CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Innovation becomes part of strategy implementation when it improves organization efficiency with increased growth and hazard decrease (Drucker, 2001). Advancement techniques are vital in enhanced execution amongst many organizations and are shown by expanded productivity and general industry advancement (Palmer & Kaplan, 2007). Yilmaz, Alpkan and Ergun (2005) likewise identify innovation adoption as a crucial enabler for organization's efficiency by creating value in the undeniably unpredictable and rapidly developing environment.
There has been growing worry regarding this development taking into consideration that Nigeria is highly endowed with Agricultural resources which are sustained by different well-articulated sectoral plans and developmental programmes from global development agencies. Going back to the pre-independence till 1970, the first, second and third National Developmental Plan for Nigeria were implemented to harness its substantial potential in Agriculture. While Agriculture thrived at the local level throughout the early 60s, after some self-inflicted regional crisis throughout the late 60s, the nation witnessed low agricultural product which notified some flagship programs from successive military regimes that were the leading pilot of the country's affair at those times. Programmes such as Operation Feed the Nations (1975-79), Green Revolution Plan Scheme (1980), Structural Adjustment Programme (1986) and the Agricultural Policy for Nigeria (1988-2000), which served as the first National Agricultural plan for Nigeria. Nevertheless, throughout the post 1999 period when Nigeria returned to democracy, President Olusegun Obasanjo's regime reformed the National Agricultural Policy and re-introduce it as The New Policy Thrust for Agriculture of 2002 which resulted in the release of different economic development reform for Nigeria such as the National Economic Empowerment and Development Strategy (NEEDS) introduced in 2004. There was a significant turn by the Nigeria government dedication to agriculture in 2007 during the President Umar Musa Yar' Adua when he introduced the Vision 2020 having actually a seven-point agenda for the nation where it prioritised the issue of Food security and Agriculture among other sundry problems that were of major obstacles to the development of Nigeria during this period. Historically, significant focus on Agribusiness in Nigeria ended up being distinct between 2010 -2015 with the Agricultural Transformation Agenda (ATA) initiative of President Goodluck Ebele Jonathan introduced in 2010 which intended to reform Nigeria's interest back to Agriculture. The ATA reform recorded unmatched success in the history of Nigeria has never-seen initiatives were made. For example, the set up of the Growth Enhancement Scheme (GES) was implemented to register smallholder farmers and provide target input subsidies to them via the e-wallet system. Also accomplished was the restructuring of the fertiliser purchase system a significant challenge to farmers in the past. The most recent policy development for the industry is the Agriculture Promotion Policy (APP) for the year 2016-2020 which was introduced on the 21st of June 2016 by the immediate past President of Nigeria, Mohammadu Buhari. The APP has four (4) concern areas (Food security, import alternative, job creation and Economic Diversification); eleven (11) vital goals and three (3) thematic interventions to unlock the agricultural potential of the nation. This is the first time in the history of Nigeria that the issue of agribusiness is plainly recorded in its agricultural policy. The APP under theme 2 (Crowding in private investment), section 4.2.2 (Agribusiness Development) specifies the prevailing restrictions and the policy thrust of the Government on the development of agribusiness in Nigeria.
In the current globalization wave, defined by high competition and technical development, much emphasis has been placed on the Nigerian agricultural industry performance. The agricultural industry has needed to involve the technological moves to for sustainable productivity and competition. A few of the main innovations being exercised consist of product development and improvement and creating totally new set of products to name a few. Companies which innovate have the tendency to last longer and grow (Kantor, 2001). Examples in Nigeria are companies that have embraced paying of goods or services by clients with electronic cards, mobile service like Airtel Money. It has been noted that their businesses have expanded significantly as customers prefer them as a result of not needing to carry cash which is risky. Innovation is likewise about value adding through processes such as branding (Furst, Lang & Nolle, 2012). Other innovation areas in Nigeria are seen in packaging where innovative traders pack up items in unique appealing wraps that has their business contacts on them.
This study widens the scope of agricultural business innovation studies to include crop and livestock-based innovations and to evaluate the innovation system not just on the structural and process perspectives, however likewise to include the dimension of qualities of contemporary innovative technologies used by agripreneurs. Therefore, the study examined effect of innovation on performance of agribusiness by using Rice Farmers Association of Nigeria, Bida, Niger State as a case study.
1.2 Statement of the Problem
In spite of the potential advantages of technological innovations adoption, there is argument regarding whether and how their adoption enhances organizational performance (Mabrouk & Mamoghli, 2010). Worch and Truffer (2012) disclosed that the sum productivity and maximization in value of a company is increased by operations in innovation. A study by Hafeez (2013) discovered that there is a positive correlation between companies' productivity and the value-added innovativeness. Another research by Kiraka, Kobia and Katwalo (2013) revealed that process, product, positioning and paradigm types of innovation had a significant relationship between performance in some business types of the micro and small enterprises. Odhiambo (2008) developed that Standard Chartered Firm (Kenya) Limited bank was able to effectively introduce different innovative techniques varying from product, technological to customer care therefore contributing tremendously to its profitability for many years. Kiiyuru (2014) corroborated that the commercial banks in Kenya had used value creation with resource accessibility, customer satisfaction, retention and pricing in form of market innovation techniques.
Most of the studies carried out on innovations have focused on developed nations (Worch & Truffer, 2012). The few studies carried out locally have not been extensive as they have dealt with some facets of innovations and different contexts (Kiraka, Kobia, & Katwalo, 2013). The current study targeted at filling this literature gap by responding to these questions; what is the level of adoption of technological innovations by agripreneurs in Nigeria? And what is the impact of innovations on performance of agricultural firms in Nigeria?
1.3 Objectives of the Study
The main objective of this study is to determine the effect of innovation on performance of agribusiness by using Rice Farmers Association of Nigeria, Bida, Niger State as a case study. However, the specific objectives include:
i) To determine the level of innovations adoption among Rice Farmers Association of Nigeria in Bida.
ii) To investigate the effect of innovations on performance of Rice Farmers Association of Nigeria in Bida.
iii) To understand the prevalence of innovations among agripreneurs in Nigeria.
1.4 Research Questions
The following statements were considered as the research questions for this study:
i) What is the level of innovations adoption among Rice Farmers Association of Nigeria in Bida?
ii) What is the effect of innovations on performance of Rice Farmers Association of Nigeria in Bida?
iii) What is the prevalence of innovations among agripreneurs in Nigeria?
1.5 Research Hypotheses
The following statements were considered as the research hypotheses for this study:
i) There is no significant influence of innovations adoption on Rice Farmers Association of Nigeria in Bida
ii) There is a significant correlation between innovations and performance of Rice Farmers Association of Nigeria in Bida
1.6 Significance of the Study
This study will be significant in terms of future references to future academicians. The study may identify further areas of research by highlighting related topics critiquing to identify research gaps. The study contributes significantly to technological innovations in agriculture sector.
Policy makers maybe enlightened by the study findings, by showing them how technological innovations adoption influence organizational performance of agriculture firms and thereby identify mechanisms to be utilized by the regulators to improve performance of such firms which form the framework for achievement of economic growth and development goals of agriculture sector in the country. The study may also be geared towards helping agripreneurs which are yet to adopt technological innovations. The agripreneurs may be able to determine the technological innovations suitable for them to enhance organizational growth and performance.
Findings from the study may also form a foundation for implementing an effective technological innovation practice. The study would help the Government of Nigeria when it will be formulating and implementing policies for operational efficiency. Through the results of this study, the agripreneurs in the country would find the benefits realized and how more benefits can be realized for optimal operational efficiency.
1.7 Scope of the Study
This study is on the effect of innovation on performance of agribusiness by using Rice Farmers Association of Nigeria, Bida, Niger State as a case study. Therefore, selected rice farmers in Bida, Niger State, will be used a sample for this study.
