Corporate Governance and Productivity in Nigerian Manufacturing Industries

Abstract

Given the role of manufacturing industries as the engine of economic growth and development on one hand and the current downturn in industrial production, this study was designed to explore the economic rejuvenating capacity of corporate governance. It also examined the individual and collective roles of management structure and corporate governance in enhanced industrial productivity in Nigeria. One hundred and nineteen manufacturing firms were selected by systematic random sampling from the 471 firms existing in Oyo state, the industrial hub of southwestern Nigeria. The actual participants were selected by purposive sampling from top management, middle level and junior staff cadres who must have spent at least five years in service of each of the firms. Data were collected through a self-constructed questionnaire adapted for the different cadres in the study sample and was treated with factorial validation and expert judgment. It yielded a test-retest reliability of 0.724 and an internal consistency validity (Cronbach’s Alpha) of 0.89. The data collected were analyzed using Relative Significance Index (RSI) and simple percentages as well as Multiple Regression and Analysis of Variance (ANOVA). The result showed that an improved corporate governance policies and implementation are needed for the development of the manufacturing sector in Nigeria if this sector would be able to play its role as the engine of growth.