ABSTRACT
Prior to the advent of internet, business organizations operating in Nigeria spend exorbitantly to source for and move desired raw materials from their points of location to the manufacturing points. Based on the above, the study was developed to ascertain the impact of internet system in the development of transport network of manufacturing sector in Nigeria. The study adopted survey research design, hence questionnaires were drafted and distributed to relevant officials of the selected manufacturing and transportation firms as well as internet service providers. Data generated were analyzed using Pearson Product moment correlation and Spearman’s Rank correlation co-efficient. The result of the empirical work showed that the use of internet services by business organizations in the development and management of corporate transportation programme has significant effect on the reduction of the cost of transportation. It was also observed that the use of internet as e-communication contributes significantly to the effective management of logistics operations of firms. Modern communication of e-base activities aid organization access to raw materials for just in time delivery. The e-communication based on internet system ensures effectiveness in material handling strategies of firms as cost of holding stock is reduced. Thus, the study recommended that the use of e-communication an aspect of internet services in the development and management of corporate transportation by manufacturing firms should be encouraged since it has significant effect on the reduction of the cost of transportation. Firms operating in Nigeria should intensify the use of internet the management of logistic operations. Business organizations should increase the use of internet in assessing needs and wants of the target market, and in advertising their numerous products and services. Management of manufacturing and transportation firms in Nigeria should increase knowledge and exposure of its employees to the use of internet as well as modern e-communication devices since the adoption or the application of e-communication based on internet system ensures effectiveness in material handling strategies of firms.
TABLE
OF CONTENTS
Title - - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Certification - - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgements - - - - - - - - v
Table of content - - - - - - - - - vi
List of tables - - - - - - - - - viii
Abstract - - - - - - - - - - - ix
CHAPTER ONE
1.0 INTRODUCTION - - - - - - - 1
1.1 Background to the Study - - - - - - - 1
1.2 Statement of the Problem - - - - - - 3
1.3 Objectives of the Study - - - - - - - 5
1.4 Research Questions - - - - - - - 5
1.5 Research Hypotheses - - - - - - - 6
1.6 Significance of the study - - - - - - - 7
1.7 Scope of the Study - - - - - - 8
1.8 Limitations to the Study - - - - - - - 8
CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE - - - 9
2.1 Conceptual
Framework - - - - - - 9
2.1.1 Definition
of internet - - - - - - 9
2.1.2 Relevance of Internet in Modern
Marketing - - - 10
2.1.3 The role of the
Internet in the Manufacturing Sector - 11
2.1.4 Advantages of the
internet in a competitive business - 12 Nigeria
business environment
2.1.5 The relevance of
internet in marketing activities of Business
Organizations - - - - 13
2.1.6 Overview
of Internet marketing - - - 15
2.1.7 Benefits
of internet marketing - - - - 16
2.1.7.1 Convenience - - - - 16
2.1.7.2 Easy accessibility or reach - - - 16
2.1.7.3 Cost effective - - - - 17
2.1.7.4 Personalization of
services delivery - - - - 17
2.1.7.5 Enhance customers
relationships - - - - 18
2.1.8 Challenges
of internet marketing by business organizations - 18
in Nigeria
2.1.8.1 Converting
leads to sales - - - - 19
2.1.8.2 Managing
an online market system - - - - 19
2.1.8.3 Prioritizing
time, energy and money for best results - 20
2.1.8.4 Creating
content - - - - - - 20
2.1.8.5 Technical and Design skills - - - - 20
2.1.8.6 Difficulties
in accessing websites - - - 21
2.1.9 Nigeria Transportation System - - - 21
2.1.10 Role of internet in development of
transport system - 22
2.1.10.1 Reduction in the transportation cost - - - 23
2.1.10.2 Effectiveness of the material handling
strategy - - 23
2.1.10.3 Ensures easy access to raw materials - - - 24
2.1.10.4 Ensures just-in-time delivery of
essential raw material - 24
2.2 Theoretical Framework - - - 25
2.2.1 Theory of transport
modernization - - - 25
2.2.2 Network
Economic Model - - - 27
2.2.3 Network
Externalities Theory - - - 27
2.3 Review of Empirical works - - - - 28
2.4 Summary of Literature - - - - 30
CHAPTER THREE
3.0 RESEARCH METHODOLOGY - - - - 31
3.1 Research Design - - - - 31
3.2 Area of the Study - - - - - 31
3.3 Population of the Study - - - - - 32
3.4 Determination of Sample Size - - - - - 32
3.5 Method of Data Collection - - - - 32
3.6 Instrument for Data Collection - - - - 33
3.7 Method of Data Analysis - - - - 33
3.7.1 Model Specification - - - - - 34
3.8 Validity of Instrument - - - - - 34
3.9 Reliability of Instrument - - - - - 34
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS - - - 35
4.1 Findings and Discussions - - - 47
CHAPTER FIVE
5.0 SUMMARY,
CONCLUSION AND RECOMMENDATIONS - 49
5.1 Summary
of research findings - - - 49
5.2 Conclusion
- - - - - - - 50
5.3 Recommendations
- - -- - - - - 51
5.4 Suggestions for further study - - - - - - 52
REFERENCES
APPENDIX
I
QUESTIONNAIRE
LIST
OF TABLES
Table 4.1. Distribution
of copies of Questionnaire and Retrieval
- 35
Table 4.2 Internet (e-communication) and cost of
reduction on
transportation
- - - 37
Table 4.3 E-communication
and Logistics Management - - 40
Table 4.4 Various values for computation of the rS
- - - 40
Table 4.5 E-communication
and effectiveness in material handling
strategy - 42
Table 4.6 values needed for various computation for rS
- - 43
Table 4.7 Internet (e-communication) and access to
raw materials - 44
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Adegbemi (2013) opines that the advent
of internet in Nigeria has bought about significant development in all sectors
of the economy. The Internet system has proven to be a dynamic tool for stimulating
economic growth and development in developing countries. Besides economic
growth and development of a nation, the internet also provides opportunities to
pursue social and developmental objectives. The internet facility can be used for making arrangements
for the transport of goods by sea or air. Monitoring of this can also be done
by the internet. It has streamlined the difficulties encountered by
manufacturing firms in the process of outsourcing for essential raw materials when
these materials cannot be sourced internally (Olufemi, 2011).
Ladele (2012) opines that prior to
the advent of internet system in the development of a functional and efficient transportation
system in the manufacturing sector, companies need visit different areas where
they need to get their raw materials and other essential products, place orders
for them, make specifications clear and send representatives periodically to
ensure that specifications are strictly adhered to before the material are
distributed to the company. All these processes increase transportation costs.
The invention of website and email address has drastically reduced all these
rigorous processes encountered in the past and transportation costs. Through
the provision of the internet companies can now place orders for raw materials,
make their specifications clear and specify the mode and time of delivery
without visiting the plants were these raw materials will be made available
(Oluwakoya, 2011). This provision reduces the total transportation costs
incurred by manufacturing firms in the process of outsourcing for raw
materials.
In the manufacturing sector of our
great nation “Nigeria”, the advent of internet has provided an outlet for new
forms of invention, innovation and entrepreneurship. Nwaogbe
(2013), identified these new forms of invention and innovation in the manufacturing sector as
order placement, material handling and processes, outsourcing of essential raw
materials prior the production process, order specification among others. These
notable areas of invention and innovation in the manufacturing sector as a
result of the advent of internet system is of paramount importance and of
considerable interest to management of manufacturing firms operating in
Nigeria.
Transportation
which simply involves the movement of people and raw materials from one place
to another remain the core of business and the economy all over the world
because all other activities rely on it to survive (Oluwakoya, 2011).
The use of internet system by manufacturing firms operating in Nigeria to
develop and improve their transportation system has ensured the speedy and
timely delivery of essential raw material needed in the production process,
especially when they decide to outsource these essential input materials. More
so, through the creation of corporate websites and a functional email address,
manufacturing firms need not move from streets to streets with the aim of
informing potential consumers of the availability of new products (Nwaogbe,
2013). Rather, consumers visit their corporate websites, place order and these
products are delivered to them within a short period of time.
Adegbemi
(2012), posits that the advent of internet has improved the efficiency of the material
handling strategy adopted by manufacturing firms operating in Nigeria. The
reduction in the volume of time spent in the process of transporting essential
raw materials to the pint of production and the process of transporting
finished products to the point of consumption ensures that these products
remain in the right form or right quality.
1.2 Statement of the Problem
Stephen
(2014), postulates that limited research has been carried out by researchers
and academic institutions on the relevance of internet system in the
development of effective and efficient transportation network among
manufacturing firms in Nigeria. Hence, managers and marketing executives of
companies in Nigeria are yet to understand the enormous benefits accruable from
the adoption of internet facilities in their transportation system. This has created a negative impact on their
attitude and dispositions toward the use of these modern facilities.
Most
developing nations like Nigeria do not have the financial strength to purchase
modern satellite that increases the speed and reliability of digital products
and essential messages delivered through the internet (Olufemi, 2011). As such,
business organizations experience unnecessary delay or most times a halt in the
process of delivering vital messages due to poor nature of the servers. This
discourages marketing executives and managers of manufacturing firms in Nigeria
from using this modern facility.
Ugboaja
(2013) posits that the high level of illiteracy in most developing nations does
not encourage the use of internet system in development of efficient and speedy
transportation system. Most managers and other relevant personnel of
manufacturing firms in the country have little or no knowledge on how to use
internet facilities like; the websites, emails amongst others in sending and
receiving of vital information within a short period of time. Thus, they resort
to the painstaking and time consuming method of transporting raw materials from
point of purchase to point of production.
1.3 Objectives of the Study
The
broad objective of this research work was to ascertain the impact of internet
system in the development of transport network of manufacturing sector in
Nigeria. However, in a bid to achieve the above stated broad objective, the following
specific objectives will be pursued. Which were to:
a) Determine
if the application of internet system in the development and management of
transportation reduces the transportation cost of the firms;
b) Ascertain
the contribution of internet to the effective management of logistics
operations in the manufacturing sector;
c) Examine
if any relationship exists between the use of internet and the effectiveness of
material handling strategy of the firms;
d) Ascertain
the extent to which internet system aids in easy access to raw materials for
just in time delivery.
1.4 Research Questions
The
following research questions were addressed in the course of the study:
a) Does
the application of internet system in the development and management of
transportation reduce the transportation cost of the firms?
b) Does
the use of internet have any contribution to the effective management of
logistics operations in the manufacturing sector?
c) Does
the use of internet have any relationship with the effectiveness of material handling
strategy of the firms?
d) To
what extent does the use of internet system aid in easy access to raw materials
for just in time delivery?
1.5 Research Hypotheses
The
following research hypotheses stated in null form were tested in the course of
the study. They are:
H01: The application of
internet system in the development and management of transportation does not significantly reduce the transportation
cost of the firms;
H02: The use of
internet does not contribute significantly to the effective management of logistics operations in the
manufacturing sector;
H03: There is no
significant relationship between the use of internet and the effectiveness of material handling strategy
of the firms;
H04: The use of
internet system in the transportation system does no significantly aid ease access to raw materials for just in
time delivery.
1.6 Significance of the study
The
significance of this research work which focused on the role of internet in
development of transportation system of firms in the manufacturing sector of
Nigerian economy is discussed under the following subheading:
a)
Marketers
and Managers of Manufacturing firms: This
research work will be of immense benefits to marketers and managers of various
manufacturing firms operating in Nigeria, in that, it provides a detailed and
thorough understanding on the various forms of internet services that can be
used by manufacturing firms in the process of transporting raw materials and
semi-finished goods to their plants, and how to use the internet to minimize
costs and lengthiness in the processes of outsourcing for needed
materials.
b)
Government:
Through this research work government will
be more enlightened on the need to create enabling environment for technologist
and computer experts in the field of internet to invest and develop modern ICT
facilities used in most developed and advanced world.
c)
Academicians
and Marketing institutions: This study will provide in-depth
knowledge on the relevance of internet in development of efficient and reliable
transportation network. Thus, providing students and academicians with up-to-date
information on modern internet facilities and how they can be utilized to
improved transportation. It will also serve as the basis for further research
to be carried out by potential researchers or academicians that may desire to
identify other facets of internet that the researcher was not able to identify
due to limited time and financial constraints encountered by the researcher in
the process of developing and completing this exercise.
1.7 Scope of the Study
This
study shall be carryout in Nigeria, using a few selected manufacturing firms in
the country, the marketing executives and managers of the selected
manufacturing firms will constitute the respondents.
1.8 Limitation to the Study
Some limitations and factors in this research study
are as follows:-
i.
Limited
time: The time required for the completion and
submission of this research work was very short and the researcher was unable
to go visit all the selected manufacturing companies.
ii.
Financial
constraints:- Finance, which is the most important
resource for this work was not readily available. Hence, the researcher in the
course of this study had to manage limited finance to generate relevant
information for the study.
Uncooperative attitudes of some of my respondents:- The management of the
selected manufacturing firms prohibited its employees from giving out
information about the company to outsiders without adequate permission from the
management and even when this permission was obtained at the long run, many
vital information were not revealed because they were regarded as the privacy
of the company.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment