Production Capacity Improvement and Organizational Performance of Manufacturing Firms in Rivers State, Nigeria

PRODUCTION CAPACITY IMPROVEMENT AND ORGANIZATIONAL PERFORMANCE OF MANUFACTURING FIRMS IN RIVERS STATE, NIGERIA

By

OMHONRIA Osemhejie Douglas1 and NEEDORN Richard Sorle2

Department of Management, University of Port Harcourt, Nigeria.

Abstract

This study empirically examined the relationship between production capacity improvement and organizational performance of manufacturing firms in Rivers state, Nigeria. The cross-sectional survey was adopted in the study. The population of two hundred and thirty-two (232) employees from 10 selected manufacturing firms were covered in the study. A sample size of one hundred and forty-seven (147) was drawn from the population. The systematic sampling technique was employed on each of the selected firms. Copies of questionnaires were issued to respondents and the Spearman’s rank order correlation was used in analysing the bivariate hypothesis. It was observed from the analysis that there is a significant positive relationship between the dimensions of production capacity improvement (capacity utilization and capacity maintenance/control) with the measures of organizational performance (goal attainment and operational efficiency). Hence, it was concluded that an optimal capacity utilization and proper capacity control and maintenance will help boost the operational efficiency and goal attainment of the manufacturing firms in Rivers state, Nigeria. It was recommended among others that the management of the manufacturing firms should ensure optimal utilization of operation capacity of the firm to boost the efficiency in the organization’s operation.

Key Words: Organizational Performance, Goal Attainment, Capacity Maintenance/Control, Capacity Utilization, Operational Efficiency, Production Capacity Improvement.

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OMHONRIA, O.D & NEEDORN, R.S (2022). Production Capacity Improvement and Organizational Performance of Manufacturing Firms in Rivers State, Nigeria. International Journal of Advanced Academic Research, 8(1), pp13-29. Available online at: https://www.ijaar.org/articles/v8n1/ijaar-v8n1-Jan22-p8172.pdf.

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