.unicef.org/nigeria/nu (2012). A framework for trition implementing the set of World Health Organization (WHO). recommendations on the (2011). Global Status Report on marketing of foods and non- Non-communicable Diseases alcoholic beverages to children. 2010. Geneva: World Health Geneva: World Health Organization. Available at: Organization. Available at: www.who.int/nmh/publications/n www.who.int/dietphysicalactivity cd_report_full_en.pdf /MarketingFramework2012.pdf World Health Organization (WHO). Wiley, C., & Sisson, M. (2006). Ethics, (2011). Nutrition-Friendly accuracy and assumption: The Schools Initiative (NFSI). use of face book by students and Available at: www.who.int/ employers. Paper presented at the nutrition/topics/NFSI_Briefing_p Southwestern Ohio Council for resentation.pdf Higher Education Special Topics Forum, Dayton, OH.
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No.2, Dec. 2019 ISSN: p. 2006-0300 e. 2334-5708 DOI:
An Open Access Journal Available Online
Accounting Software and Resolution to Financial Insolvency in Nigeria: A Meta Analysis
1Onyia Valerie, 1Falana Abolade & 2Worlu Rowland
1Department of Business administration and Marketing, Babcock University, Ilisan-Remo, Ogun State, Nigeria [email protected] 2Department of Business Management, Covenant University Ota, Ogun State, Nigeria [email protected]
Received: 30th August, 2019. Accepted: 30th September,2019. Date of Publication: December, 2019
Abstract: Financial insolvency is important for sustainable national growth. This can be resolved through liquidity management, which is very important in any organization in terms of the organization’s current assets, current liabilities, short- term borrowings, and management of shortfall or surplus cash for short-term periods, which affects the company’s profitability. Liquidity management should be the company’s goal of working capital management. Such idle cash can be used to invest in another company or diversifiable venture that are profitable. Accounting software or accounting information system is a resolution to financial insolvency in which it captures and records the financial effects of transactions. Accounting Information System (AIS) assists managers in four problem-solving stages, which are recognizing the problem, identifying alternatives, assessing the alternatives and taking managerial decision. The methodology employed for this study is Meta-analysis. The sample size employed was 30 literatures. The overall combined relationship had a P-value of .0000 indicating an overall significant level. Insolvency practice and its regulation is critical to economic development. This is especially true in the light of the unintended consequences of globalisation that may result in economic shock and business failures. Nigeria can benefit from reforms in financial insolvency by benchmarking the reform and practice initiatives of the more advanced countries within and outside Africa. Keywords: Accounting software, Accounting information system, Financial insolvency, Liquidity Management.
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1.0 Introduction company’s goals of working capital The improvement of sustainable management (Pandey, 2010; Orshi & national growth and development in a Yunusa, 2016; Sandhar and Janglani, progressive world is a continuous (2013)). It revolves around the challenge for developing economies component of working capital such as Nigeria. Globalization has management which include brought about the internationalization management of inventory, receivables, of businesses, increased international cash and short term securities and also trade, cross-border flow of credit, and the organization’s current liabilities. the inevitability of some business It also has to do with the timely failures and insolvencies (Okoye & investment of excesses into short Nwaigwe, 2015; Barnard, 2016; marketable securities after inventory Omoregie, 2017). The institution of and receivables have been timely robust and efficient insolvency is thus converted into cash for the timely another important tool for improving payment of accounts payables. the prospects of development in Lamberg, and Valming (2009) Nigeria. supported that it involves eliminating
Financial insolvency occurs when a unnecessary and expensive short term company or a person is in a situation of financing, speedy collection and being unable to pay money owed. investment of excess cash and Financial insolvency can be receivables. The scholars opined in the categorized into cash insolvency and process of speedy collection and balance sheet insolvency. Cash investment of excess cash when it insolvency occurs when a person or a entails liquidity management, company has enough assets to settle organization should avoid illiquidity or debts owed but does not have enough excess liquidity. Zygmunt,(2013) cash or appropriate form of settling the supported that illiquidity is highly risky debt while balance sheet insolvency in any organization in which it creates a occurs when the company or person company’s bad image in the business does not have enough assets to settle world and even loss of creditor’s the debt owed. The difference between confidence leading to high cost of debt cash insolvency and balance sheet for the organization. In the banking insolvency is that in balance sheet sector in Nigeria, illiquidity makes the insolvency, the person or company may depositors to lose confidence, which be declared bankrupt while cash flow may result in the disruption in the insolvency may be resolved through going concern of any banking negotiation of the debtor and the lender institution. The banking sector is the until the asset is sold and the debtor is pillar of any industrial sector because it willing to pay a penalty. is an institution that serves as a link Liquidity management is very between the surpluses of cash and important in any organization in terms providing such funds as debts to the of the organization’s current assets, industrial sectors. Excess cash is also current liabilities, short-term not good when it comes to liquidity borrowings and management of management or working capital shortfall or surplus cash for short-term management of an organization. periods, which affect the company’s Management efficiency and profitability. Liquidity should be the profitability management are positively related such that any poor or inefficient 46
Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 management of current profitability of company, the financial reporting the organization may threaten current system or the general ledger (FRS or management efficiency and vice versa GL) which contains features of and also lead to bankruptcy (Sandhar et traditional financial statement such as al, 2012; Owolabi & Obida, 2012). balance sheet, statement of cash flow, Furthermore, in Nigeria, there have income statement, tax return and other been huge corporate financial distress financial report mandatory by in the industrial and banking sector of regulations and also the management high non-performing loans, insolvency reporting system (MRS) which deals and illiquidity, low capital base, with the special-purpose financial overdependence on public sector report used by the internal management deposits, poor assets quality and weak of an organization in aiding managerial corporate governance system. decision According to Okorie and Agu (2015) AIS is employed to keep track of cited in Campbell and Asaleye (2016) competitive organizational the banking sector depicted a system of environmental forces. Wise companies low depositor’s confidence at constantly reexamine their 25percent of the national gross organizational strategies to reengineer domestic product compared to Africa’s to modern accounting system in order average of 78% and 272% for to adapt their business to the risk and developed countries conditions of the world market. The problem of bankruptcy according Modern accounting system is needed to Ramana et al (2012) is that of poor by fast growing organizations to keep or inexperienced management, fraud track with fast changes all the time, fast changes, the taste of the management growing companies need sufficient and changes in the taste and source of financial and non-financial preferences of customers. Viasta and information to support daily decision Jasenka (ND) opined that accounting making of the management (Kallunki, software or accounting information Laitinen & Silvola, 2011). According system (AIS) is a resolution to financial to Hall (2008), the major task of insolvency in which it captures and accounting and accounting information records the financial effects of system is to provide adequate transaction. In modern accounting information for the requirement of tax information system, useful financial administration, various managers for and non-financial can be obtained for liquidity management towards the aiding efficient decision making for attainment of the overall objective of both internal and external users. The the organization. it helps managers at authors opined that it comprises of the all levels to solve managerial problem transaction processing system (TPS) and processes and also financial analyst which deals with various operations of for informed prediction. The the business with many documents and information derived from AIS assist messages for users throughout the managers in four problem-solving
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 stages which are recognizing the software and resolution to insolvency problem, identifying alternatives, in other sectors and contexts but there assessing the alternatives and taking are inconsistencies in the impact of managerial decision. accounting software as a resolution to Fast growing companies and large insolvency in Nigeria. organizations prefer independent AIS 2.0 Literature Review platform because of the complexity of Accounting software has never been software programming languages and static, the historical perspective of their standardized information needs. accounting software has been According to Granlund (2011), the excavated by Eamonn (2012) from information needs of an organization 1974 when accounting was performed are anchored on whether the company manually on a paper-based trial should develop customized system balances and rapidly transformed into from the beginning engaging in-house spreadsheets on Lotus 123 as the systems development activities or buy original double entry system during the from the software vendor already early era of PC. During this era, Turbo programmed or preprogrammed Cash was launched around 1987 with commercial systems. In choosing a an automated system for trial balance, commercial software, it is important to balance sheet. It took 15 days of understand the business model, consult consolidating ledgers. It was the first other businesses using the software and software for consolidating trial balance weigh the budget of the management to and this software was limited with decide whether to customize a software some important features like from the scratch to fit in the business calculating tax or invoicing for model. organization. In buying a commercial software, it is Later the first era of accounting important for such commercial software was revolutionized from 15 software to firstly be able to have basic day process of consolidating ledgers features on inventories, invoicing, is was reduced to minutes and seconds. the software easy to use or understand, Important features were included to what are the after sale service of the calculate client tax and invoices and software vendor, is the software needs also web-based software where just once subscription or license fees, accounting information can be stored the openness of the API towards and integrated with other API or integrating to other software or mobile device. This greatly had a great business tools. This study is to impact in the reporting of financial determine the effect size of various information to its various users but literatures of scholars on accounting before this revolutionized era of software or accounting information as a accounting software, DOS based resolution to financial liquidation accounting systems were highly stable, The major problem of this study is that but lacking in updating features there are various studies on accounting Eamonn (2012).
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019
Accounting has now become more in Nigeria can be audited by an audit inventive in the form of business firm in the United Kingdom. Cloud intelligence (BI) and also clouds computing allows audit firms to computing in which financial perform their audit engagements as an information is being stored in the independent operation. It also allows cloud. In this era, accounting software audit firms to interact with the client on has revolutionized beyond just mere terms of engagement (Alzolu, 2011; accounting packages of inventory and Kamil, 2012). After the terms of client’s invoices. Accounting software engagement have been agreed and next in this period according to Lea (2007) the audit clerk visits the client, the can now integrate with each other, in audit clerk is opportuned to take with which other non-accounting features them the client’s financial and tax data similar to enterprise resources on a phone or tablet. This allows planning, Customer relation facilitation of closer relationship with management CRM and Point on sale client through interaction, which POS are been added. This additional reduces agency cost. functionalities been added to Accounting software infiltrating accounting software made it more business software to make it highly intuitive to multi users beyond just intuitive to multi-users has numerous accounting users. Business intelligence advantages especially towards the has globally become a major factor in resolution to financial insolvency of the business world, in which the organizations in Nigeria in terms of smallest system need to adopt as a controlling economic activities of the major feature to be included as a organizations. Accounting software standard in developing an intuitive fosters easy correction of software like data mining, dashboards, nonconformity and Brynjothson and monitoring business transaction and Hin (2003) empirically discovered that alerts to features for upselling and accounting software and investment in giving staff real ways of improving IT has a positive effect on productivity sales. According to Chapman and Kihn growth in the long run. Also in the (2009) it captures the global wind of empirical study of Akanbi (2017), he change with the inclusion of internet supported that accounting software and and mobile devices integrations know IT `influences organizational as cloud computing. The increasing performance positively. number of mobile users have greatly Furthermore, according to Hall (2008), influence the developing of accounting there are various kinds of commercial software in providing mobile resolution software which are turnkey, backbone to financial management and and vendor supported system. Turnkey insolvency. system are systems that are regarded as In the sphere auditing world, cloud tested system. This is a general purpose computing has great influence on system ready for implementation and bigger auditing firms in which a client are customized to support a specific
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 industry. This system allows the use of 3.0 Methodology canned or off-the shelf system and are This paper tried to investigate the effect designed to have built-in software that of accounting Software on its permit the organization to use menu resolution to financial insolvency in choices to customize input, output and Nigeria using Meta-Analysis Version 3. processing. Examples of turnkey The pivotal purpose of Meta-analysis is commercial system are Oracle, SAP, to translate diverse outcomes J.D Edwards and PeopleSoft. empirically measured into a common Commercial software that aid basic standardized scale that can be system structure on which the company combined for many different statistical can build the vendor design and user tests, such as means, variances and interface to suit the client’s unique correlations. The sample size for this needs is called backbone system. study is 30 scholarly literatures. Backbone software are regarded as a Accounting information system is an compromise between the turnkey accounting software which helps in the system and the custom system which management and control of economic produce very satisfactory results but the or financial aspects of the organization. disadvantage of this system is that It is incorporated into the field of system customization is very expensive Information and technology which for small enterprise. This customized assists in transforming raw financial system from the beginning engaging in- data into financial information which house systems development activities can now be useful for various and it is very costly to build Otieno, stakeholders in making qualitative Polo. & Oima, 2013). Vendor decision making (Wilknson, Cerullo, supported system are systems which Raval & Boulianne, 2000). the organization purchases rather than Scholars have argued about the impact develop in –house to capture the of accounting information system in an business model. The difference organization. Langfield-Smith (1997) between Turnkey and Vendor opined that proper design of accounting supported system is that the Turnkey information system helps in the system permits the organization to use increase of organizational performance. menu choices to customize input, Bowens and Abernethy, (2000) also output and processing, but for Vendor opined that it can be used by supported system, the vendor does not organizations as a leverage for meeting only design the software but a solid and more flexible corporate implements and maintains the vendor culture in any dynamic business system. This system is suitable for environment. AIS is used to record and companies with complex system process accurately financial requirements that do not have sufficient transactions leading to better reporting magnitude to explain retaining an in- of financials to the various house system development staff stakeholders. It combines the (Oladipupo, & Ajabe, 2013). methodologies, controls and accounting
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 techniques and innovative technology improvement in the quality of decision of IT to track business transactions and making, better quality of accounting provide financial information that will information and reporting and be used by the management for internal evaluating the performance of the controls’ decision making and also organization, staff and the environment external reporting information through in which the business operates.. It is the preparation and presentation of important to use the AIS to not just financial statement by the management evaluate the business performance but to the various stakeholders (Mahdi, also evaluating the performance with 2010).. the various stakeholders like debtors, Nicolaou (2000) emphasized on the creditors, shareholders etc. in order to importance of AIS on internal control early detect financial insolvency in the system in an organization. the organization and also the liquidity level accounting information system aids in of the business. better internal control system,
Benefits of Accounting Software of Accounting Information System
Source: Researchers Study (2019)
AIS has now become a tool which is business is affecting. According to incorporated to gain competitive Haigh (2011It AIS have now a critical advantage for easier and accurate tool employed by the management of an tracking of financial information, organization to easier achieve processes of raw data into qualitative organizational strategic success towards financial information which is now attaining organizational overall reported by the management to the objective. various stakeholder in which the
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019
To support this argument empirically, In the study of Maria (2016), the author Chang (2001) found out that AIS discovered that management accounting specifically not only improves the software has a significant influence on performance of an organization but also the method of direct cost distribution support management’s chosen strategy and the association on the way in which Hunton, (2002) found out that there is a the valuation of product was strong relationship between accounting comprehended. In the study of Martins, information and business effectiveness Carolyn and Pekka (2006) of an which implies that exposure to Empirical analysis of software sophisticated accounting software will productivity discovered that business foster the effectiveness level of the type or application domain had a key organization. AIS provides information impact upon productivity. In the work in making credit and investment of Mahdi (2010), the study discovered decisions by providing useful that although accounting information information concerning the effective system is very important to Iranian usage of the financial resources. companies, there is a gap amid what
4.0 Meta-Analysis, Results and AIS is and what is ought to be in Iran. Discussion of Findings
Empirical Summary (Meta-analysis) Title Author Variable Sample Correlation Accounting Viasta, Roska Size of an enterprise 116 0.820 information system & Josenka (nd) and the system of for management AIS considering the decision source of its purchase Management Maria (2016) Relationship between 58 0.954 accounting system the design process of indirect cost allocation method and conditioning phenomenon The usefulness of Maria (2015) Relationship between 23 -0.168 accounting price and accounting information on information financial instrument (financial asset) to investor assessing non-financial companies. An empirical analysis on Bucharest stock exchange Usefulness of Mahdi (2010) Hypothesis 4: 498 0.981 accounting Accounting information system information system
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 in emerging confirms with other economy Empirical financial and evidence of Iran managerial system The impact of using Ahmad (2010) The impact of using 14 0.221 accounting accounting information system information system on the quality of on the quality of financial statement financial statement submitted to the submitted in the income & sales income tax and sales Department in department Jordan Design and Rong, Thomas, Productive volume 39 0.076 implementation of Wen (2009) activity based costing system An empirical Huijuan, The relationship 12 0.587 analysis of activity Yangun and between the based costing in Wanxin (2006) implementation Chinese enterprises content and the cost of the project (direct material) An empirical Michael & Top management 143 0.61 analysis of firms Shields (1995) support implementation experiences with activity based costing system Activity based Teemil (1999) Existing system not 34 0.18 costing diffusion visible across organization: An exploratory empirical analysis of Finnish firms Barriers to adopting Fawzi (2008) Innovation and 77 0.80 activity based outcome costing system (ABC): an empirical investigation using cluster Analysis The choice of cost Hangzbou, Fei, Number, depth and 40 0.5833 drivers in ABC Dinghua and distance application at a Thomas (2010) Chinese oil cementing company Activity based Manoj & Return on net worth 53 0.054
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 costing Salhay (nd) management practice in India An empirical study Sriwidharmanel Attitude towards 122 0.0545 of accounting ly & Vina using accounting software acceptance (2012) software among Bengkulu city student An empirical Martin (2006) Size 700 0.63 analysis of software productivity Utilizing a typology Suzana & Introduction of new 92 0.019 of management Falconer (2005) technology accounting change: an empirical analysis Application of Mohammad, Application of 47 0.80 accounting Mohammad, accounting software software: an Mohammad & empirical study on Adhan (2015) private universities of Bangladesh An empirical Rahul, Barbara Effort 102 0.683 analysis of software & Martin productivity (2004) overtime An empirical Ashish, Small 1469 0.80 analysis of vendor Ramayya, response to software Rahul, Yubao vulnerability (nd) Empirical analysis Evelyn, Sandra Package 21 0.0346 of software & Chris (nd) evolution profiles and outcome An empirical Andre, Vitor, Stealing patterns 1.53 0.946 analysis o malicious Victor, Daio & internet banking Mario (2013) software behavior An empirical Boluwuji, End users IT skill 150 0.335 analysis of end user Faith, Stephen, level participation in Elijah, Paula software (2013) development project in a developing country context Determinants and Carol, Robert Case mix 1150 0.118
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 consequences of (1994) management accounting system choice: an empirical analysis The declining value Alex (nd) Non- information 149888 0.90 relevance of based trading volume accounting information and non-information based trading: an empirical analysis An empirical Usma, Ali (nd) Software errors 80 0.90 analysis of relative predictive strength of different factor in estimating software errors Bayesian analysis of Sunita, Barry, Analyst capability 161 0.7339 empirical software Bert (1999) engineering cost model An empirical Gabriele, System 2118 -0.15 analysis of the Abdallah, characteristics & test institution of unit Rocco, Andrea smell test smells and their impact on software maintenance An empirical Paul, Jon, Annc System criticality 20 0.505 analysis of the (2000) effect of criticality, complexity and organizational influences on software reliability An empirical Ray, Philip, Net income 100 0.07 evaluation of (1987) accounting income number Accounting control Robert. (1987) Relationship between 64 0.08 system and business ROI and control strategy: an system empirical analysis Computerized Kojo, Isaac, Manual accounting is 43 0.744 accounting in Evans (2018) cheaper than Ghana. The shift computerized
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 from books to accounting benefits and challenges associated with the transition
Table 1 Fisher Z and Standard Error Variable Sample Correlation Standard error Fisher Z Size of an enterprise and 116 0.820 0.034 1.157 the system of AIS considering the source of its purchase Relationship between the 58 0.954 0.135 1.874 design process of indirect cost allocation method and conditioning phenomenon Relationship between 23 -0.168 0.224 -0.170 price and accounting information (financial asset) Hypothesis 4: Accounting 498 0.981 0,045 2.323 information system confirms with other financial and managerial system The impact of using 14 0.221 0.302 0.225 accounting information system on the quality of financial statement submitted in the income tax and sales department Productive volume 39 0.076 0.167 0.076 The relationship between 12 0.587 0.333 0.673 the implementation content and the cost of the project (direct material) Top management support 143 0.61 0.085 0.709 Existing system not 34 0.18 0.180 0.182 visible Innovation and outcome 77 0.80 0.116 1.099 Number, depth and 3 0.5833 0.164 0.667 distance Return on net worth 53 0.054 0.141 0.054 Attitude towards using 122 0.0545 0.092 0.055
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 accounting software Size 700 0.63 0.038 0.741 Introduction of new 92 0.019 0.106 0.019 technology Application of accounting 47 0.80 -0.1`51 1.099 software Effort 102 0.683 0.`101 0.835 Small 1469 0.80 0.026 1.099 Package 21 0.0346 0.236 0.035 Stealing patterns 153 0.946 0.082 1.792 End users IT skill level 150 0.335 0.082 0.348 Case mix 1150 0.118 0.030 0.119 Non- information based 149888 0.90 0.003 1.472 trading volume Software errors 80 0.90 0.114 1.472 Analyst capability 161 0.7339 0.080 0.937 System characteristics &0 -0.15 0.258 -0.151 test smell System criticality 20 0.505 0.243 0.556 Net income 100 0.07 0.102 0.070 Relationship between ROI 64 0.08 0.128 0.080 and control system Manual accounting is 43 0.744 0.158 0.959 cheaper than computerized accounting
Fisher’s Z transformation is employed have used for other effect size statistics, to find confidence intervals for both r the correlation coefficient can be and the dissimilarities between presented as an effect size statistic. correlations. But it’s perhaps most From a statistical perspective, effect universally employed to test the size values based on larger samples are significance of the dissimilarity more precise estimates of the between two correlation coefficient r1 corresponding population value than and r2 from independent samples. If r1 those based on smaller samples. Once is larger than r2 the Z-value will be the Fisher’s Zr was calculated, the next positive and if r1 is smaller than r2 the step was to measure the actual weights Z-value will be not be positive. based on the inverse of the standard Fisher’s Zr transformation can be error value of the squares to produce defined as ES= 0.5log (1-ES\1-ES the inverse variance weight. For where r is the correlation coefficient, convenience in conducting some of the and zr ES is the corresponding analyses, the researcher may use a Zr- individual or mean Zr-transformed transformed version of this effect size correlation. Expressed in the forms we statistic, then convert the results back
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 into regular correlation coefficients for interpretation.
Table 2 Meta- Analysis of Accounting and Resolution to Financial Insolvency Variable Sample Correlation Lower Upper Z- value P- limit limit Value Size of an 116 0.820 0.750 0.872 12.297 0.000 enterprise and the system of AIS considering the source of its purchase Relationship 58 0.954 0.923 0.973 13.902 0.000 between the design process of indirect cost allocation method and conditioning phenomenon Relationship 23 -0.168 -0.543 0.262 -0.759 0.448 between price and accounting information (financial asset) Hypothesis 4: 498 0.981 0.977 0.984 51.634 0.000 Accounting information system confirms with other financial and managerial system The impact of 14 0.221 -0.351 0.673 0.745 0.456 using accounting information system on the quality of financial statement submitted in the income tax and sales department Productive volume 39 0.076 -0.245 0.382 0.457 0.648 The relationship 12 0.587 0.020 0.868 2.019 0.043 between the implementation content and the cost of the project (direct material)
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Top management 143 0.61 0.495 0.704 8.388 0.000 support Existing system 34 0.18 -0.168 0.488 1.013 0.311 not visible Innovation and 77 0.80 0.702 0.869 9.451 0.000 outcome Number, depth 3 0.5833 0.332 0.757 4.060 0.000 and distance Return on net 53 0.054 -0219 0.320 0.382 0.702 worth Attitude towards 122 0.0545 -0.124 0.230 0.595 0.552 using accounting software Size 700 0.63 0.583 0.673 `19.574 0.000 Introduction of 92 0.019 -0.187 0.223 0.179 0.858 new technology Application of 47 0.80 0.66 0.884 7.97 0.000 accounting software Effort 102 0.683 0.562 0.775 8.305 0.000 Small 1469 0.80 0.781 0.818 42.064 0.000 Package 21 0.0346 -0.403 0.459 0.147 0.883 Stealing patterns 1.53 0.946 0.926 0.960 21.951 0.000 End users IT skill 150 0.335 0.185 0,470 4.225 0.000 level Case mix 1150 0.118 0,061 0.175 4.015 0.000 Non- information 149888 0.90 0.848 0.335 12.919 0.000 based trading volume Software errors 80 0.90 0.848 0. 12.919 0.000 935 Analyst capability 161 0.7339 0.853 0.798 11.780 0.000 System 0. -0.15 -0576 0.341 -0585 0.585 characteristics & 18 test smell System criticality 20 0.505 0.080 0.774 2.292 0.022 Net income 100 0.07 -0. 0.262 0.691 0.490 128 Relationship 64 0.08 0.169 0.320 0.626 0.531 between ROI and control system
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Manual 43 0.744 0.571 0.854 6.068 0.000 accounting is cheaper than computerized accounting Random 0.600 0.427 0.731 5.735 0.000
The study shows a negative lower limit than point 0.05, P-Value of the variable of the relationship between price and of innovation and outcome is 0.000, P- accounting information, accounting Value of the variable size is 0.000, P- information system on the quality of Value of the variable of application of financial statement submitted in the accounting software is 0.000, P-Value sales department, production volume, of the variable of effort of 0.000. P- return on net worth, attitude towards Value of the variable of smell is 0.000. using accounting software, introduction P-Value of the variable of stealing of new technology, packages, system patterns is 0.000. P-Value of the characteristics, and net income. All variable of end users IT skill level is other variables are positive. The study 0.000. P-Value of the variable of non- shows a negative Z-Value of the information based trading volume is relationship between price and 0.000. P-Value of the variable of accounting information, system software errors is 0.000. P-Value of the characteristics and test smell. All others variable of manual accounting is show a positive Z- value. cheaper than computerized accounting The P-Value of the study shows the is 0.000. The overall combine effect overall significant level. The variable (Random) of correlation of 0.600 of a of the size of an enterprise and the P-value of .0000 which have an overall system of accounting information significant level. system considering the services of its 5.0 Conclusion and purchase P-value is 0.000 which is not Recommendations. greater than 0.05. The P-Value of the The SEC (Securities Exchange variable showing the relationship Commission) plays a key role in the between the design process of indirect Nigerian corporate sphere. cost allocation method and Consequently, it has vast experience conditioning phenomenon is 0.000 that it can contribute to solving which is not greater than 0.05, the P- financial insolvency in Nigeria. It is value of the variable of accounting recommended that the SEC is better information system confirm with other placed to oversee matters relating to financial and management system is solving financial insolvency than the 0.000 which is not greater than point CAC (Corporate Affairs Commision) 0.05. which is mainly responsible for P-Value of variance top management administrative matters like the support of 0.000 which is not greater registration of companies, filing of
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 documents, inter alia. SEC should liaise most decisions without oversight. In with, and coordinate the activities of any case, the Nigerian courts are still the courts, the Bureau of Public ill-equipped to play even a diminished Enterprises (BPE), Chambers of role, as administration requires. The Commerce, the CAC, and BRIPAN feedback received from these officers (Business Recovery and Insolvency would help to reform and facilitate the Practitioners’ Association of Nigeria). distressed resolution system. The It should create rules that coincide with Investment and Securities Act was other key rules regulating companies fundamental to the reform of the that it has or design to mitigate banking sector; unlike the insolvency inconsistencies. The debt recovery system. It should be noted however, professionals must, at least, be trained that the banking sector was reformed to to accomplish their tasks. facilitate access to credit. The Administrators and banks prefer to government and its central bank have as little oversight as possible from officials are bound to recognize, the courts. It is difficult, given their, perhaps sooner than later, with reported, proclivity for fraud, to sustained efforts from BRIPAN that the envisage a system in Nigeria that economy will benefit from reforms to would permit the practitioners to take the insolvency system.
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Chang, Y. W. (2001). Contingency and firm performance. factors and accounting information International Journal of system design in Jordanian Accounting Information companies. Journal of Systems, 12(1): 20-39. Accounting Information System, 8. Kamil, O. (2012). The Application of 1-16. Artificial Intelligence in Auditing: Eamonn, R. (2012). The Evolution of Looking back to the Future. Accounting Software: Past, Expert System with Present and Future. GAA Applications, 39(9), 8490-8495. Accounting. ` Retrieved from Langfield-Smith, K. (1997). www.gaaaccounting.com/the- Management control systems and evolution-of-accounting-software- strategy: A critical review. past-present-and- future on Accounting, Organizations December, 25, 2018. and Society 22(2): 207-232. Granlund, M. (2011). Extending AIS Lea, B. (2007). Management research to management accounting in ERP integrated accounting and control issues: A MRP and TOC environments. research note. International Industrial Management & Data Journal of Accounting Information Systems, 107(8), 1188-1211. Systems, 12(1): 3-19. Lee, C. H. Lee, K. & Lee, K. (2000). Grabski, S.; Leech, S., & Schmidt, P. Chaebol Financial Liberation and (2011). A Review of ERP Economic Crisis: Transformation Research: A Future Agenda for of Quasi-Internal Accounting Information Organization in Korea. Mineo. Systems. Journal of Information Department of Economics, Systems, 25(1): 37-78. University of Hawau at Hall, A. J. (2008). Accounting Manoa. Information System (South-West Lamberg, S. and Valming, S. (2009). Collage Publishing). Impact of Liquidity Management Haigh, T. (2011). The history of on Profitability: A Study of the Information Technology. Annual Adaptation of Liquidity review of information science Strategies in Financial Crisis. and technology, 45. UMEA University Master Thesis, Joon-Kyung, K. & Ching, H. L. (2001). Spring Semester 2009, One- Insolvency in the Corporate Sector Year, 15hp. and Financial Crisis in Korea. Mahdi, S. (2010). Usefulness of Journal of the Asia Pacific Accounting Information System in Economy O53. Emerging Economy: Empirical Kallunki, J.; Laitinen, E.; Silvola, H. Evidence of Iran. International (2011). Impact of enterprise Journal of Economics and resource planning systems on Finance.2 (2). management control systems
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Malhotra, R.; Tempori, C. (2010). Ramana, N. V., Azash, S. M. D., & Critical decisions for ERP Ramakrisknaiah, K. (2012). integration: Small business issues. Financial Performance and International Journal of Predicting the Risk of Information Management, 30(1): Bankruptcy: A Case of Selected 28-37. Cement Companies in India. Nicolaou, A.I. (2000). A Contingency International Journal of Public Model of Perceived Effectiveness Administration and Management in Accounting. Information Research 1(1), 40-56. Systems: Organizational Rom, A.; Rohde, C. (2007). Coordination and Control Effects Management accounting and Orshi, T. S., Yunusa, A. (2010). integrated information systems: a Liquidity Management and literature review. International Profitability of Listed Food and Journal of Accounting Information Beverages Companies in Nigeria. Systems, 8(1): 40–68. IOSR Journal of Business and Sandhar, S. K. and Janglani, S. (2013). Management. 18(2), 167-176. A Study on Liquidity and Owolabi, S. A. and Obida, S. S. (2012). Profitability of Selected Indian Liquidity Management and Cement Companies: A Corporate Profitability: A case Regression Modelling Approach. study of selected International Journal of Manufacturing Companies listed Economics, Commerce and on the Nigerian Stock Exchange. Management, UK, 1(1), 1-24. Business Management Sebastian, G. (2010). A Theory of Dynamics, 2(2), 10-25. Corporate Financial Decisions Oladipupo,M, & Ajabe, K. with Liquidity and Solvency (2013).Computer-Based Concerns. Journal of Accounting systems in Small and Financial Economics, 99, 365- Medium Enterprises: Empirical 384. evidence from a randomized trial Thyme, K. (2006). Test of the in Nigeria. Universal Journal of Generalizability of Altman’s Management, 1(1), 13-21 Bankruptcy Prediction Model. Otieno, Polo.J, & Oima D. (2013). Journal of Business Research, 10, Effect of Computerized 53-61 Accounting Systems on Audit risk Viasta, R & Jasenka, B. (ND). management in public Accounting Information Systems enterprises: a case of Kisumu for Management Decisions: County, Empirical Research in Croatia Pandey, I. M. (2010). Financial Wilkinson, J. W., Cerullo, M. J., Raval, Management, (10th Ed.). New V. & Wong-On-Wing, B. (2000). Delhi: Vikas Publishing House Pvt Accounting information Ltd. [ systems: Essential concepts and
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applications. New York: John Informatics and Management Wiley and Sons Sciences, March, 25-29, 247-251. Zygmunt, J. (2013). Does Liquidity Retrieved from impacts on Profitability? A Case http://www.ictic.sk on 12-23- of Polish Information Technology 2018. Companies. Conference of
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No.2, Dec. 2019 ISSN: p. 2006-0300 e. 2334-5708 DOI:
An Open Access Journal Available Online
Service Recovery Tactics and Brand Trust Among Service-Based Small & Medium scale Enterprises (SMEs) in Nigeria: A Review
1Akahome Joy E. & 2Jackson Cyprian
1Department of Marketing, Faculty of Management Sciences, Federal University Otuoke Bayelsa State [email protected] 2Department of Marketing, University of Port Harcourt, Nigeria [email protected]
Received 18th September, 2019. Accepted 20th October, 2019 Date of Publication: December, 2019
Abstract: Service based SMEs in Nigeria are individuals and groups that are solely engaged in rendering services to customers. Studies have shown that SMEs contributed greatly to the development of nations including the developed and developing nations. Among the problems that lead to the failure of SMEs is how competent they are skilled in handling challenges as business evolves. Findings show that among the problems facing SMEs is the lack of market research, low or defective customer service and lack of trained staff which constitute a major aspect of problems faced. The service-based SMEs usually have needs to closely meet their customers as a result of the inseparability nature of services with tendencies of having service failures which could arise from power failure, defective product, incompetent employee, etc. The purpose of this study is to theoretically explore the service recovery tactics for building brands among SMEs in Port Harcourt. The study concludes based on reviews that service recovery tactics are veritable tools in restoring and building trust among service based SMEs in Port Harcourt.
Keywords: Service Recovery Tactics, Refunds, Apology, Compensation, Replace, Brand Trust, Preference, Advocacy
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Introduction firms’ size in comparison to the In several nations including Nigeria, industry members. Additionally, the small and medium scale enterprises National Council of Industry (2003) (SMEs) that well-managed make up the categorized SMEs into four major most contributory sources of classes such as micro with 1-10 employment opportunities and creation employees and less than 1 million of wealth. Members of the society gain capital, small which consist of 11-35 from it as an employment source and employees and capital of 1milliom less income while government institutions than 40 million, medium which consist also gain from SMEs by taxations of 36-100 employees and 40 million which affect social stability. (Etuk, less than 200 million as capital, and Etuk, & Michael, 2014). Notably, fourthly large with over 101 employees there are lots of the business activities and capital of 200 million and above. of SMEs that are not inclusive in the Despite the important roles played by formal national account; they constitute SMEs in a Nigeria, there seems to be a an estimated labor market of over 4-6% constant record of low performance in in developed countries to over 50% in terms of meeting with the global developing nations (Etuk et al. 2014). standards as results of different factors The service-based SMEs are businesses that have been given little or no that are more involved in rendering attention. For example Alli and Jimoh services which are more intangible in (2013) noted that records from nature such as mini hotels, seminars, financial experts show that over 80% of hair styling, hair cut/barbing saloon, SMEs in Nigeria fail within the first 5 home classes and schools, car wash, years due to lack of experience, wrong Cyber café etc. Aremu and Adeyemi business approaches and practices. (2011) argued that the performance and Similarly, a study conducted by Ihua growth of small and medium (2009) on “SMEs Key Failure-Factors: enterprises (SMEs) is a trigger and key A Comparison between the United measure of a country’s industrial level, Kingdom and Nigeria with an interview modernization, urbanization, of both Nigerians and UK. Findings employment ratio, income per capital, showed that poor management was the equitable wealth distribution, welfare most critical factor for failure in UK and living standard. Further, the whereas poor economic conditions and International Finance Corporation infrastructure found to be the remote (IFC, 2006) found a positive cause of SMEs failure in Nigeria. relationship between the overall Similarly, the growth and development income level of a country and the of small and medium scale enterprises number of SMEs per 1,000 individual. (SMEs) in Nigeria over the years is These imply that SMEs growth and faced with factors such as harsh positive performance may have economic conditions. The challenges connection with countries’ growth and are not far from finance, skills and development. Etuk, Etuk, and Michael managerial acumen, inadequate (2014) noted that small and medium infrastructure, week electrical powers, enterprises (SMEs) are defined based bad roads, low institution supports, on specific criteria such as turnover, constant political conflicts, total number of employees, amount of ethnocentric fights, multiple taxations, profit, amount of capital employed, unstable foreign exchange and high finance availability, market share, and 66
Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 inflation rates (Etuk, Etuk, & Michael, gap which the current study seeks to 2014). In addition, Ahmad and Seet bridge. Similarly, Bell and Zemke (2009) opined that among the problems (1987) opined that a service failure that lead to the failure of SMEs is how happens when customers’ expectations competent they are skilled in handling are not reached. Reichheld and Sasser challenges as business evolves. (1990) maintained that businesses Temtime and Pansiri (2004) found that usually lose 15 to 20% of their annual among the problems facing SMEs is customer base as a result of factors the lack of market research, low or like: better offers from competitors, defective customer service and lack of uncontrollable factors, and low service trained staff which constitute a major recovery tactics. Michel, Bowen, and aspect of problems faced. No doubt, Johnston (2009) opined that services these could be the reason most SMEs often fails as a result of unsettled lack the tactics to delivery service tensions between customer, process, effectively to meet and exceed and employee recovery. The customer customer satisfaction in order to build recovery aspect seeks to bring trust. customers back to their satisfied state,
Obviously, studies on the issues that process recovery is geared towards bother on SMEs have attracted lots of understanding the causes of the failure researchers but very few have deemed and reduce its chances of occurrences it necessary to pay more attention to while employee recovery entails how service failure can be recovered to settling employees’ complains to gain brand trust. Meanwhile, effective ensure stable work flow. The service- service delivery posits to be a sine qua based SMEs usually have needs to non as most of the SMEs businesses closely meet their customers as a result require contact and interaction with of the inseparability nature of services customers regardless of whether the with tendencies of having service business is focused on tangible goods failures which could arise from power or intangible goods. Customers will failure, defective product, incompetent always feel bad when they encounter employee etc. How would a business an experience that is negative to their bring back lost confidence or trust as a expectation and these could require the result customers’ bad service business concerned to recover this experience? Hence, this study seeks to experience by making the customers theoretical explore service recovery happy again. SMEs in Nigeria need tactics for brand trust among service- more understanding of what brand trust Based SMEs in Nigeria. means and how it could be enhanced Theoretical Foundations using service recovery tactics as trust Expectation-Confirmation Theory seems to be key in business. The The expectation confirmation theory dearth in literature linking SMEs (ECT) is a cognitive theory that services recovery tactics and brand explains consumers after purchase trust in Nigeria stands as a literature behavior based on the functions of
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 expectation, perceived performance satisfaction indicates the degree of and belief. The theory was developed individuals delight about what is was by works of Richard L. Oliver in the expected and what was given. year 1977 (Oliver, 1997). The Furthermore, the theory faces some expectation-confirmation theory states limitation despite its relevance to that satisfaction of individual management and marketing decision customers depends on the interplay of making. Hill (1985) opined that the prior expectations and perception of theory lacks validation of its delivery. The theory opines that before applicability in experiential services any event, one already has an that poses difficulty in measurement expectation and if that expectation is than tangible goods which may be met in a positive manner, then one is easily measure. Further, the theory satisfied but a situation where the asserted that when a consumer does not expectation is met in a negative manner meet or meet his/her expectation, the then one is dissatisfied (James & Gary, customer gets satisfied/dissatisfied 2009). Oliver (1980) opined that the which usually not in all purchase expectation confirmation theory situations. Also, Churchill and explains and suggests that customers Surprenant (1982) argued that the ECT buy goods/services based on their suffers limitation in its inability to expectations for a good performance. incorporate and specify other consumer The theory relates to the Gaps Model buying decision standards like ideas, which is based how consumers evaluate desires, and tolerable level which are quality and takes into consideration the core part of the decision variable. factors that contribute to determine the Nevertheless, Chiu, Hsu, Sun, Lin, and quality such as quality expected by the Sun (2005) opined that expectation customers, quality offered by firms, confirmation or disconfirmation theory and quality perceived by users after the is widely appreciated as a model of the service consumption (Oliver, 1980). consumer behavior which is used in Further, Oliver (1977) noted that the explaining and predicting consumer’s ECT holds four major construct which satisfaction and repeat purchase are expectations, perceived behavior. Further, the theory can be performance, disconfirmation belief, used to explain how consumers react to and satisfaction. According, the service failure and service recoveries as expectation entails features that an well. It enables owners of small and individual anticipates, perceived medium enterprises (SMES) in Nigeria performance is an individuals’ personal to understand that when a consumer is judgment about the functionality of a faced with a failed service, the product. Also, disconfirmation belief is consumer feels dissatisfied as a result the comparison between what an of the fact that it does not meet the individual expects and what is actually expectation. This creates a gap between received which could either be positive the consumer and the business or negative disconfirmation while organization. It becomes the role of
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SME manager or service provider to For instance, in Nigerian business bridge this gap via service recovery could callback a customer who bought tactics. an item that is defective to ensure the Review of Related Literature item is in a good condition. Further, Concept of Service Recovery Tactics saying “we are sorry for the The concept service recovery is defined inconveniences” to customer who did as the actions undertaking by a not get the exact service paid for business that renders services in implies adoption of apology in service response to a service failure (Gronross, recovery. Service recovery tactics 1988). Sparks’ (2001) classification of constitutes all efforts taken to make the service failures differentiates between customer smile when an error of failure acts of omission and acts of occurs in the service centre. commission. Acts of omission are Further, Johnson and Michel (2008) committed if the service offering is not identified seven important activities provided, for example, a flight is involved in customer recovery to cancelled or a reserved seat on an acknowledgement, empathy, aircraft is not available due to apologizing, owning the problem, overbooking. Conversely, acts of fixing the problem, providing assurance commission refer to situations where and providing compensation. Gordon the service is delivered but not to and Terrence (1991) maintained that acceptable standards. Service recovery effectiveness of service recoveries is defined as attempt made by depends on the level of responsiveness, organization to compensate for the empathy, and better understanding of negative effects of a breakdown in the problem at hand. The concept of order to alter customers’ dissatisfaction service recovery can be divided into to satisfaction and ultimately to retain technical and functional dimensions. those customers (Zemke & Bell, 1990). The technical dimension entails what Michel (2001) opined that service customers actually obtain from a recovery seeks to settle short comings service provider which are part of the at the environment where the service is tactics used to recover failed service, being rendered before customers while the functional dimension consists complain or get dissatisfied. Bitner, of how the tactics process is executed Booms, and Tetreault (1990) opined (Lewis & Spyrakopoulos, 2001). that service recoveries ranges from Service recovery tactics is the measures doing what it takes to restore faults in tacking by a business organization in the service delivery. The study order to bring a customer back from identified several dimensions service sad mood or moment of regret to a recoveries such as apology, assistance, happy mood. Lewis and McCann follow-ups, acknowledgement, (2004) identified different tactics compensation etc which depends on the undertaking in response to service kind of situations including the type of failures to include apology, corrective service involved. actions, empathy, compensation,
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 confirmation, explanations, exceptional customers’ goods or services are treatments, management intervention. exchanged for another similar or The authors opined that each tactics different one as result of default or can be either used independently or as a unpleasant experience. combine mechanism to recovery Concept of Brand Trust service failure. Brand trust is the customer’s belief that Refunds a business is worthy and faithful in Refunds are policies taking by terms of keeping to their promises and businesses to allow customer who rendering of services devoid of deceits. bought faulty goods or undervalued Chaudhuri and Holbrook (2001) service to receive their payments or defined brand trust as the willingness charges back. Refunds entails a of an individual customer to depend on business practice that enables a the ability of the brand to perform the customer to be paid back his or her function is has said to perform. Brand money if the service received is not trust is an element of loyalty and equivalent with what is paid for in support which is derived from positive order to make the customer feel customer experience over a period of satisfied. time. Supportively, Pina e Cunha, Rego
Apology and Kamoche (2009) opined that trust Apology is the act of saying sorry to is logically connected to loyalty. In customers when they receive a service other words, those who do not trust a or a product that does not meet their business organization will likely not be expectations. Apology is expression of loyal as well. Also, Rod and Ashill respect and value to the individual (2010) opined that trust is an important customer’s value and showing of element in explaining loyalty divided remorse when the businesses delivery trust in credibility and benevolence. does not match what. Brand trust is a vital element in
Compensation achieving successful marketing Compensation is the act of paying an practices (Garbarino & Johnson, 1999). individual an amount that is equivalent Ganiyu, Uche and Elizabeth (2012) or near equivalent to his or her lost. agreed that customer satisfaction can Compensation may not necessary be an lead to trust and a repurchase behavior. amount of money but could be in Trust is when a customer highly services or goods given to an individual believes in the performance of a particular product or organization. customer to serve as a make-up for a loss. Preference
Replace Preference is choosing or liking Replace is a business activity that something instead of another. It is a involves replenishing a defective part of consumers’ behavior which product with a better or another could occur as a result of personal or alternative. Replacement occurs where general reasons such as price, belief, taste, age, location, relationship,
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 gender, income etc. Trust could also be profits including and customers’ a reason for preference as studies like advocacies. A study conducted by Pina e Cunha, Rego and Kamoche Abou and Abou (2013) on “The (2009); Ganiyu, Uche and Elizabeth Influence of Perceived Service Failure (2012) have shown that trust is directly Recovery Strategies on Customer related to loyalty and positive attitude Satisfaction and loyalty in Hotels.” towards a product or organization. Using critical incident technique, 172
Advocacy samples collected from both foreign Advocacy is the intentional or willful and non foreign guest of hotels in act of an individual in supporting a Egypt found that service failure has the view or an idea. Consumers’ advocacy ability to influence satisfaction and is the consumer’s willingness to tell intentions of customers negatively. The good stories about a specific product or result also shows that service recovery organization to others as result of trust is a veritable tool to enhance loyalty of and loyalty. Lowenstein (2011) opined customers. Nwokorie (2016) conducted that customers are brand advocates a study on Service recovery strategies when they are loyal for a very long and customer loyalty in selected hotels period of time. Advocacy of consumers in Lagos State, Nigeria.” Using does not come in at immediate effect, inferential statistics and z-test statistical rather it comes via long period of technique, findings show that there is a skeptics, trial, experience that conforms significant relationship between service to their expectations. recovery strategies, satisfactory, and
Empirical Review loyalty level of customers. The study In the case of service failures, service suggested that training of employees on recovery is the key method of retaining better communication procure and customers and reduces the cost development of complaint platforms, involved in customer defection and are key headways in achieving business negative referral behaviors (Kristie, success. Komunda and Osarenkhoe Seawright, Presto, Charlotte, & (2012) study of the “Remedy or cure Hoopes, 2008). Lewis and McCann for service failure?: Effects of service (2004) found that lots of studies have recovery on customer satisfaction and revealed that satisfaction and service loyalty.” With a sample of 120 staff recovery directly influences a and business school students at customer’s intention to repurchase and Makerere, Kampala, Uganda; data was to refer the service provider to others. analyzed using regression analytic tool. Cranage (2004) holds that the bonds Findings show that communication had and loyalty that comes as an outcome a momentous relationship with service of service recovery are part of the recovery and that when issues are critical reasons service providers pay highly redressed; it increases the extremely attention to service recovery positive responses of customers because. The author added that gaining towards the business. Additionally, customers that are loyal can increase finding shows that the employees’
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 interactions and responsiveness asserts H1: Refunds positively influence brand a positive relationship with satisfactory trust of small and medium scale level of customers. enterprises in Nigeria. Furthermore, these imply that SMEs H2: Apology positively influence brand whose employees have good interactive trust of small and medium scale skills can capture the customers trust enterprises in Nigeria. by making them feel satisfied when H3: Compensation positively influence service failure occurs. The studies of brand trust of small and medium scale Nwokorie (2016) reveal that employees enterprises in Nigeria. contributes immensely to the recovery Summary and Conclusion level of service failure since they are The study began with an introduction mostly the frontiers of the business which provided the background to the organization. Confidence can be build study and established the fact that by telling a customer “sorry for the service recovery has been a matter of incontinences, it will be fixed shortly” discuss but most scholars have not and customers could decide to remain deemed it necessary to link service loyal to business that employ effective recovery tactics and brand trust of service recovery tactics. Evidently, SMEs in Nigeria. The theoretically Lewis and McCann (2004) found that examined the relationship between satisfied customers via service recovery service recovery tactics and brand trust; could decide to prefer a businesses’ and explored different tactics that could product to another. These also imply be employed by SMEs in handling that refunding a customer certain service failure situations. Findings from amount for a defective product, related studies hold that service replacing malfunction items with the recovery is an element that enhances better items and acknowledging the satisfaction and trust of businesses. businesses’ error or mistake aid in Studies also revealed that employees enhancing level of trust. Notably, Pina are direct contributors of effective e Cunha, Rego, and Kamoche (2009); service recoveries hence; they should and Ganiyu, Uche and Elizabeth (2012) be well-equipped and trained to meet that customers that trust a business customers’ expectations. Based on could be more loyal, committed, findings from the review, the study willing to repeat purchase and even concludes that service recovery tactics spread positive word of mouth. Based are veritable tools for restoring and on these reviews, the study proposed building trust among service-based the following hypotheses as thus: SMEs in Port Harcourt.
with Business Failure: A References Qualitative Study of SME Ahmad, N.H.,and Seet. P.S. (2009). Owners in Malaysia and Dissecting Behaviour Associated Australia. Small Business Economics, 5(9): 98-104.
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Alli, F and Jimoh, W (2013). Eighty Contemporary Hospitality Percent of SMEs fail within 5 Management; 1(4), 210-219 years-Financial Experts. Chiu, C. M., Hsu, M. H., Sun, S. Y., Retrieved from Lin, T. C., & Sun, P. C. (2005). https://www.vanguardngr.com/2 Usability, quality, value and e- 013/10/eighty-per-cent-smes- learning continuance decisions. fail-within-5-years-finance- Computers & Education, 45 (1) experts/ on 10th October, 2019 :399-416. Abou, T. M. and Abou, K. M.S (2013). Etuk, R.U., Etuk, G. R., and Michael, B The Influence of Perceived (2014). Small and Medium Scale Service Failure Recovery Enterprises (SMEs) And Strategies on Customer Nigeria’s Economic Satisfaction and loyalty in Development. Mediterranean Hotels. Research Journal of Journal of Social Science, 4 (7): Management Sciences, 2 656-662 (11):16-24 Gronroos, C (1988). Service quality: Bell, C.R., and E.R. Zemke (1987). the six criteria of good perceived Service breakdown: the road to service quality. Review o recovery. Management Review Business 9 (Winter):3-32. 76 (10): 32-35. Ganiyu, A.R., Uche I.I. and Elizabeth, Bitner, M., Booms, B. and Tetreault, A. 2012. Is customer satisfaction M., (1990). The service an indicator of customer loyalty. encounter: Diagnosing favorable Australian Journal of Business and unfavorable incidents. and Management Research, 2 Journal of Marketing, 54(1), 71- (70), 14-28. 84 Garbarino, E., and Johnson, M. S. Chaudhuri, A., and Holbrook, M. B. (1999). The different roles of (2001). The chain of effects from satisfaction, trust, and brand trust and brand affect to commitment in customer Journal brand performance: the role of of Technology Management and brand loyalty. Journal of Business, 4 (1) 76-86 marketing, 65(2), 81-93. Gordon H., and Terrence J., (1991). Churchill, G.R & Surprenant, C (1982). Waiting for service: The An investigation into effectiveness of recovery determinants of customer strategies. International Journal satisfaction. Journal of of Contemporary Hospitality Marketing Research, 19, 491- Management, 11(1), 6 -15 504 Hills, D.J (1985). Satisfaction and Cranage, D (2004).Plan to do it right: consumer services. Advances in and plan for recovery, Consumer Satisfaction, 13, 311- International Journal of 315
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IFC (2006). “Micro, Small and examination of service recovery Medium Enterprise: A design, Marketing Intelligence Collection of Published Data”, in and Planning, 26(3), 253-274 Newberry, Derek (2006). The Lowenstein, M. W., (2011). Customer Role of Small- and Medium- Advocacy And The Branded sized Enterprise in the Future of Experience. Market Probe White Emerging Economies. Earth Paper, 26. Available At: Trends 2006. World Resources Www.Marketprobe.Com Institute under a Creative [Accessed November 21, 2011]. Common License. Lewis B.R. and McCann, P (2004). Ihua, B (2009). SMEs Key Failure- Service failure and recovery: Factors: A Comparison Between Evidence from the hotel the United Kingdom and industry. International Journal Nigeria. Journal of Social of Contemporary Hospitality Science, 18 (1). Management, 16(1), 6-17 DOI: 10.1080/09718923.2009.11 Lewis B. and Spyrakopoulos S., 892682 (2001). Service failure and Johnston, R., and Michel, S. (2008). recovery in retail banking: The Three outcomes of service customers' perspective. recovery: Customer recovery, International Journal of Bank process recovery and employee Marketing, 19(1), 37-47 recovery. International Journal Michel, S., Bowen, D., & Johnston, R. of Operations & Production (2009). Why service recovery Management, 28(1), 79-99. fails: Tensions among customer, James, J. J and Gary, K (2009). employee, and process Expectation-Confirmation perspectives. Journal of Service Theory: Capitalizing on Management,20(3), 253-273. Descriptive Power. IGI Michel S. (2001). Analyzing service Publishing: www.igi- failures and recoveries: A global.com/chapter/expectation- process approach, International confirmation-theory/35842 Journal of Service Industry, Komunda, M and Osarenkhoe, A 12(1), 20-33 (2012). Remedy or cure for Nwokorie, E.C (2016). Service service failure? Effects of service recovery strategies and customer recovery on customer loyalty in selected hotels in satisfaction and loyalty. Business Lagos State, Nigeria. Journal of Process Management Journal, Business Management, 4 (1):1- 18 (1):83-103 DOI 18 10.1108/14637151211215028 Oliver, R.L. (1997). Satisfaction: A Kristie K., Seawright K., Preston B., behavioral perspective on the Charlotte L. and Hoopes L. consumer. McGraw Hill, New (2008). An empirical York.
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Oliver, R. L (1980). A Cognitive Sparks, B (2001). Managing service Model of the Antecendents and failure through recovery. In Consequences of Satisfaction Service quality management in Decisions. Journal of Marketing, hospitality, tourism, and leisure, 17 (4), 460- 471 edited by J. Kandampully, C. Pina e Cunha, M., Rego, A. and Mok and B. Sparks. New York: Kamoche, K. (2009). Haworth Press. 193-221. Improvisation in service Temtime, Z.T., Pansiri, J. (2004). recovery. Managing Service Small business critical Quality, 19 (6):657-69. success/failure factors in Rod, M. and Ashill, N.J. (2010). developing economies: some Management commitment to evidence from Botswana. service quality and service America Journal of Applied recovery performance: a study of Sciences, 1(1): 18-25. frontline employees in public Zemke, R. and Bell, C (1990). Service and private hospitals. recovery: doing it right the International Journal of second time, Training, 27, 42-8 Pharmaceutical and Healthcare Marketing, 4 (1): 84-103.
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No.2, Dec. 2019 ISSN: p. 2006-0300 e. 2334-5708 DOI:
An Open Access Journal Available Online
Terrorism, Sexuality and Sexual Violence in North- Eastern Nigeria: A Psychosexual Analysis
Adejoh Sunday Ph.D
Department of Political Science and Diplomacy, Veritas University, Abuja [email protected]
Received: 19th October, 2019. Accepted: 20th November, 2019 Date of Publication: December, 2019
Abstract: The emergence of Boko Haram terrorist organization and its activities has precipitated galaxies of security challenges for the Nigerian state. Thousands of Nigerians have been killed, properties worth millions have been destroyed, increase in Internally Displays Persons and IDPs camps and other forms of humanitarian crisis and post-conflict reconstruction challenges. Boko Haram has employed Sexual Violence such as rape, sexual slavery, forced prostitution, forced pregnancy, forced abortion, enforced sterilization, forced marriage, and other form of sexual violence of comparable gravity perpetrated against women and girls directly or indirectly as part of its strategy towards achieving its goals and objectives. There is a causal relationship between the sexuality of terrorist and sexual violence. Sexual violence by Boko Haram is an integral part of its strategy and weapon of terror as women’s bodies are used by them as battlegrounds, serving the dual purpose of spoils of war and a means of terrorizing the populace. It is based on the foregoing that this paper attempts to investigate the nexus between sexuality and sexual violence by Boko Haram terrorist group with a view to appreciate the role of psychology in the study of terrorism. It is the position of this paper that the sexual behaviour of Boko Haram is a product of their psychological, phenotypic, physiognomic and ideological makeup. Methodologically, this paper relied on secondary sources, Abraham Maslow’s hierarchy of needs and Sigmund Freud psychoanalytic
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theory as tool for data collection and analysis. Finally, it recommends among others the need for the study of terrorist psychology. Key words: terrorism, sexuality, sex, sexual-violence, psychology and ideology
Background attempts by scholars in several fields Contemporary international system is and most especially in social science to faced with several threats and x-ray and interrogate the phenomenon challenges. Notable of these challenges of Boko Haram terrorism in Nigeria in is the increasing rate of terrorist relations to its impact on national and activities and the corresponding impact international security; it impact on and effects of terrorist on human trans-national trade and its impact on societies. Africa and Nigeria in economic and educational development particular is not also left out in this. The in Nigeria. Jama'atu Ahlis Sunna Lidda' awati Wal- A very important aspect of terrorism is Jihad which in English means “People sexuality and rate at which they Committed to the Propagation of the perpetuate sexual violence. The history Prophet's Teachings and Jihad which is of acts of sexual violence against popularly known by its Hausa name women committed during wars and ‘Boko Haram’ was a local radical conflicts is as old as the history of war. terrorist organization. Since 2009 this As in the case of rape generally, this group has been a major threat to form of sexual violence is subsumed in Nigeria’s sovereignty and national a conspiratorial culture of silence: The security. It is pertinent to note that the victims do not want to talk about it, activities of Boko Haram in terms of while society pretends that it does not scope and geo-politics has gone beyond exist. The result of this conspiracy of the sphere of Nigeria into several silence is manifested in the low record countries in Sub-Saharan Africa. of prosecution and conviction of men Over time, countries in sub-Saharan who sexually assault women in conflict Africa have been faced with myriads of situations. The global upsurge in security challenges, ranging from terrorism has led to increasing reports militancy, ethno-religious crisis, of acts of sexual violence committed political conflict, human and drug against women by members of various trafficking, to trans-border crimes. In terrorist organizations (United Nations, recent times however, terrorism and 2016). insurgency have become a major Sexuality is the most secret and security threat to the sovereignty of intimate feature of human life. People these countries, particularly the threat of guard their sexual secrets so closely Boko Haram in the Northeast of Nigeria that they, or their partner, may never and countries of the Lake Chad region; share all their sex related experiences, hence the formation of the Multi- desires and dreams together, even in National Joint Task Force as a military long-term relationships. Sometimes alliance to combat terrorism (Tar and people hesitate to admit even to Adejoh, 2017). This has stimulated themselves that they long for a
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 particular kind of arousal or pleasure, Theoretical and Conceptual because it feels somehow, strangely, Perspectives inappropriate. Just a few short decades The human system is made up of ago, most women had a hard time several component parts that are acknowledging to themselves that sex interdependent and complimentary and was in general something they wanted. the survival of the system is dependent We have come much further along on the functionality of each of these now, thanks to more open public parts. Man is both a biological and discourse and improved information on social being hence the manifestation of the subject of sexuality. biological and social characteristics of The rate of at which women are raped, man. Sex and Sexuality is one inherent forced into marriage and sexuality component of man as a biological exploited by Boko Haram is the major being and it is reflected in man’s social factor that precipitated this paper. This interactions. This intercourse between group has embarked on the deliberate the biological and social traits of man use of sexual violence against women has precipitated several works by as one of its tactics in the terror scholar each pontificating from campaign against the Nigerian state. different theoretical lens. The sexual violence which humiliates According to Freud, sex is the most the Nigerian state and its people and important life instinct in an individual. also destroys the social fabric of According to him sex instinct is society, where a high premium is placed centered around a number of bodily on the chastity of its women, has had a needs that give rise to erotic wishes. devastating impact on the victims – Each of these wishes has its source in a physically as well as psychologically. different bodily region referred to as While some of the women rescued from erogenous zones. An erogenous zone is the camps of Boko Haram militants a part of the skin or mucous membrane have tested positive for HIV, majority that is extremely sensitive to irritation of the rescued women were found to be and which when manipulated in a pregnant (Nossiter, 2015:6). certain way removes the irritation and It is based on the foregoing that this produces pleasurable feelings and paper attempts to answer the following experiences (Freud, 1940). questions: The lips and mouth, anal region, and i. What is the nexus between the sex organs are examples of terrorism and sexuality? erogenous zones. Thus, sucking ii. If terrorists are monsters, how produces oral pleasure, elimination anal come they are sexuality active? pleasure, and rubbing genital pleasure. iii. What is the relationship between In brief, Freud regarded the sexual terrorism and sexual violence? instinct as a psychophysiological iv. What are the implications of Boko process, which has both mental and Haram’s sexuality on human physical manifestations (Phillip,2011). rights?
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Human sexuality refers to people’s families, culture, society, faith and sexual interest in and attraction to beliefs (ReCAPP and ETR Associates others, as well as their capacity to have (2011). erotic experiences and responses. Sexuality is a central aspect of being People’s sexual orientation is their human throughout life and emotional and sexual attraction to encompasses sex, gender identities and particular sexes or genders, which often roles, sexual orientation, eroticism, shapes their sexuality. Sexuality may pleasure, intimacy and reproduction. be experienced and expressed in a Sexuality is experienced and expressed variety of ways, including thoughts, in thoughts, fantasies, desires, beliefs, fantasies, desires, beliefs, attitudes, attitudes, values, behaviors, practices, values, behaviors, practices, roles, and roles and relationships. While sexuality relationships. These may manifest can include all of these dimensions, not themselves in biological, physical, all of them are always experienced or emotional, social, or spiritual aspects. expressed. Sexuality is influenced by The biological and physical aspects of the interaction of biological, sexuality largely concern the human psychological, social, economic, reproductive functions, including the political, cultural, ethical, legal, human sexual-response cycle and the historical, religious and spiritual factors basic biological drive that exists in all (World Health Organization, 2006). species The above definition by World Health (https://courses.lumenlearning.com/bou Organization (2004) can be ndless- summarized into four different levels: psychology/chapter/introduction-to- 1. Sexuality is a central aspect of being gender-and-sexuality/). human throughout life and In a similar light, the Resource Center encompasses sex, gender identities for Adolescent Pregnancy Prevention and roles, sexual orientation, (ReCAPP) and ETR Associates (2011) eroticism, pleasure, intimacy and conceptualised Sexuality as the total reproduction. expression of who you are as a human 2. Sexuality is experienced and being, your femaleness or your expressed in thoughts, fantasies, maleness. Our sexuality begins at birth desires, beliefs, attitudes, values, and ends at death. Everyone is a sexual behaviours, practices, roles and being. Your sexuality is interplay relationships. between body image, gender identity, 3. Sexuality is influenced by the gender role, sexual orientation, interaction of biological, eroticism, genitals, intimacy, psychological, social, economic, relationships, and love and affection. A political, cultural, ethical, legal, person's sexuality includes his or her historical and religious and spiritual attitudes, values, knowledge and factors. behaviors. How people express their 4. Sexuality includes the basic need for sexuality is influenced by their human affection, touch and
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intimacy, as consciously and between sexual behaviour and unconsciously expressed through individual identity, sexual appetites, one’s feelings, thoughts and style and group identity, based on the behaviour. expression of sexuality and/or sexual
Concept of sexuality encompasses the preferences. Dailey,D.(1981) has following aspects: a. Individual attempted a categorization of sexuality capacity and desire, b. Sexual into five as exemplified in the diagram functions, c. Social organisation of below. sexual relationships, d. Associations
Source: Dailey,D.(1981)
These terms “sexual exploitation” and power, or trust for sexual purposes, “sexual abuse” are used to distinguish including, but not limited to, profiting those who are physically forced to have monetarily, socially or politically from sex and those who are coerced into it the sexual exploitation of another” and owing to a lack of alternative survival “sexual abuse” as “the actual or tactics or through ignorance of their threatened physical intrusion of a rights. “sexual exploitation” is defined sexual nature, whether by force or as “any actual or attempted abuse of a under unequal or coercive conditions” position of vulnerability, differential (United Nations, 2005).
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Theoretical framework were capable of erotic activity from Theories are germane and central to birth onward (Freud, 1920). understanding socio-political and Personality development takes place economic issues. Human behaviours through constant activation of the life are multifaceted and multidimensional. instinct. Sex being the most important The interplay of several variables such life instinct in an individual, as culture, traditions, believe systems, engagement in different erotic activities religion, background, environments etc is a must to activate the life instinct. constitute major indices that shape Sex is a biological instinct, which human personality. Theories are lens needs to be gratified. When present it and sign post. As lens, theories give creates tension and when met with, it clearer understanding to issues leads to satisfaction. associated with human societies and as In his analysis of human personality a sign post, theories gives directions, particularly on sexuality, Sigmund focus and predictability. For the Freud maintained that the human purpose of this study, the Sigmund system is divided into three interrelated Freud theory of psychoanalysis will be parts. This component parts according employed to illuminate our to him performs specific roles as far as understanding of terrorism, sexuality sexuality is concerned. They are the Id, and sexual violence in Nigeria with a Ego and Superego. view to examining the biological and Id is governed by the pleasure social characteristics of terrorist. principle, with an overriding goal The theory of psychosexual maximising pleasure and eliminating development, also known as theory of tensions and conflicts associated with libidinal development, is one of the achieving pleasure. The characterising earliest theories explaining how way of processing information or personality develops in human beings. thinking by id is referred to by Freud as This theory owes its credence to the primary process. The primary process findings of Sigmund Freud’s clinical is primarily emotional, irrational, research with emotionally disturbed illogical “and filled with fantasies and people. The theory of psychosexual preoccupations of sex, aggression, development, however, is an integral selfishness and envy (Barlow and part of the psychodynamic personality Durand 25). theory proposed by Freud .In essence a. ID Freud used the term sexuality to refer - the reservoir of psychic to the erotic life of the individual. energy According to him, sexuality is not a - pleasure principle matter for adults alone but also - unconscious infantile. It is all-pervasive and covers - biological part of personality all those activities and sensations that b. EGO are pleasurable and afford sensual - psychological part of gratification. Freud noted that infants personality
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- reality principle Report of the Secretary-General on - mostly conscious Conflict-related Sexual Violence, it c. SUPEREGO refers to rape, sexual slavery, forced - social part of personality prostitution, forced pregnancy, forced - idealism principle abortion, enforced sterilization, forced (conscience) marriage, and any other form of sexual - partially conscious violence of comparable gravity
Boko Haram: Why Sex and Sexual perpetrated against women, men, girls Violence? or boys that is directly or indirectly Since 2009 Nigeria and in particular linked to a conflict. There is no the North-Eastern part of Nigeria has evidence to prove that men or boys been seriously ravaged by Boko Haram have been sexually violated by Boko thereby posing galaxies of security Haram however a lot of evidence and challenges to the inhabitants of this instance have proven beyond geo-political area. The social, reasonable doubt the sexual violation of economic and political architecture of women and girls. It is also pertinent to these people has been restructured by note that sexual violations and the activities of Boko Haram. Apart exploitation is note peculiar to Boko from the killings, destruction of Haram alone. It is manifested in the properties and kidnapping, Boko activities of most terrorist organizations Haram has given room to different in different parts of the global system. forms of human rights violations. Attah (2016:385) corroborated There have been series of human rights the above discus from both the violations by Boko Haram manifested angle of generalization and in the forms of destructions of lives and particularization when he says: properties, kidnappings, detentions, Over the centuries rape has been used effectively by terrorist force marriages etc. in addition to these groups as a weapon of terror. In is the issue of sexual violence/ this context, women’s bodies are exploitations that has characterized the used by terrorists as activities of this terrorist group. In his battlegrounds, serving the dual examination of terrorism, sexuality and purpose of spoils of war and a sexual violence Storr (2016), was of the means of terrorising the opinion that sexual violence is both a populace. The Nigerian tactic of war and a tactic of terrorism fundamentalist group, Boko and this tactic have been manifested Haram, has employed sexual and are associated with most terrorist terrorism in its campaign of terror against the Nigerian state organizations. Sexual violence has and its people. Boko Haram has variously been described as ‘one of the since 2013 embraced this tactic, most horrific weapons of war, an which has led to the abduction of instrument of terror used against hundreds of women and girls, the women. conflict-related sexual most outrageous being the violence”, as used in the 2017 Annual
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abduction of 276 ‘Chibok girls’ women’s physical, sexual and that has attracted global concern. reproductive autonomy and rights The 2017 eighth Annual Report (Zainab Bangura in Lord-Mallam of the Secretary-General on and Adejoh, 2018:84). Conflict-related Sexual Violence, Understanding the rate of sexual states that: exploitations and sexual violence by Despite military gains made Boko Haram can be situated within the against Boko Haram, women and context of sex and sexuality which girls remain exposed to the risk reflects the humanity and biology of of sexual violence and other the human system. It is very easy for crimes, including being used as people to assume that terrorists should suicide bombers. Efforts led by have nothing to do with sex since they the Government to secure the are monsters and are interested in release of the girls abducted from Chibok and others held in destroying lives and properties, captivity continued in 2016. creating fear, tension and chaos. Hundreds managed to escape or Regardless of the nonconformist and were rescued, with many rebellious nature of Boko Haram, the returning pregnant or with humanity in them will also manifest babies, some having contracted hence their involvement in sex and HIV. Their accounts corroborate sexual violence. information received about It is based on this that Maslow forced marriage, forced classified sex as a basic need of man pregnancy and sexual slavery by regardless of whether the man is a Boko Haram. Those living in Boko Haram-controlled areas terrorist, prophet or a clergy. Sex is a that were compelled to marry biological response to innate human insurgents face acute stigma and nature. What this portends is that Boko discrimination... (United Nations, Haram’s sexuality is only a 2017:12). confirmation that terrorist are both Expressing her frustration on the biological and social beings with needs activities of Boko Haram, Zainab that need to be expressed and gratified. Bangura, Special Representative of It is in line with this that Hawkes and the Secretary-General of the United Scott (2005:7) argued that: Nations on Sexual Violence in Human sexuality is distinct from Conflict had this to say: non-human sexuality in that it is I am appalled by reports that neither immutable nor static but hundreds of the recently released is highly responsive to social female captives were repeatedly forces. Human sexuality is raped by Boko Haram militias imbued with symbolic meaning and compelled to ‘marry’ their and social significance…given captors. In order to give rise to a that humans are social beings, new generation raised in their human sexuality is inevitably own image, they (Boko Haram influenced by a person’s social militants) are waging war on location...forms of social
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stratification, relating to class, source of all psychic energy. The status, gender, ethnicity, age and psychic energy or drive within it called so on, will influence modes of the libido, if left totally unchecked will individual self-expression. lead to amorous activities and if fully Every human being undergoes checked will lead to damming up of psychosexual development or libidinal libido. Both are dangerous, to the development as it’s also called. The society and to the individual genetic, physiological and phenotypic respectively. Id is governed by the components of man have made sex and pleasure principle, with an overriding sexuality an integral aspect of man. goal maximising pleasure and Sexual drives, feelings, desire, urges, eliminating tensions and conflicts response and stimulants are also felt by associated with achieving pleasure. Boko Haram since this terrorist are not Sexual rights offer the potential for an less humans. This view was approach that goes beyond identity corroborated by Freud when he claimed politics. With identity politics, rights that: are associated with particular The sex drive in the organism is categories of people, such as ‘women’s based on a special form of energy called libido. This has its seat in rights’ or ‘gay rights’. Sexual rights can that part of personality called id, instead be taken to mean that everyone which is essentially unconscious. should have the right to personal The libido or sex energy is best fulfilment, and to freedom from released through amorous coercion, discrimination and violence activities. However, “society can around sexuality, whatever their sexual see no more menace to its culture orientation or gender identity than would arise from the World Health Organization (WHO) liberation of sexual impulses and a Working Definition of Sexual Rights is return to their original goal (Freud, that Sexual rights embrace human 1920:180) rights that are already recognized in The sexuality and sexualisation of national laws, international human Boko Haram if situated within the rights documents and other consensus Freudian psycho-sexual analysis will statements. They include the right of all illuminate ones understanding better. persons, free of coercion, Human behaviour is a reflection discrimination and violence, to: personality traits and development and i. the highest attainable standard of the interplay between these traits is sexual health, including access to manifested in man’s behaviour. The id, sexual and reproductive health ego and superego are the three care services; components parts of man and they ii. Seek, receive and impart regulate and determine human information related to sexuality; thoughts, stimulus, behaviour and iii. Sexuality education; response. iv. Respect for bodily integrity; Freud encapsulated this position when v. choose their partner; he says: Id is the prime-mover; it is the
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vi. Decide to be sexually active or Contemplating the relationships not; between terrorism, sex and sexuality vii. Consensual sexual relations; may look strange to a lot of people and viii. Consensual marriage; the reason is not farfetched. Off course, ix. Decide whether or not, and some will feel that terrorist have no when, to have children; and business with and time for sex since x. pursue a satisfying, safe and their concern is more on how to create pleasurable sexual life. fear, tension and destructions. This The responsible exercise of human paper has attempted to discuss a rights requires that all persons respect number of issues on terrorism, the rights of others. sexuality and sexual violence with a (WHO 2004) view to stimulate further research in the WASH (2013) identifies eleven sexual psychology of terrorism. The rate of human rights, which include the right sexual violations by Boko Haram is not to sexual freedom, sexual autonomy in unconnected to their sexuality and individual decision-making, and to be personality development. Sex is a free from sexual violence, as well as major need for humans and attempt is the right to sexual privacy. It also usually made to achieve this need includes the right to be free from sexual which itself is a manifestation of the discrimination, the right to experience psychological, biological and genetic sexual pleasure and sexual expression. makeup of man. Hence the sexuality of It asserts that individuals have the right Boko Haram is not the issue, the issue to choose with whom they associate is the way and manner such sexual sexually and to make their own drives and apatite is achieved with reproductive choices. human rights considerations and The Fourth World Conference on consent. The paper therefore Women, Beijing 1995 maintained that recommends that: the human rights of women include i. Government should ensure the their right to have control over and protection of her citizens from decide freely and responsibly on being kidnapped or taken matters related to their sexuality, hostage so as to avoid and including sexual and reproductive prevent women and girls from health, free of coercion, discrimination been sexuality abused by the and violence. Equal relationships terrorist; between women and men in matters of ii. There is need to increase sexual relations and reproduction, research in this area so as to including full respect for the integrity further illuminate people on the of the person, require mutual respect, psychology of terrorism; consent and shared responsibility for iii. There is the need to criminalize sexual behaviour and its consequences. and punish sexual exploitation Conclusion and Recommendations by terrorist in Nigeria;
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iv. An effective, efficient and Nigeria as this will serve as a practicable counter-terrorism lasting solution to sexual strategy be put in place to ensure violation by the terrorist total eradication of terrorism in
References Dailey, D. (2004) Report of the Special Adejoh, S. (2019). Terrorism and Rapporteur on the Right to Islamophobia in Nigeria: Health, E/CN.4/2004/49. implications for National Available Security Being an unpublished at:http://www.unhchr.ch/Huridoc PhD thesis submitted to the da/Huridoca.nsf/(Symbol)/E.CN. Department of Political Science 4.2004.49.En and Defence Studies, Nigerian Dailey,D.(1981). Sexual expression Defence Academy, Kaduna. and aging in Berghorn, F and Alozieuwa, S.H.O (2012). Contending Schafer, D (Eds.) The Dynamics Theories on Nigeria’s Security of Aging. (pp. 311--‐333). Challenge in the Era of Boko Boulder, CO. Westview Press. Haram Insurgency. The Peace Freud, S (1922) Beyond the Pleasure and Conflict Review. Volume 7, Principle. Trans. C.J.M Issue 1 - Hubback. London: The Hogarth ISSN:16593995.ttp://www.review Press. .upeace.org/index.cfm?opcion=0 Freud, S (1940) An Outline of Psycho- &ejemplar=24&entrada=128 Analysis. Trans. James Strachey. Attah, E. C (2016). Boko Haram and London: The Hogarth Press and sexual terrorism: The conspiracy the Institute of Psycho- of silence of the Nigerian anti- Aanalysis, 1940-1949. terrorism laws. African Human Goble, F. (1970). The third force: The Rights Law Journal 385-406 psychology of Abraham Maslow. http://dx.doi.org/10.17159/1996- Richmond, CA: Maurice Bassett 2096/2016/v16n2a4 Publishing. pp. 62. Barlow, David H and Mark V Durand Hawkes, G., & Scott, J. G. (Eds.). (1995) Abnormal Psychology: (2005). Perspectives in human An Integrated Approach. New sexuality. South Melbourne: York: Brooks/Cole Publishing Oxford University Press. Company. Maslow, A.H. (1943). "A theory of Dailey, D (2004) Report of the Special human motivation". Rapporteur on Violence Against Psychological Review 50 (4): Women, E/CN/.4/2004/66. 370–96. Available at: Nossiter, A. (2015). Boko Haram http://daccessdds.un.org/doc/UN militants raped hundreds of DOC/GEN/G04/102/02/PDF/G0 female captives in Nigeria’ The 410202.pdf?OpenElement New York Times 18 May 2015 http://www.nytimes.com/2015/05
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/19/world/ africa/boko-haram- United Nations (2017). the eighth militants-raped-hundreds-of- annual Report of the Secretary- female-captives-in- General on Conflict-related nigeria.html?_r =0 (accessed 5 Sexual Violence (S/2017/249 August 2018) retrieved from: Petchesky, R. (2005) ‘Rights of the http://www.un.org/ga/search/vie Body and Perversions of War: w_doc.asp?symbol=S/2017/249 Sexual Rights and Wrongs Ten (Accessed on the 12th Years Past Beijing’, UNESCO's December,2018). International Social Science United Nations News Centre (2015, 25th Journal, special issue on May). Condemning use of sexual Beijing+10 violence, UN envoy warns Boko Resource Center for Adolescent Haram aims to destroy family Pregnancy Prevention (ReCAPP) structures’ 27 May 2015, and ETR Associates(2011) Sex http://www. and Sexuality: Understanding the un.org/apps/news/story.asp?News Difference. Retrieved from ID=50981#.V-o_9zV1yJc http://www.worldsexology.org/re (accessed 20 September 2018) sources/declaration-of- World Association for Sexual Health sexualrights/ [WASH]. (2013). Declaration of Tar, A.U and Adejoh, S (2017) Military sexual rights. Alliance and Counter-Terrorism World Health Organization. (2006). in Sub- Saharan Africa: The Defining sexual health. Multi-National Joint Task Force Retrieved from in Perspective. Covenant http://www.who.int/reproductive University Journal of Politics & health/topics/sexual_health/sh_d International Affair, Vol. 5 No. efinitions/en/ 2, pp.1-12.
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No.2, Dec. 2019 ISSN: p. 2006-0300 e. 2334-5708 DOI:
An Open Access Journal Available Online
Influence of Risk Perception on Marketing of Chemicals in Nigeria
Onwubiko N. Dike, Ph.D1*& Nneka N.Dike, MSc2 .
1Department of Marketing, Rhema University Nigeria, P.M.B.7021, Aba. 2 Abia State Oil Producing Area Development Commission (ASOPADEC) *Email of corresponding author: [email protected]
Abstract: Risk perception refers to the way risk is regarded, understood and interpreted while risk is the probability of incurrence of hazards in certain activities. This study investigates the influence of channel members’ risk perception of chemical exposures on marketing of chemicals in Nigeria. The study is a survey design and adopts stratified and simple random sampling techniques. One hypothesis and a research question guided the study. The target population is 876 involving 47 producers, 18 importers, 103 wholesalers, 230 retailers and 478 industrial consumers in Aba and Onitsha. The sample size is 275. The sample size for each category of the respondents is determined. Primary and secondary sources of data are accessed. In-depth interviews are held. The structuring of the questionnaire is based on the five-point Likert scale format. Opinions of marketing experts are used in the questionnaire validation. The scores derived from the pilot study are processed using Cronbach Alpha technique. A reliability coefficient of the research instrument, 0.952 is estimated. Using one way ANOVA technique and Minitab software package, the hypothesis is tested at 0.05 level of significance and 19 degrees of freedom. The study reveals non-significant influence of risk perception of chemical exposures on marketing of chemicals. It is recommended that enlightenment campaigns should be mounted by the Chemical Society of Nigeria and Media Organizations to raise risk perception of chemical exposures as to suppress risk tolerance and high-risk behaviors of channel members, among others Keywords: Chemical exposures, Channel members, Health disorder, Risk perception, Risk tolerance.
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1.0 Background of the Study distributors or end-users as to It is a common observation that people effectively match supply and demand wittingly indulge in variety of activities to accomplish the organization’s that cause harm to human health and objectives. The chemicals are utilized the environment on regular basis. A directly as either raw materials with situation where risk taking is a matter little or no alterations or manufactured of choice as in the marketing of goods in the production of other goods. chemicals provides opportunity to They play significant roles in human analyze behavior of the marketing development and affect every sphere of intermediaries on the basis of their modern life. Chemicals serve as inputs willingness to avoid perceived risk or to agricultural, manufacturing, mining, accept risk tradeoff for financial gains. construction and service sectors of the The perception of risks associated with economy. They are not usually a vocation may resonate within the supplied directly to consumers except hybrid of absolute truth based on facts in the form of products that are and virtual truth shaped by popular encountered in everyday lives such as opinion or media coverage. According degreaser, paints, printing inks, to National Safety Council (2003), risk adhesives and sealants, among others. can be measured in terms of its Chemicals may be categorized into a probability of occurrence and severity few sub-groups for commercial of the adverse effects. In the context of purposes, such as basic, specialty and this study, risk perception reflects the life science chemicals. Examples of ability of a channel member, (i.e., basic chemicals include polymers, chemical manufacturer, wholesaler, petrochemicals, industrial/inorganic retailer or customer/end-users) to chemicals and fertilizers. Inorganic recognize, interpret and create chemicals are salt, chlorine, caustic meaningful picture of risks associated soda, soda ash, titanium dioxide, acids with chemical exposures (Kotler & and others. Fertilizers include Keller, 2009). It comprises of personal phosphates, ammonia and potash interpretation of information about chemicals. The life science chemicals risks arising from the marketing of are pharmaceuticals, diagnostics, chemicals in a way that fits the channel animal health products, vitamins, and members’ preconceptions, beliefs and pesticides. Chemicals are used to expectations in tandem with actual produce variety of consumer products behavior (Chisnall, 1975). found in homes and offices such as
Chemicals are substances that result waxes/ polishes, blind, air refresher and from reactions involving atomic or plastic dustpan. Personal care products molecular changes or natural such as soaps, detergents, hair phenomenon. It is important to note shampoos/conditioners, toothpastes, that the marketing of chemicals is an cosmetics and deodorants are made integral part of industrial marketing from chemicals. These consumer reserved for goods and services products are formulated from basic and destined for use in producing other specialty chemicals.The demand for goods (Achison, 2000). It is a chemicals is derived from the ultimate specialized function of management demand of customers for both the that directs the flow of chemicals from industrial and consumer products. The the producers or importers to the chemicals are usually stocked in the warehouses and sold through network
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 of intermediaries to the end users. weakening of the immune system, People are continuously exposed to reproductive problems/ birth defects, chemicals as a result of the exchange effects on the mental cognitive or transactions. But chemical exposures physical development of children, arising from marketing of chemicals cancer, among others (Pressinger, have been linked to varieties of health Tampa & Sinclair, 2015). The health disorders. The perceived knowledge of effects depend on the toxicity of the risks associated with chemical chemicals that enter the body through exposures may possibly affect the breathing, eye contact or skin and production or importation, distribution ingestion. They move into the and sales of chemicals since human bloodstream and circulate to internal health is involved. The influence of risk organs to infect the respiratory, renal, perception of chemical exposures by cardiovascular, nervous and hepatic chemical manufacturers, wholesalers, systems including the skin. Several retailers and customers/end-users on illnesses ranging from lung cancer, marketing of chemicals constitutes the chronic bronchitis, kidney tissue core of investigation of this study. damage, heart failure, to inability of the
1.1 Statement of the problem blood to supply oxygen to the body Human contacts with chemicals have been linked to chemical exposures directly or through substances (ATSDR, n.d.). The effects of containing chemicals lead to exposures. chemicals on reproductive and nervous Chemical exposures may not always be systems include infertility, baby deaths harmful but in certain cases they can and decreased speech, sight/memory, cause health disorders. Responses to respectively (ATSDR, n.d.). The chemical exposures differ with chemicals affect the immune system by individuals. Some people tend to be causing autoimmunity which makes the less sensitive to chemicals while others body to attack itself (Pressinger, et al., may experience severe reactions. 2015). The hepatic system is impaired, Studies have shown that certain which may result in liver damage, variables which influence an tumors, accumulation of fat (steatosis) individual's susceptibility to chemical and death of liver cells due to chemical exposures include age, gender, genetics exposures. The possible effects of and pregnancy (Greitens, 2016). The chemicals on the skin include irritation, potential risks associated with rash, redness or discoloration and chemicals depend on the types of dermatitis (ATSDR, n.d.). About chemical, dosage, duration, frequency 47,000 persons, mostly children and and routes of exposure (ATSDR, n.d.). adolescents die every year as a result of Children, pregnant women and old chemical poisoning (WHO, 2017). The people appear to be more vulnerable. perceived knowledge of the risks Long term exposure of people to involved in marketing of chemicals chemicals has been associated with through exposures ought to affect the health disorders such as organ damage, participation of channel members in the
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 occupation and reduce volume of retailers, customers/end users in the transactions. In spite of the chemical areas. exposures and dire health consequences 1.5 Hypothesis formulation inherent in the marketing of chemicals, At 95% confidence level, the the trade continues unabated. Many hypothesis, stated in null and alternate people are deeply involved in the forms, is formulated for testing as vocation on daily basis, with influx of shown below: new entrants (apprentices). Does it Ho. Risk perception of chemical mean that these people are unaware of exposures has no significant influence the health hazards or dangers of on marketing of chemicals. chemical exposures? Can financial H1 . Risk perception of chemical considerations outweigh the health exposures has significant influence on implications of chemicals marketing? marketing of chemicals.
To what extent has risk perception of 2.0 Review of related literature. chemical exposures influenced the The study literature is reviewed from marketing of chemicals in Nigeria? the perspectives of the conceptual and This study is aimed at addressing the theoretical frameworks. aforementioned queries, among others. Conceptual framework. 1.2 Objectives of the study An understanding of the concept of risk The broad objective of the study is to perception and risk tolerance is capable assess the influence of risk perception of increasing safety awareness in the of chemical exposures on marketing of environment. The ability of an chemicals in Nigeria. The specific individual to previse the occurrence of objective is to determine the extent to hazards refers to risk perception. Risk which risk perception of chemical tolerance is a person’s capacity to exposures has influenced the marketing accept risk to a certain limit. Risk of chemicals in Aba and Onitsha. perception and risk tolerance are 1.3 Research question mutually related. Studies have shown To what extent has risk perception of that the inability of an individual to chemical exposures influenced the perceive risk with accuracy can arouse marketing of chemicals? higher risk tolerance, leading to high-
1.4 Delimitations of the study risk behavior. Conversely, habitual The study is limited to the States of involvement of individuals in high-risk Abia and Anambra in the South East activities may lead to higher risk Zone of Nigeria. The commercial nerve tolerance and lower risk perception centers of Aba and Onitsha are selected (Dow Chemical, 2010). Situations may for the research because of increasing arise where higher risk tolerance levels business activities and high are not linked to lower risk perception concentration of chemical ability. A person may possess the manufacturers/ importers, wholesalers, ability to assess risk with its potential consequences accurately and still show
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 willingness to tolerate higher risks. The perceived knowledge of the inherent marketing of chemicals is potentially risks of chemical exposures. hazardous, yet many people are Theoretical framework. unperturbed undertaking the business The study is anchored on Situated venture. An individual’s depth of Rationality Theory. The theory knowledge about an activity can affect postulates that to presume safe his or her risk tolerance level. Vernero behaviors are inherently rational and and Montanari (2007) noted the high-risk behaviors are inherently unwillingness of workers in a chemical irrational is erroneous. The implication plant to wear personal protective is that some people wittingly take risks equipment because of their perceived based on rational justifications and not knowledge of the attendant risks. that they are crazy. According to Weyman and Kelly (1999) explain that Slappendal, et al. (1993), in the ability of a worker to exercise occupational safety, workers may not personal control over a situation can adhere to safe work procedures in order lessen anxiety and propel him toward to complete work more efficiently. engaging in unsafe behaviors. Channel Finucane, et al. (2000) opine that the members who believe they are well greater the perceived benefit of an informed about the risks of exposures activity, the lower the perceived risk. arising from various activities of Many channel members may have chemical production/importation, justifiable reasons for engaging in the distribution and usage are more likely business of chemicals marketing, health to take risks because of the perceived implications notwithstanding. knowledge and possession of higher Invariably, if the financial gain levels of risk tolerance .The channel associated with the marketing of members who are less informed of the chemicals is huge, channel members risky nature of chemical exposures are may consider it rational to take the less likely to take risks and have lower risks of chemical exposures. The study levels of risk tolerance or may even also focused on the Habituated Action exhibit high risk behavior and tolerance Theory which states that engaging in level, depending on the individual’s high-risk behavior severally without own perception of knowledge. The the occurrence of dire consequences motivation for the high risk behaviors often decreases the perceived risk of the channel members may stem from associated with this behavior. As the profitability of chemicals marketing Kasperson, et al. (1988), and Weyman coupled with the indispensability of and Kelly (1999) noted, people who chemicals in national development. The repeatedly perform high-risk tasks study therefore focuses on the extent to without adverse consequences which the motivation of channel eventually become desensitized to the members in embarking on chemicals risks. Because some health marketing has been affected by their disorders/hazards associated with chemical exposures may take a long
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 time to manifest, channel members (6), manufacturers (15), wholesalers ideally become less sensitive to the (32), retailers (72) and end users (150). inherent risks of chemicals marketing. Primary and secondary sources are Rhodes (1997) remarks that “behaviors accessed for data collection. The which are habitual do not demand risk structuring of the questionnaire is based assessment or calculation for their on a five-point Likert Scale format to doing; they are simply done”. The obtain enhanced responses of channel relatively large numbers of people in members’ risk perception of chemical Aba and Onitsha who are engaged in exposures on the marketing of the marketing of chemicals, in spite of chemicals. Marketing experts validated the danger of chemical exposures, tend the questionnaire. The data from the to corroborate this assertion. pilot study are applied in determining
3.0 Methodology the reliability coefficient, 0.952 of the The study adopts a survey method. The research instrument using Cronbach’s target population is 876 comprising of Alpha technique. The hypothesis of the importers (18), manufacturers (47), study is formulated and tested at 0.05 wholesalers (103), retailers (230) and level of significance and 19 degrees of end users (478) of chemicals. The freedom. Using one-way ANOVA sample size of 275 is determined using technique and Minitab Statistical Yamane (1967) formula (Eboh, 2009). software package, the extent of Applying Bowley’s proportional influence of channel members’ risk allocation statistical technique, the perception of chemical exposures on sample size for each category of marketing of chemicals is determined. respondents is estimated, viz: importers
4.0 Data Presentation and Analysis
Table 4. 1: Profile of Respondents. Parameters Total Percentage (%) Category Importers 6 2.2 Manufacturers 15 5.5 Wholesalers 32 11.6 Retailers 72 26.2 End-users 150 54.5
Age 20-30 29 10.4 31-40 70 25.6 41-50 84 30.7 Above 50 92 33.3
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Gender Male 242 88.0 Female 33 12.0 Marital status Married 215 78.0 Single 60 22.0 Qualification Ph.D. 3 1.1 MSc/MBA 14 4.9 BSc/HND 18 6.7 ND/NCE 31 11.3 WASC/GCE 116 42.2 FSLC 93 33.8 Source: Field data, 2018
Table 4.1 shows that negligible (26%) are within 20 and 40 years old. percentages of the respondents are About 88% of the respondents are chemical importers (2.2) and males and female 12%. The married manufacturers (5.5). Retailers (26.2%) respondents are 78% and singles 22%. outnumber the wholesalers (11.6%) The literacy levels of the respondents while the percentage of the end users indicate that 76% possess involved in the study is 54.5. The age FSLC/WASC/GCE, 11.3% OND/NCE brackets of the respondents show that while a few of them (12.7%) has higher 64 percent are above 40 while the rest qualifications.
Table 4.2. Influence of risk perception on marketing of chemicals Questions No of Scores of No. of Scores of Total No. of Respondents Respondents. Respondents Respondents. RespondentsA+ Agree. A Agree.(A- Disagree. D Disagree.(D- D Scores) Scores) 1 220 741 55 94 275 2 77 189 198 529 275 3 177 590 98 166 275 4 137 234 138 449 275
5 198 628 77 125 275
6 100 188 175 581 275 7 102 312 173 320 275 8 127 289 148 375 275
9 120 264 155 331 275
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10 158 292 117 513 275
Total 1416 3727 1334 3483 2750 Mean 141.6 372.7 133.4 348.3 275 Source: Field Survey, 2018.
Table 4.2 shows that 52 percent (1416) of the respondents affirm that risk perception of chemical exposures has not significantly influenced the marketing of chemicals while the rest 48 percent (1334) differ in opinion.
4.1 Test of hypothesis. One-way ANOVA: A-Scores, D-Scores Analysis of Variance Source DF Adj SS Adj MS F-Value P-Value Factor 1 2977 2977 0.08 0.775 Error 18 637804 35434 Total 19 640781 Model Summary S R-sq R-sq(adj) R-sq(pred) 188.238 0.46% 0.00% 0.00% Means Factor N Mean St Dev 95% CI A-Scores 10 372.7 201.2 (247.6, 497.8) D-Scores 10 348.3 174.4 (223.2, 473.4)
Pooled St Dev = 188.238
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Interval Plot of A-Scores, D-Scores 95% CI for the Mean
500
450
400
a
t
a 350
D
300
250
200 A-Scores D-Scores
The pooled standard deviation was used to calculate the intervals.
Figure 1. Interval Plot of A-Scores, D-Scores
In Figure 1, the plots reflect the 5.0 Discussion of Results intervals between the enhanced The findings of the study reveal non- opinions of channel members’ risk significant influence of channel perception of chemical exposures on members’ risk perception of chemical marketing of chemicals. exposures on marketing of chemicals in Section 4.1 shows that F-critical (4.38) Nigeria. The result of the study implies is greater than F-computed (0.08) at that the health disorders/hazards 0.05 level of significance and 19 associated with frequent contacts of degrees of freedom. The null channel members with chemicals have hypothesis, HO is not rejected. The p- not affected the volume of exchange value provides a confirmation of the transactions. Perhaps, it may be that the decision. The p-value, 0.775 is greater channel members are not fully aware of than the significance level of 0.05 (i.e, the health implications of chemical p>0.05). The co-efficient of exposures or financial considerations determination, R2 (adj) is zero percent. have shrouded their sense of personal The null hypothesis is therefore upheld. safety and instinct of self-preservation In conclusion, channel members’ risks The Habituated Action Theory perception of chemical exposures has corroborates the revelations of this no significant influence on marketing study. The theory states that engaging of chemicals. in high-risk behavior severally without
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 the occurrence of dire consequences being inhaled daily, some channel often decreases the perceived risk members still place food stuff associated with this behavior. In line alongside the chemical substances in with the opinions expressed by their offices /mini-warehouses which Kasperson, et al. (1988) and Weyman, may lead to chemical poisoning. The et al. (1999), people who repeatedly huge financial gains associated with the perform high-risk tasks without an trade seem to receive greater adverse consequence eventually consideration than the health become desensitized to the risks. implications. The unsafe use of Because the health disorders arising pesticides and disposal of their from chemical exposures, often containers at refuse dumps in Aba manifest much later and not in the metropolis also contribute to the immediate for people to feel the pain, frequency of human contacts with decrease in risk perception and high chemical contaminants. Furthermore, risk tolerance of channel members the theory of Situated Rationality occur. The low literacy level of the buttresses the report of this study. The greater number of channel members theory postulates that it is erroneous to could be contributory to the low risk presume safe behaviors are inherently perception of the longer-term health rational and high-risk behaviors are effects of chemical exposures. The inherently irrational. The high risk report of Finucane, et al. (2000) which behaviors of the channel members states that the greater the perceived engaged in marketing of chemicals benefit of an activity, the lower the even in the face of hazards of chemical perceived risk further confirms the exposures could not be judged result of the study. The financial irrational. The members wittingly take benefits associated with marketing of risks based on rational justification for chemicals may have subdued the risk financial gains and not that they are perception of channel members. For ignorant. As the channel members ‘risk instance, at Ajasa market in Onitsha, perception exerts insignificant observations have shown that some influence on marketing of chemicals, channel members share store spaces emergence of safety culture can create with chemicals and rarely use personal more risk awareness and less risk protective equipment such as coveralls, tolerance in the psyche of members to hand gloves, nose masks and eye minimize the attendant health goggles when re-packaging chemicals disorders. for wholesaling or retailing. Chemicals 5.1 Implications of the study. such as calcium hypochlorite, calcium The study has several implications. It carbide and formaldehyde with pungent exposits the need for promotion of smell are freely measured on weighing chemical safety in the environment and balances with no safety measures in protection of public health. It signals place. Unmindful of the dangers of the imperative of synergy between the chemical contacts including the fumes regulatory authorities and chemical
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Covenant Journal of Business & Social Sciences (CJBSS) Vol. 10 No. 2, Dec. 2019 channel members in the coordination of high risk behavior. When huge policies and activities for sound financial gains are envisaged in management of chemicals in Nigeria. chemicals marketing, risk tolerance and The study reveals knowledge gap for risk taking behaviors of the channel possible research into risks members would likely increase characterization and assessment to irrespective of enhanced risk identify chemical exposure limits that perception. That channel members’ either present non-significant health considerations of financial benefits threats or serious health disorders, as to seem to outweigh the risks of chemical provide framework for making risk exposures ought to be worrisome. Any management decisions. In addition, the attempt to increase risk perception and study posits a paradigm shift in social suppress risk-taking behavior and risk behavior from risk tolerance and high tolerance levels of channel members risk dispositions of channel members to engaged in the marketing of chemicals heightened risk perception of chemical would safeguard the lives of citizens of exposures through an enthronement of this country and sustain the safety culture in the distribution net environmental health and safety. work. 5.3 Recommendations. 5.2 Conclusion. The following recommendations are The report of the study shows that the articulated to create safety culture, way risk relating to human contacts increase risk perception, suppress risk with chemicals is regarded, understood tolerance and high-risk behaviors of and interpreted by channel members members of the chemical distribution has no significant influence on the channels. business of chemicals marketing in i) All chemical channel members Nigeria. When a channel member should be registered by the makes personal decision to engage in professional body of Chemists, marketing of chemicals, in i.e., Chemical Society of Nigeria. consideration of justifiable reasons and ii) Wearing of personal safety in spite of the inherent risks, situated protective equipment should be rationality theory is in operation. The mandatory to channel members channel members would likely make and enforced by Chemical Society poor judgment about risks if they have of Nigeria. performed their tasks repeatedly iii) Regular workshops, conferences without incurring health disorders. The and training programs should be longer-term health effects from organized by the professional chemicals due to delayed manifestation body to educate channel members of ailments tend to convince channel on dire consequences of chemical members of the safety of their modes of exposures. operation. They become desensitized iv) Every stage of chemical about the risks of chemical exposures, production/importation, leading to lower risk perception and wholesaling, retailing and
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usage/disposal should be analyzed vii) The Federal and State and properly scrutinized to reduce Environmental Protection frequency of human contacts with Agencies should strengthen chemicals. cooperation of the intermediary v) Enlightenment campaigns should organizations and increase by mounted by Chemical Society coordination in the field of of Nigeria/Media to increase chemical safety. awareness and raise public risk viii) Legislative mandates on risks perception of chemical exposures characterization and and lower risk tolerance. assessment to determine limits vi) Governments to create policies of chemical exposures and geared toward discouraging the attendant health threats should public from engaging in marketing be established and compliance of chemicals without appropriate to safety measures enforced. training, equipping and certification.
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