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IMPACT OF GROUP DYNAMICS IN WORK ORGANIZATION IN THE FOOD AND BEVERAGE INDUSTRY

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IMPACT OF GROUP DYNAMICS IN WORK ORGANIZATION IN THE FOOD AND BEVERAGE INDUSTRY

 

CHAPTER ONE

INTRODUCTION

1.1      Background to the Study 

Over the years, business enterprises have been witnessing an unparalleled and exceptional degree of transformation, conversion, intense and forceful competition, and tumultuous environment globally. These transformations emanate as a result of market fragmentation, changing technology, dynamic management, the convergence of different business enterprises, supplier attitudes, changing customer demands, changing customer expectations, reduced lifecycle of product, etc. which have direct and indirect implications on business performance.

According to Ahmad et al. (2019), business enterprises are encountering significant challenges because of the dynamic attributes of the business enterprise itself, the market, and environmental circumstances. In fact, in the current and widespread competition and challenging economic circumstances, a practicable, feasible, dynamic, and forceful enterprise network is vital to the economic improvement of a particular country (Zahra et al. 2018).

In the same vein, Ahmad and Pirzada (2017) noted that enterprise networks are known to be the mechanism of growth and development which has significant roles in the establishment of laudable economic development. In the study of Hashim et al. (2018), it was revealed that majority of the countries often reply on the performance of enterprise networks for the growth and fortification of the economy. Zhu et al. (2019) and Dobbs and Hamilton (2017), noted that, however, enterprise networks are faced with many challenges and uncertainties in the competitive business environment and inauspicious circumstances in recent years. These have resulted in the challenges of superior and improved business performance.

According to Kayode (2018), enterprise networks are the heart of any economy. Its importance to the growth and survival of the economy cannot be overemphasized. Enterprise networks play a key and noticeable role in the economy of most countries. In the study, it was stated that the proceeds are oftentimes products offered to customers that result in profit making when pooled together by the owners of enterprise networks. Obisi (2019) in his study added that the enterprise networks all over the world would continue to be the engine of development and industrialization.

Nigeria is among the developing nations in the world that is competing in the intensity of the global market particularly in food and beverage manufacturing, and as a result of that, many business enterprises are springing up, especially those associated with large organizations. However, they need to maintain and catalyse the local market for economic stability and potency. It should be of importance to note that the survival of any enterprise into the unforeseeable future, its ability to extend tentacles, and its tendency of producing significant outputs is the goal of any enterprise in particular.The ecosystem of enterprises in Nigeria is quite competitive and challenging, and the enterprise environment is neither perfect nor encouraging for small enterprises (Beugré, 2018). In fact, enterprises in Nigeria that seem to form a network are not doing it for expanding or growing the business dynamics, but to fulfil the mandate of the government by remitting some amounts. It is saddened to discover that most of the networks are politicized and influenced by corrupt individuals who will be the Lord of such networks. The aftermath of political influence has made some sets of individuals to enrich themselves with the money contributed by member networks for the advancement of the network. These scenarios have however reduced the trust of enterprise owners to forming a network. Nonetheless, Beugré opines that a small network of enterprises is necessary to have access to resources that will enhance the sustainable growth of various enterprises when in a difficult economic situation and highly competitive environment.

Messeni Petruzzelli et al. (2019); Olusola et al (2018); Ahmad et al. (2017); ​Frankfort-Nachmias and Leon-Guerrero (2018) revealed that the hostile economic conditions give confidence to the enterprise networks for the purpose of surmounting the injurious business environment when realizing sustainable intensification of 

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IMPACT OF GROUP DYNAMICS IN WORK ORGANIZATION IN THE FOOD AND BEVERAGE INDUSTRY

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