EFFECT OF QUALITY AND ENVIRONMENTAL MANAGEMENT SYSTEM ON COMPETITIVE ADVANTAGE OF RURAL MANUFACTURING BUSINESSES
(A STUDY OF SELECTED MANUFACTURING COMPANIES IN OJI RIVER LGA)
ABSTRACT
This research work examined Effect of Quality and Environmental Management System on Competitive Advantage of Rural Manufacturing Businesses. A study of Selected Manufacturing Companies in Oji River LGA. The objectives of the study include to: determine the extent quality and environmental management system has affected competitive advantage of rural manufacturing business through quality and environmental management system, identify the competitive advantage strategies that are used in strengthening rural businesses, ascertain the challenges militating against improving competitive advantage of rural manufacturing businesses through quality and environmental management system and find out the efforts of government in improving competitive advantage of rural manufacturing business through quality and environmental management system. The sources of data were the primary and secondary sources. The population of the study was 208 while the sample size of 137 was determined using the Taro Yamane’s formula. The data collected were presented in tables of frequencies, and percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that quality and environmental management system has a positive effect on competitive advantage of rural manufacturing businesses, there are competitive advantage strategies that are used in improving rural businesses, there are challenges militating against improving competitive advantage of rural manufacturing business through quality and environmental management system and there is appreciable effort of government in improving rural manufacturing business through quality and environmental management system. The researcher concluded that competitive advantage of rural manufacturing business can be strengthened through quality and environmental management system and it was recommended that rural business managers or owners should collaborate with research institutions and other educational institutions in order to take advantage of knowledge and technology from research findings that are laying waste in various institutions, rural business managers should try to find out competitive strategies that can help their businesses survive in this era of intense competition, rural business managers should try to overcome the challenges militating against strengthening competitive advantage of rural manufacturing business through quality and environmental management system and government should help rural business managers to overcome the challenges militating against the survival of their businesses.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitation of the study                        
1.9    Operational definition of terms                    
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.2     Theoretical Framework                        
2.3    Empirical Review                              
2.4     Summary of Review of Related Literature             
2.5    Gap in the Review of Related Literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1     Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                            
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.3.4     Research Question Four                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.4.4 Test of Hypothesis Four                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
4.5.4 Discussion Based on Hypothesis Four            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for further Research                
List of References                               
Appendix                                    
Questionnaire                                
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The end of the Second World War, witnessed the emergence of revolutionary ideas that swept the African nations as they threw off the colonial York. The desire on the part of the new leaders in these countries is to promote rapid economic development coupled with the, realization that poverty anywhere is a threat to prosperity everywhere (Thingan, 2014:51). In this new millennium, we are in an era of constant change. Becoming and remaining the winner, will require an ever increasing ability to make the right decisions and to execute those decisions more effectively than competitors. According to Deming (2015:72), success arises from being different and then being prepared to change again, to search and exploit new opportunities, for satisfying human wants and societies. Those, most responsive to change achieve competitive advantage. Competitive advantage is the generation of ideas, alternatives, innovations and the transformation of those ideas and alternatives into useful applications that lead to change and improvement, that allow organizations find position among its competitors (Carr, 2015:62). In today’s business environment, an essential element to an organization’s success is for mangers to manage at the speed of change and that takes creativity and innovation to sustain the competitive nature of the organization.
David (2016:108), asserts that approximately eighty thousand businesses are started each year in the rural areas of South Eastern Nigeria. Eight-five (85) percent of these businesses actually end within five years. Their owners have decided to close shop for a host of reasons. Many do not have the needed investment to carry them through the start-up process (six months to a year). Others topple, on a shaky basis of poor business planning at the initial stage, but majority of these businesses in the rural areas fail because they cannot achieve competitive advantage. These rural businesses cannot compete favourably with their counterpart abroad and in the urban areas, as their products seem to be of lower quality and higher prices. In Nigeria, there has been uneven development and glaring inequalities of opportunities between rural and urban areas, inspite of the fact that majority of Nigerians are rural dwellers (Adebowale, 2015:78). Government seems to concentrate more infrastructure in the urban areas. There are better roads in the urban areas than in the rural areas, access to electricity supply in the urban areas than in the rural areas, access to health facilities and even pipe-bore water in the urban areas than in the rural areas.  In the words of Umeadi (2014:86), losses due to power outages amount to 10 percent of sales, bottlenecks in the business environment amount to 16percent and production cost while in transit amount to 4% of sales. These losses affect every business by making their products uncompetitive both in terms of quality and prices. Furukawa (2014:76), posits that ingredients of the investment climate such as physical infrastructure, utilities, financial markets, security and predictable public institutions create the enabling environment for investment and business and thereby enhance opportunities and incentives for firms to invest productively, create jobs and expand. The rural manufacturing businesses are adversely affected by these ingredients. The ease of doing business is an important factor in the theories of comparative advantage. While the business environment directly influences the firm’s level of cost of production, the industry level impact, relates to market structure and competition. Rural business continues to face significant challenges to improve local economics. For example three quarters of all rural areas has been defined as persistent poverty areas. Furthermore, as the rural businesses strive to compete with their counterparts in the urban areas and the imported products, there appears to be no effective effort to control pollution and protect the environment (Madu, 2015:132). Existing policies to reduce pollution have not been institutionalized in the rural areas. It is unclear, which government agency (at any level) actually bears the responsibility for controlling pollution. From waste garbage and water that is generated by animal husbandry, food processing and other small-scale agro industries. While the department of natural resource and environment is mandated to assume this role at the state level, the question of how to manage the environment as the rural businesses strive to compete with their counterparts in the urban areas and the products of foreign companies. It is based on this backdrop that this research examines Effect of Quality and Environmental Management System on Competitive Advantage of Rural Manufacturing Businesses with five selected manufacturing businesses in Oji River Local Government Area as a case study.    
1.2    Statement of the Problem
    Manufacturing companies in the rural areas are facing severe competitive challenges, with some firms closing by the day as a result of their inability to cope with competition arising from products from domestic and foreign companies. Rural businesses perform poorly, yet they pollute the environment which affect the health of rural communities and the eco-system upon which they depend.      
    The adverse consequences of not achieving competitive advantage include loss of jobs. When rural manufacturing businesses do not compete favourably with the imported products and products of their counterparts in the urban areas, they tend to sack their workers and this result to loss of jobs, frustration and loss of capital. It is upon this background that the need to study on how we can strengthen the competitive advantage of rural manufacturing business through quality and environmental management system above.
1.3    Objectives of the Study
    The general objective of the study is to examine strengthening competitive advantage of rural manufacturing business through quality and environmental management system. However, the specific objectives included to:
1.    determine the extent quality and environmental management system has affected competitive advantage of rural manufacturing business through quality and environmental management system.
2.    identify the competitive advantage strategies that are used in strengthening rural businesses.
3.    ascertain the challenges militating against improving competitive advantage of rural manufacturing businesses through quality and environmental management system.
4.    find out the efforts of government in improving competitive advantage of rural manufacturing business through quality and environmental management system.
1.4 Research Questions
    Based on the objectives of the study, the following research questions were raised.
1.    To what extent has improving competitive advantage of rural manufacturing business affected quality and environmental management system?
2.    What are the competitive advantage strategies that are used in strengthening rural businesses?
3.    What are the challenges militating against improving competitive advantage of rural manufacturing business through quality and environmental management system.
4.    What are the efforts of government in improving competitive advantage of rural manufacturing business through quality and environmental management system?
1.5    Statement of Hypotheses
    Based on the research questions, the following hypotheses were formulated
Hypothesis One
H1:    Improving competitive advantage through quality and environmental management system has significantly impacted on rural manufacturing business.
Hypothesis Two
H1:    There are competitive advantage strategies that are used in strengthening rural businesses
Hypothesis Three
H1:   There are challenges militating against improving competitive advantage of rural manufacturing business through quality and environmental management system.
Hypothesis Four
H1:    There is appreciable effort of government in improving rural manufacturing business through quality and environmental management system.
1.6    Significance of the Study
This research work will be of immense benefit to the underlisted groups and institutions.
Rural Dwellers: This study is not only merely to bridge the gap between the rich and the poor, but essentially to raise the standard of living of impoverished majority, who are living in the rural areas.
Businessmen: Owners of businesses in the rural areas will benefit from this work as they will know the strategies to achieve competitive advantage.
Government Officials: This research is intended to help government fashion systematic strategies that are dependent on knowledge and technology in solving problems of rural business and rural development.
Environmental Protection Agency Officials: Economic growth goes hand in hand with pollution control. Institutions must insist on organization adopting modern manufacturing processes or global best practices in order to lessen waste that destroys the environment.
Researcher: Finally the researcher will benefit as this research work is a partial requirement for the award of a Bachelor of Science (B.Sc) degree in Business Administration.
1.7    Scope of the Study
    This research work will cover improving competitive advantage of rural manufacturing business through quality and environmental management programme. The research covered Oji River Local Government Area, from 2016-2017.
1.8 Limitations of the Study
The researcher encountered some challenges in the course of carrying out this research work.  Among them were finance, time and uncooperative attitude of the respondents.
Finance: Research of this nature is always very expensive. A lot of money is required in data collection, analysis and interpretation. The researcher had to spend a lot in order to cover his area of study. Travelling through the Oji River LGA involves a lot of money and risk. However, the challenges were overcome through the support elicited from friends and relations.
Time: there was insufficient time to carry out all that was supposed to be done.
Uncooperative Attitude of the Respondent: Some of the respondents were unwilling to cooperate with the researcher since they receive no financial benefit from the study, but through persuation and conviction the researcher was able to overcome the challenge.
1.9    Operational Definition of Terms
Competitive Advantage: Competitive advantage is the generation of ideas, alternatives, innovations and the transformation of those ideas and alternatives into useful applications that lead to change and improvement that allow nations and organisations to find position among its competitors.
Rural Business: This is the development of people and mobilisation of resources to produce within the local area.
Competitive Strategy: This is strategy adopted by a firm in order to position its self in the market.
Competitiveness: This refers to the ability to meet the desired needs and wants of customers.
Environmental Management System: It means a process of building internal capacity in order to being able to curb waste. produce within the local area.