ABSTRACT
The
study investigated Corporate Visioning as a strategy for organizational
transformation in the Nigerian textile industry. The study therefore had the following
objectives among others: (i) to determine the relationship between corporate
visioning and employee motivation, (ii) to evaluate the extent of
implementation of corporate visioning between the distressed and the
non-distressed textile firms in the Nigerian Textile Industry, (iii) to
determine the relationship between corporate visioning and organizational
transformation, and (iv) to identify the impact of visionary leadership on
organizational transformation. The study
adopted the survey design. Three hundred
and sixty-six randomly selected personnel of managerial cadre, senior staff and
junior staff from a population of 7,787 participated in the study. The personnel were made up of 3,022 from the
distress operating textile firms and 4,765 from the non-distressed operating
textile firms. Seven instruments
(Corporate Visioning Inventory, Employees Motivation Inventory, Implementation
of Corporate Visioning Scale, Innovation Inventory, Organizational
Transformation Inventory, Corporate Visioning Impact Scale and Visionary
Leadership Scale) were used for data collection. Frequency, percentage, means, standard
deviation, Person’s Product Moment Correlation, t-test and regression analysis
were used for data analysis. Based on
the results of the study, significant positive relationship exists between
Corporate Visioning and employee motivation.
The study also found that there is no difference in the level of
implementation of Corporate Visioning in both the distressed and non-distressed
textile firms. The study further found that visionary leadership significantly
impacts on the organizational transformation.
The study concluded on the note that the awareness of Corporate
Visioning was very high in the industry, yet the implementation was very low.
It also concluded that the application of corporate visioning in the firms
within the industry is relative low and as such real transformation has not
taken place in the industry. It was recommended among others that in order to
enable the industry to have a pool of trained workers, academic institutions
should actively come forward (along with industry) and design courses to suit
the industry’s needs. In view of the growing globalization of the world
economy, government continued ban on imported fabrics had never worked and will
never work. The way out is for the industry to be totally transformed-starting
from the design, production process and eventually to marketing process. All
these can be achieved through corporate visioning. This will help the industry
to grow and face the challenges which are bound to be in the free market. As
contributions to knowledge, our model systematizes the literature, offering
more direction to those seeking practical ways of thinking about vision
creation and implementation, Secondly, by providing this structure to the
literature, we hope it will help shape future research in this domain,
clarifying potential links, and providing a roadmap to understanding the
existing literature along the way.
Keywords: Corporate vision, strategy,
innovation, transformation, visionary leadership.
TABLE OF CONTENTS
PAGES
Title page
………………………………………………………………… ii
Approval
page …………………………………………………………… iii
Certification
page ……………………………………………………….. iv
Acknowledgements……………………………………………………… v
Abstract
………………………………………………………………… vii
Table
of contents ………………………………………………………..
viii
CHAPTER ONE
INTRODUCTION
1.1 Background
of the study ………………………………………………….. 1
1.2 Statement
of the Problem………………………………………………… 8
1.3 The
Objectives of the Study……………………………………………… 9
1.4 Research
Questions………………………………………………………. 10
1.5 Research
Hypotheses……………………………………………………… 11
1.6 Significance
of the Study…………………………………………………. 12
1.7 The
Scope of the Study……………………………………………………. 13
1.8 Limitations
of the Study…………………………………………………… 14
1.9 Operational Definitions of Terms……………………. 15
References………………………………………………………………… 17
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Frame Work of Corporate Visioning…………….. 21
2.2 The
Relationship between Corporate Visioning and Employee
Motivation………………………………………………………………………. 27
2.3 Implementation of Corporate Visioning………………………. 31
2.4 The
Relationship between Corporate Visioning and Innovation
in Nigeria Textile Industry………………………………………………….. 35
2.5 The
Relationship between Corporate Visioning and
Organizational Transformation……………………………… 40
2.6 The Impact of Corporate Visioning on Customer Satisfaction…… 45
2.7 The
Impact of Visioning Leadership on Organizational
Transformation……………………………………………………………… 48
2.8 Summary of Review of Related Literature………………. 57 References…………………………………………………………………… 63
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research
Design…………………………………………………………….. 81
3.2 Sources of Data………………………………………………… 81
3.2.1 Primary Sources of Data…………………………………………. 81
3.2.2 Secondary Sources of Data……………………………………. 81
3.3 Population
of the Study……………………………………………………… 82
3.4 Sample Size Determination………………………………………. 84
3.5 Sampling Techniques……………………………………………….. 85
3.6 Research
Instrument…………………………………………………………. 87
3.6.1 Validity of the Instrument………………………………………… 88
3.6.2 Reliability of the Instrument……………………………………. 89
3.7 Procedure for Data Analysis …………………………………….. 91
References……………………………………………………………………. 93
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 Data Presentation Based on Questionnaire Scores……………. 94
4.2 Hypothesis
Testing………………………………………………………….. 100
4.3 Discussion of Results……………………………………………… 112
4.3.1 Hypothesis
I………………………………………………………………… 113
4.3.2 Hypothesis II…………………………………………………………… 114
4.3.3 Hypothesis
III……………………………………………………………….. 116
4.3.4 Hypothesis
IV………………………………………………………………. 117
4.3.5 Hypothesis
V………………………………………………………………… 119
4.3.6 Hypothesis
VI……………………………………………………………….. 120
References…………………………………………………………………… 123
CHAPTER FIVE
SUMMARY OF
MAJOR FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Major Findings………………………………… 129
5.2 Conclusion……………………………………………………………… 130
5.3 Recommendations………………………………………………….. 131
5.4 Contributions to Knowledge…………………………………………. 133
5.4.1 Model
Description………………………………………………………… 134
5.4.2 Summary of the CVPM for the Nigerian Textile Industry…… 135
5.5 Suggestions for Further Research………………………….. 137 Bibliography………………………………………………………………. 139
Appendix I Questionnaire ……………………………………………… 159
Appendix ii Total Nigerian Textile Firms in Existence as at 2008 166
Appendix iii Closed Textile Factories from 2003 to 2008 168
Appendix iv Krejcie Morgan Sample Size 172
Appendix v Selection of a Proportional Sample of the Respondents 173
Appendix vi Reliability for C.V.I. 174
Appendix vii Reliability for E.M.I. 175
Appendix viii Reliability for I.C.V.S. 176
Appendix ix Reliability for I.I. 177
Appendix x Reliability for O.T.I. 178
Appendix xi Reliability for C.S.S. 179
Appendix xii Reliability for V.L.S. 180
Appendix xiii Demographic Characteristics of the respondents 181
Appendix xiv Corporate Vision Inventory Scores 186
Appendix xv Employees Motivation Inventory Scores 188
Appendix xvi Implementation of Corporate Visioning Scale Scores 189
Appendix xvii Innovation Inventory Scores 190
Appendix xviii Organizational Transformation Inventory Scores 192
Appendix xix Customer Satisfactory Scale Scores 194
Appendix xx Visionary Leadership Scale Scores 196
List of Tables
Tables
2.1 Commonly Shared Vision Attributes …………………… 24
3.1 Stratified Randomly Selected Distressed and Non-Distressed Operating Textile Firms and Population of Personnel in 2008. … 83
3.2 Selection of a Proportionate Sample from a Population of 7787
Personnel
in 12 Textile Firms in the North and South Zones………………. 86
3.3 Selection of a proportional sample from a Population of 7787 ………….. 87
4.1 C.V.I. scores on 5 items of Corporate
Visioning in the textile industry…… 94
4.2 E.M.I. Scores on 5 Items of Employees
Motivation in the Textile Industry… 95
4.3 I.C.V.S. Scores on 5 Items of Implementation of Corporate Visioning in the Textile Industry…………………………………………………………. 96
4.4 I.I. Scores on 5 items of Innovation in
the Textile Industry…………………. 97
4.5 O.T.I.
Scores on 5 Items of Organizational Transformation in the
Textile Industry………………………………………………………………… 98
4.6 C.S.S. scores on 5 Items of Customer
Satisfaction in the Textile
Industry…………………………………………………………………………. 99
4.7 Scores on 5 Items of Visionary Leadership
in the Textile Industry. …………. 100
4.8 Summary of the Pearson Product Movement
Correlation Statistic on
C.V.I.
and E.M.I. Scores…………………………………………………….. 101
4.9 t-test
Summary on Distressed and Non-Distressed Textile Firms in
Level of Corporate Visioning Implementation………. 103
4.10: Summary of the Pearson Product Moment
Correlation Statistic on
C.V.I. and
I.I. Scores…………………………………………………… 104
4.11: Summary of the Pearson Product Moment
Correlation Statistic on C.V.I. and O.T.I.
Scores………………………………………………………….. 106
4.12: Summary of the Pearson Product Moment
Correlation Statistic on
C.V.I. and C.S.S. Scores…………………………………………………….. 108
4.13: Summary of the Pearson Product Moment
Correlation Statistic on
V.L.I. and O.T.I. Scores……………………………………………………… 109
List of Figures
Fig 1 Functional relationship between corporate visioning and employee
Motivation
in the textile industry…………………………………………….. 102
Fig 2 Functional relationship between corporate visioning and
innovation
in
the Nigeria textile industry ………………………………………………….. 105
Fig. 3 Functional relationship between corporate visioning and
organizational
Transformation in the Nigeria Textile Industry……………………. 107
Fig. 4 Impact of Corporate visioning on the customers’ satisfaction in the Nigeria Textile Industry………………………………………………………………… 109
Fig. 5 Impact of Visionary Leadership on the organizational transformation In the Nigerian Textile Industry………………………. 111
Fig. 6 Corporate Visioning
Process Model (CVPM) for the Nigerian Textile
Industry………………………………………………………………………… 133
CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study
Vision was mostly a concept of
researchers who studied political leadership and the leadership of social or
religious movements before the 1980s (Kantabutra, 2008a:128). It was rarely considered within the
leadership and corporate literature.
Only in the past couple of decades has vision been extensively discussed
in the corporate sector. In this context, the use of vision has been widely
exhorted as one of the main characteristics of effective leaders and organization
(Bryman, 1992:31-45; Humphreys, 2004:96: Conger&Kanungo, 1987:637-647).
Some theorists believe that vision reflects the company’s image of some future
state, which will be the ideal achievement of the organization. Organization sets this as its vision for
example, to be a world -class manufacturing organization, a pace setter in the
industry or a business leader. Having a
vision means having knowledge of where to go and a greater control over the
future. If an organization does not
control its destiny, other outside forces will decide that for it (Mohtsham,
2004:247-249). Not only is vision an
idea or image of a desirable future, but the right vision can also actually
jump-start the future of the organization by mobilizing people into action
toward achieving it (Nanus, 1992:44).
Effective vision provides a word
picture of what the organization wants to become eventually which may be five,
ten or fifteen years in the future. This
statement is not only an abstract but it contains a concrete image of the
desired state and provides also foundations for future strategies and
objectives. All organizations face
problems in their lives but a well thought out vision together with effective
operations, gets the organization out of these troubles (Tregoe, Zimmerman,
Smith, Tobia, 1989:249). Thus vision is
like the headlights of a vehicle on a road at night which shows the way to the
destination on a dark path avoiding any accidents and carefully leaving behind
the other cars on the road.
Satisfying three essential
conditions are the prerequisites for Corporate Visioning to serve its function,
of setting an organizational development agenda and laying the foundations for
more detailed strategy work. First, it must be comprehensive, touching all
aspects of the business. An incomplete vision is likely to result in problems
going on recognized or unchallenged. Second, it must be inclusive, reaching
both inside and outside the organization, engaging the agendas of all key
stakeholders. A vision invariably is a call for action, and all those involved
in creating a better future need to know what is expected of them. Third, a
vision must establish a dynamic, a trajectory for change. This in effect
requires two visions: a static vision of the enterprise (where it is now and
will remain if nothing is done), and a dynamic vision that captures what the
enterprise might become if the right moves are made (Finkelsein et al., 2008:505-538).
Overall, research has
demonstrated significant contributions of visions to organizational
effectiveness (Zaccaro, 2001:367-380). Lack of vision also appears to be
associated with failed attempts to manage organizational change (Collis and
Porras, 1994:87; Lucey, Bateman and Hines, 2005:9-13) and attention to vision
was found to be a key strategy employed by 90 leaders who enlisted others in a
common vision (Bennis and Nanus, 1985:44).
Visions offer a value based direction for the organization and provide a
rationale for strategic decision-making.
While most of the previous research into vision was conducted at the
individual level, as opposed to the level of the business-unit or
organizational-level, vision has been studied as a blend of charismatic
leadership in a wide variety of samples and industries, with generally positive
finding between this kind of leadership and followers’ performance, attitudes
and perceptions.
Thus, the concept of corporate
visioning according to Bennis and Nanus (1985:102-105) “is a mental image of a
possible and desirable future state of the organization … (which) articulates a
view of a realistic, credible, attractive future for the organization, a
condition that is better in some important ways than what now exists.” Corporate visioning has direct bearing with
the situation been experienced by the Nigerian Textile Industry. For instance, Lipton (1996:83-91) asserts
that “a clearly articulated vision, fully implemented across an organization, infact
makes a profoundly positive difference.”
Similarly, Gladwell (2000:2) in supporting this position, notes that
guided by visionary leadership, transformation can gather momentum until it
reaches a “tipping point” where it will spread like epidemic throughout the
many intertwined systems and dramatically alter how organizations and systems
operate. Furthermore, Roberts
(1983:5-16) states that all successful transformations are vision led. However, transformation is defined as “the
radical shift from one state of being to another, where the new state is
uncertain until it emerges and is better able to meet the more sophisticated
demand of the environment than the old ‘tried and true’ state” (Ackerman
Anderson and Marquardt, 1997:16). Hence the
Nigerian textile industry is facing a tremendous environmental demand.
As a matter of fact, the issue of
Corporate Visioning in the Nigerian textile industry has raised great concern
in the face of myriad of problems within the industry. The industry is faced with very low sales as
Oshiomhole (2002:2) rightly observes that there are more smuggled textile
materials in the Nigerian markets across the country like Lagos, Kano, Aba and
Abuja than the locally made ones.
Further to importation of textiles in mass quantities at prices cheaper
than local production, many units went into bankruptcy followed by retrenchment
of labour force in large numbers.
Olanrewaju (2002:2) by
implication does not believe that the industry paid attention to corporate
visioning by asserting that investors in the textile industry failed to re-tool
and re-equip their operations, failed to stream-lined their cost of production,
cannot compete price wise, with imported / smuggled fabrics. Further the public perception is that “the
quality of their fabrics is lower than the foreign made ones, operate in a
seller market, hence they do not market and improve on their products”. Olari
(2007:2) lends support in observing that increased global competition as a
result of Nigeria’s signing the World Trade Organization (WTO) agreement in
1995, the incidences of globalization have all created poor market situations
and eroding employment capabilities and further reducing the capacity
utilization. The consequence of this is
well known and this calls for immediate attention. Without the industry coming into terms with
corporate visioning, as a strategy for organizational transformation the
livelihood of over one point seven million (1,750,000) cotton growers (Walid,
2008:2), retrenched workers and their dependants, all thrown into the already
saturated labour markets. The attendant
incidences are already visible; armed robbery has been on increase; motor cycle
riders popularly called ‘okada’ are all over the place. According to Road Safety Report, about 85% of
road accidents in Kaduna are caused by okada riders. The death-toll among the retrenched workers
and their dependants are also in the increase according to National Union of
Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) report (2008:9).
All over the globe it seems that
the textile industry is facing one problem or the other. In Uganda, Jobanputra
(2008:2) having identified the problems confronting the textile industry,
asserts that in this era of stiff competition, no company can survive without
corporate vision. Consequently, the
company’s vision has been to contribute to Uganda’s economic transformation
through value addition to cotton. The
All-Pakistan Textile Mills Association (APTMA) (2008:1) states that due to challenges
facing the textile industry, a huge transformation process needs to be
initiated at all levels of the industry.
Ebrahim (2008:1) is of the view that “with the globalization process,
severe crises has begun to take place and one of the main causes is emergence
of new low-cost textile producers who are benefiting with their country’s
low-cost structure and opening of global markets. This however, calls for the introduction of
latest technology in the industry so as to reposition their firms to gain competitive
advantage. The fiber/textile /apparel (FTA) industry is one of American’s
largest manufacturing industries and its success is critical to the economic
well-being of the country. However,
though it was once the world’s unchallenged leader, the industry has faltered
in recent years, and it is in danger of slipping further (Moncarz,
1993:13). Thereby, advocating for
information technology vision for the United States Fiber/Textile/apparel
industry. Similarity, the European
Apparel and Textile organization proposed a vision for 2020. This vision is built around the concept of
dynamic, innovative, multi disciplinary knowledge – based, flexibly integrated
and customer oriented networks of businesses.
This will enable them move from today’s situation toward this long term
vision in a strategically coordinated way.
Previous empirical studies have
shown how corporate vision has impacted on organizational performance using customers
(Howell and Frost, 1989:245-269; Kirkpatrick, 1992:36-51; Puffer, 1990:177-192),
corporate leaders (Baum et al. 1998:43-54; Kantabutra, 2003:122-134), and organizations’
employees (Bennis &Nanus, 1985:49). In addition, no published studies have
reported negative or non significant relationship between corporate vision and
organizational performance, possibly because negative or non significant
findings are rarely published.
Research on vision itself has
generally focused on four aspects:
development, articulation, communication and implementation (Nanus,
1992:36; Quigley, 1993:129-134; Robbins and Duncan, 1988:137-162). Little is known of what constitutes an
effective vision. Baum et al (1998:43-54)
were among the first who found positive relationships between vision attributes
of brevity, challenge, future orientation, aspiring, abstractness, clarity,
stability and vision content, and organizational performance in entrepreneurial
firms. The researchers surveyed CEOs of
architectural woodwork firms, and found that vision attributes and vision
content were directly related to venture growth, as measured by sales, profits,
employment and net worth in these entrepreneurial firms. These vision attributes have also found to
indirectly relate to customer satisfaction and directly relate to staff
satisfaction in Australian apparel or textile retail stores (Kantabutra,
2003:59-72).
As of 1980, Nigeria was ranked
the third largest Textile Industry in Africa after Egypt and South Africa
(Uduak, 2009:3). But between 1997 and
2004, the textile industry continued to lose ground and as such has suffered
significant stagnation in the past few years.
Within the difficult macro-economic context of Nigeria, firms reported
numerous issues related to their business operating environment such as a
severe drop in domestic demand, higher production costs due to energy, exchange
rates and raw material acquisition, political uncertainty, tax regimes,
infrastructure weaknesses, the steep cost of working capital and corruption
(Scheller et al., 2002:22).
Nevertheless, there seems to be a strong connection between corporate
visioning and the situation being experienced now in the industry (Charkaborty,
2008:1).
In spite of all the enumerated
myriads of problems confronting the industry, there is need for the industry to
look beyond the present situation if the nation will harvest the gains of the
industry. The study therefore, is being conducted to assess corporate visioning
as a strategy for organizational transformation in the Nigerian Textile
Industry.
1.2 Statement
of the Research Problem
CORPORATE VISIONING AS A STRATEGY FOR ORGANIZA
