Annals of the Social Science Academy of Nigeria 1(1) 1992 DOI: 10.36108/ssan/2991.04.0140
PATTERNS AND CORRELATES OF DECENTRALISATION IN PRIVATE NIGERIAN ENTERPRISES
A. U. Inegbenebor
ABSTRACT
The ability of private Nigerian entrepreneurs to initiate and institutionalise effective organisational structures and processes needed to carry out complex industrial activities is crucial to the realisation of the objective of rapid, selfreliant, industrial development of Nigeria. This study examined the patterns and correlates of a key structural variable in the organisational process — decentralisation of decision-making authority. The study was based on a sample of forty-one manufacturing enterprises in the Midwestern Zone of Nigeria which were wholly owned by private Nigerian entrepreneurs. The results indicate that decentralisation of decision making was generally limited. Participation of the Board of Directors was restricted. There was marked variation in decentralisation in the functional areas with finance function as the least decentralised and production/operations function as the most decentralised. The response to the contingencies of size and technology was considered appropriate while the response to competition was contrary to expectation. Apart from this, the nature of decentralisation in the enterprises was in the direction generally found in more advanced economics.