CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The manufacturing sector in Nigeria has long been a focal sub-sector of the economy, yet relatively little is known about how employee involvement in decision making influences the performance of firms within it. Evidence on specific participation mechanisms in Nigerian manufacturing remains limited (Imadonmwiyi, 2026). Particular attention is paid to manufacturing because of the conviction that the sector is a potential instrument of modernization, a creator of jobs and a generator of positive spill-over effects. Manufacturing has continued to lead job creation within the industrial sector, accounting for 76.5 per cent of total industrial employment in 2023 (Nigerian Economic Summit Group [NESG], 2026), and it contributes roughly 30 per cent of Nigeria's non-import VAT and 26 per cent of its company income tax, while also holding the potential to build skills, expand exports and improve infrastructure (KPMG Nigeria, 2023). Growth in manufacturing output has also been a key element in the successful transformation of the economies that have enjoyed sustained rises in per capita income, which is why Nigeria's policy discussion stresses manufacturing-led structural transformation (NESG, 2026). Yet the sector's contribution to real GDP has stayed below 10 per cent, and its capacity utilization has remained below 60 per cent (NESG, 2026). Attention should therefore be focused on manufacturing and on the factors that may foster its growth.

A high degree of involvement (deep employee involvement in decision making) means that all categories of employees take part in the planning process. Conversely, a low degree of involvement (shallow employee involvement in decision making) indicates a fairly exclusive planning process confined to top management (Kuye & Sulaimon, 2011). Deep involvement gives frontline employees influence over planning. These are the people closest to the customer, and they are well placed to help the organization recognize opportunities for new products and services, which is a central element of the entrepreneurial process. Employee participation in the planning that surrounds potential innovations may therefore facilitate opportunity recognition throughout the organization (Kuye & Sulaimon, 2011). Recent studies support the wider benefits of participation. In a survey of Nestlé Nigeria Plc, employee participation showed a significant positive relationship with organizational performance, with direct participation the strongest predictor (Imadonmwiyi, 2026). Participation in decision making has also been linked to stronger affective commitment and to the discretionary citizenship behaviours that support organizational effectiveness (Knezović & Smajić, 2022). For South-East Nigeria in particular, the relationship between employee participation and productivity in manufacturing firms has been the subject of empirical enquiry (Ezeanolue & Ezeanyim, 2020).

1.2 Statement of the Problem

A modern, forward-looking business does not keep its employees in the dark about vital decisions that affect them. It trusts them and involves them in decision making at every level. The "command and control" model is no longer adequate, and a more open and joint framework will exploit the talents of all employees. Yet many manufacturing firms in Nigeria continue to rely on top-down approaches to management (Imadonmwiyi, 2026), and little empirical evidence exists for publishing firms in particular.

The manufacturing sector was chosen for study because of its relevance and its potential for Nigeria's economic development.

1.3 Objectives of the Study

The general objective of this study is to examine the relationship between employee participation in decision making and work performance in publishing outfits in Enugu. The study is guided by the following considerations:

Employees must be involved if they are to understand the need for creativity and to be committed to changing their behaviour at work.

Employee involvement in decision making helps to create a sense of belonging among workers, and a congenial environment in which management and workers voluntarily contribute to healthy industrial relations.

To increase workers' commitment and humanize the workplace, with the intention of improving work performance and good citizenship behaviour, managers need to permit a high degree of employee involvement (Knezović & Smajić, 2022).

1.4 Significance of the Study

The involvement of workers in decision making is considered a tool for inducing motivation in workers, leading to a positive work attitude and high productivity (Imadonmwiyi, 2026). Researchers may nevertheless doubt the value and relevance of employee involvement in decision making to firm performance, because the evidence from Nigerian organizations is still limited and varied across sectors (Ezeanolue & Ezeanyim, 2020; Imadonmwiyi, 2026). This study therefore offers evidence that managers, owners and policy makers in the publishing industry can use.

1.5 Research Questions

The study seeks to answer the following questions:

1. Is there a significant relationship between employee involvement in decision making and firms' performance?
2. Does employee involvement in decision making have a significant impact on firms' performance?
3. Is there a significant difference between the performance of firms whose employee involvement in decision making is deep (high) and the performance of firms whose employee involvement in decision making is shallow (low)?

1.6 Research Hypotheses

H0: There is no significant relationship between employee involvement in decision making and work performance.

Hi: There is a significant relationship between employee involvement in decision making and work performance.

H0: Employee involvement in decision making has no significant impact on work performance.

Hi: Employee participation in decision making has a significant impact on work performance.

H0: There is no significant difference between the work performance of firms with deep employee involvement in decision making and that of firms with shallow involvement.

Hi: There is a significant difference between the work performance of firms with deep employee involvement in decision making and that of firms with shallow involvement.

1.7 Scope of the Study

Companies included in the sample were drawn from publishing outfits in Enugu, which represent the manufacturing sector for the purposes of this study. Printing and publishing is conventionally classified as part of manufacturing.

1.8 Limitations of the Study

In preparing this thesis, the researcher was handicapped by time constraints. Within the time available, some of the workers who were not contacted were not up to date with the statistical records that would have been useful in analysing the data collected. Inadequate research materials and financial constraints also hampered the conduct of proper research in producing this thesis.

REFERENCES

Ezeanolue, E. T., & Ezeanyim, E. E. (2020). Employee participation in decision making and organizational productivity in manufacturing firms in South-East, Nigeria. International Journal of Innovative Development and Policy Studies, 8(1), 110–124.

Imadonmwiyi, J. O. (2026). Employee participation and organizational performance: A study of Nestlé Nigeria Plc. UNIZIK Journal of Marketing, 3(1), 102–123.

Knezović, E., & Smajić, H. (2022). Employee participation in the decision-making process and organizational citizenship behavior: The mediating role of affective commitment. Organizacija, 55(1). https://doi.org/10.2478/orga-2022-0005

KPMG Nigeria. (2023). Manufacturing sector: A key driver for prosperity and economic development in Nigeria. KPMG Professional Services. https://kpmg.com/ng/en/insights/2023/11/manufacturing-for-prosperity.html

Kuye, O. L., & Sulaimon, A.-H. A. (2011). Employee involvement in decision making and firms' performance in the manufacturing sector in Nigeria. Serbian Journal of Management, 6(1), 1–15.

Nigerian Economic Summit Group. (2026). H1-2026 state of the economy: Turning potentials into progress — Accelerating Nigeria's industrialisation for economic transformation and inclusion. NESG.