Exchange Rate Pass-Through to Consumer Prices in Nigeria

The increasing overdependence of Nigerian economy on imports has necessitated the need to continually examine the effect of exchange rate shocks in consumer prices. The paper adopts a Structural Vector autoregressive to estimate the pass-through effect of exchange rate changes to consumer prices. Using the Variance Decomposition analyses, the study found a substantially large exchange rate pass-through to inflation in Nigeria. Finding shows that exchange rate has been more important in explaining Nigeria’s rising inflation phenomenon than the actual money supply. Therefore, it is recommended that Nigerian economy focuses on policies that ensure exchange rate stability and sound monetary surveillance

Learning to Innovate in Nigeria's cable and wire manufacturing sub-sector: inferences from a firm-level case study

Firm performance is known to be connected to firm-level innovation capability. Innovation capability, in turn, is an output of technological learning. This paper evaluates technological learning among firms in the Cable and Wire manufacturing sub-sector in Nigeria, using a purposively selected case firm. We developed a model of the relationship between the innovative activities of the firm - as evidence of its capability – and its knowledge acquisition methodology. These are discussed within the context of the firm’s stock of human capital. We found low technological innovation capability and high capability for organisational and marketing innovation. Preparedness for technological learning is relatively poor with staff training intensity of 5% and innovation intensity of 0.0075%. We therefore propose stronger interconnectedness of the National Innovation System and creation of industry specific structures that could enhance learning.Technological learning; sub-sector; Cable and Wire manufacturing industry

A Model for the Design and Development of a Science and Technology Park in Developing Countries

This paper presents an appropriate model for Science and Technology Parks (STPs) with a view to helping policy makers and STP managers implement and manage STPs. The authors reorganize and prioritize the Cabral-Dahab Science Park Management Paradigm. We identify three critical groups of actors (determinants, reactors and executors) and develop four sub-models from different trajectories of the groups of actors. We place more emphasis on the “determinants” as the most important actors in the establishment and management of STP. A critical evaluation of the sub-models reveals that the sub-model in which government, industry and university/research institutes are all jointly involved in decisive policy direction is the most appropriate for the developing country. The paper concludes that economies in transition should see STPs as having a distinctive organizational structure as a result of its myriads of collaborations and partnerships.Enterprise Development; Science and Technology Park; Model; Developing countries; Cabral-Dahab Paradigm; Determinants; Management

Innovation in Nigerian SMEs: types and impact

This paper seeks to explore the types of innovation that are predominant in SMEs in developing countries and to investigate the impact of these innovations on different dimensions of firm performance based on an industry-wide innovation survey carried out in Nigeria in 2007. Although innovation is important for superior firm performance, our result found that the type of innovation that SMEs pursue is not a critical consideration in their performance. While there was no difference found in the focus of SMEs on either of product or process innovations, evidence showed that SMEs would focus more on incremental product and process innovations. Incremental innovation was found to be very important for Nigerian SMEs and a significant predictor of product quality and not of revenue. The authors conclude that SMEs chooses to pursue such innovations that most fit their strategies and available resources. Such level of innovation affords Nigerian SMEs to more extensively exploit the domestic market but cannot support extensive new product development required to enter export markets.innovation; small and medium enterprises; Nigeria; impact

EXCHANGE RATE PASS-THROUGH TO CONSUMER PRICES IN NIGERIA

The increasing overdependence of Nigerian economy on imports has necessitated the need to continually examine the effect of exchange rate shocks in consumer prices. The paper adopts a Structural Vector autoregressive to estimate the pass-through effect of exchange rate changes to consumer prices. Using the Variance Decomposition analyses, the study found a substantially large exchange rate pass-through to inflation in Nigeria. Finding shows that exchange rate has been more important in explaining Nigeria’s rising inflation phenomenon than the actual money supply. Therefore, it is recommended that Nigerian economy focuses on policies that ensure exchange rate stability and sound monetary surveillance

Environmental scanning strategy of manufacturing companies in Southwestern Nigeria

In this paper, we examine the environmental scanning strategy of manufacturing companies in Southwestern Nigeria against the background that manufacturing companies in Nigeria exist in a challenging environment characterised by high import dependency, inappropriate policies, lack of transparent governance and weak industrial capabilities. Empirical data was collected with a questionnaire from a sample of 84 manufacturing firms in Southwestern Nigeria. We found that generally, companies in the industry actively engage in systematic gathering, analyses and assimilation of information about the business environment as strategic input into planning. The main objective of search was to obtain information required to initiate or support strategies for competing in the domestic market. Central among the factors determining the companies' level of intrusiveness into the environment are companies' capacity to interpret changes in the environment, available channels of information and quality of information.business environment; environmental scanning; environmental analysability; environmental uncertainty; manufacturing, strategy; technology; capabilities

What Drives Innovation?: Inferences from an Industry-Wide Survey in Nigeria

This chapter seeks to make some contributions to the literature on firm-level innovation in Africa by attempting to identify the significant factors that explain the capability of firms in Nigeria to innovate using the results of an industry-wide study. We focused on the product and process innovation activities of firms between 2003 and 2006 and found differences in the factors that drive them at the firm level. Our results further show that interactions matter more than most innovation-related variables and that the most important actors that influence a firm’s innovation efforts are its customers and suppliers. We conclude that product and process innovations are not mutually exclusive and that a major key to successful innovation is how and with whom a firm collaborates. The implication of this for firms and policy makers is that an effectively wired innovation system where all stakeholders are active is critical for firm-level innovation capability.innovation; drivers; manufacturing industry; Nigeria; determinants

Economic Analysis of Sickness and Labour Productivity among Cocoa Farmers in Obafemi/Owode Local Government Area, Ogun State

A high proportion of people suffer from malnutrition and other diseases related to poor nutrition and the rural people are worst hit by sicknesses resulting from poor nutrition. Therefore, this research work examined effects of sickness on labour productivity among crop farmers in Obafemi/Owode Local Government Area of Ogun State. A total number of one hundred and forty two farmers were interviewed using a structured questionnaire. The data obtained were analyzed using descriptive statistics and regression analytical procedure. The descriptive analysis indicated that farmers in the study area literarily have no other source of income (59.86%). They are mostly aged males (65.49%) who have little or no education but a long year of experience in farming (more than 90% have more than ten years experience). Malaria is discovered to be the main cause of the prevailing sickness in the area with about 52% victims affected by it. The regression analysis revealed that the type of toilet used by the farmers, distance of toilet from homestead, working hours per day, diversification extent of food consumed and number of days farmers fell sick during cropping season are major influencing factors. The effects of sickness on labour productivity revealed that land area cultivated by farmers and weight of seeds planted directly affect labour productivity while proportion of days lost by farmers due to sickness and educational qualification have negative effects. It is therefore, recommended that youths should be encouraged to venture into agriculture and the provisions of rural community health services should be strengthened. Keywords: Sickness, days, labour, productivity and cocoa farmers

On the capability of SMEs to innovate: the cable and wire manufacturing sub-sector in Nigeria

This study explored the factors that explain innovation capability in SMEs in developing countries. This is important given the increasing global pressures that these SMEs have to face. The data employed came from a survey of Cable and Wire manufacturing firms in Nigeria. The important factors that accounted for innovation performance were firm-level leadership and use of new technologies – particularly ICTs. Important external factors included interactions with customers and suppliers of equipment/raw materials. Particularly, the industry association was about the most significant driver of innovativeness. We therefore conclude that it is beneficial for industries in developing countries to be well-organised as a means to achieving improved innovation capability

Learning to Innovate in Nigeria's cable and wire manufacturing sub-sector: inferences from a firm-level case study

Firm performance is known to be connected to firm-level innovation capability. Innovation capability, in turn, is an output of technological learning. This paper evaluates technological learning among firms in the Cable and Wire manufacturing sub-sector in Nigeria, using a purposively selected case firm. We developed a model of the relationship between the innovative activities of the firm - as evidence of its capability – and its knowledge acquisition methodology. These are discussed within the context of the firm’s stock of human capital. We found low technological innovation capability and high capability for organisational and marketing innovation. Preparedness for technological learning is relatively poor with staff training intensity of 5% and innovation intensity of 0.0075%. We therefore propose stronger interconnectedness of the National Innovation System and creation of industry specific structures that could enhance learning