INFLUENCE OF TRANSFORMATIONAL AND TRANSACTIONAL MANAGEMENT STYLES ON COMPETITIVENESS OF MANUFACTURING COMPANIES IN LAGOS STATE, NIGERIA

A. George, Prof. Y. T. Babalola, O. D. Soyemi (PhD)

Abstract


The study examined the influence of ICT use and management style on competitiveness of manufacturing companies in Lagos State, Nigeria, hence, this study. This study employed survey research design. A sample size of 394 management staff was selected from a population of 14,572 employees of consumer goods manufacturing companies in Lagos State, using Taro Yamane formular. Multi-stage sampling technique was used to select the 394 management staff across all the levels in the companies investigated. Data were collected with a validated structured questionnaire. Cronbach’s Alpha coefficient for the major constructs in the instrument ranged from 0.90-0.93. A return rate of 99.0% was achieved. Data were analyzed using descriptive and inferential statistics. Findings showed that both transformational and transactional management styles significantly influenced competitiveness of manufacturing companies (Adj. R2=0.056, F (2, 387) = 6.621, p < 0.05). Transactional management style contributed significantly to competitiveness (R2=0.061, t(387)=0.292, p < 0.05) while transformational management style had significant influence (R2 = 0.061, t(387)=-4.875, p > 0.05). Findings also revealed on a scale of 3 points that the competitiveness of manufacturing companies was low (M =1.69). Manufacturing companies adopted both transformational (M=2.60) and transactional management styles (M= 2.39) but transformational style was more prominent. The study concluded that transformational and transactional management styles play crucial roles in the competitiveness of manufacturing companies in Lagos state. It is recommended that managements of manufacturing companies should improve on cost leadership and differentiation by sourcing capital at low cost and developing varied products that are tailored to consumers’ needs. In addition, the management of manufacturing companies operating in Lagos state should create a friendly work environment for lower and middle management staff to operate.

Keywords


Competitiveness, Cost leadership, Differentiation, Transformational style, Transactional style, Manufacturing Companies

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