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What i Want to do with this article is : - 1) Identifying problme .. what is the

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What i Want to do with this article is : -

1) Identifying problme .. what is the problem under dicussion in this research paper ( Give the background o the problem and explain why solution of this problem is important in the context of operations managment )?

2) Problem Solution - Do you agree with the solution given by the reseacher ? Give your arguments in faor or agiants the solution proposed by the reseacher 3) Limitations - what does the researcher need to do to improve his/her research

CAPACITY PLANNING AND CORPORATE PRODUCTIVITY PERFORMANCE IN THE NIGERIAN AVIATION INDUSTRY

G. I. Umoh

Sylva WaribugoUniversity of Port Harcourt, Rivers State, Nigeria

ABSTRACT

This study focused on capacity planning and corporate productivity performance in the Nigerian aviation industry. Innovation capacity planning was taken as a sub-indicator of capacity planning which has knowledge and technology management capability and commercialization capability as its dimensions. This study examined (1) the correlation between “knowledge and technology management and profitability, (2) the correlation between knowledge and technology management and growth, (3) the correlation between commercialization capability and profitability, and (4) the correlation between commercialization capability and growth. The results of this study showed that knowledge and technology management dimension of capacity planning has a positive and significant correlation with profitability. The results also showed that commercialization capability dimension of capacity planning has a weak positive correlation with

profitability.Keywords: Capacity planning, corporate productivity performance, Nigerian aviation industry

INTRODUCTION

Both the Federal government and private firms have spent billions of naira in the Nigerian aviation sector without a corresponding increase in profitability (Maishanu & Kadiri, 2012). Furthermore, Stephens, Ikeogu, Stephens and Ukpere (2014) asserted that the aviation industry accounted for the least contribution to the overall transport sector’s contribution to the country’s Gross Domestic Product.

A comparative study shows that the aviation sector in Nigeria contributes as low as 0.04 percent to her Gross Domestic Product in 2013, whereas the aviation industries of United Arab Emirate, Singapore and South Africa contribute 27 percent, 5.4 percent and 2.7 percent to their economies, respectively. The reason behind the low performance in Nigeria may simply be traced to the gross underutilization of the country’s airports and a general decay in infrastructure (Stephens & Ukpere, 2011; Business World, 2015). This scenario has caused the Nigerian aviation sector not to favorably compete with countries like The United Kingdom, United States, Malaysia, France and Kenya amongst others.

A close interaction with airline operators and aviation experts reveals that the sector is

bedeviled by lack of national carrier, poor maintenance policy, insufficient funding, weak institutional ethics and low managerial and capacity planning skills. These challenges have resulted in reduction in economic activities and a negative balance sheet coupled with the inability of the industry to respond to growth opportunities. This disorganized and fragmented state of the sector has created a significant gap in flag capacity and an abysmally low level of performance. Currently, there are seventeen airlines in the country that are under-performing while those in business are at the verge of insolvency even when the government has rendered financial interventions (Business world, 2015).

International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016 21

This study examined the following correlations in in the aviation industry in Nigeria: (1) the correlation between “knowledge and technology management (KTM) and profitability (PR), (2) the correlation between knowledge and technology management (KTM) and growth (GR), (3) the correlation between commercialization capability (COM) and profitability (PR), and (4)the correlation between commercialization capability (COM) and growth (GR).

REVIEW OF LITERATURE

The importance of productivity performance in the area of applied behavioural sciences cannot be over stated (Olusanya, Awotungase, & Ohadebere, 2012). Organizations may stand the risk of being mere ephemerals if they do not step up their productivity performance as they operate in a dizzying and turbulent business environment characterized by stiff competition, fluctuating demand for products, and rising cost of acquisition of productive resources.

Productivity performance has been a subject of unabated discourse because it is the platform upon which organizations achieve growth and progress (Gavrea, Ilies, & Stegerean, 2011).Productivity performance remains a pointer to the healthy application of resources available to the organization that finally culminates in efficiency of operations and meeting of targets (Adegbuyi & Asapo, 2010). In same vein, Adeoye and Elegunde (2012) submits that the importance of organizational performance is predicated on the fact that the synergistic combination and deployment of the human and financial resources available to the firm guarantees the actualization of corporate dreams, and accomplishment of the super ordinate goals and objectives of the organization.

Several researchers have lent their scholarly voices to corroborate the importance of productivity as a measure of stability in a challenging business environment (Amah, 2012; Umoh,Wokocha, & Amah, 2013). To this end, contemporary scholars have stressed the need for capacity planning and analysis for the achievement of organizational goals and objectives (Chendrayan, 2010). For instance, Gola, Relich, Klosonski, and Sivic (2015) submitted that capacity planning increases the potentials for problem solving in manufacturing firms and can also go a long way in addressing social concerns as an instrument for value creation. This buttresses the fact that capacity planning guarantees the efficient use of resources to meet customer demand which could translate into increase in equity capital, growth, profitability and cost minimization (Umoh, Wokocha, & Amah, 2013).

Yabing and Abraham (2013) carried out a research on capacity planning and performance in capital intensive service facilities and found out that when firms plan their capacity through the integration of service resources and incentive contract design, they can better cope with market uncertainty and also increase their profitability. They further argued that while firms with high capacity utilization are likely to have increased profitability and cope with uncertainty in market demand, they have to also maintain a reasonable service level and shorter waiting periods so as to have competitive advantage. Alberto and Roberto (2007) carried out a similar study on plant capacity planning and productivity and submitted that several indices of capacity like gross utilization, net utilization, working efficiency, availability and saturation have influence on the aggregate productivity of the system.

Also, Umoh, Wokocha, and Amah (2013) did a study on production planning and corporate productivity performance in the Nigerian manufacturing industry. Their study reveals that production planning has a positive influence on cost minimization, return on equity capital and growth. Adegbuyi and Asapo (2010) followed a similar scholarly trajectory by studying the effect of production planning and budgeting on organizational productivity in a food and

22 International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016

beverage firm. The result of their study shows that there is a significant relationship between production planning operations and organizational productivity. The specific findings were that the educational ability (the knowledge, skills and competencies of employees) as well as improved technology go a long way in influencing the productivity of the firms. It could therefore be inferred that technical inefficiency due to poor knowledge may lead to low corporate productivity performance (Adeola, 2005).

Deshpande, Farley, and Webster (1997) and Kotler (2003) carried out separate research on the impact of innovation capacity on performance and found out that innovation capacity has a positive relationship with organizational performance. Similarly, Mahmood, et al. (2014), in their study, postulated that when policies are directed towards knowledge and technology management capability, idea management capability, project development capability and commercialization capability which are dimensions of innovation capacity planning–organizations stand to increase their productivity. A study on mergers and acquisition in the aviation industry in India by Nisarg and Jay (2007) showed that there is no relationship between mergers and acquisitions and financial performance in the aviation industry in the short run.

Undoubtedly, the central role of capacity planning on the productivity performance of organizations as expressed by a plethora of literature and scholarly renditions, show that several studies have been conducted in the manufacturing sector, but there seems to be scanty evidence on whether or not capacity planning has been investigated in Nigeria’s aviation industry. Based on the forgoing, this study sets out to investigate the impact of capacity planning on corporate productivity performance in the Nigerian aviation industry.

Symptomatic manifestations of low capacity planning in the Nigerian aviation sector may be poor dispatch and general inefficiency in scheduling and operations which may lead to customer dissatisfaction and a reduction in growth and profitability.

Maishanu and Kadiri (2012) conducted a study on workers satisfaction and organizational productivity in the Nigerian aviation sector and concluded that the productivity of the sector is greatly influenced by the level of satisfaction of workers. Kanghwa, Donhee, and David (2015) used a service quality-adjusted data envelopment analysis (SQ-adjusted DEA) to study US-based airline carrier operational efficiency. Their findings reveal that a long term orientation on service quality may spur customer satisfaction which could ultimately lead to increase in productivity performance. In a related study conducted by Mahour and Elham (2010), labour productivity and annual maintenance cost amongst other measures were found to have a significant impact on organizational profitability.

CONCEPTUAL AND THEORETICAL FRAMEWORK

Figure 1 presents the adopted conceptual and theoretical framework. Innovation Capacity Planning (INVCAP) is taken as a sub-indicator of Capacity Planning (CP) which has Knowledge and Technology Management Capability (KTM) and Commercialization Capability (COM) as dimensions.

That is, CP: f (INVCAP)

INVCAP: f (KTM, COM)

Similarly, Profitability (PR) and Growth (GR) are measures of Corporate Productivity

Performance (CPP).

That is, CCP: f (PR, GR)

It is postulated that CP activities via INVCAP planning will spur CPP through its dimensional effects on PR and GR.

International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016 23

The model assumes a linear relationship between the criterion variable (CPP) and the predictor variable (CP).

This is represented as: CPP =f (CP)

Where: CPP = Corporate Productivity Performance

CP = Capacity Planning

Figure 1Conceptual and Theoretical Framework

CAPACITY PLANNING

CORPORATE PRODUCTIVITYPERFORMANCE

INNOVATION CAPACITY PLANNING

Knowledge And Technology Management Capability

Commercialization Capability

Profitability

Growth

Source: The dimensions of capacity planning were derived from the work of Mahmood, et al. (2014), while the measures of corporate productivity performance were adopted from the work of Hamann, et al. (2013).

RESEARCH HYPOTHESES

Despite the fact that several scholarly works have been carried out towards addressing the problems associated with the corporate productivity performance of the aviation sector in Nigeria using various measures as high-lighted above, not much has been done on how capacity planning can leverage the productivity performance especially in the Nigerian aviation industry.

Based on the foregoing, this study examines the correlation between capacity planning and corporate productivity performance in the Nigeria aviation sector. Thus, the following hypotheses have been developed and tested:

Hypothesis1: There is a significant positive correlation between knowledge and technology management and profitability.

Hypothesis2: There is a significant positive correlation between knowledge and technology management and growth.

Hypothesis3: There is a significant positive correlation between commercialization capability and profitability.

Hypothesis4: There is a significant positive correlation between commercialization capability and growth.

24 International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016

Survey Questionnaire

METHODOLOGY

A cross sectional survey was used since the population under study is heterogeneous and questions are derived to analyze possible correlations among variables (Krishnaswamy, Sivakumar, & Mathirajan, 2006; Taylor, Sinha, & Ghoshal, 2006). The study therefore seeks to identify the possible effect of CP on CPP. The Survey questionnaire is presented in Appendix 1. Seventy (70) technical members of staff and senior managers, from a sample of 92, validly filled copies of the questionnaire and returned them within the scheduled period of the research.

Sample and Data Collection

The unit of analysis is at the organizational level. Therefore the population under investigation was restricted to technical members of staff and senior managers of the fourteen (14) airlines which have Air Operator Certificates issued by the Civil Aviation Authority of Nigeria as at August, 2015. Among the fourteen (14) airlines, eight (8) have their main offices in Lagos, two (2) in Abuja, two (2) in Kano, one (1) in Kaduna and one (1) in both Lagos and Abuja. Thus, cluster sampling technique was adopted to select nine (9) airlines which have their offices in Lagos. The total number of technical members of staff and senior managers in the selected aviation firms is one hundred and twenty (120). The sample size of 92 was determined through the Krejcie and Morgan (1970) Model.

Data were collected through both primary and secondary methods. The primary data were collected via the administration of questionnaire while the secondary data were collected from company’s records, CIA World Facts Book, and the internet. Copies of the structured questionnaire were personally administered to the subjects by the researcher. Seventy (70) out of the ninety two (92) subjects returned their questionnaire which were validly filled. Methodological Triangulation was done by conducting personal interview in order to get more details about the constructs under investigation (Todd, 1979).

Measures of Variables

The independent variable is Capacity Planning which was measured using INVCAP which has sub-indicators as KTM and COM. They were operationalized by adopting the work of Mahmood et al. (2014). KTM was operationalized using five items (e.g Monitoring and evaluating technology trends). COM was measured by five items (e.g Market analysis and monitoring). These observed variables were measured on a five-point Likert scale.

The dependent variable, CPP, has its measures as PR and Growth. PR and GR were measured by adopting the work of Hamann et al. (2013). Profitability was operationalized by three items (Our Return on Sales, this year has improved compared with last year). GR was operationalized by three items (e.g the company has maintained a steady Assets Growth). These statement items were measured on a five-point Likert scale.

International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016 25

Data Analysis

Data were analyzed through Spearman’s Rank Order Correlation Coefficient, using the Statistical Package for Social Sciences (SPSS) version 20. This nonparametric statistical test was used because the data failed the preliminary test of normality, linearity and homoscedasticity (Tabachnick & Fidell, 1996).

Guide to Decision

The thresholds to either accept or reject the null hypotheses were considered from the suggestions of Cohen (1988) as shown in Table 1. In this analysis a correlation that was deemed small in value was not considered to be of significance although its p value may have been significant at the .05 level.

Table 1

Spearman’s Rank Order Correlation Coefficient

Source: Cohen (1988)

Reliability and Validity of the Instrument

In their work on designing and validating a model for measuring innovation capacity (INVCAP), Mahmood et al. (2014) found that Knowledge and Technology Management (KTM) and Commercialization Capability (COM) scales have good internal consistency, with a Cronbach Alpha of 0.939 and 0.940 respectively. In this study, the Cronbach Alpha figures were 0.834 and 0.741 for KTM and COM respectively. This satisfies the condition given by Nunnally (1978) who prescribed a Cronbach Alpha of not less than 0.7 as acceptable.

Also, Hamann, et al. (2013) submitted that the PR and GR scales report a good internal consistency of analysis of 0.896 and 0.761 respectively. In this study, the scales reported an internal consistency of = 0.421 for PR, and = 0.452 for GR. These Cronbach Alpha figures for PR and GR had corresponding inter-item ranges of 0.270 and 0.366 respectively. This satisfies the criterion of Briggs and Cheek (1986) who submitted that when items are less than ten, an inter-item range of 0.2 to 0.4 is acceptable.

The validity of the indicators under study have been tested and confirmed by Mahmood et al. (2014) and Hamann et al. (2013) through Factor Analysis. Content validity test was conducted by Mahmood et al (2014) for KTM and COM indicators, while Hamann et al (2013) conducted both discriminant and nomological validity tests on PR and GR indicators. The discriminant validity showed an extracted average variance of 0.789 which satisfies the Fornell-Larcker criterion, where the average variance extracted for a factor is greater than its squared correlations with all other factors. Nomological validity showed a Comparative Fit Index (.934), root mean square error of approximation (.036), and standardized root mean square residual (.042).In this study the content and face validity tests were conducted and the instrument was considered appropriate for the study.

Small

r = .10 to .29

Medium

r = .30 to .49

Large

r = .50 to 1.0

26 International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016

FINDINGS OF THIS STUDY

The first hypothesis proposed that “there is a significant positive correlation between KTM) and PR”. This hypothesis was tested by correlating profitability as a measure of corporate productivity performance, with knowledge and technology management capability as a dimension of innovation capacity, as shown in Table 2.

Table 2Knowledge and Technology Management Capability and Profitability

Source: SPSS Version 20 Windows Output, 2015

The correlation between knowledge and technology management capability and profitability was investigated using Spearman’s Rank Order Correlation Coefficient (rho). The result shows that there is medium, positive relationship between the two variables (r= 0.441, n = 70 and p= .001) and a shared variance of r2 = 19%.. There is a significant correlation between Knowledge and Technology Management Capability and Profitability. Thus, the first hypothesis is supported.

The second hypothesis proposed that “there is a significant positive correlation between KTM and GR”. This hypothesis was tested by correlating knowledge and technology management and growth, as presented in Table 3. As shown in Table 3, the relationship between KTM Capability and GR as measured by their scales, shows a medium,

Table 3Knowledge Technology Management Capability and Growth

positive relationship between the two variables with r = 0.374, n = 70 and p = .001, and a shared variance of r2 = 14% .There is a significant and positive correlation between the two variables. Thus, the second hypothesis is accepted.

The third hypothesis proposed that “there is a significant positive correlation between COM and PR”. In testing this hypothesis, PR, as a measure of Corporate Productivity Performance for the aviation firms under study, was correlated with Commercialization Capability as a dimension of Innovation Capacity. The results obtain is presented in the Table 4.

Table 4Commercialization Capability and Profitability

The outcome of the correlation shows that, there is a small, positive relationship between commercialization capability and growth, r = .257, n= 70, and p = .032, and a shared variance of r2 = 6.6%. This suggests that there is a positive relationship between the two variables. However, the r-value of .257, although significant, does not satisfy the 0.3 acceptable benchmark furnished by Cohen (1988). Therefore, the third hypothesis is not supported.

The fourth hypothesis proposed that “there is a significant knowledge and positive correlation between COM and GR”. Correlation analysis was conducted to ascertain the relationship between Commercialization Capability and Growth. Table 5 shows the result obtained.

Table 5 Commercialization Capability and Growth

As shown in the Table 5, the relationship between Commercialization Capability and Growth as measured by their scales, shows a small, positive relationship between the two variables with r = 0.242, n = 70 and p > .043, and a shared variance of r2 = 5.9% . This indicates that there is a positive relationship between the two variables, but not enough to reject the null hypothesis (Cohen, 1988). Therefore, the fourth hypothesis is not supported.

Based on the results, the following findings were made:

1) Increase in Knowledge and Technology Management activities accelerates the Profitability of the aviation industry in Nigeria.

2) Increase in Knowledge and Technology Management significantly enhances the Growth of aviation industry in Nigeria.

3) Stepping up Commercialization Capability of Nigerian aviation firms slightly increases Profitability.

4) Commercialization Capability drive does not adequately accelerate Growth of the Nigerian aviation industry.

28 International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016

DISCUSSION

This section discusses the research findings by highlighting the areas where these findings agree or refute earlier studies.

Knowledge and Technology Management Capability and Profitability

Unarguably, Profitability is a major determinant of the productivity performance of organizations. This study has made us to understand that when aviation firms increases their Knowledge and Technology Management Capabilities, there would be a 19.5% increase in profitability. These findings are supported by previous studies such as Moballeghi and Moghaddam, 2011; Menguc, Auh, and Uslu, 2013.The study of Moballeghi and Moghaddam (2011) revealed that Knowledge Management initiatives facilitate better decision making, increase profits and reduce cost.

A further reinforcement of this finding could be seen in the study of Menguc et al. (2013), which reveals that increase in the knowledge creation capability of a firm increases customer relationship and sales financial performance. This would mean an increase in the profitability and overall productivity performance of the firm. On the contrary, this finding refutes the work of Reichert and Zawislak (2014) which concluded that firms of lower technological intensity industries that invested below average in Technology Capability performed above average in economic performance indicators.

Knowledge and Technology Management Capability and Growth

The role of technology in enhancing organizational capabilities which culminates in creating value to the firm’s information and knowledge base cannot be over-emphasized. Thus, Kowledge and Technology Capability Management is a critical factor of organizational development and effectiveness. This could also mean that KTM enhances GR, since GR is an aspect of organizational effectiveness. This study has lent clarity to the fact that Knowledge and Technology Management has a substantial influence on Growth. Increasing Knowledge and Technology Management Capability leads to 14% increase in Growth. This finding corroborates the earlier work of Yusof and Baker (2012). The findings of their study reveal that Knowledge Management increases the firm’s Growth.

Commercialization Capability and Profitability

The ability of the firm to ripen ideas that had germinated from research and development, and the subsequent leveraging of existing processes is what entails Commercialization Capability of the firm. Profitability is enhanced when the existing processes and technology find a strategic fit with the commercialization strategy of the firm. The finding in this study shows that Commercialization Capability has a weak impact on Profitability. This finding is at variance with the earlier study of Seo, Kim, and Choi (2015) which reveals that Commercialization Capability has a great influence on firm’s financial performance. The poor impact of Commercialization Capability may be as a result of low preference for Commercialization Capability drive by the management of the Nigerian aviation firms.

International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016 29

Commercialization Capability and Growth

Commercialization Capability has a positive effect on Growth but not significant enough to reject the null hypothesis. Therefore, the null hypothesis was accepted. This signifies that Commercialization Capability of the aviation firms is quite low and does not contribute substantially to the Growth of the firm. This finding is diametrically opposed to the earlier study of Seo, Kim, and Choi (2015) which shows that Commercialization Capability has a great influence on firm’s financial performance. This outcome could be as a result of other competing factors. It could also be that Nigerian aviation firms do not nurture Commercialization Capability initiatives.

RECOMMENDATIONS

Based on these findings, the following recommendations are hereby suggested:

1. For the fact that Capacity Planning enhances Corporate Productivity Performance, the Nigerian aviation firms should effectively and efficiently plan their capacity through

the implementation of robust knowledge and technology management strategies.

2. Aviation firms in Nigeria should effectively plan their capacity through cooperative networking, and by continually evolving knowledge processes through the use of

intellectual capital and critical inputs of information.

3. Nigerian aviation firms should develop and adopt Technology Capability Audit tools that

will enable them to know their current levels of capabilities and take necessary steps to increase the intensity of Technological Capability.

CONCLUSION

The results of this study supported and refuted related works previously done by other scholars. It was recommended that Nigerian aviation firms should effectively plan their capacities through robust Technology Management Capability framework and activities. It was also recommended that Nigerian aviation firms should deploy resources to enhance their intellectual capital base, secure more informational input factors, and regularly carry out effective technological audit.

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Amah, E. (2012). Corporate Culture and Organizational Effectiveness: A Study of the Nigerian Banking Industry. European Journal of Business and Management, 4 (8), 212-227.

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About the Authors:

G. I. Umoh is an Associate Professor at the University of Port Harcourt and an Adjunct Professor at the University of Uyo, both in Nigeria. He is a former Head of the Department of Management, University of Port Harcourt. His areas of specialization include: Operational research applications in business, Advanced Statistics and Statistical analysis, Operations/Production Management, Human factors engineering and Management Information Systems. He is a Fellow of the Nigerian Institute of Corporate Administration; member, Operational Research Society, UK; member, Institute of Data Processing, London; member, Ergonomics Society, UK; member, Institute of Production Engineers, UK; and member, The Academy of Management, Nigeria.

Sylva Waribugo is a scholar who graduated Summa Laude at the University of Port Harcourt. He holds an M.Sc and MBA in Management. He is a member of the Nigeria Institute of Management and a fellow of two institutes, namely: the Institute of Public Management and the Institute of Chartered Economists of Nigeria. He is currently a lecturer and Doctoral scholar in the area of Operations Research in the Department of Management, University of Port Harcourt, Nigeria.

International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016 33

APPENDIX 1

QUESTIONNAIRE: CAPACITY PLANNING AND CORPORATE PRODUCTIVITY PERFORMANCE

This questionnaire is provided to determine the correlations between the dimensions of Capacity Planning (Knowledge and Technological Management Capability; and Commercialization Capability) and the measures of Corporate Productivity Performance (Profitability and Growth) in the Nigerian aviation industry.

The instrument is made up of three sections. Section A contains statements about the demographic details and personal data of the respondent; Section B has items relating to Capacity Planning (specifically, Innovation Capability): While, section C comprises indicators of Corporate Productivity Performance.

We implore you to be objective and realistic while filling this questionnaire. On our part, we shall keep the data private. Please provide answers to all the stated items, even if you feel they are repeated, as this will ensure statistical validity of the instrument.

Section BIndicate the extent to which you agree or disagree that reflects the situation in your

organization:

B. Capacity Planning (CP) Construct

Please tick one choice for each of the following statements.

(1 = strongly disagree, 2 = disagree, 3 = nor disagree nor agree, 4 =agree, 5 = strongly agree)

S/N

Knowledge and Tech. Mgt Capability (KTM)

5

4

3

2

1

1

Encouraging and supporting the informal R&D, internal technological efforts, and learning activities

2

Knowledge and technology acquisition

3

Continuous improvement of firm’s ability to assimilate, adapt to, and transform acquired knowledge and technology

4

Monitoring and evaluating technology trends

5

Managing internal and external as well as tacit and explicit firm’s knowledge to generate innovations

Commercialization Capability (COM)

5

4

3

2

1

1

Market analysis and monitoring

2

To improve proficiency of personnel and adequacy of organization’s facilities in the commercialization area

3

Adherence to a commercialization schedule and commitment to formal post-launch reviews

4

Using of joint venturing and other financing methods to commercialize innovations

5

Monitoring competitors

C. Corporate Productivity Performance (CPP) Construct Please tick one choice for each of the following statements.

(1 = strongly disagree, 2 = disagree, 3 = nor disagree nor agree, 4 =agree, 5 = strongly agree)

S/N

Profitability

5

4

3

2

1

1

Return per Employee of our company in the last five years is well above industry average

2

Our company’s Return on Sales this year has improved compared with last year

3

Our company has maintained a high rate of Return on Assets

Growth

1

Our company’s Employment Growth rate has risen this year

2

Sales Growth in our company is well above the industry average

3

Our company has maintained a steady assets growth

We really appreciate you for your cooperation.

International Journal of Business and Public Administration, Volume 13, Number 1, Summer 2016 35

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A comparative study shows that the aviation sector in Nigeria contributes as low as 0.04 percent to her Gross Domestic Product in 2013, whereas the aviation industries of United Arab Emirate, Singapore and South Africa contribute 27 percent, 5.4 percent and 2.7 percent to their economies, respectively. The reason behind the low performance in Nigeria may simply be traced to the gross underutilization of the country’s airports and a general decay in infrastructure (Stephens & Ukpere, 2011; Business World, 2015). This scenario has caused the Nigerian aviation sector not to favorably compete with countries like The United Kingdom, United States, Malaysia, France and Kenya amongst others.

A close interaction with airline operators and aviation experts reveals that the sector is

bedeviled by lack of national carrier, poor maintenance policy, insufficient funding, weak institutional ethics and low managerial and capacity planning skills. These challenges have resulted in reduction in economic activities and a negative balance sheet coupled with the inability of the industry to respond to growth opportunities. This disorganized and fragmented state of the sector has created a significant gap in flag capacity and an abysmally low level of performance. Currently, there are seventeen airlines in the country that are under-performing while those in business are at the verge of insolvency even when the government has rendered financial interventions (Business world, 2015).

Explanation / Answer

1) Identifying problem. What is the problem under discussion in this research paper (Give the background of the problem and explain why solution of this problem is important in the context of operations management )?

Problem: Nigerian aviation industry is performing very badly and even after investing billions of naira in the sector, still its profitability has not improved and its overall contribution to the GDP is very minimal (just o.04 percent).

The reasons cited for this extremely bad performance is as follows:

With context of operations management, there is a lack of managerial capacity and skills to run the airline profitably and manage its daily operations. Managing the daily operations and turnaround of aircrafts is very critical in any aviation industry.

2) Problem Solution - Do you agree with the solution given by the researcher? Give your arguments in favor or against the solution proposed by the researcher

I agree with the solutions provided by the researcher.

Enhancing capacity planning is very critical for running any airlines in the world

Second, having management and technological skills is also important and must have capability for any aviation company

Capacity planning through cooperative networking as suggested in the article, is crucial for success of the airline industry.

3) Limitations - what does the researcher need to do to improve his/her research

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