Nigeria

Before there was television, children had options of playing outside, playing board games, or doing simple activities like reading or drawing. Now that TV exists to a high extremity, it has become apparent that nowadays these children shows have surpassed physical and intellectual activities and have now become a way of life for children. We now see children wearing clothing, playing video games, playing with toys, and watching movies featuring famous characters that started off as mere creations that starred on half-hour to one hour long programs.

Whether it is a positive or negative happening, children programming is becoming a global phenomenon affecting many kids around the world. The most relevant questions posed are how these shows affect children inside and outside of the US, and is this controversial issue affecting these children for the better or for the worse. It is clear that children within the United States have become indulged with computers, video games, and, most evidently, television. Nickelodeon in particular has been coming out with shows made just for younger children over the last decade.

An example of this would be “Dora the Explorer. ” As Dora celebrates her 10th year on air, ratings and sales show that this Latina is here to stay. In an article from Dayton Daily News in Dayton, Ohio, Sigal Ratner-Arias addresses this bilingual girl’s journey into the hearts of millions of children. Today, Dora is seen in 151 different markets and has been translated to 30 different languages. She appears in countries such as the United Kingdom, Australia, Canada and Ireland and teaches Spanish.

However, while this busy girl teaches Spanish to English-speaking countries, she also teaches English to Hipic countries (Ratner-Arias n. pag). “According to Nickelodeon, ‘Dora’ has generated over $11 billion in worldwide sales since 2002 having sold 65 million units of Fisher Price Dora the Explorer toys, 50 million books and over 20 million DVDs worldwide,” writes Ratner-Arias (Ratner-Arias n. pag). For originally being created as a forest animal, “Dora the Explorer” has become a global idol to young children (Ratner-Arias n. pag).

Another Nickelodeon star causing global waves is the sponge that lives in a pineapple under the sea, “Spongebob Squarepants. ” Martha Worboy, writer for The Gazette in Montreal, writes about the impact Spongebob Squarepants has had on children around the world. Since this show premiered in July of 1999, Spongebob has advanced himself to be seen in 171 markets and translated into 25 languages (Worboy n. pag). Along with many other shows, Spongebob has been seen in video games, movies, clothing, food, and seen in stores such as Wal-Mart, Best Buy, Kohl’s, and Radio Shack (Worboy n. pag).

Spongebob has sparked imagination amongst children around the world and continues to grow in popularity of all ages. Two other shows that have shown significant rise around the world are “Sesame Street” and “Blue’s Clues. ” According to an article from Melbourne, Australia’s newspaper, The Age, “Blue’s Clues” has been seen in 60 different countries and has been translated into 15 different languages (Dunn n. pag). Kids have the ability to interact with a guy named Joe and his cute, blue puppy, Blue. Along with Joe, children work to solve a mystery that Blue has laid out for them.

With this show, children have the ability to be entertained through interaction with an animated puppy that also stimulates their brain. Though “Sesame Street” has been seen for many years and is highly known, this show still continues to branch out more and more. This Day, a newspaper out of Nigeria stated that later this year, “Sesame Street” will be introduced as “Sesame Square” in Nigeria; however, with it comes a unique twist to the characters (“This Day” n. pag). This show will be hosted by two Muppet characters.

One is named Kami, a golden fur, girl Muppet who is HIV positive, and Zobi, a furry blue, boy Muppet (“This Day” n. pag). This show has drawn quite the anticipation in Nigeria and even allowed the Nigerian people to vote on a name for the blue furry Muppet (“This Day” n. pag). With the ongoing advancement of technology and improvement of shows made for children, it can only be wondered how long until the next animated phenomenon is created. Although these television shows have obviously been globalized, they also lead to the question of if the impact they have had on children can truly be een as constructive or harmful. Many people have questioned whether or not children shows are in fact engaging the minds of young kids and teaching them various ways to look at life or, in contrast, poisoning their minds and encouraging them into bad choices and presenting an overall negative effect on their life outside of watching the television. In a Boston periodical, The Jewish Advocate, Lauren Kramer views a theory brought by Dr. Kathy Hirsh-Pasek, director for the infant-language laboratory at Temple University.

Pasek develops the idea of the “Six C’s” which creates a recipe for success in young children. These “Six C’s” are: collaboration with others, communication, content, creative, and confidence (Kramer n. pag). Pasek goes on to discuss that none of these can be seen or adapted by watching television. She also states that while content may be seen while watching TV it is really just a quick fix and will not benefit children in the long run (Kramer n. pag). Pasek stresses, “We know young kids are better when they’re actively rather than passively engaged, and TV is passive,” (Kramer n. pag).

In this article, Pasek also determines that children under three years of age in no way benefit from television; even if it is “Baby Einstein,” (Kramer n. pag). Studies have also been conducted trying to determine whether or not watching television to great amounts is affecting the eating habits and psyche of young children. A study published by US Journal Pediatrics found that more psychological difficulties dealing with peers, emotional issues, and hyperactivity are likely to develop with children who spend numerous hours daily in front of television or playing video games (Yahoo!

News n. pag). Researchers studied 1,013 children ages 10 to 11 and had them complete a 25-point questionnaire, a self-report about daily hours watching television or playing games, and measured their physical activity using an accelerometer in which the kids wore around their waist for seven days (Yahoo! News n. pag). It was concluded that children spending two or more hours a day were likely to score higher on the questionnaire which indicated, “They had more psychological difficulties than kids who did not spend a lot of time in front of a screen,” (Yahoo! News n. pag).

Even if children are physically active but still spend multiple hours watching television or playing video games, they are still at risk for psychological difficulties. Researchers stress the importance of parents regulating how much these activities are being done to ensure their kids’ well being (Yahoo! News n. pag). A periodical appearing in Medical Post by Amber Lepage-Monette discusses Sonia Miller, a Harvard Medical Student, who conducted a study in 2007 which was a, “cross sectional analysis of children taking part in Project Viva, which followed more than 2,000 pregnant women and their offspring.

Data on diet and TV time were gathered for 1,203 three-year-old children,” (Monette n. pag). After this study was completed, Miller found that for every extra hour of TV the average child viewed per day, they were in taking 0. 06 extra servings of sugar sweetened beverages per day, 0. 32 additional servings of fast food per week, and an additional 48. 7 calories a day. This research also revealed that these children were consuming 0. 18 fewer fruit and vegetable daily servings along with 0. 44 fewer grams of fiber, and 24. fewer milligrams of calcium per day (Monette n. pag). Miller notes, “Previous studies revealed the association between obesity and TV viewing is not due to time spent watching TV replacing time spent being physically active,” (Monette n. pag). From this it can be seen that parents should be thinking twice before placing their kids in front of the TV for long periods of time. On the counterpoint, while there is a strong consensus that television has a negative impact on children, some say it is very much so educational and beneficial.

Amanda Dunn, writer for The Age newspaper in Australia, views opinions of various people about the effect of television on children. Mark Mitchell, star of an Australian show “Round the Twist,” states that while he enjoys engaging children in his show, he worries that television has and will continue to become a babysitter for kids (Dunn n. pag). Lee Burton, senior lecturer in media education at RMIT University Australia, strongly disagrees and, “thinks the babysitter argument is something of a myth, and believes that television is a fine educator and entertainer of children as long as it is regulated,” (Dunn n. ag). Even those that find television valuable for children agree that there needs to be some sort of limitation on how much kids are watching. After doing this research and viewing different perspectives, I find myself definite on what I believe is correct for children. I thoroughly believe that television is a necessity for children.

It enforces creativity and imagination and further emphasizes the importance of creating an individual within oneself. The various shows geared towards children do an exceptional job at giving them the break from the daily grind that I believe s needed even at a young age. Many shows that are made more for the audience of pre-teens to teenagers also do more than entertain these viewers but also relates to their lives by incorporating real life situations. For example, a show I have always been fond of is “Degrassi” which is a show filmed in Canada. This show follows teenagers that attend Degrassi Community High School and follows their triumphs, as well as their losses. Degrassi is ideal for teenagers because it allows them to relate to the situations presented as well as relate it to their own lives and where there is comparison.

In this show viewers have witnessed relationships, the reality of STDs, a school shooting, a murder, a suicide, and a school lockdown. It is because of me watching this show that I believe television can educate and enlighten as well as entertain. Every age group has a show that does both of these things for them. I also believe that there needs to be limitations on how often kids watch TV. Studies I have mentioned before show that there are many disadvantages and losses the children will endure if they continue to watch as much television as they have been allotted thus far.

People continue to say that they are worried for our generation in the future. Well now there is a simple thing that can be done to assist in shaping a better generation; it just needs to be embraced. Children do not need to be at a computer, playing a video game, or watching TV for more than an hour and a half daily. More than this limit will lead to more and more regression of the generation. Television shows have become a global phenomenon to children of all ages.

Clothing, food, games, toys, and many more can be seen surrounding children due to the popularity of these shows. As good as it may seem to be able to sit back and watch various shows at night, it has been proven to be bad for the development of children and worsen their health and nutritional stability. Whether one believes TV is a positive or negative occurrence, it cannot be denied that there need to be limitations on how much television children are engaged in daily in order to support children accomplishing their optimal well being.

Nigeria bottling company produce, sell and distribute a range of non-alcoholic beverages including four of the world’s best selling brands: Coca-Cola, Coca-Cola light, Fanta and Sprite. In addition, nbc product portfolio includes a variety of other sparkling and still beverages including: – fruit juice drinks – premium table water Nbc aim is to offer consumers a choice of beverages that meet the highest quality standards. Key Bottler of The Coca-Cola Company Coca-Cola Hellenic Group is one of the 300 bottling partners that make up the Coca-Cola System, the largest beverage distribution system in the world.

The activities of Nigerian Bottling Company Ltd play a strategically important role within the System. In Nigeria, the Coca-Cola System comprises the Nigeria Bottling Company Ltd and Coca-Cola Nigeria Limited, a subsidiary of The Coca-Cola Company. Coca-Cola Nigeria Limited is responsible for the strategic marketing, brand management, packaging strategy, consumer promotion, advertising, public relations and market research. Nigerian Bottling Company Ltd purchases the concentrates, beverage bases and syrups for producing drinks according to the franchise agreement with The Coca-Cola Company.

In addition, They are responsible for the distribution and merchandising of products, key account management, implementation of promotions and product distribution all over the Nigeria. NBC carries out corporate social responsibility programmes, consumer services and public relations In addition, nbc product portfolio includes a variety of other sparkling and still beverages including fruit juice drinks and premium table water. nbc aim is to offer consumers a choice of beverages that meet the highest quality standards.

They work closely with there partner, The Coca-Cola Company, using their respective skills and assets to serve customers and consumers, while improving the quality of life in our communities. Nigeria Bottling Company Ltd is the only bottler in the country that produces and distributes Coca-Cola products. Strong business infrastructure.

Since 1951, NBC Ltd has been developing its operations in Nigeria, including: the recent construction of an ultra new bottling plant in the capital city of Abuja, the re-construction of Benin Plant in Edo State, the construction of effluent treatment plants -the introduction of the new durable and eco-friendly ultra glass packaging for core brands, and can packaging facilities for Coca-Cola, Fanta and Sprite. Across the Group, Coca-Cola Hellenic has invested approximately €4. 9 billion in property, plant and equipment since 2002, in order to modernize plant infrastructure and expand availability of cold drink equipment, such as coolers. Nbc corporate values is to become “The undisputed leader in every market in which we compete”.

Refresh the consumers partner with the customers reward the stakeholders and enrich the lives of the local communities. At Coca-Cola Hellenic Group, they are committed to six core values, along with their behaviours which support them and shape the way they work every day. Everything starts with the values; they are the DNA of our company and are essential to our future success. Authenticity: we act with integrity, and do what is right, not just easy Excellence: we strive to amaze, with passion and speed.

Learning: we listen and have a natural curiosity to learn Caring for our people: we believe in our people, invest in them, and we empower them Performing as one: we believe in the power of working together, contributing in every occasion Winning with our customers: our customers are at the heart of everything we do. Our values are deeply embedded in our 2020 Play to Win Strategic Framework that aims to deliver every day superior value in community trust, consumer relevance, customer preference, and cost leadership.

Nbc brands they produce a quality range of sparkling, still beverages and water, including Coca-Cola, Coca-Cola Light, Eva, Fanta, Sprite, Schweppes, Limca and Five Alive. Promotions Staging promotions, together with trade partners, enables us to engage with our consumers, and to share the fun and enjoyment offered by our increasingly broad range of products and brands NBC is a company that add value to its input,which makes the organization to have a great competitive value advantage.

INTRODUCTION

Research Problem

The proposed research aims to examine the effect of Chinese Foreign Direct Investment (FDI) in Ghana and Nigeria in order to perform a cross-country analysis of the respective impacts of such investments in these countries. Ghana and Nigeria share a number of similar characteristics, which make for a useful comparison, as it is posited in this study that the similarities between the two African countries will allow for a cross-national comparison of the impacts of Chinese FDI in these countries. The results of the analysis will be used to make recommendations on how Ghana and Nigeria should make appropriate use of China’s FDI to achieve development in these countries.

Analyzing the impact of Chinese FDI in Ghana and Nigeria has been the topic of some academic research. However, previous studies have focused on the individual relationships between these African countries and China (SWAC/OECD, 2011). With the rapid changes in the global investment environment, especially in light of the global recession, it is essential to identify the key determining factors of FDI inflows to Ghana and Nigeria, in order to analyze the impact of these FDIs in this region. Although economic growth has been specified as a developmental goal in this region, academic research exploring the nature of the economic relationship between China and Ghana / China and Nigeria suggests that the influx of FDI into these developing economies may have the effect of retarding the overall development in these countries, as it prioritizes the exploitation of natural resources over essential developmental goals (Oyeranti, et al., 2010).

Aims and Objectives

This research has two main goals. First is to assess the impacts of Chinese FDI in Ghana and Nigeria in order to conduct a cross-country analysis of their respective economic relationships. Second is to analyze the overall impact of Chinese FDI on the development of these countries.

In order to realize the primary goals of this study, the following objectives have been identified:

To establish a theoretical framework for analyzing the impacts of FDI in developing countries, specifically within the context of countries in the West African which have abundant natural resources
To construct a theoretical framework for measuring the impacts of FDI in Ghana and Nigeria, taking into consideration the differences in economic development and investment climate.
To determine the factors influencing the economic relationship between China and Ghana / China and Nigeria, and to analyze these in terms of the established framework.
To compare and contrast the respective impacts of Chinese FDI on Ghana and Nigeria in order to draw conclusions regarding how to manage and improve their relationships

Research Questions

A set of research questions has been formulated based on the main goals and objectives of the study. These questions help to guide the study by ensuring that the analysis stays focused on the primary research subject. Below are the research questions for this study:

What are the determinants of FDI impacts in African countries and how are these measured
What are the specific impacts of Chinese FDI in Ghana and Nigeria
How do these impacts correlate with the determinants identified in question 1
To what extent are the impacts of Chinese FDI in Ghana and Nigeria comparable
What cross-country recommendations can be made in order to ensure that developmental goals and positive determinants of FDI are achieved in both countries

Background information

Due to rapid globalization and the growing interdependence among countries, FDI has been recognized as one of the most significant means of international capital transfers. Over the years, FDI has grown to be an essential component in the economic development of many nations (Benacek et. al., 2000).

Morgan (2003) and Johnson (2005) have highlighted the beneficial impacts that FDI can provide to a host country. These include: (a) generating additional resources such as capital and technology, to help boost the level of domestic outputs and deliver better, more affordable goods and services; (b) outflow of human resources, management practices and technologies from foreign firms to domestic businesses , which enables the host country to improve their operations and competitiveness; and (c) increased involvement of the host country in transnational markets, such as foreign exchange market and international trade.

Due to the economic growth and welfare that FDI brings to the host country, this investment is preferred by most developing countries because it offers a faster way to achieve a more advanced level of economic development. However, FDI presents a lot of risks for investors. Due to these risks, countries are compelled to offer tangible incentives, as well as to put supportive regulation and systems in place to draw investors. Unfortunately, most developing nations frequently neglect to build an incentive system for foreign financiers (Botric & Skuflic, 2005). Consequently, the bulk of FDI is offered to developed countries such as the US, Germany, and Belgium (UNCTAD, 2011a).

Traditionally, investment relationships in Ghana and Nigeria are established with European and American investment partners, as these countries are the primary sources of FDI, trade, and financial and technical aid. These relationships involve a number of bilateral and regional agreements with Nigeria and Ghana. Despite the many years of economic relationships with these countries, there are still differing opinions as to the impact of these investments on the development of Ghana and Nigeria (Tsikata, et al., 2010).

FDI in Africa has been increasing steadily since 2002 with approximately $53 billion worth of FDI in 2007, representing an increase from 2006 of 47.2%. This increase was the highest recorded level of FDI in Africa at the time. With the global recession, the percentage of global FDI into Africa has experienced a significant decline from 3.2% in 2006 to 2.9% in 2007. Since then, however, the African economy has proved resilient, growing to over $61.9 billion in 2008, and the rate of return on FDI in Africa since 2004 has grown to 12.1%. In addition, mergers and acquisitions in Africa have risen by approximately 157% to $2 billion in 2008 (Oyeranti, et al., 2010).

Investment in Nigeria and Ghana by Chinese investors has grown substantially since 1971 as a result of the complementary nature of their economies. Chinese investment in Ghana has been growing consistently in the previous decade with significant increase seen from 2004 to 2005, representing $3.09 million and $17.87 million, respectively. Research indicates that the Chinese share, as a percentage of total investment by China in Ghana, implies that FDI is increasing (Frimprong, 2012). Investment by the Chinese in Nigeria reveals a similar situation, as Chinese FDI grew twice as much between 2003 and 2005, increasing from $3 billion to $6 billion.

Ghana and Nigeria lack significant investments in infrastructure that is needed to support the development required to result in measurable economic growth. To this end, China has developed a successful and competent construction industry, coupled with the ability to provide Nigeria and Ghana with the requisite capital needed to drive this infrastructure development (Oyeranti, et al., 2010). In this way, the flow of investment into Ghana and Nigeria is complementary due to the nature and needs of the respective economies. However, the Chinese industrialization drive and the subsequent inflow of FDI into China’s economy has led to rapid growth in the manufacturing sector, which entails the use of oil and mineral inputs that are overwhelming China’s internal resource capabilities (Ibid). As a result, China is looking to developing nations such as Nigeria and Ghana to supplement their energy resource requirements to support their growing economy. Consequently, the relationship between Chinese FDI inflows into Ghana and Nigeria are being described as exploitative and as having an upsetting effect on the Western development goals that have been set for the region (Tsikata, et al., 2010).

This negative perception about China’s interest in Nigeria and Ghana are due to the fact that the oil and gas sector accounts for more than 75% of Chinese investments. This implies that China seeks to exploit Nigeria’s natural resources. This further suggests that Chinese FDI in Nigeria is a relationship prone to exploitation and is potentially damaging to the developmental goals of the region (Oyeranti, et al., 2010).

Despite these negative views, Chinese FDI in Nigeria and Ghana has not been focused solely on the exploitation of natural resources. Chinese FDI has actually helped to achieve significant growth in the manufacturing and services industry in both countries (Frimpong, 2012).

The investment climate in Africa has become significantly more attractive as a result of the considerable efforts to liberalize investment regulations and offer incentives for FDI. The result, however, has not been as positive as originally intended due to significant concerns over the economic and political stability of the region.

LITERATURE REVIEW

FDI definition

The analysis of relevant literature has shown that there is not one universally recognized definition of FDI. Nevertheless, the various definitions of FDI do not differ considerably. FDI is commonly perceived as either a real phenomenon or a financial phenomenon (Moosa, 2002).

Within the perspective of a financial phenomenon, FDI is defined as:

A kind of transnational investment transfer; wherein FDI is the outcome of variations in interest rates between two economies, because the country with higher interest levels is more appealing for foreign businesses
An external supply of funding for the national economy ? FDI shows the influxes of foreign investment into the nation within a certain timeframe, which is indicated in the balance of payments
A means of reducing and eventually eradicating poverty through FDI-driven economic growth in developing countries, and in Africa, specifically in light of United Nations Millennium Development Goals (MDG) (Asiedu, 2006)

However, when FDI is considered exclusively in financial terms, there seems to be an underestimation of the degree to which FDI is related with a varied array of production elements. Among the most crucial non-financial inflows are managerial skills, expertise, and technology. This implies that although financial flows seem to a main component of FDI, it is not necessarily the leading element. Furthermore, according to Moosa (2002) a distinctive characteristic of FDI compared with other kinds of international investments is its function in directing management policies and decisions. As such, describing FDI as purely a financial phenomenon appears to undervalue this aspect.

A more inclusive definition of FDI that is mostly acknowledged by other international organizations (e.g. IMF, Eurostat, UNCTAD) is proposed by OECD. According to the OECD (1999, p.7), FDI ’reflects the aim of obtaining a lasting interest by a resident entity of one economy (direct investor) in an enterprise that is resident of another economy (direct investment enterprise).’

The term ’lasting interest’ refers to the formation of a long-standing association concerning the investor and the direct investment establishment This also involves important impacts on the management of such enterprise.
A direct investor is ’the owner of 10% or more of ordinary shares or voting stock‘(OECD, 1999, p.8). The IMF recommends applying this requirement of a minimum 10% ownership to differentiate direct investment vis-a-vis portfolio investment through shareholding. Based from this perspective, a direct investor can be any of the following entities: (a) individual, (b) group of associated individuals, (c) government, (d) incorporated or unincorporated company, private or public, and (e) group of associated companies, incorporated or unincorporated. The entity has a direct investment establishment situated in a country that is not where the direct investor resides (Duce, 2003).

Direct investment enterprise can have any of the subsequent forms:

Subsidiary ? a direct investor controls greater than 50% of the voting power allocated to shareholders. Controlling the shareholdings can be done either directly or indirectly, via a different subsidiary. The direct investor has the authority to secure or terminate members of the Supervisory Board or Management Board.
Associate Company ? a direct investor owns between 10 to 50 % of the voting power allocated to shareholders. Likewise the control of shareholdings can be done either directly or indirectly.
Branch ? a direct investor is also the owner of an unincorporated establishment (whole or joint ownership) in the host country. This can be in several forms, such as a joint venture, an unincorporated partnership, or a permanent office for the direct investor. This may also be in the form of fixed/immobile equipment, movable equipment, property, or constructions located in the host country (OECD, 1999).

Choosing a specific kind of direct investment business also depends on different considerations, the most significant of which is the present law in the host country (Duce, 2003). In considering the impact of Chinese FDI in Ghana and Nigeria, it is useful to consider the form of investment that FDI takes, with regard to the respective economies. Based from preliminary research, it is clear that Chinese FDI in Nigeria is significantly higher than its FDI in Ghana, when compared to one another.

Considering the high concentration of FDI in the oil and gas sector, it is possible that the economic relationship between Nigeria and Chinese may be contradictory to the developmental goals and overall well-being of the country. Whilst Chinese FDI in Ghana is seen across a variety of sectors such as aluminum, iron ore, manganese, alloy, timber, waste materials, cocoa beans, cotton linters, and frozen fish (Rahman, 2012). This indicates that the overall impacts of Chinese FDI in Ghana may be more attuned to developmental goals, compared to China’s relationship with Nigeria.

FDI determinants – Theoretical Approach

As FDI became a focal point in the current global economy, researchers have attempted to describe the conduct of multinational firms and FDI determinants through the proposal of different theories.

Adam Smith (Concept of Absolute Advantages) and David Ricardo (Theory of Comparative Advantages) had originally discussed FDI as a feature of international trade. Smith and Ricardo proposed that countries should focus on producing goods where they can offer a cost advantage (i.e. absolute advantage for Smith; comparative advantage for Ricardo). The surplus of goods generated by a country is intended for export. Simultaneously, the country imports goods that it cannot produce domestically because it lacks cost advantages for their production (Sen, 2010). The theories of Smith and Ricardo are the foundations of current views on FDI. Therefore, these will be considered in the design of the theoretical framework.

Heckscher and Olin linked international trade and with the benefits brought by the factors of production. Thus, a country must focus in producing final goods of which the raw materials are reasonably plentiful in the country. Conversely, the country is recommended to import the basic components of goods that are in limited supply. This theory regards FDI as a component of transnational capital movement. FDI flows are seen amongst economies and are described by various capital concentrations. Countries that are well-off in terms of capital transfer their production to countries that have abundant labor supply. This is characterized by more returns to capital and lesser returns to labor. This process continues till labor and capital are equalized in the countries involved (Benacek et al., 2000). While these theories were able to associate FDI with labor costs and higher rates of investment returns, these were unable to completely rationalize FDI phenomenon (Assuncao, 2010). As such, these will not be fully utilized in the creation of this study’s theoretical framework.

Another FDI theory is given by Kindleberger (1969), who presumes that direct investment can be cultivated in situations where market shortcomings or government interferences exist. In this context, particular economies produce commodities in which they can demonstrate a comparative advantage; while other products are exported because the country cannot produce them efficiently. Thus, the relationship between FDI and trade can be either substitutable or complementary. Kindleberger’s (1969) theory is applicable to the context of Ghana and Nigeria because of its considerations of market imperfections and government interventions. These will be helpful in explaining some aspects of the theoretical framework.

Obstacles to commerce may affect FDI in two contradictory ways. On one hand, high trade barriers tend to boost FDI because these result in high export costs. This contention stresses the location advantage aspect of FDI. In contrast, high trade barriers are a hindrance for the parent company, especially in situations with high levels of trade with associated firms. Other researchers have also discussed the relationship between FDI and trade openness (Balasubramanyam et al., 1996) and majority of studies find a positive association among these variables (Benacek, 2000).

Dunning (1993) combined the components of Trade Theory and the Theory of the Firm. Based on the OLI model, Dunning (1993) classified FDI determinants into three groups. These are: (a) Ownership-specific advantages such as technology and know-how; (b) Location-specific advantages including market size, transport costs, etc.; and (c) Advantages that are particular to internationalization, wherein the firm supposes that selling of ownership advantages to third parties is not as lucrative as internally employing these advantages. Moreover, Dunning (1993) came up with the Investment Development Path based from the findings of his study. This framework identified five stages in the development of a country. These stages have a substantial effect on FDI inflows (Gorynia et al., 2005; Benacek et al., 2000). These stages of development will be one of the components in the theoretical framework; thus, this study is important to this research project.

The institutional approach presents a different perspective on the subject. Root & Ahmed (1978) and Bond & Samuelson (1986) suggested that the environment, where the enterprise conducts its operations, is unpredictable and unsure. Thus, the firm’s decisions will be greatly affected by institutional forces (i.e. regulations and incentives). However, in actuality, government policy defines the options that are presented to a company and which influences the firm’s decisions regarding FDI, licensing, and exporting (Assuncao, 2010). The role of government in FDI is another aspect which will be explored in the theoretical framework. The institutional approach will be part of this analysis.

Last but not least, it is beneficial to consider Ozawa’s (1992) study, which connects the patterns in developing countries with Porter’s theory of a country’s competitive advantages. According to Porter, there are four groups of attributes that can be applied to a country. These are: (a) factor conditions; (b) demand conditions; (c) firm strategy, structure and rivalry; and (d) related and supported enterprises. These have an influence on the nation’s competitiveness (Smith, 2012). Ozawa argues that the foreign investment received by developing countries, which are mainly allocated to labor-intensive sectors, results in a process of learning and technology purchase. It aids developing economies to raise their competitive advantages and thus, push the economy onward along the various stages of development ? moving from the fundamental factor-driven stage to the innovation-driven stage. This is described by an increasing external FDI (Ozawa, 1992). The discussion on competitive advantage is again a major component of the theoretical framework which will be the outcome of this research. As such, the study by Ozawa (1992) presents some arguments that are crucial to the discussion of this research.

FDI determinants – Classification

Dunning (1998) identified four groups of FDI motives. The first two groups of motives are features of the initial stage of FDI, while other groups are related to sequential FDI (Gorynia et. al., 2005).

Resource Seeking – the firm intends to obtain specific resources at less costs than in the local/national market
Market Seeking – the firm intends to operate in a specific overseas market because of its size or anticipated growth. The firm builds a global strategy for the foreign market, or reduces the expenditures related to serving a certain market from a neighboring facility instead of from outside the country
Efficiency Seeking – the firm intends to justify its production, distribution, and marketing (Gorynia et. al., 2005, p.65)
Strategic Asset Seeking – the firm seeks to extend its strategic goals; for instance, supporting their competitiveness in international markets

Clause (1999) and Calderon et al., (2002) categorized FDI determinants in two groups: (a) ‘Push factors’ or investor’s intentions to position capital/investment overseas: (b) ‘Pull factors’; or country-specific determinants, also referred to as location determinants. These factors influence the decision of the investor to find capital in a specific country. Additionally, pull factors are political, including growth estimates, or the country’s system of rules/regulations and rewards/incentives. The authors also highlighted other pull elements in the case of transitional economies. These include the process of privatization and the intensification effect, in which a direct investment results in other direct investments (Vita and Kyaw, 2008).

Lastly, UNCTAD (2011a) segregated FDI determinants into three categories: (a) policy framework such as economic and political stability, competition policy, etc.; (b) business facilitations, including the costs of business operations, investment motivations, etc.; and (c) economic determinants such as market growth and infrastructure. Although these determinants help to ascertain the overall desirability of the country, the significance of specific groups differs depending on the sector and entry modes.

The various FDI determinants will be explored as components of the theoretical framework. These will be investigated to find out which FDI determinants are applicable to the Ghanaian and Nigerian context.

Investment Climate in Ghana and Nigeria – A Comparative Analysis

Attracting increasing amounts of FDI has been a significant priority of Ghana’s government when developing and reforming economic policy. The Ghana Investment Advisory Council (GIAC) was formed with the help of the World Bank and is comprised of local and multinational companies and institutional observers from around the world. The aim of the GIAC is to ensure the removal of any regulations, which may discourage FDI in the country. The GIAC, however, does not have regulatory power over the natural resources sector, but does regulate investment in all other sectors, such as banking and other financial institutions, telecommunications, energy and real estate (Tsikata, et al., 2010). The most beneficial element of the investment climate in Ghana is that there is no general economic or industrial strategy aimed at discriminating against foreign owned business or subsidiaries, but conversely there are incentives offered if the projects are deemed critical for national development.

Prior to 1995, Nigeria was considered one of the most unsuitable countries in Western African for FDI due to a combination of considerable restrictions and unsuitable investment climate ? the result of social, economic, and political tensions that continue to plague the country. In 1995, however, Nigeria changed the investment climate substantially by opening the economy to FDI and reversing these severe restrictions. The Nigerian Investment Promotion Commission (NIPC) was created to manage the approval of business licenses and motivations to improve the investment climate. All restrictions on limits in foreign shareholding were also abolished in order to promote and facilitate FDI. According to current Nigerian investment law, 100 % foreign ownership of firms is allowed in every sector, with the exception of the petroleum sector. In this sector, investments are restricted to existing joint ventures or new production sharing contracts (Oyeranti, et al., 2010). This, however, is not necessarily a restrictive provision specific to Nigeria, since production sharing contracts have become a modern way of ensuring that ownership over natural resources is held by the host nation.

It is evident, therefore, that both the Ghanaian and Nigerian investment climates are conducive and receptive to FDI from China. In determining the potential impacts of these investments on the economies of the country, it seems evident that there is a need and desire for large capital investments. At the same time, there is the need to stay in control of their natural resources, namely oil and minerals, which has resulted in the only restriction on FDI in the respective economies. The crucial difference between the two countries is the vast superiority of Nigeria with regards to their oil resources and the far-reaching effects that this has had on the country as a whole. This factor must, therefore, be critically considered to assess the impact of Chinese FDI in the country.

Chinese Interest in West Africa – FDI Analysis

China provides an ideal investment partner to African countries and is often more beneficial to the host nation that traditional investment partners for a number of reasons, including fewer demands on the host country in exchange for investment, fewer conditions for assistance, offered assistance at lower rates of repayment and lower interest rates, and offered training for technical and professional personnel in doing so (technology transfer) (Renard, 2011). Historically, the interest in Africa from the Chinese perspective has been primarily based on the need to supplement their own natural resources, with the rapid development of their manufacturing industry necessitating a significant amount of resources far outweighing any domestic production in China itself and with an abundance of these resources in West Africa, China sought to increase their investment in and trade participation within the region. In 1987, China exempted raw materials and other components due for re-export from custom duties which bolstered their international trade with African countries as being a significant source of these products and raw materials (Renard, 2011). With the Chinese accession to the WTO, the protectionist barriers were further removed and this served to increase trade even further. Trade in components is therefore a significant part of Chinese interest in West Africa, as well as raw materials in exchange for consumer products with low capital intensity with a commitment to moving towards more technology-intensive products.

In addition to the trade investment in West Africa, diplomacy in the region has focused on bilateral agreements with African governments. In 1994, the Exim Bank (China Export-Import Bank) was founded to encourage Chinese exports and FDI in Africa, with a specific focus on improving the infrastructure (Wang, 2007). On the other hand, China Development Bank (CDB), also established in 1994, opened the China-Africa Development Fund to assist Chinese FDI distribution into Africa, through the financing of Chinese firms looking to invest in the region. Finally, SINOSURE (China Export and Credit Insurance Corporation) provides these firms with insurance and protects against the risks associated with Chinese exports and foreign investment (Renard, 2011). These banks have a less risk-sensitive profile than most private banks in traditional Western investment partners, making them more willing to encourage to investment in often high-risk African countries, including Nigeria.

The opportunity to invest in Africa by Chinese firms is as a result of the long-standing history of trade relations and supported by less risk-sensitive banks. These banks aim to encourage FDI in West African countries in order to sustain and potentially increase trade relations with the Chinese economy. With many of the major players in the Chinese economy being state-owned (as a result of the prevailing political regime), there is a significant interest in encouraging FDI with these West African countries due to China’s desire to sustain its high economic growth. This supports the main assumption of this research that China’s FDIs into Ghana and Nigeria are exploitative in nature. Because China’s desire to sustain its economic growth as the main driving factor for its FDI, there is a lot of suspicion that Chinese state-owned investors will not care about the long-term effects of FDI, especially as it focuses on extracting natural resources and raw materials from Ghana and Nigeria.

METHODOLOGY

Research Philosophy

This study applies the positivist philosophy, based on the presumption that experiment and observation are highly significant in perceiving human behavior. According to this philosophy, the world can be understood in a rational way. This approach focuses on analyzing facts and seeks to understand connections; reduces experience to simple components; and tests formulated hypotheses. It usually produces qualitative data, which seeks to be unbiased and precise (Saunders et. al., 2009).

Research Approach

This study is empirical and it acknowledges the significance of gathering and utilizing data, to achieve precise and clear conclusions. Inductive and deductive research approaches will be employed in the study.

The deductive approach is described as highly structured. Theories of FDI motivations are first presented, since they are especially relevant to the Chinese FDI climate. Next, the relevance of these theories to both Ghana and Nigeria is discussed through the analysis of empirical data.
An inductive approach is observed throughout the gathering and examination of empirical data from trustworthy sources. From this perspective, the researcher analyses the data obtained by others, which has been integrated with the research procedures.

Given the research objectives, this study has an explanatory quality . Explanatory research aims to explain if there is an association among two or more variables of a specific incident or phenomenon.

The aim of this study is to ascertain whether there is an association between FDI inflows from China to Ghana and Nigeria using a framework for the measurement of these impacts based on economic, political or social factors which may be influenced by foreign investments.

Data Collection Process

Primary and secondary data will be gathered to analyze the possible impacts of FDI inflows from China. Selected economic indicators will also be analyzed using multiple regression analysis.

This research will examine the following economic indicators: GDP growth rates; GDP per capita; inflation rates; employment rates; unit labor costs; trade balances (represented as a percentage of GDP); foreign exchange rates; Corporate Income Tax Rates; percentage of people with higher education; developmental goals identified by the host country and other international bodies, and public spending on higher education.

The data that will be used in this research will be taken from several different secondary research sites. Data sources are national statistics, scholarly publications, UNDP, IMF and the World Bank, as well as any other directed research that is seeking to understand the relationship between Chinese FDI and its impacts in Ghana and Nigeria countries.

Limitations of Research

The current research is limited to the extent that Ghana and Nigeria are compatible in conducting the comparative analysis. The main concern is that the vast difference in the oil dependency of these two countries will lead to a number of conclusions, which are not compatible with one another, due to the fact that the Nigerian economy revolves around oil production. It is reasonable, therefore, to think that the application of this theory to Ghana may lead to conclusions or recommendations for improvement, which cannot be applied to the Nigerian context due to its resource dependency and the influence of the social, political and economic climate. In order to mitigate this limitation, the researcher aims to look specifically at the dependence on natural resources (mineral and oil) in the Ghanaian economy in order to ensure that this factor is given sufficient consideration in reaching the conclusions of this theoretical research.

Secondary Publications

Published secondary resources will also be utilized in this study. These sources discussed FDI determinants from a general perspective and presented global outflows of FDI from China. These also analyzed the general determinants of FDI impacts in Africa as a developing region, with a specific focus on Ghana and Nigeria, and compared these impacts against one another to determine recommendations for the improvement or mitigation of FDI impacts. The application of secondary data in addressing the objectives of this research will add to the overall clarity of the research. Secondary data will be gathered by studying documents from various sources, such as international organizations and statistics offices. Other materials are peer-reviewed articles, research papers, books, and other scholarly publications. These will aid in recognizing and incorporating the most relevant literature within the context of the main research questions.

Limitations of Secondary Sources

There are some limitations in using secondary sources. One limitation is that it involves the possibility of incurring knowledge gaps. This refers to the occasions when researchers are unable to find the specific data they are looking for. Moreover, data might be outdated or is not relevant to the research problem. Furthermore, the researcher might find contradictory points of view in the secondary data, which will result in confusion and ambiguities.

To lessen these kinds of risks, the researcher will seek the advice and guidance of academic staff specializing in this research subject regarding suggestions on literature. The researcher will also come up with a comprehensive list of international databases of FDI to find the most current data.

Data Analysis

The data analyses that will be applied in this research are comprised of four important steps.

Data will be arranged in a rational way. The arrangement of primary and secondary data is based on the selection process (based on the researcher’s judgment).
Data will be sorted into three categories. The categories are as follows: (a) Theoretical application of FDI in a Chinese context; (b) Ghanaian and Nigerian investment climate and context; (c) the relationship between Chinese FDI and the Ghanaian and Nigerian political, social, and economic factors.
Data will then be analyzed using a number of qualitative research techniques.
Results will be organized in terms of theoretical FDI themes identified in the initial research.

DISSERTATION PLAN

Below is the Gantt chart for the dissertation. This outlines the main activities that will be conducted for this research.

Project TasksStartDuration
Task 1: Writing the research proposal05
Task 2: Writing the project plan55
Task 3: Conducting the literature review1014
Task 4: Gathering of secondary data247
Task 5: Creation of theoretical framework3120
Task 6: Analysis of the data5114
Task 7: Writing the final research report6514

Note:

Start – Represents the number of days from the start date of the research project

Duration – The number of days required to complete the task

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Chapter 1: Introduction

Nigeria is one of the leading oil producing countries in the world. Nigeria’s economy was largely characterised by agricultural production alongside other consumer goods up to the 1980’s, when oil wealth took over the majority of the country’s economy. For more than three decades, Nigeria has exploited her oil resources for export. The emergence of oil as Nigeria’s main source of revenue has generated a number of questions regarding the significance of the oil wealth to the socio-economic development of Nigeria society. It has been commonly assumed that Nigeria’s large oil deposits would spur socio-economic growth and put the country among the world’s elite nations in terms of economic growth and social prosperity (Ian and Terry, 2003).
Since independence from Great Britain in 1960, Nigerians have experienced a number of problems ranging from ethno-religious and sectarian conflicts to corruption. According to Gboyega (1996) the post-independent Nigeria is one that has bore the brunt of leadership-induced poverty instigated by corruption scandals, religious charlatanism, war, restiveness, political instability, series of dictatorial regimes, and failure to build basic amenities among other issues. Ironically, these challenges have intensified during the period when Nigeria experienced what is commonly referred to as the ‘oil boom’ (Gboyega, 1996, p.39). Julius-Adeoye (2010) believes that Nigeria’s severe socio-economic crisis started immediately after independence, when the country’s leaders plundered the nation’s resources with massive corruption allegations at the expense of citizens’ wellbeing; excuses that military generals used to mount coups from the civilian rulers.

Whilst it was expected that the beginning of Nigeria’s democratically elected government in 1999 under the leadership of President Olesegun Obasanjo would see sudden change of fortunes for Nigerians, the country has not realised much progress in terms of social progress despite the much hyped economic growth (Salawu, 2010). Data indicate that Nigeria’s oil revenue hit US$ 300 billion in the last two decades alone (Balouga, 2009). But it is the rise in revenue (over USD$112 billion between 2004 and 2007 alone) during Obasanjo’s reign that has raised questions about the country’s priorities and socio-economic development plans.
One question one would ask is; where did Nigeria got it wrong in terms of socio-economic developmentTo answer this question, there is need to understand how defining regimes of General Ibrahim Babangida and later Olesegun Obasanjo have contributed to the socio-economic slump of the resource-rich Nigeria.

1.1 Aim and Objectives

This study aims to establish the implication of two leaders of Nigeria, General Ibrahim Babangida (1985-1993) and President Olusegun Obasanjo (1999-2007) on Nigeria’s oil and gas resource management and the socio-economic impact with General Babangida setting the pace in the years of misrule and mismanagement of national resources, he set a precedent that would later haunt the economic and social fabric of Nigeria and its people for later years. Sadly, the trend of inequality did not seem to end with military rule but extended with the civilian rule of the democratically elected government (Odebode, 2004).

Research objectives

To establish the role of General Babangida’s regime on the oil resource management and socio-economic development of Nigeria
To identify the implication of President Obasanjo’s reign as a democratically elected leader on the oil resource management and socio-economic development of Nigeria
To identify ways in which leadership can be used to balance Nigeria’s socio-economic development and improve oil resource management

1.2 Research Questions

What is the significance of Babangida and Obasanjo’s regimes in the socio-economic development of Nigeria?
What is the significance of oil wealth to the socio-economic development of Nigeria’s socio-economic development?
What implications do the oil resources have on the local communities’ social integration and economic wellbeing?
To what extent has the reigns of these leaders captured in the literature about Nigeria’s developmental agenda?
Chapter 2: Literature Review
There is a significant body of literature on Nigeria’s development framework. It has been described as having components of corruption, consumerism, failed socio-economic and political policies, and many other issues (Balouga, 2009; Odebode, 2004; Ian and Terry, 2003).Odebode (2004) observes that Nigeria’s socio-economic climate in the past four decades has neither promoted any kind of social and economic welfare that can insulate families from harsh market realities nor help them “benefit from market developments” (Odebode, 2004, p.12). This is despite massive revenue from oil production. Corruption has been at the core of Nigeria’s political and social developments independence, saddling between military and civilian regimes, which have regrettably institutionalised corruption in almost all government agencies.
When General Ibrahim Babangida toppled General Muhammadu Buhari’s regime of less than two years in a bloodless in-house coup on 27th August 1985, the country saw thirteen years of corruption in Nigeria. It is generally agreed that during General Babangida’sregime corruption not only reached alarming high level rate but also became instutionalised. For instance, leaders who were found guilty by tribunals in the previous regimes of Murtala Mohammed and Mohammadu Buharu would later find their way back into the public life; recovering their seized properties allegedly acquired through corrupt means. Maduagwu (cited in Gboyega, 1996, p.5) observes that that not only did Babangida regime entrench corruption when he pardoned corrupt government officials convicted in the previous regimes and allowed them to reclaim their seized properties, but also “officially sanctioned corruption in the country, making it difficult to apply the only potent measures, long prison terms and seizure of illegally acquired wealth” for fighting corruption in Nigeria in the future. The successive regimes after Babangida did little to stop corruption (Balouga, 2009). General Sani Abacha in just less than 4 months had ousted the interim government furthering the corruption menace and stagnating the socio-economic growth. The Abacha regime saw corruption reached its peak with plunder of national resources. The International Centre for Asset Recovery (2009) estimated that the Abacha family alone took up to US$ 4 billion from the public coffers.
Salawu (2010) observes that the country’s populace is still marred with abject poverty, to the extent that it is not only being categorised amongst the world’s poorest nations but also graces the world’s most unequal countries list. Studies have estimated that about 70 percent of Nigeria’s population lives below poverty line, largely due to inequitable distribution of the national resources such as oil revenue limited access to basic amenities and social services such as healthcare (Salawu, 2010).

Chapter 3: Research methodology and design

The researcher proposes to use qualitative research method to increase the understanding of the attitudes, motivation and other non-numerical information. The study will seek to investigate these phenomena using structured and semi-structured questionnaires, interviews and observation. According to Panneerselvam (2004), qualitative approach to research is the most appropriate research method when studying issues that require in-depth understanding of issues. Panneerselvam (2004) advises that researchers intending to study societal issues such as corruption and governance should immerse themselves into the culture of the society and experience what is in the system. Qualitative research allows the researcher to practice the needed flexibility, thus the ability to amend the emerging sub-questions as they become more familiar with the people, culture and system construct (Panneerselvam, 2004, p.158).
Qualitative research methods help researchers to collect non-numerical responses from respondents using less-structured research instruments such as interviews, observation and ethnography. Ethnography uses fieldwork to provide a descriptive study of human society and presents the results as an organized whole that is greater than the sum of its parts. It is founded on the principle that a system’s individual properties cannot always be accurately understood independent of each other. Qualitative research is thus based on relatively small sample sizes and may evoke inherent challenges when larger sample sizes are needed.

In-depth Case study

This research will also adopt a case study as a research methodology. The case studies will focus on General Babangida’s regime and Obasanjo’s reign and draw any comparison and similarities in terms of socio-economic development.
Case study as a research method is popular due to its ability to draw inspiration from the empirical curiosity and practicality (Stake, 1998). Although the researcher maybe interested in a wider question of socio-economic development of Nigeria, the case study will allow the researcher to specifically focus on issues of oil resource management, corruption, and leadership ideals. Case study is an important research method because it is able to combine other research strategies, hence the reason why it is often referred to as a meta-method (Stake, 1998). Gillham (2001) argues that a case study should not be viewed as more important than other research methodologies but should be seen as more suited for practice-oriented fields. That is, the ability of the researcher to act within a professional practice is dependent on the knowledge of a repertoire of cases.

3.1 Scope of the study

This research will focus on oil resource management and its impact on socio-economic development in Nigeria. The focus will draw similarities and contrast between General Babangida’s regime (1985-1993) and Olusegun Obasanjo (1999-2007).

References

Balouga, J. (2009). The Niger Delta: Defusing the Time Bomb. International Association for Energy Economies 1 (3), 8-11.
Gboyega, A. (1996). Corruption and Democratization in Nigeria. Ibadan: Agba Areo Publishers.
International Centre for Asset Recovery. (2009, September). Sani Abacha. Retrieved on 25 August, 2014 from http://www.assetrecovery.org/
Gillham, B. (2001). Case Study Research Methods. London, New York: Continuum.
Ian, G. and Terry, L. (2003). Bottom of the Barrel: Africa’s Oil Boom and the Poor. Stanford: Catholic Relief Services.
Julius-Adeoye, R.J. Nigerian Playwrights and Official Corruption: a study of selected plays. In Oshionebo, B.,Mbachaga, J.D., eds. (2010). Literary Perspectives on Corruption in Africa 1. Markudi: Bookmakers, 2 (1), 5-17.
Odebode, S. (2004). Husbands are Crowns: Livelihood Pathways of Low-Income Urban Yoruba Wwomen in Ibadan, Nigeria. The Hague: ISS, 11-12.
Panneerselvam, R. (2004). Research Methodology. NY: PHI Learning Pvt.
Salawu, B. (2010). Ethno-Religious Conflicts in Nigeria: Causal Analysis and Proposals for New Management Strategies. European Journal of Social Sciences 13(3), 345-353.
Stake, R. (1998). “Case Studies” in: Norman Denzin & Yvonna Lincoln. (eds.): Strategies of Qualitative Inquiry. Thousand Oaks, London, New Delhi: Sage.

Conceptualizing Organizational Change

This paper focuses on conceptualising organisational change as a planned and manageable process. Different theoretical assumptions are presented in order to support the argument of change as a planned and manageable process in contemporary organisations. The paper utilises examples from two Nigerian companies, Access Bank Plc and Unilever Nigeria Plc. The main conclusion is that Access Bank Plc indicates that change can be a planned process, while Unilever Nigeria Plc shows the case of change as a manageable process. However, it is indicated that change may not succeed as a planned and manageable process especially in the context of Nigerian public education and the food and beverage industry. The paper also contributes to understanding change as a flexible and innovative process occurring in global companies.

Introduction

It has been suggested that organisational commitment may lead to the proper implementation of change. Managers tend to rely on employees while planning or managing organisational change, but organisational commitment may decrease as a direct response to such change (Grieves 2010). Manifesting positive employee attitudes towards change has been linked with successful change initiatives in organisations. It has been argued that change can be both a planned and manageable process (Caldwell 2006). At the same time, it may appear that change as a planned and manageable process may fail, as it will be shown in the case of Nigerian public education and the food and beverage industry. The objective of this paper is to explore the dimensions of change as a planned and manageable process, with focus on the performance of two Nigerian organisations, Access Bank Plc and Unilever Nigeria Plc.

Change as a Planned Process: Access Bank Plc, Nigeria

This section provides evidence on change as a planned process as applied in Access Bank Plc, Nigeria. There is an argument outlined in the change management literature suggesting that employee attitudes towards change might be affected by the perceptions employees demonstrate towards organisational change (Olufemi 2009). Employees play an important role in forming specific attitudes towards organisational change as a planned and manageable process (Caldwell 2006). They may either show positive or negative evaluative judgments of the change model. Change as a planned process indicates the presence of two dimensions, change readiness and change resistance. These dimensions reflect the presence of strategic planning within organisations that are ready to embrace the innovative concept of change. Change readiness has been associated with employees’ behavioural responses to change (Hughes 2010). Resistance to change may not take place in case employees strongly believe that they have the capacities to cope with such projected change. Even though resistance to change may take place, it may be perceived in a positive way considering that it would force companies to implement new and more effective strategies to address the issue of change.

Change can be a planned process, which managers aim to link with change-oriented activities. It can be argued that planned change occurs when some stakeholders manifest a desire to change, enhance their personal introspection, and modify their behavioural patterns in relevant ways (Hughes 2011). However, it would be unrealistic to state that planned change reflects the idea that everyone decides it is useful. Change as a planned process indicates the presence of solid changing forces in both the internal and external environment of organisations. Kotter’s 8-step model of change indicates that change can be a planned process involving eight proposed steps from creating the urgency for change to managing it accordingly in the organisational context (Hughes 2010). Jarrett (2003) has argued that planned change seems to increase an organisation’s effectiveness. Approaches to change as a planned process may reflect the relevance of different theories and concepts that tend to describe the stages and procedures of implementing change.

The integrative model of organisational change suggests that change can be a planned process through a strong focus on exploration, planning, action and integration (Jarrett 2003). In addition, emergent theories of change present an argument that managers who aim at developing change as a planned process show an in-depth understanding of the organisation, its culture, assets and readiness to change. Researchers have argued that change projects utilising process orientation and learning are more expected to succeed than those manifesting expert planning at all stages of organisational change in contemporary business (Nistelrooij and Sminia 2010). Change planning and management have identified change as an essential competency for the majority of organisational leaders. Planning change in the context of certainty has become a necessary aspect in organisations which openly promotes flexible communication based on change and innovation. Since some individuals may perceive change as an integral part of organisational life, it would be relevant to focus on developing effective strategies to monitor and sustain such change (Hughes 2010). Planning in relation to change refers to a consideration of the current and future needs of organisations.

Companies illustrating that change can be a planned process focus on planning as a goal-directed activity, in which emphasis is put on organisational goals while trying to maintain change. This may result in better coordination and easy implementation of change in companies (Carnell 2007). An exploration of the Nigerian banking industry reveals a close relationship between planned organisational change and HRM interventions. New banking management practices in Nigeria require the implementation of planned change that may contribute to improved organisational commitment, performance and compliance with important regulatory standards (Olufemi 2009). The acquisition of Intercontinental Bank by Access Bank Plc, Nigeria, has resulted in the necessity of redefining organisational change as a planned process to reflect the needs of the new workforce and the objectives of the banking organisation (Paton and MacCalman 2008).

It has been suggested that successful change planning and management in organisations depends on staffing, alleviating fears, effective communication and planning, and integrating human resource systems (Hughes 2011). In the case of Access Bank Plc, planned organisational change has resulted in creating the need for the human resource department to focus on staffing (Olufemi 2009). The expansion of the bank’s recruiting base has been associated with perceptions of change as a planned process, in which the institution is focused on attracting more talented employees. Even though organisational change may create fear and uncertainty, managers considering change as a planned process may alleviate those fears (Hayes 2010). The acquisition initiated by the Nigerian bank shows that employees have learned to adapt to new processes and procedures within the institution (Olufemi 2009).

The case of Access Bank Plc indicates that organisational change can be a planned process due to the interventionist strategies employed by HR managers of the organisation. The creation of new job structures by the bank reflected the necessity to relate organisational change to employees’ roles and expectations (Olufemi 2009). This was done in order to accommodate employees working in both companies considering the acquisition process that took place. The existing human resource systems in the bank showed the trend of planned organisational change which further reflected employees’ commitment to the bank’s long-term objectives. Moreover, Access Bank Plc needed to adjust its HRM policies to achieve its initially determined strategic goals which represent the process of planned change within the institution (Hayes 2010). The model found in the bank presents the existence of convergence among HRM interventionist strategies that were consistent with the perceptions of change as a planned process.

Variables such as fear, planning and development as well as integrated human resources indicate a strong focus on organisational change which has been adequately planned at Access Bank Plc. The bank’s managers have ensured understanding of the planned change process which is fundamental for change implementation (Nistelrooij and Sminia 2010). The interests of various stakeholders are considered as part of such ongoing planning process. As a result of the acquisition, Access Bank Plc tried to alleviate employees’ uncertainty through setting clear corporate objectives and effective communication (Paton and McCalman 2008). Flexibility has been associated with planned organisational change in this Nigerian organisation. Taking various perceptions into consideration was important in encouraging employees’ commitment and planning change. Despite the occurrence of certain conflicts in the institution, the managers demonstrated strong leadership skills while planning and managing change. Another significant aspect of the planned change process in Access Bank Plc is the formation of a change team for better articulation of the stages expected during organisational change.

The Nigerian bank has demonstrated readiness of its employees to accept change as it has been linked with improved organisational performance (Olufemi 2009). The organisation’s managers encouraged integration between processes and implementation of new organisational methods to cope with the process of planned change. Strong corporate culture, strategy, structure and relevant organisational priorities emerged as a result of the Nigerian bank’s focus on organisational change as a planned process. The process of planned change tries to incorporate potential situations of crisis that may occur in the organisation (Caldwell 2006). Therefore, the planned approach to change incorporates unpredictable events that may result from different organisational conflicts.

The Nigerian bank ensures constant adaptations to changing organisational situations. Considering that organisational change is unpredictable is important in perceiving such process as comprising of different organisational factors and flexible learning (Hughes 2010). Lessons learned from the case of Access Bank Plc involve both practical and theoretical considerations, such as identifying sources of change resistance, involvement of employees on a regular basis and developing proper communication plans (Olufemi 2009). The idea is to help the bank’s employees perceive themselves as part of the ongoing organisational change which reflected elements of a planned process. They need to understand that organisational change may influence them to a significant extent in terms of becoming more confident and competent in accomplishing their roles and responsibilities (Nistelrooij and Sminia 2010). It has been demonstrated that all levels of management of Access Bank Plc were aligned with organisational change and thus prevented the formation of negative attitudes among employees. In conclusion, the progress of change in the Nigerian bank was significant due to the role played by HR managers and leaders who placed importance on communication to achieve the planned process of change.

Failure of Change as a Planned Process: Nigerian Public Sector

This section describes the failure of change as a planned process in the Nigerian public sector. In a study conducted by Abdulraheem et al. (2013), it has been found that government reform agenda in Nigeria failed to achieve proper results in improving the quality of education in the country despite adopting the model of change as a planned process. In-depth interviews were conducted as the results showed that cultural differences are a significant indicator of adherence to organisational values (Abdulraheem et al. 2013). It has been suggested that despite the easy formulation of theories and models of change as planned, such aspects of change were difficult to implement in practice. Employees’ resistance to change was indicated across the Nigerian public sector. Cultural differences in terms of change prevented the successful implementation of change.

Different education programmes have been introduced in the context of the Nigerian public sector, but they failed to achieve the objectives of meaningful change in education they initially presented. Abdulraheem et al. (2013) pointed out that change as a planned process was counterproductive to some educational programmes. The divergence of organisational values in Nigeria reflected the unsuccessful adoption of change as a planned process in public education. Despite change efforts, the level of educational development was failed to be comprehended properly.

Change as a Manageable Process: Unilever Nigeria Plc

This section covers the implications of change as a manageable process in the case of Unilever Nigeria Plc. The business environment in general has created a fast pace of change in the workplaceVarious acquisitions, advanced technological tools, reformation, cutbacks and economic recession are all aspects that contribute to a quite unstable business climate (Hayes 2010). The capability to adjust to the demands of the evolving workplace is considered an essential element for individuals and organisational existence. Organisational change is constantly present at Unilever and individuals are shown ato manage, control and guide it. Such change refers not only to accepting human factors, but also to an ability to organise and manage change factors efficiently, considering that change may be predictable (Grieves 2010). Organisational change taking place in the Nigerian organisation is at a transitory stage in a direction of stabilising its future position in the industry. The process of organisational change at Unilever can be managed as the procedure of planning, controlling and executing change in organisations in such a way is to reduce employee confrontation/resistance and cost to the organisation. In turn increasing the usefulness of the change effort becomes a priority to managers. Change is both predictable and attractive for the Nigerian company embracing the idea of innovation (Carnell 2007).

The current business environment indicates signs of rapid competitiveness which results from the application of change initiatives that target the development of companies in a relevant direction Aspects of globalised markets and swiftly evolving technology influence businesses to adopt change in order to strengthen their performance in the market (Hughes 2010). For instance, such changes may reflect the introduction of a new software programme, or refocusing a marketing strategy. Companies, it has been suggestsed, must accept the force of change simply because their business environments require constant changes to take place (Jarrett 2003). Different external and internal organisational factors guide companies to consider the importance of change. Internal demands for change are derived from senior management and lower-level employees who drive the urgency for implementing change. External demands reflect changes in the PESTLE business environment (Burnes 2005).

In practice, the management of change as presented in the case study of Unilever Nigeria Plc reflects common aspects of change observed in other Nigerian manufacturing organisations. . Observing the level of accepting organisational change among employees of Unilever Nigeria Plc may allow managers to structure the process of change in a manner to reflect employees’ different perceptions and expectations of change (Anthonia et al. 2013). This example also focuses on drawing lessons that can be functional and useful to other companies operating in the business environment of Nigeria. Approving and implementing organisational change indicate Unilever employees’ eagerness and willingness, support and assurance to the organisation which is important during the phase of major shifts in the structure of the organisation (Jarrett 2003). It has been suggested that senior managers are usually not in a rush in introducing change. They adhere to the belief that such procedure must be slow, balanced and systematic, particularly in large manufacturing companies like Unilever Nigeria Plc. Results from the survey conducted among employees of the Nigerian organisation revealed that the mean acceptance of change for all participants was reasonable. It has been indicated that characteristics of work settings do not represent any barriers to adopting change by Unilever employees.

Acceptance of change by Unilever employees indicates the enthusiasm and confidence of the involved parties to hold and operate in a flexible business environment dominated by stakeholders’ assurance to influence and execute the changes (Anthonia et al. 2013). As highlighted by different scholars (Caldwell 2006; Jarrett 2003), the process of change can be both planned and managed especially if all stakeholders accept the desired outcomes by such organisational change. Researchers have argued that change should be established, executed and managed in such a way that draws the dedication from the affected parties like employees to accomplish the desired goals (Burnes 2004; Carnell 2007; Hayes 2010). The idea is that change is obligatory and predictable for organisations, as in the case of Unilever. It has been argued that to productively promote innovation in Unilever Nigeria Plc, it is not possible for senior management to have the ability and expertise needed for recognising the necessity to manage change. Managers needed to widen their understanding of the major factors that may encourage or obstruct employees’ support for change initiatives in the organisation (Hughes 2010). This is significant because employees are considered the main stakeholders as well as the executers of change in the organisation. In the case of Unilever, it has been indicated that older employees and management staff were less receptive to the concept of change in comparison to younger employees working in the organisation.

From the perspective of Unilever Nigeria Plc, employees were expected to hold and manage the execution of innovation through recognising the importance of innovative organisational culture. Unilever is a manufacturing company, in which the success of innovations is closely associated with support and encouragement from both senior management and non-managerial personnel (Anthonia et al. 2013). Additionally, innovations in Unilever Nigeria require strategic policies representing the company’s vision, goals, priorities and ways of action. In order to contribute to successful management of change within the organisation, senior managers combined effort and interpersonal reliance of all employees from all organisational departments and levels comprising the organisation’s hierarchical structure (Olufemi 2009). Unilever Nigerian Plc indicates an objective to deliver sufficient dividend on stakeholder investments. Yet the company is not resistant to most problems faced by other Nigerian companies. Similarly to most organisations operating in Nigeria, Unilever faced different internal challenges that weakened its competence to accomplish its mission thus pursuing to reinvent itself and manage the change process.

Unilever Nigeria Plc has achieved solutions through innovations in order to implement change which has been recognised as a manageable process. The organisation is dedicated to innovation in various dimensions of its business, such as products, change policies, marketing initiatives and change mechanism strategies. It has been demonstrated that Unilever should reconsider the way in which it carries out its business activities in the economic Nigerian environment (Anthonia et al. 2013). The Nigerian organisation provides a practical example of how companies embrace the idea of change and manage it accordingly, with the idea to guarantee that the change process is executed effectively (Hayes 2010). Employees’ support, motivation, encouragement and commitment to change is fundamental. For example, results from surveying employees at Unilever revealed that most employees accept innovations, as non-managerial staff was more ready to accept change.

Unilever Nigeria Plc tries to achieve the goals outlined in its vision of being a leading manufacturing organisation in Nigeria. However, the changes (or innovations) used to direct the company in that direction must be suitable to all stakeholders as well as properly executed (Burnes 2005). However, the successful execution of change and implementing other alteration measures in Unilever Nigeria Plc represents the relevance of two functional categories of human resources, that is management and non-management employees. Employees’ commitment to accomplish the various stages of change is a necessary requirement for the transformation of the company into an innovative enterprise because it would reflect strong indications of a company’s dynamic tempo of development (Hughes 2011). It has been found, through administering surveys to a sample of 720 senior/management staff and junior/non-managerial staff, that employees of Unilever Nigeria Plc demonstrated a positive attitude towards change. This indicates a high level of recognition of change on the behalf of stakeholders (Anthonia et al. 2013). The findings recommended that senior management of Unilever Nigeria Plc indicated effective practices of uniting employees in order to sustain and manage the change process.

The findings further implied that since employees at the company are likely to assess change completely, they are not opposed to it and thus any resistance is not expected to take place. In other words, employees would accept change and oppose it only if it increases legal concerns that may emerge in the workplace (Hughes 2011). This is consistent with the views shared in the organisational change management literature in the sense that negative attitudes of change may be an indicator for growing anxiety among employees. These findings are consistent with claims presented in existing literature, which shows that individuals may resist change or innovations because of uncertainty, misunderstanding, peer pressure, personal conflict and inaccurate perceptions of the change process (Anthonia et al. 2013; Hughes 2011; Paton and McCalman 2008). In particular, participative management, quality control management and trust in management emerged as important determinants of accepting the validity of the organisational change process by turning it into manageable and acceptable among employees of Unilever Nigeria Plc (Anthonia et al. 2013).

The change initiated by senior management of Unilever Nigeria Plc was supported by employees, indicating that the organisation has adequately communicated the necessity to embrace and manage change (Anthonia et al. 2013). The major objective of the case study was to describe the organisational management of change at Unilever Nigeria Plc, which provided evidence that the change process can be manageable. The outcome that can be illustrated from this case study is that the corporate strategic model implied above does not seem to fit in with the assumptions of change demonstrated by senior managers (Hughes 2010). This may result in damaging the execution of necessary change at the organisation. This can apply to all manufacturing companies in Nigeria, as the majority of Nigerian organisations face interrelated challenges across different industry sectors.

Failure of Change as a Manageable Process: The Food and Beverage Industry in Nigeria

This section demonstrates findings that change has failed as a manageable process in some companies operating in the food and beverage industry in Nigeria. Olarewaju and Folarin (2012) aimed at exploring the impact of economic and political environment changes on organisational performance. Respondents from three companies operating in this industry filled questionnaires, as the results indicated that change failed as a manageable process. It has been suggested that managers should demonstrate greater concerns regarding organisational change and performance in terms of employing regular scanning of programmes introduced in organisations.

It has been concluded that the influence of the external business environment, which involves persistent change, on organisational performance in the food and beverage industry in Nigeria was inadequate (Olarewaju and Folarin 2012). Understanding change as a manageable process was not effective across this industry because some food and beverage companies did not succeed in maintaining their performance measurement system properly. Forces shaping competition in the industry were irrelevant, pointing out that change initiatives were inadequate in this business context.

Conclusion

This paper presented arguments that change can be a planned and manageable process in contemporary organisations. The focus was on discussing the implications of change in the context of Nigerian companies, respectively Access Bank Plc and Unilever Nigeria Plc. It has been concluded that Access Bank Plc demonstrates a change structured process that is planned, whereas Unilever Nigeria Plc illustrates a manageable change process (Caldwell 2006). In addition, details of the failure of change as a planned and manageable process were included with regards to Nigerian public education and the food and beverage industry. The paper also illustrated the argument that change is linked with innovative organisational culture, which indicates a strong focus on the expected innovative performance of companies (Burnes 2004). The implications of conceptualising change as a planned and manageable process may help individuals and practitioners in the field recognise important characteristics and stages of organisational change.

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