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Project Topic:

SOCIAL CAPITAL AND BUSINESS PERFORMANCE IN TELECOMMUNICATION INDUSTRY IN NIGERIA(A STUDY OF SELECTED TELECOMMUNICATION COMPANIES IN PORT-HARCOURT)

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   149 people found this useful

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BUSINESS ADMINISTRATION UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

People need instantiated informal norms that promote co-operation amongst them (Fukuyana, 1999) and a network of social relationships for individual or group benefits and/or both. The concept of social capital, though seems elusive (Dendy and Higes, 2002; Costa, 2002; Lome, 2004) is an instrument of such relationship as it cohesively binds persons or groups to common social goals.

Hanifan (1958) did not refer to it as real estate, personal property or cash, rather as goodwill, fellowship and mutual sympathy, social intercourse amongst members of social units, and others that tend to make tangible substances meaningful in the daily lives of a people. The elaborated doctrines of Christianity or Confucianism manifest an accumulation of social capital that satisfies immediate social or religious needs of a group and potentially bears on substantial improvement of living standards. Social capital is an instantiated network of social relations (Fukuyama, 1999) characterized by trust honesty, reciprocity, cohesiveness, commitment to promise, reliable performance of duties, sprite corpse, civil society and value creation and value diversity all these relational virtues have the capability of enthroning some mutual benefits either for an individual or for a group (Putman, 1995) Lead 1998; Coleman 1999, Arrow 1999; Knack and Keefer 1997). Fukuyama (1999) warned that not all instantiated norms constitute social capital. For instance, the political  norms of Nigerian political parties characterized by trust amongst immediate callus members and dichotomies in dealing with everyone else outside does truly portray social capital. Coleman (1988) argued that social capital under-produces in private agents interacting in the markets and Dasgupta (1997) took a more holistic understanding of it when he opined that it is a private product pervaded by positive and negative externalities. Drawing from the theory of Puritanism described by Max Weber, Dasgupta (1997) emphasized that the potential of co-operation diffuses beyond immediate group sharing the puritan norms; hence moral treatment to all and not just to family members. Negative alternatives exist because Fukuyama (1999) argued the many groups achieve internal cohesion at the expense of outsiders, who may be perceived with suspicion, hostility, or outright hatred.

1.2 STATEMENT OF THE PROBLEM

In recent years there have been series of arguments, debates and controversies among business men, academia’s, government officials and the society in general on what should be the principal objectives of business enterprises over the years, managers have neglected the problems created by firms to their host communities. These problems possess a lot of threat and sometime make life difficult for these communities. The privilege giving to organizations to operate in the society stems from the act that society believes that there is a mutual interdependency existing between them, that is, business organizations and the society.

Currently, there is much policy and academic interest on the capacity of social capital to generate both micro level outcomes such as family wellbeing as well as macro level outcomes such as efficient economies, democratic politics, active communities and efficient enterprises.

Indeed, there is a growing concern for the health of firms in relation to complex and dynamic characteristics of the business environment. This requires an incisive search for work place variables that influence successful implementation of strategies and conduct of operations aimed at goal attainment. Organization performance constitutes an expensive world of study and has attracted equal dosage of concepts and operational constructs (e.g.; profitability, market shares, sales volume and market leadership) with a view to establishing relationships. We are however concerned in this study with finding the nature of relationship that exist between the concept of social capital and corporate performance with acceptance of the concept of social capital increasing by the day, in the private sectors, firms may be willing to explore it as a potential tool for competitiveness especially in the light of the open market economic strategies of governments. Again, while many work place managers hear and talk about social capital that are yet to come to terms with the dimensional aspect of the concept that can importantly influence the attainment of their sought after goals.

In view of the above, the researcher has taken up the issue of social capital in the telecommunication sector in Nigeria and examine three prominent telecommunication industries in Nigeria to examine the extent of the company’s involvement in business performance.

1.3 OBJECTIVES OF THE STUDY

Costa and Kahn (2001) established impact variations and emphasized on the need for carefulness and caution in the use of its dimensions in relation to other sector and different analytical levels. In order to stimulate the acceptance of the social capital package, this study investigates if trust reciprocity and value diversity within organizational members contribute to the growth of market share. In telecommunication industry of Nigeria.

The main purpose of this study is to investigate/examine the relationship between social capital and business performance in telecoms industries most especially in globacom, MTN, and etisalat, in the process some major objectives can be achieved.

  1. To find the relationship between social capital and business performance
  2. To find the relationship between trust and market share.

iii. To find the relationship between reciprocity and sales growth.

  1. To find the relationship between value diversity and profitability.

1.4 RESEARCH QUESTIONS

The following research questions are opposed to guide the study;

  1. Is there any relationship between social capital and business performance?
  2. Is there any relationship between trust and market shares?

iii. Is there any relationship between reciprocity and sales growth?

  1. Is there any relationship between value diversity and profitability?

1.5 SIGNIFICANCE OF THE STUDY

The study of social capital and business performance is hope to be of benefits not only to students, businessmen, government, customers, community, stakeholders, academia’s but to the entire society as a whole. The study also hopes to highlight the problem associated with social capital and to make use of the analysis to improve the work situation thereby minimizing the problems of social capital conflict in that organization and its performance as well.

Finally, the study will inform all at large. The need for social capital is not only to improve business performance but to help the society at large.

1.6 SCOPE OF THE STUDY

This research work focuses on the telecommunication industry in Nigeria but with particular reference to three prominent telecommunication industries. This study is micro base because it studies organization / co-operate body.

1.7 LIMITATIONS OF THE STUDY

This research was faced with a lot of problems and limitation. The major problem acting as a limitation was problem of Nigerians attitude to the supply of data to the researcher due to fear. Secondly, because of financial constraints the scope and dimension of this study could not be extended beyond this limit.

Also, the result obtained depended on the data collection method employed. Therefore, data collection problems such as those deriving from flaw question, inaccurate answers or respondent with insufficient knowledge may also affect the result obtained. However, all attempts were made to reduce those errors by piloting the questionnaire and ensuring that the questions were clear and unambiguous. Additionally, instructions were given to participants in a clear and unambiguous manner. These problems were also minimized by a strong screening process which resulted in dropping out several questionnaires from further processing.

1.8 DEFINITION OF TERMS

The special terms associated with the study of social capital are; trust, reciprocity, diversity and business performance.

 BUSINESS PERFORMANCE:

This is a combination of management analytic process that allows managers of organization to achieve predetermined goals

 DIVERSITIES

The concept of diversity encompasses acceptance and respect. It means understanding that each individual is unique and recognizing our individual differences. These can be along the dimension of race, ethnicity, gender, sexual orientation, social economic status, age, physical, ability, religious beliefs, political beliefs or other ideologies.

 RECIPROCITY:

This is the practice of exchanging things with others for mutual benefits, especially privilege granted by one country or organization to another.

 SOCIAL CAPITAL

It is seen as the network of relationship among people who live and work in a particular society, enabling that society to function effectively.

 TRUST

A legal arrangement in which an individual (The trustier) gives fiduciary control of property to a person or institution (The trustee) for the benefit of beneficiaries.

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