Back
 AJIBM  Vol.9 No.5 , May 2019
Unbridled Commitment to Profit by Nigeria’s Electricity Distribution Companies and Spirituality in Consumer Value Creation: An Assessment of the Adoption by the Ikeja Electricity Distribution Company of the Inherited Industry-Wide Strategy of the Estimated Consumer Billing System
Abstract:
The study was to investigate how the unbridled commitment of the electricity distribution companies in Nigeria to profit affects their spirituality in consumer value creation; while also establishing the extent to which the distribution companies have affected the consumers with the fraudulent and unethical estimated and coded billing system inherited from the defunct Power Holding Company of Nigeria. Focus was on Ikeja Electricity Distribution Company. Within the operational domain of Ikeja Electricity Distribution Company, the study concentrated on the electricity consumers in Alimosho Local Government Area in Lagos State. The sample size was 377 calculated using Raosoft sample size calculator. Out of the 377 copies of the questionnaire administered, 322 were returned fully completed representing a response rate of 85.41%. Two hypotheses were tested; and they showed that: 1) The unbridled commitment to pursuit of profits by the electricity distribution companies (Discos) as private investors has a significant effect on their ability to adhere to spirituality in value creation for the electricity consumers; and 2) The adoption of inherited billing system by the electricity distribution companies (Discos) as private investors has a significant effect on their ability to adhere to spirituality in value creation for the electricity consumers. The analysis of data was done with Z test. There were 14 findings. The main recommendation is that the distribution company should jettison the fraudulent and unethical estimated and coded billing system and embrace spirituality in value creation using the generic building blocks of competitive advantage: efficiency, quality, innovation, and customer responsiveness which will make them gain competitive advantage over their rivals; even the industry is eventually deregulated.
Cite this paper: Ohikhena, P. , Akerejola, W. and Emenike, P. (2019) Unbridled Commitment to Profit by Nigeria’s Electricity Distribution Companies and Spirituality in Consumer Value Creation: An Assessment of the Adoption by the Ikeja Electricity Distribution Company of the Inherited Industry-Wide Strategy of the Estimated Consumer Billing System. American Journal of Industrial and Business Management, 9, 1254-1283. doi: 10.4236/ajibm.2019.95084.
References

[1]   Brealey, R.A. and Meyers, S.C. (2003) Principles of Corporate Finance. International Edition, 7th Edition, McGraw-Hill, New York.

[2]   Colley, J.L., Doyle, J.L., Logan, G.W. and Stettinus, W. (2003) Corporate Governance. McGraw-Hill, New York, 7-12.

[3]   Weihrich, H. and Koontz, H. (2005) Management: A Global Perspective. 11th Edition, Tata McGraw Hill Publishing Ltd., New Delhi.

[4]   Drucker, P.F. (2006) Managing for Results. https://www.sciencedirect.com

[5]   Weston, J.F. and Brigham, E.F. (1981) Managerial Finance. Holt-Sanders, Hinsdale.

[6]   Hill, C.W.L. and Jones, G.R. (2001) Strategic Management Theory: An Integrated Approach. 5th Edition, Houghton Mifflin Co., Boston.

[7]   Organization of Economic Co-Operation and Development (2003) Privatising State-Owned Enterprises: An Overview of Policies and Practices in OECD Countries.

[8]   McLaughlin, C. (2009) Spirituality and Ethics in Business. The Centre for Visionary Leadership.
http://www.visionarylead.org/spirituality-in-business.html

[9]   The Economic Times (2017). https://doi.org/10.1097/01.COT.0000512062.13291.08

[10]   Nigerian Electricity Regulatory Commission (2007). https://www.nerc.org

[11]   Ayodeji, A. (2012) Oppose the Fraud Called the Privatization of PHCN, Workers’ Alternative.
http://www.workersalternative.com

[12]   Aminu, I. and Peterside, Z.B. (2014) The Impact of Privatization of Power Sector in Nigeria: A Political Economy Approach. Mediterranean Journal of Social Sciences, 5, 111-118.
https://doi.org/10.5901/mjss.2014.v5n26p111

[13]   BabaGana, I. (2013) Key Lessons of the Privatization of PHCN Successor Companies and Investment Opportunities in the Power Sector. 3rd Edition, PwC.

[14]   KPMG (2016) A Guide to the Nigerian Power Sector.

[15]   Electric Power Sector Reforms Act 2005.
https://rea.gov.ng/download/electric-power-sector-reform-act-2005

[16]   Konomi, I. (2015) An Overview of the Albanian Privatization Process. European Scientific Journal, 11, 358-367.

[17]   Goodman, J.B. and Loveman, G.W. (1991) Does Privatization Serve the Public Interest? Harvard Business Review, 69, 26-28, 32, 34-36.

[18]   Anyanwu, J.C., Oyefusi, S.A., Oaikhenan, H. and Dimowo, F.A. (1997) Structure of the Nigerian Economy (1960-1997). JOANEE Educational Pub. Ltd., Onitsha.

[19]   Teese, R. (2002) Early Leaving in Victoria: Graphical Patterns, Origins, and Strategic Issues. Educational Outcomes Research Unit, University of Melbourne, Melbourne.

[20]   Omonfoman, O. (2016) Electricity Distribution Companies: The Challenges and Way Forward. Premium Times, January 4.

[21]   Marx, K. (1968) Preface to a Contribution to the Critique of Political Economy. In: Marx and Engels: Selected Works in One Volume, Lawrence and Wishart, London.

[22]   Dyke, V.V. (1969) Political Science: A Philosophical Analysis. Stanford University Press, Stanford.

[23]   Ojobo, J.A. (2001) The Impact of Privatization Policy on Labour in Africa: A Political Economy Approach. The Nigerian Journal of Administrative Studies, 13.

[24]   Nimalathasan, B. (2009) Profitability of Listed Pharmaceutical Companies in Bangladesh: An Inter and Intra Comparison of AMBEE and IBN. Economic and Administrative Series, Volume 3, SINA Companies Ltd..

[25]   Gupta, R.K. (1989) Profitability, Financial Structure and Liquidity. Print Well Publishers, Jaipur.

[26]   Barthwal, R.R. (1992) Industrial Economics. Willey Eastern Ltd., New Delhi.

[27]   Nishanthini, A. and Nimalathasan, B. (2013) Determinants of Profitability: A Case Study of Listed Manufacturing Companies in Sri Lanka. Journal of Art, Social Science and Humanities, 1, 42-50.
https://doi.org/10.4038/jm.v8i1.7556

[28]   Jain, C.P. (1989) Profit Planning and Control. National Publishing House, Jaipur.

[29]   Harley, W.C.F. (1979) Cash Planning, Forecasting and Control. Business Books Limited, London.

[30]   Peacock, M.A. and Taylor, A.H. (1981) Handbook of Financial Planning. Gower Publishing Co. Ltd., West Woods.

[31]   Hampton, J.J. (1983) Financial Decision Making Concepts, Problems and Cases. Prentice Hall of India, New Delhi.

[32]   Patel, M. (1995) Corporate Financial Objectives, Some Empirical Findings. In: Agarval, Ed., Readings in Financial Management, Indian Institute of Finance, New Delhi.

[33]   Al-Qadi, N.S. and Khanji, I. (2018) Relationship between Liquidity and Profitability: An Empirical Study of Trade Service Sector in Jordan. Research Journal of Finance and Accounting, 9, 153-157.

[34]   Montreyae, P. and Purnachandra, S. (2015) Workplace Spirituality—The Essence of Modern Business Organizations. International Journal of Research and Development—A Management Review, 4, 50-56.

[35]   Saraswat, S.P. (2005) Reflections on Spiritual Foundations of Human Values for Global Business Management Vision. The Journal of Business Perspective, 9, 1-9.
https://doi.org/10.1177/097226290500900301

[36]   Krishnan, V.R. (2008) The Impact of Transformational Leadership on Followers’ Duty Orientation and Spirituality. Journal of Human Values, 14, 11-22.
https://doi.org/10.1177/097168580701400103

[37]   Gupta, R.K. and Pandey, A. (2008) Spirituality in Management: A Review of Contemporary and Traditional Thoughts and Agenda for Research. Global Business Review, 9, 65-83.
https://doi.org/10.1177/097215090700900105

[38]   Kapoor, S. and Sandhu, H.S. (2010) Does It Pay to Be Socially Responsible? An Empirical Examination of Impact of Corporate Social Responsibility on Financial Performance. Global Business Review, 11, 185-208. https://doi.org/10.1177/097215091001100205

[39]   Porter, M.E. (1985) Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, New York.

[40]   Porter, M.E. (1980) Competitive Strategy: Techniques for Analysing Industries and Competitors. Free Press, New York.

[41]   Miller, J.A. (1977) Studying Satisfaction, Modifying Models, Eliciting Expectations, Posing Problems, and Making Meaningful Measurements. In: Conceptualization and Measurement of Consumer Satisfaction and Dissatisfaction, Marketing Science Institute, Cambridge.

[42]   Day, R. (1977) Consumer Satisfaction, Dissatisfaction and Complaining Behaviour. Proceedings of the 2nd Annual Consumer Satisfaction/Dissatisfaction and Complaining Behavior Conference, 20-22 April 1977.

[43]   Anderson, J.C. and Narus, J.A. (1998) Business Marketing: Understand What Customers Value. Harvard Business Review, 76, 53-67.

[44]   Ali, R., Leifu, G., YasirRafiq, M. and Hassan, M. (2015) Role of Perceived Value, Customer Expectation, Corporate Image and Perceived Service Quality on the Customer Satisfaction. The Journal of Applied Business Research, 31, 1425-1436. https://doi.org/10.19030/jabr.v31i4.9328

 
 
Top