TABLE OF CONTENTS
Declaration i
Approval ii
Dedication iii
Acknowledgements iv
List of Tables vii
Abstract viii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 7
1.3 Objectives of the Study 8
1.4 Research Questions 9
1.5 Research Hypotheses 10
1.6 Scope of the Study 10
1.7 Significance of the Study 11
1.8 Limitations of the Study 12
1.9 Operational Definition Terms 12
1.10 Profile of the Organizations Studied 14
References 19
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 21
2.2 Theoretical Framework 61
2.3 Empirical Review 70
2.4 Summary of Reviewed Related Literature 78
2.5 Gap in Literature 79
Reference 81
CHAPTER THREE: METHODOLOGY
3.1 Research Design 88
3.2 Sources of Data 88
3.3 Population of the Study 89
3.4 The Sample and Sampling Technique 89
3.5 Description of Research Instrument 91
3.6 Method of data Analyses 92
3.7 Validity of Instrument 92
3.8 Reliability of the Research Instrument 92
3.9 Decision Rule 93
References 94
CHAPTER FOUR: DATA PRESENTATION AND ANALYSES
4.1 Data Presentation 95
4.2 Test of Hypotheses 106
4.3 Discussion of Findings 113
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 116
5.2 Conclusion 116
5.3 Recommendations 117
5.4 Contribution to Knowledge 117
5.5 Suggestions for Further Studies 118
Bibliography 119
Appendices 127
LIST OF TABLES
Table 4.1: Return Rate of Questionnaire 95
Table 4.2: The Impact of Technology on Productivity 97
Table 4.3: Impact of Organizational Information, Communication and Technical Knowledge on Market Share 99
Table 4.4: Impact of Organizational Information and Communication
Processes on Shareholders’ Welfare 101
Table 4.5: Impact of ICT Systems on Organizational Growth 103
Table 4.6: Impact of the rise of ICT on Profitability 115
Table 4.7: Summarised Regression Results for Hypothesis One 107
Table 4.8: Pearson Correlation Results for Hypothesis Two 108
Table 4.9: Pearson Correlation Results for Hypothesis three 110
Table 4.10: Summarised Regression Results for Hypothesis Four 111
Table 4.11: Summarised Regression Results for Hypothesis Five 112
ABSTRACT
This study was prompted by the desire to ascertain the impact of Information and Communication Technology (ICT) on organizational performance of Brewery Industry in South-East, Nigeria. It sought to: determine the impact of technology on productivity in brewery industry South-East, Nigeria, assess the impact of organizational information, communication and technical knowledge on market share in brewery industry South-East, Nigeria, assess the impact of organizational information and communication processes on shareholders’ welfare of brewery industry in South-East, Nigeria, ascertain the impact of ICT systems on organizational growth of brewery industry in South-East, Nigeria and establish the impact of the rise of ICT on Profitability of brewing industry South-East, Nigeria. The study adopted a survey design method, population of the study was 995 staff comprised of the four functional brewing firms in South-East, Nigeria. Sample size of 553 was obtained using Freund and Williams formular. Proportionate Stratified Sampling Technique was used to select respondents in each of the brewing firms. Data were collected using designed questionnaire on a 5-point likert scale. The questionnaire was validated using content validity. The reliability test was carried out using a test retest method and Cronbach’s alpha was adopted, giving a coefficient of 0.94, indicating a high degree of items consistency. The study employed Pearson Product Moment Correlation Coefficients and Linear regression to test the hypotheses at 5% level of significance. The study found that Technology had significant positive impact on Productivity of brewery industry in South-East, Nigeria (r = 0.957, p < 0.05); Organizational information, communication and technical knowledge had significant positive impact on market share of brewery industry in South-East, Nigeria (r = 0.904, p < 0.05); Organizational information and communication processes had positive impact on shareholders’ welfare of brewery industry in South East, Nigeria (r = 0.908, p < 0.05); ICT Systems had significant positive impact on organizational growth of brewing industry in South-East, Nigeria (r = 0.905, p < 0.05); Rise of ICT had a significant positive impact on Profitability of brewery industry in South-East, Nigeria (r = 0.879, p < 0.05). Based on the findings, this study has emphasized that the implementations and effective use of ICT in organizations bring about competitive advantage. The use of ICT has a great impact on organizational performance as it helps to provide a platform for growth of brewing industry. In other words, ICT is known to improve organizational operations, growth and competitiveness. From the literature review and the cases studied, it was certain that there are a number of advantages associated with the use of ICT. Therefore the effective use of ICT in many organizations would assist in creating several opportunities. The study recommended that Brewing industry should create strategic alliance with other international breweries, so as to gain new and practical knowledge. Organisations should be involved in upgrading their technology such as ICT, new programmes, new method of production, delivery and should embrace change. Appropriate Organizational information, communication and technical knowledge should be adopted. Modern ICT Systems should be adopted in the brewing industry.
CHAPTER ONE
INTRODUCTION
- Background of the Study
Information Communication Technology (ICT) refers to a wide range of computerized technologies that enables communication and the electronic capturing, processing, and transmission of information. These technologies include products and services such as desktop computers, laptops, hand – held devices, wired or wireless intranet, business productivity software, data storage and security, network security etc (Ashrafi and Murtaza, 2008). With the use of ICT, businesses can interact more efficiently, and it enabled businesses to be digitally networked (Buhalis, 2003). With the use of ICT, the time constraint, and distance barrier to accessing relevant information is eliminated or drastically reduced hence it improves coordination of activities within organizational boundaries (Spanos, Prastacos & Poulymenakou,2002).
The rise of the information industry has gone hand in hand with the developments of the electronics industry. Since the Second World War this has been spearheaded by the USA and lately also by Japan. The year, 1983, the European Economic Community(EEC)has realized its growing dependence on the USA and Japan and it has initiated a major programme for the development of the information industry in Europe (Miller, 1984).
The term ICT originated as Information Technology (IT) until recently when it was thought that the communication component ought to be highlighted because of its significance. It was then that the concept transformed to Information and Communication Technology ICT (Olusanya and Oleyede, 2003).
The nature and scope of information and communication required by managers at different levels in an organization vary considerably. Organizations require different types of information and communication systems to meet their needs. Therefore, information is the result/product of processed data. Communication has to do with the process of the transfer of the information which is the processed data and the output of the data processing system from the sender to the receiver through a medium in the communication system (Nwachukwu, 2006).
Organizations are encountering significant changes in their business practices due to the emergence and widespread use of information and communication technologies (ICT’s) over the last two decades. In the early 2000s,businesses around the world were spending well over $2 trillion on information technologies per annum (Carr, 2003).
Since the early years of the 20th century, the world has been experiencing a revolution known as information technology. Some consider it to be the most fascinating development since the industrial revolution around the mid-18th Century (Tom, 1991). This revolution is changing our daily lives at home and at work, in shops and banks, in schools, colleges and universities. It is changing the way people think, communicate and behave. Today, the world has become a global village with the internet, mobile phones and satellite networks shrinking time and space, bringing together computers and communications; resulting in new ways of communication, processing, storing and distributing enormous amounts of information (Werthner and Klein, 2005). Advancement in chip, satellite, radio, and optical fiber technology have enabled millions of people around the world to connect electronically regardless of national or international boundaries. This explosion in connectivity is the latest and the most important wave in the information revolution (Evans & Wurster, 1997). The twenty-first century witnessed advances from an automation to an era of digitization (built on zeros and ones). It started with computer technology which changed from mainframe to personal computer to net personal computers. Along with these changes, there were changes in soft wares. As network started, there was a convergence of telecommunication with computer. The nature of data transmission using telecom and subsequent development of wireless phone and mobile has revolutionized the information processing system (Gupta, 2007).
Similarly, there is a shift in business models to move beyond automation to innovation. The potential of information system (IS) is to exploit the power of people’s creativity. O’brien (2008) suggests the cascade model in the evolution of information management. The adoption of (ICT) consists of a series of jumps.Emerging economic trend is based on several layers such as social organization, entrepreneurship, knowledge creation, workforce skill sets, infrastructural tools, and natural resources. The important change in the third industrial revolution is occurring in retailing. It is moving from national to global and this transition is more turbulent than earlier industrial revolutions.
Today’s business environment is very dynamic and undergoes rapid changes as a result of technological innovation, increased awareness and demands from customers. Business organisations, especially the manufacturing industry of the 21st century operate in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic recession. ICT is at the centre of this global change curve. Laudon and Laudon, (1991) contend that managers cannot ignore Information Systems because they play a critical role in contemporary organisation. They point out that the entire cash flow of most fortune 500 companies is linked to Information System.The application of information and communication technology concepts, techniques, policies and implementation strategies to any organisation has become a subject of fundamental importance and concerns to all organization and indeed a prerequisite for local and global competitiveness. ICT directly affects how managers decide, how they plan and what products and services are offered in the manufacturing industry. It has continued to change the way manufacturing firms and their production are organized worldwide and the variety of innovative devices available to enhance the processes and quality of product delivery.
Information and Communication Technology has been defined as “a broad based technology (including its methods, management and application) that supports the creation, storage, manipulation and communication of information” (French, 1996). Therefore, Information and Communication Technology has found its niche in every sphere of Nigeria’s polity.
Nworgu (2007) states that ICT industry appears to be making significant in road into the Nigeria society. Prior to 1999, ICT resources and facilities were grossly limited in the country. Only very few wealthy Nigerians had access to these facilities and services. Internet facilities and services were rare to come by and the facsimile (ie. Fax) remained for a long time, the only means available to Nigerians for transmitting and receiving data or documents to other parts of the world. Public awareness of ICT and its application was low.
A significant milestone in the development of the ICT industry in the country is the formulation of a National Information Technology Policy (NITP), which was approved in March, 2001 by the Federal Executive Council. With the enactment of this policy came the establishment of an implementing agency-the National Information Technology Development Agency (NITDA) in April 2001. This agency is charged with the responsibility of implementing Nigeria’s IT policy “as well as promote the healthy growth and development of the IT industry in Nigeria (Isoun, 2003).
The brewing of beer is one of the oldest applications in biotechnology; the oldest historical evidence of formal brewing dates back to about 6000 B.C. in ancient Babylonia. It was only at the end of the 19th and the beginning of the 20th century that brewing evolved to an efficient and well-controlled bioprocess. Increased understanding of brewing fermentation kinetics and mechanism led to design of new accelerated fermentation methods, which incorporate improved batch bioreactors ranging from open, relatively shallow tanks to large cylindroconical fermentors. Furthermore, advances were made in development of continuous beer fermentation processes attractive for many advantages, which continuous mode of operation offers as compared to batch operation such as greater efficiency in utilisation of carbohydrates and better use of equipment (Ronnie, 2000)
Since the beginning of the 20th century, many different systems using suspended yeast cells have been developed. The excitement for application of continuous beer fermentation led to development of various interesting systems especially during the 1950 and 1960’s. These systems can be classified as: (i) stirred versus unstirred tank reactors, (ii) single-vessel systems versus systems consisting of a number of vessels connected in series, (iii) vessels which allow yeast to overflow freely with the beer (“open systems”) versus vessels which have abnormally high yeast concentrations (“closed” or “semi-closed systems”) (Hough, Briggs, Stevens, and Young,1982).
However, these continuous beer fermentation processes were not commercially successful due to many practical problems, such as increased risk of contamination (not only during fermentation but also during storage of wort in supplementary holding tanks required for usually batch upstream and downstream brewing processes), variations in beer flavour and poor understanding of the beer fermentation kinetics under continuous conditions (Ronnie, 2000). One of the well-known exceptions is successful implementation of a continuous beer production process in New Zealand by Morton Coutts (Dominion Breweries) still in use today (Hough, Briggs, Stevens, and Young,1982).
The Nigerian breweries industry has evolved over the years from mere production of bottled drinks to a diversified industry. The industry is a large segment of the food and beverages sub-sector currently accounting for half of the growth in the manufacturing sector, which grew 22 per cent in 2013 as against 14 per cent in 2012. Specifically, the food and beverage sub-sector’s growth accelerated to 12 per cent in 2013 as against 7 per cent in 2012.The industry, which has now become a major growth driver of the economy is currently growing faster than the telecommunications, oil and gas and agricultural sectors (Aderinokun, 2015).
In terms of the contribution to the gross domestic product (GDP), the manufacturing sector represents nine per cent of GDP in 2013 as against the four per cent in the preceding year. The improvement in the manufacturing sector was attributed mainly to the activities in the food and beverages sub-sector, which has the breweries industry playing a significant role (Aderinokun, 2015). The principal activities of the breweries industry include the production, packaging and sales of alcoholic and malt beverages. It has two players dominating its landscape namely Nigerian Breweries Plc and Guinness Nigeria Plc but there are others that are playing on the fringes. But SABMiller, a South African brewery giant, has joined the market with its acquisitionof International Breweries in 2012. SABMiller has a strong track record of building market share as a new entrant, and appears happy to be a loss leader to gain a dominant position in the Nigerian market (Aderinokun, 2015).
The brewery industry is highly capital intensive and this accounts for the reason why the ownership structure is either public and/or state-owned with/without foreign partnership. The technology for the industry, spare parts and expert technicians are not available in the country and therefore highly dependent on foreign exchange. Guinness for example has Diego of Ireland as its foreign partner (Nigeria Breweries, 2016).The ban on importation of barley in 1987 necessitated the industry to settle for local substitute of maize and sorghum as raw materials for its production. The resultant plant conversion to accommodate the new raw material input-mix cost Nigerian Brewery a whopping sum of 100million naira! (Nigeria Breweries, 2016).One of the major challenges facing the industry is the maintenance of equipments and machinery. The players commit huge financial resources in technology and upgrades in order to remain competitive (Nigeria Breweries, 2016). Against the above background, this study seeks to investigate on the impact of Information Communication Technology on organizational performance of brewing industry in South East, Nigeria.
1.2 Statement of the Problem
