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VALUE ADDED SERVICE AND ORGANIZATIONAL GROWTH USING CORRELATION METHOD (A CASE STUDY OF TELECOMMUNICATION INDUSTRY)

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

In today's dynamic business environment, companies are faced with the need to positively impact the customer by taking on specific responsibilities to increase their value impact. Organizations have developed a set of strategies to address this interface between the needs of the company, the products, and the associated business needs in day-to-day business operations around the world. Many organizations, such as banks and some manufacturing companies in Nigeria, are motivated by the need to generate more and more profits, which is the only goal of any business. To achieve this goal, some companies do not respond well to the needs of host communities, the well-being of employees (often cheap labor), environmental protection and community development. Research has shown that value-added services can increase the profitability, sustainability, integrity and reputation of any company that incorporates it into its policy.

Nkanga (2007) postulated that value-added services imply the obligation for businesses to contribute to the customer. The policy of introducing value-added services should not be motivated by higher profits. In Nigerian organizations, it is common to make the provision of value-added services one of their missions. Organizations need to understand that the specification of value-added services as part of their guiding principles involves stakeholders.

1.2   Problem statement

Despite the recent emphasis on value-added services in Nigeria, manufacturing organizations are still a problem. Most organizations still see no reason for the acceptance of value-added services. Companies that have accepted and reluctantly accepted value-added services are doing so at a profit. This study examines the problems and perspectives of customer services and their impact on organizational performance in Nigeria.

1.3   Purpose of the Study

The broad objective of this study is to examine how of value added services affect business growth. Specifically, the study is designed to:

i.  Investigate how value added services (value added services) influences organisational growth in telecommunication industry.

ii.  Cross-examine the difference between level of perceived customers’ patronage and brand loyalty among companies that practices value added services and organisations that do not practice value added services in telecommunication industry.

iii.  Analyse how value added services adoption influences organisational performance and profitability.

1.4   Significance of the Study

The importance of this dissertation is not just to analyse the practice of value added services but to understand the current practice, the level of understanding of value added services cowbell. The study aims to help the cowbell Nigeria take a comprehensive approach to customer service strategy. The study will also be of interest to research institutes and individual researchers interested in accounting standards and will use the results for further research. This study will encourage researchers to identify the effectiveness and efficiency of the customer services. The research will help individual companies understand their position relative to the customer service and business growth.

1.5   Study Hypotheses

To provide empirical answers to the research questions above, the following research hypothesis were developed. They are as stated below;

H01: Value added services (value added services) does not influence organisational reputation in telecommunication industry.

H02: There is no significant difference between level of perceived customers’ patronage and loyalty among companies that practices value added services and those that does not in telecommunication industry.

1.6   Scope and Limitations of the Study

The study scope is limited to investigating value added services and organizational growth in telecommunication industry. Limitation faced by the research was limited time and financial constraint.

1.7   Definition of Basic terminologies

Performance: Performance is the manner in which an organization functions, operates, or behaves in the society.

Stakeholder: This study describes a stakeholder as a person or group with a direct interest, involvement, or investment in a business organization e.g. the employees, stockholders, and customers of a business organization.

Value Added: A value-added service is a popular telecommunications industry term for non-core services, or, in short, all services beyond standard voice calls and fax transmissions.

Organisational Growth: A process through which the structure of a multigent system organization increases the number of its roles and links.

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