Open Access Original Research Article

Informal Institutions: The Binding Constraint on Institutional Efficiency in Nigeria

Lionel Effiom, Peter Ubi

Journal of Economics, Management and Trade, Page 258-272
DOI: 10.9734/BJEMT/2015/12243

This paper contributes to the debate on the relevance of institutions to economic development in Nigeria. Based on the taxonomy of institutions into informal and formal elements and the seeming overemphasis on the latter, the paper extends the argument further by stressing that Nigeria does not have a dearth of formal institutions, but rather that it is the preponderance of the negative informal institutional characteristics that compromises the efficiency of formal institutions. Consequently, the greater the fossilization of these undesirable informal institutions within the greater segments of the population, the greater the manifest inefficiency of any formal institutional rules or mechanisms superimposed on the society. Thus the informal is a binding constraint on formal institutional efficiency in Nigeria. These constraints must be relaxed through plurality of approaches; the government must play a leading role in socio-economic re-engineering. The focus must be on how to secure a durable political economic equilibrium that will dictate better institutional outcomes.

Open Access Original Research Article

The Moderating Effect of Employment Opportunity on the Relationship between Job Satisfaction and Intention to Quit: The Perception of the IT Outsourcing Professionals in China

Chesney Wong, Anthony Wong, Canon Tong

Journal of Economics, Management and Trade, Page 273-289
DOI: 10.9734/BJEMT/2015/13165

In China, the employee attrition rate was 8.3% in 2001 and reached 11.3% in 2004 while some firms observed turnover rates as high as 30% [1]. The rate of China’s nationwide employee turnover increased every single year over the past decade with the employee turnover rate in 2011 reaching 26.3% [2]. Empirical research supports the notion that employee turnover significantly impacts organizational performance [3]. Since outsourcing has major implications for revenue, personnel stability in IT outsourcing firms has drawn increasing attention from the industry. If the IT outsourcing industry in China wants to maintain its high growth rate, it must not only identify the factors that impact turnover but also determine how they impact it. This will help improve human resource management practices and ultimately improve turnover rates. The majority of international research is on outsourcing decision-making and outsourcing management from the client’s perspective, with little research conducted in relation to offshore service providers from developing countries [4]. A considerable amount of literature has been published on job retention and resignation decisions of employees. There is a need for IT outsourcing firms and their clients to know the attitude of China’s IT professionals towards turnover intent, job satisfaction and employment opportunity. This study surveyed IT outsourcing professionals about turnover factors from their perspective as employees. It examined the moderating effect of employment opportunity on the relationship between job satisfaction and intention to quit. The purpose was to provide insights for decision makers to formulate better employee retention strategies. The study population was limited to IT outsourcing professionals working in China. The study involved randomly inviting 5,000 IT outsourcing professionals from IT outsourcing-related public websites and databases in China to participate in an on-line anonymous questionnaire survey.

 

Open Access Original Research Article

The Ontological Foundation of the Cooperative Microfinance System in African Philosophy

Maduabuchi Dukor

Journal of Economics, Management and Trade, Page 290-298
DOI: 10.9734/BJEMT/2015/10043

The cooperative microfinance system in african philosophy is aimed at developing a savings account network involving peer groups, age-grades, peasants or farmers associations or workers unions at micro or rural settings. It is a disinterested non-profit and non-governmental organisation aimed at promoting individual economic well-being at the level of group interest mechanism. The methodology for this system is called in pigeon english ‘contribution', which, however, does not crystallise the ontological foundation, meaning and objective of the saving co-operative banking. The igbo language and cultural group in nigeria call it isusu, while the yoruba ethnic group call it osusu. These names reflect their respective cultural backgrounds and economic communitarian ontology. At the economic market level, it involves contributing to one another's economic welfare. If there are ten people in the team, a through j, they would raise, say, ngn 50,000 each to make a pool of ngn 500,000, which is disbursed to the first person a in the first month, say, january and by october, while in the tenth month, the last person j would collect his own n500, 000 and the rotation continues. However, this is not invariable, as any member of the group could from any position in the ring of money circulation indicate his or her need not to be able to wait for his designated turn and hence could take upfront his own share, while forfeiting his earlier position, so long as she/he continues her/his contribution every month. There are other equitable and just methods of sharing the contribution, osusu or isusu, which is entirely based on trust, the ontological foundation of interpersonal subjective relationship and authentic theistic humanistic communalism and belongingness. In conclusion it is a microfinance system embedded in the mystery of faith and god immanent in all centres of human activities and which jealously guards against man's descent into in-authenticity, alienation and degradation from a person into a thing. It is a communalistic economy without conflicts of opposites, and degradation of the other.

 

Open Access Original Research Article

Measuring Rational Behaviour and Efficiency in Management Decision Making Processes: Theoretical Framework, Model Development and Preliminary Experimental Foundations

Josef Neuert, Christopher Hoeckel, Manuel Woschank

Journal of Economics, Management and Trade, Page 299-318
DOI: 10.9734/BJEMT/2015/13486

Aims: This paper aims to provide insights  into the measurement of decision making efficiency and decision making behaviour by establishing a “holistic“ theoretical approach, which extensively considers quantitative, qualitative and situational cause-effect relations in decision making processes. Furthermore, the paper is supposed to show, how theoretical measures can be applied in an empirical environment within a particular decision making situation.

Study Design: This research study is designed as a theoretical framework of business decision making behaviour, supported by the findings of an experimental investigation.
Place and Duration of Study: The research paper evolved as a significant part of a comprehensive research project, investigating managerial decision making behaviour, conducted jointly at the University of Fulda (GER) and at the University of Latvia (LV) in 2012 and 2013, as a collaborative effort of doctoral students from the University of Latvia and doctoral supervisors from the University of Fulda. The research project at Fulda and Latvia utilized the results of an experimental research study which was conducted by Neuert at the University of Bayreuth (GER) earlier on (in 1983).

Methodology: The methodology of this paper is based on the notion of “critical rationalism”. This approach requires that the theoretical framework of the research study, the “paradigm of socio-economic-quasi-rational behavioural patterns”, has to be tested via an empirical survey. The empirical study was conducted as a laboratory experiment by using a business simulation game as a research design.

Results: The findings of this research paper support the basic hypotheses that business decision making behaviour generally ranges within an identifiable spectrum of activity patterns, which makes business decision making foreseeable to a certain extent. The applied statistical procedures (normal distribution tests, confidence intervals, multiple regression analyses, optimization algorithms) provide significant outcomes to a large extent. The sample of the experimental study was comprised of 65 advanced business management students and 16 professional managers, representing a subject sample of 128 decision making processes, altogether. The experimental investigation was conducted at the University of Bayreuth.

Conclusion: The novel paradigm of decision making, outlined in this paper, can be verifiably applied for the analyses and the design of professional business decision making procedures and contexts. It further suggests that, by and large, actual decision making behaviour is “located” within a measurable range of “statistical” indicators like standard deviation, standard error and variation coefficient.

 

Open Access Original Research Article

Assessing the Effect of Some Selected Demographic Factors on the Level of Job Satisfaction of Senior University Staff

Bola Adekola

Journal of Economics, Management and Trade, Page 319-328
DOI: 10.9734/BJEMT/2015/13525

The study was aimed at assessing the relationship that exist between some demographic factors and the job satisfaction level of Senior University Staff. A modified version of the Job Diagnostic Survey developed by Hackman and Oldham (1980) was distributed to 1535 Senior University staff in a descriptive corelational design study.  The information gathered from 1243 respondents from Olabisi Onabanjo University and Osun State University in Nigeria was analysed using SPSS 13 showed some level of significant relationships between the job satisfaction constructs and the age and gender among the assessed demographic factors. The current position of the respondents was found to have a significant difference. There was difference in the response of Academic and professional & Technical Staff regarding how each group rated satisfaction with co-worker relations. Significant relationships were determined at the p < .05 level.

 

Open Access Original Research Article

The Analysis of The Effect of Individual Characteristics and Supervisor Support on Motivation and Learning Transfer

Agni S. Mayangsari, Jusuf Irianto, S. E. Anis Eliyana

Journal of Economics, Management and Trade, Page 329-337
DOI: 10.9734/BJEMT/2015/13132

The purpose of this study is: (1) To determine and analyze the effect of  individual characteristics on employee’s motivation to transfer: (2) To determine and analyze the effect of individual characteristics on learning transfer; (3) To determine and analyze the effect of supervisor support on employee’s motivation to transfer; (4) To determine and analyze the effect of supervisor support on learning transfer; (5) To determine and analyze the effect of motivation to transfer on learning transfer. This type of study is explanatory research while collecting primary data through questionnaires distribution to 185 employees and 81 immediate superior in a tuna processing company in Indonesia who have attended a Leadership Development Program, a soft skills training, done in February 2013 to July 2014. Sampling technique used is stratified sampling method. In this study there are two independent variables analyzed: individual characteristics and suppervisor support; an intervening variable: motivation to transfer;  and the dependent variable: learning transfer.The collected data analyzed by using PLS (Partial Least Square). The results obtained are (1) Individual characteristics has significant effect on employee’s motivation to transfer; (2) Individual characteristics has significant effect on learning transfer; (3) Supervisor support has significant effect on the employee’s motivation to transfer, (4) Supervisor support has significant effect on learning transfer, (5) Employee’s motivation to transfer has significant effect on learning transfer. From the focus group discussion it can be suggested that the management should establish a tool to measure and evaluate the learning transfer of a soft-skills training in order to better capture the success of a training transfer. The management should also integrate the training program to the personnel system, for example using the training record for determining the promotion and / or the bonuses distribution, etc.

 

Open Access Original Research Article

The Impact of Volatility of Oil Price on the Economic Growth in Sub-Saharan Africa

Taiwo Akinlo, Olumuyiwa Tolulope Apanisile

Journal of Economics, Management and Trade, Page 338-349
DOI: 10.9734/BJEMT/2015/12921

This study examines the impact of the volatility of oil price on economic growth in 20 sub-Saharan African countries from the period of 1986-2012. These countries were divided into group A and group B. Group A consists of 10 oil exporting countries, while group B consists of non oil exporting countries in sub-Saharan Africa. Panel data were used for the analysis. Panel Pooled OLS, panel Fixed Effect Model and Generalized Method of Moment model were employed in the estimation for both oil exporting and non-oil exporting countries. The estimation of panel A model consisting of the oil exporting countries shows that the volatility of oil price has a positive and significance effect on the economic growth of oil exporting countries. The result of panel B consisting of non-oil producing countries shows that the volatility of oil price also has a positive and insignificant impact on economic growth.

Open Access Original Research Article

The Role of Services Trade in Economic Development

Philip O. Alege, Adeyemi A. Ogundipe

Journal of Economics, Management and Trade, Page 350-365
DOI: 10.9734/BJEMT/2015/13474

This paper is an attempt to investigate the impact of services trade on economic development of Sub-Sahara African (SSA) countries. Our analysis is based on a panel data framework over the period 1990 to 2010 covering thirty-three countries. The paper employs the endogenous growth model to examine the nonlinearities associated with services exports and services imports in the economic development process of SSA countries under consideration. The trade data was disaggregated into travel, transport and other services. The panel data constructed was estimated using ordinary pooled, fixed effects and random effects model techniques and the efficient model was selected based on the Hausman test. The paper finds that both services exports and services imports enhance economic development process. The study also indicates that labour and capital play an important role in the SSA economies.

 

Open Access Original Research Article

Technical Efficiency of Millet/Cowpea Farmers in Kebbi State Nigeria: A Double Bootstrapping Approach

A. J. Jirgi, H. Jordaan, B. Grové, M. F. Viljoen, J. N. Nmadu

Journal of Economics, Management and Trade, Page 366-373
DOI: 10.9734/BJEMT/2015/14155

The research investigated the technical efficiency of farmers in Kebbi State Nigeria, with the aim of generating reliable information on the determinants of efficiency. In order to achieve the objective of the study, Data Envelopment Analysis, Double Bootstrapping procedure within the Principal Component Regression frame work were used. Data for the research was obtained mainly from primary sources through a questionnaire survey of 65 intercroppers who produce a combination of millets and cowpeas. The results from the technical efficiency suggest that there is an opportunity for increasing the technical efficiency levels of millet/cowpea farmers and hence their ability to increase output levels at present input levels and within the existing technology set. Support services such as subsidies on farm inputs, provision of credit and extension services of the new Agricultural Transformation Agenda Programme (ATAP) should be properly implemented and targeted at the small scale farmers.

Open Access Review Article

Language in the Labor Market: Evidence from Chinese Immigrant-Owned Enterprises in Congo Brazzaville

Edwige Kamitewoko

Journal of Economics, Management and Trade, Page 245-257
DOI: 10.9734/BJEMT/2015/12507

This study uses data from Centre of Research and Prospective Studies (CREP) to analyze the determinants of French language proficiency and investigates how the language barrier influences economic activities of Chinese immigrant-owned enterprises in Congo Brazzaville.

The first part presents an ordered logit analysis of the determinants of Chinese entrepreneurs speaking and reading fluency. The results show that an increase in educational attainment is associated with a higher level of french spoken and read proficiency. Language ability is also associated with those who have been living in Congo for a longer time period and those who migrated at a younger age. In the second part, the effect of language on the migrant’s economic activities is analyzed, it is shown that language barrier is a critical handicap not only between customers and Chinese entrepreneurs but also to Congolese employee collaborator.