The establishment of public enterprises by governments of developing economies has been identified as a strategic approach to accelerated economic and national development. The main prop was the fostering and harnessing of economic potentials, balancing and control of strategic and social interest of the country, full employment as well as generation of revenue for the development of infrastructure.
With the exception of some episodic successes recorded at inception, structural legacy of public enterprises and their corresponding impact on the Nigerian economy have been burdensome. This research was therefore inspired by the need to critically evaluate the factors leading to the dismal performance of public enterprises using the Cross River Newspaper Corporation as a case study.
A sample of 360 persons was used for the study. The data for this study was generated from a well structured questionnaire which was administered on the sample. Research hypotheses were tested using Parsons Correlation Coefficient method. The result of the analyses revealed a positive correlation between the dependent and independent variables. Accordingly, the four Null Hypotheses were rejected. Recommendations were made in line with the findings.
Table of Contents
CHAPTER ONE INTRODUCTION
1.1 Historical background to the study
1.2 Statement of problem
1.3 Objectives of the study
1.4 Study questions
1.5 Significance of the study
1.6 Scope of the study
1.7 Clarification of concept
CHAPTER TWO LITERATURE REVIEW AND METHODOLOGY
2.1 Literature review
2.1.1 Development of public enterprise
2.1.2 Categories of public organizations in Nigeria
2.1.3 Features of public enterprise
2.1.4 Objectives of public enterprise
2.1.5 Factors Affecting the Performance of State Owned Enterprises
2.2 Methodology
2.2.1 Research design
2.2.2 Area of study
2.2.3 Population of the study
2.2.4 Sample Size and Sampling Procedure
2.2.5 Sources of Data and Data Collection Technique
2.2.6 Tools of Data Analysis
CHAPTER THREE ANALYSIS AND DISCUSSION
3.1 Dynamic specification of the model and statistical technique
3.2 Test of Hypotheses
CHAPTER FOUR SUMMARY, CONCLUSION AND RECOMMENDATIONS
4.1 Summary
4.2 Conclusion
4.3 Recommendations
Research Objectives and Themes
The primary objective of this research is to critically evaluate the factors contributing to the poor performance of public enterprises in Nigeria, with a specific focus on the Cross River Newspaper Corporation. The study aims to investigate why these enterprises often fail to meet their social and economic objectives despite significant state investment, examining the impact of funding, government interference, and administrative practices.
- Evaluation of capital structure and its impact on public enterprise performance.
- Analysis of the relationship between government entrepreneurship and operational efficiency.
- Assessment of the effects of political interference and bureaucratic control on management.
- Investigation into how privatization influences socio-economic development in Nigeria.
- Identification of specific challenges within the Cross River Newspaper Corporation and development of actionable recommendations.
Excerpt from the Book
1.1 Historical background to the study
The establishment of state owned enterprise under theparastatalization and nationalization strategy had been usedin developing countries in their effort to accelerate the paceif of national development.At the end of the Second World War, several Post-Wargovernments nationalized key industries and adoptedsubsidies and deficit financing of the economy in order to stimulate the economy and employment. Equally, significant was the fact that governments both in Europe and the United States adopted extensive government - funded social welfare programmes in such key areas as education, health, housing and social security.
However, with few exceptions, the story of public enterprises is anything but largely an illusion. Their operational performance has largely been inefficient and far below the social and economic objectives for which they were established. At inception, one could see in public enterprises an interesting skeleton; but following years of operation, there is not yet much meat on it. According to Akpan (2002), "the direct involvement of government in enterprise ownership and management to foster economic development only result in a fiasco. The non accomplishment of developmental objectives has been viewed as a common generic scenario in all developing countries". In some countries, public enterprises have become an unsustainable burden on the budget and the banking system, absorbing scarce public resources. Investments in public enterprises have hardly produced cost covering streams of income. For example, the financial performance of nine key outfits (Telecommunications, Postal Services, Airlines, Railways, Transport, Power, Cement, Iron and Steel, and Textiles) in five West African economies such as Ghana, Guinea, Benin Republic, Nigeria and Senegal has been persistently poor, with annual government transfer and overdrafts to these sectors ranging from 18-14 percent of GDP. Kikeri et al (1994).
Summary of Chapters
CHAPTER ONE INTRODUCTION: This chapter provides the historical context of state-owned enterprises in developing nations and outlines the specific research problems, objectives, and scope regarding the Cross River Newspaper Corporation.
CHAPTER TWO LITERATURE REVIEW AND METHODOLOGY: This section reviews relevant literature on the development and objectives of public enterprises and details the exploratory research design, sampling techniques, and analytical methods used for the study.
CHAPTER THREE ANALYSIS AND DISCUSSION: This chapter presents the empirical data gathered from the field, provides a statistical analysis of the performance factors, and reports on the testing of four research hypotheses using the Parson's Correlation Coefficient.
CHAPTER FOUR SUMMARY, CONCLUSION AND RECOMMENDATIONS: The final chapter summarizes the research findings, offers concluding remarks on the causes of public enterprise failure, and provides strategic recommendations for improvement, including funding reform and privatization.
Keywords
Public Enterprises, Cross River Newspaper Corporation, Privatization, Government Entrepreneurship, Capital Structure, Operational Efficiency, Economic Development, Performance Evaluation, Political Interference, Bureaucratic Control, Nigeria, Social Objectives, Corporate Governance, Public Funding, Commercialization.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on performing a critical evaluation of why public enterprises in Nigeria, specifically the Cross River Newspaper Corporation, consistently underperform and fail to meet their stated social and economic goals.
What are the central themes examined in this work?
The central themes include the impact of government funding, the consequences of political and bureaucratic interference in management, the role of privatization as a reform strategy, and the tension between social service objectives and operational efficiency.
What is the primary research goal?
The primary goal is to identify the root causes of the dismal performance of public enterprises and to propose evidence-based policy recommendations to improve their management or facilitate their successful privatization.
Which scientific methodology is employed?
The study utilizes an exploratory and cross-sectional survey research design. Primary data were collected through structured questionnaires administered to a sample of 360 respondents and analyzed using descriptive statistics and the Parson's Correlation Coefficient to test hypotheses.
What topics are covered in the main section of the book?
The main sections cover the historical context of state-owned enterprises, a literature review of their development, a detailed methodological framework, and a comprehensive analysis of field data regarding funding, interference, and performance, culminating in a conclusion and policy recommendations.
Which keywords best characterize this work?
Key terms include Public Enterprises, Privatization, Performance Evaluation, Government Entrepreneurship, and Nigeria's Economic Development.
What specific role did the Cross River Newspaper Corporation play in this study?
It served as the primary case study for the research, providing a practical setting to analyze the real-world operational challenges, financial struggles, and the impact of government policy on a specific public venture.
What were the findings regarding the relationship between government funding and performance?
The study found a strong positive correlation between adequate, timely funding and the effective performance of public enterprises, noting that currently, these entities are often poorly funded after their initial inception.
What does the author conclude about the effect of political appointments?
The research concludes that the politicization of staff appointments—often favoring cronyism over merit—is a significant driver of mismanagement, lack of long-term planning, and ultimately, the poor performance of public enterprises.
Does the author believe public enterprises can ever be efficient?
Yes, the research suggests that public enterprises can achieve operational efficiency and meet their social objectives if the environment is made conducive through appropriate management autonomy, consistent funding, and reduced political interference.
- Quote paper
- Kenobi Krukru (Author), 2015, Public Enterprises in Nigeria. A critical evaluation of their performance, Munich, GRIN Verlag, https://www.grin.com/document/338943
