ABSTRACT
This study is motivated by the empirical lacuna as regards the impacts of digital social environment on leadership of e-businesses. Therefore, the broad objective was to investigate the impact of digital social environment on leadership of selected e-business firms in the South West, Nigeria. However, the specific objectives were to: (i) ascertain the impact of e-business on leadership skills, (ii) determine the nature of relationship between digital social environment and leadership of e- commerce, (iii) evaluate the effects of online consulting on managerial philosophy of e-commerce firms, (iv) assess the extent online information sharing impact on interpersonal skills in e-commerce firms, (v) determine the impact online training leadership knowledge in e-commerce firms in Nigerian. The study adopted a cross-sectional survey design. The population of the study was 996 staff of Jumia 303, Konga 393, and Heels 300 all in South West, Nigeria. The choice of these e- commerce firms was informed by the fact that they have maintained a good, strong, and steady competitive positions wherein the criterion of more than two or not more than ten years of existence as startup e-business firms. The sample size of 278 was obtained using Cochran formula. Stratified sampling was used to select respondents in each of the selected firms. Data were collated using the designed questionnaire structured on a 5-point likert scale. Validation was carried out using five experts from both the industry and department of Management, University of Nigeria, Enugu campus. A pilot study was conducted using split-half method and test with Spearman’s rank correlation coefficient, giving a coefficient of 0.95, indicating a high degree of items consistency. Both descriptive and inferential statistics were used for data analysis at 5% probability level of significance. To a large extent, e-business has significant positive impact on leadership skill of e- commerce firms (r = 0.944, P<.05). There is positive relationship between digital social environment and leadership of e-commerce firms in southwest Nigeria. (r = 0.617; p<0.01). Online consulting affects managerial philosophy of e-commerce firms significantly (r = 0.955, P< 0.05).Online information sharing impacts on interpersonal skills in e-commerce firms (Zcal= 6.381 >Zcritical=
1.96).Online training has positive impacts on leadership knowledge in e-commerce firms (Zcal=
4.801 against Zcritical= 1.96). With the above, we conclude that Leadership of e-commerce firms,
among other variables determines the required behavioral shift from managing to leading;
consequent upon, to give their organizations the drive to thrive, survive and sustain relevance in this digital age wherein performance of their organizations will be optimized. High quality leader- subordinate relationship among employer and employees is key to survive. Technological adaptation in organizational processes creates healthy environment through sharing of appropriate work-based
information. It aids effective managerial strategy to transfer and enhance knowledge among staff members as it also encourage healthy interpersonal relations which lead to task accomplishment to positive outcomes such as good relational skills, better performance, lower turnover, job satisfaction and organizational commitment. Therefore, we recommend e-business leadership should be more proactive in pre-empting possible industrial and/or technological change paradyms, the more equipped and ready they would be to stay ahead. Use of various online consulting and/or think- thanks will immensely be useful in crafting positive change(s) in the industry.
CHAPTER ONE
INTRODUCTION
1.11 Background of the Study
The emergence of digital social environment has created a new dimension of highly dynamic and competitive push on businesses. This requires that business managers need a behavioral shift from managing to leading; consequent upon, to give their organizations the drive to thrive, survive and sustain relevance in this digital age. For instance, digital social environment is changing the way businesses conduct their production, marketing and sales activities as well as how they interact with their clients. It has also driven new trends – the virtualization of: (1) world of business, (2) working environment (3) post service delivery support.
The process of influencing others to understand and agree about what needs to be done and how to do it and the process of facilitating individual and collective efforts to accomplish a shared objective is leadership (Cole and Kelly: 2011). Businesses exist to harness opportunities while mitigating threat and risk to the barest minimum using a workable strategy implemented through effective leadership (Michael: 2009). Well harnessed opportunities amidst high mitigated risk usually create returns for businesses in the form of high sales, profit and organizational growth (Pushparaj: 2010). Business environments offer benefits and as well poses challenges to it. The strengths and opportunities are the benefits of the environment to the organization and are trends which the organization can capitalize on to improve its competitive advantage. Weaknesses and threats are the challenges in an organization’s environment that jeopardize the organization’s ability to prosper in the long term (Lewis, Goodman, and Fandt: 1998). Trends in the organization’s environment might affect its strategic plans (Hughes, Ginnett, Gurphy: 2007).
Today, because of continuing rapid environmental changes in organizational environment, acquisition and application of management knowledge, skills and experience will no longer be sufficient to grow thriving, prospering, and competitive businesses. Contemporary business practices require managers to have technical knowledge and experience both in management and leadership; especially how both should be integrated for business growth and successes). Today’s dynamic operational environment calls for strong leadership skills, clear strategic objectives and a shared vision. When an organization faces an uncertain environment, it demands strong leadership (Kotter: 2000). Leadership is one the prerequisite for business success. To be a successful business manager one must have a solid understanding of what leadership entails. This includes evaluating environmental influences of businesses’ leadership styles and its effectiveness.
The study of leadership and the demand for good leaders has fascinated people throughout the ages (Marable:1998). In fact, lots of articles and books have been published on the subject, looking at leadership from many different approaches and perspectives – the study of traits, the study of leadership behaviors, study of situations in which leaders act, the influences leaders have on others, the study of styles which leaders adopt and most importantly now, the influences of environment (both internal and external) on the leadership style (Hughes, Ginnett, Gurphy2007; Lewis, Goodman, and Fandt1998) within the ambit of business operations.
Business leadership efficiency and effectiveness is, however, constrained by a variety of environmental factors. For instance, business leaders are constrained in what they can do because of various limiting economic realities and a host of state and federal laws. For example, business leaders are required to pay at least the minimum wage and they are required to enforce safety standards. Leaders are also constrained by followers and group factors especially with the viral nature of social networks. One of the most important aspects of an organization is its human resources. Lewis et’al (1998) write that the human resources of the organization from the top management down to frontline workers are what determine the ability of the organization to achieve competitive advantage. Leaders who have unskilled followers may still have difficulty in leading effectively regardless of their style, and the availability of skilled followers is influenced by the external labor market.
Leadership can be defined here as the effort to influence the behaviour of individuals or group members in order to accomplish organizational, individual or personal goals. It is an essential component of organizational effectiveness (http://www.fao.org). Leadership is an effective instrument through which a manager may establish a feeling of mutual objectives and unity in a group, thereby ensuring maximum efficiency of the group. To achieve this, managers must have special skills in understanding interpersonal and group behaviour, thereby promoting healthy communication, interactions and cooperation among organizational members.
Being a very important aspect of managing businesses, leadership plays a vital role in the success or failure of any business organization. Business organizations succeed, through effective leaders. Effective leaders exercise all the functions of their role and are able to combine human and material resources together to achieve organizational objectives. Ihunda (2005) writes that the reason for leadership is follower ship, that is, followers’ willingness to accept directions from the leader, make him a leader. Also people follow anybody they see that can provide a means of achieving their own desire, wants, and needs.
1.12 Statement of the problem
Digital social environment is changing the world of business faster than expected. It is affecting the interests of different stakeholders – the owners of business, investors, staff, customers and suppliers. Both e-commerce business staff and customers are becoming greatly informed to change their taste of choices.
Businesses depend sufficiently on their operating environments because they do not exist in a vacuum. They depend on their environment for input such as market information, ideas, raw materials, finance and labour among others, and most importantly the consumption of finished goods or services. The competitive environment of contemporary business firms is greatly influenced by environmental forces such as social, economic, technological, competitive, and regulatory forces. Therefore, to succeed and achieve organizational objectives, Businesses must adopt healthy leadership style to drive it and its members effectively.
E-business leaders face a number of challenges as their jobs and environments become increasingly complex in the digital age. Trends, such as organizational “delayering”, rapid technological advances, cultural complexity and increasing demand for employee empowerment require that e-managers adopt techniques and style of leadership to meet these new challenges; but such is yet to be realized in real life situation of most business organizations.
Since the digital social environment of e-business organizations is highly dynamic, the management of such organizations is usually a challenge to its management team. This is because as the digital social environment causes changes, there is always the need for adjustment; to reflect and adapt to the changes. In most cases, this is not realized because of the leadership style managers may have adopted. The implication of this is that such an organization does not quickly respond to change. Most often, this becomes a problem to determine what an appropriate style for each situation demands. What is an appropriate style in a given circumstance might be inappropriate in another circumstance. In other cases, managers fail to empower their employees in terms of decision making toward responding to environmental changes because of the leadership style they adopt. Thus, this study focuses on impacts of digital social environment on leadership style of some selected e-commerce firms in south-west, Nigeria.
1.13 Objectives of the study
The broad objective of this study is to evaluate the impact of digital social environment on leadership style of some selected e-commerce firms in South-West, Nigeria. However, the specific objectives are to:
1. Ascertain the impact of e-business on leadership skills.
2. Determine the nature of relationship between digital social environment and leadership of e-commerce in South-West, Nigerian.
3. Evaluate the effects of online consulting on managerial philosophy of e-commerce firms in South-West, Nigerian.
4. Assess the extent online information sharing impact on interpersonal skills in e- commerce firms.
5. Determine the impact online training leadership knowledge in e-commerce firms in
Nigerian.
1.14 Research questions
1. What is the nature of impact e-business has on leadership skill of e-commerce firms?
2. What is the nature of relationship between digital social environment and leadership of e- commerce firms?
3. How does online consulting affect managerial philosophy of e-commerce firms?
4. To what extent does online information sharing impact on interpersonal skill in e- commerce firms?
5. What is the nature of impact online training has on leadership knowledge in e-commerce?
1.15 Research hypotheses
The following hypotheses will be tested for the purpose of the study:
1A E-business has positive impact on leadership skill of e-commerce firms in South West.
2AThere is positive relationship between digital social environment and leadership of e- commerce.
3AOnline consulting affects managerial philosophy of e-commerce firms significantly.
4AOnline information sharing has significant positive impacts on nature of work in e- commerce firms.
5AOnline training has positive impacts on leadership knowledge of e-commerce firms in
South-West Nigeria.
1.16 Significance of the study
The study is significant in the following ways:
1. This study will be most relevant to managers of e-commerceorganizations as it will help them choose appropriate leadership styles.
2. E-commerce organizations will benefit from this study since appropriate leadership style will help them to achieve their set goals and objectives.
3. The study will be beneficial to employees of e-business organizations because appropriate leadership style will encourage and motivate employees’ performance and lead to job satisfaction.
4. The study will be relevant to future researchers as it will serve as a guide for further studies on e-business development processes.
1.17 Scope of the study
The study focuses on evaluating the impacts of environment on e-business leadership style. The key words are leadership styles, e-business and digital social environment as well as how they influence e-business leadership style. Three e-commerce firms are selected from South-West geopolitical zone Their choice was based on the criterion of more than two or not more than ten years of existence as startup firms.
1.18 Limitations of the study
The major constraints of the study are:
Scarcity of Literature
There was scarcity of some relevant literature on digital social environment for both literature and empirical reviews
Time
One of the reasons for restricting the area of this study to South-west geopolitical zone was time; as a result, some of the places where data and relevant information may be obtained may not have been visited.
Financial constraint
So many places where relevant information may be obtained may not visited because of the financial cost involved.
Attitude of the Respondents
It is anticipated that some of the respondents may show negative attitude towards the study because there is no financial benefit attached.
1.19 Contextual definition of terms
Digital social environment
Digital social environment constitutes those technological elements, institutions, systems, whose activities and services are essential for the effective performance of the organization but are not subject to the control of the organization.
Gender:
Genderis used to describe those characteristics of women and men, which are socially constructed, while sex refers to those which are biologically determined (World Health Organization: 2002).
Leadership
Leadership is a processwhereby an individual influences a group of individuals to achieve a common goal
Leadership style
Leadership styleis the relatively consistent pattern of behavior that characterizes a leader (DuBrin: 1995).
Management
Management is the process of getting things done effectively and efficiently, through and with other people (Robins and Decenzo: 2005)
Organization
Organization means a formal association of individuals with a common purpose and stipulated objectives to attain under authority and leadership (Onwuchekwa: 1993).
1.20 Historical background of the e-commerce organizations to be studied
JUMIA is an e-commerce start-up aimed to mimic Amazon’s success by delivering a wide range of items, from toys to generators across the African continent with a wide range of electronics, fashion, home appliances and kid’s items. The Nigerian business was founded in 2012 by a team that included Jeremy Hodara, Sacha Poignonnec, Tunde Kehinde, Raphael Afaedor, and Leonard Stiegeler. As of 2015, Jumia has warehouses in ten other countries, including: Egypt, Morocco, Kenya, Cote d’Ivoire, Uganda, Ghana, Cameroon, United Kingdom, Tanzania and Angola.
JUMIA finished a great year in 2013 by winning the title of the Best New Retail Launch. In 2014, Jumia extended its services to Uganda enabling people to shop online and have products delivered to this region. On 26 August 2013, JUMIA launched a mobile application that enables customers to make purchases on the online store from anywhere. The mobile application offers a selection of 50,000 products. Jumia’s most notable competitors in Nigeria are Konga.com, kaymu.com, dealday.com.
Konga.com is a Nigerian electronic commerce company founded by Sim Shagaya, with 20 staffin 2012 headquartered in Yaba, Lagos. It offers a third-party online marketplace, as well as first-party direct retail spanning various categories including consumer electronics, fashion, home appliances, books, children’s items, and personal care products. Konga was founded in July 2012. The site initially functioned as a Lagos-only online retailer focused on merchandise in the Baby, Beauty, and Personal Care categories, but broadened its scope to all of Nigeria in December 2012 and gradually expanded merchandise categories through 2012 and 2013.
In second quarter of 2013, Konga beta-tested ‘Konga Mall,’ opening up the Konga platform to third-party retailers and moving away from a pure first-party online retail model. On November 29, 2013, Konga.com crashed and remained offline for 45 minutes as a result of unprecedented traffic stemming from its Black Friday promotion. Konga sold more during the first six hours of the promotion than it did in the prior month.
Konga officially launched its third-party retail platform in the first half of 2014, rebranding it as ‘Marketplace’ from ‘Konga Mall’; by the end of 2014, Konga’s Marketplace featured 8,000 merchants, beating internal targets of 1,000 merchants eight-fold. In January
2015, Konga was ranked as the most visited Nigerian website by Alexa Internet.
Heels.com Heels.com launched in October 2007 based on a foundation of love for the most fashionable women’s shoes and the ease of shopping online. By combining the owners Linda and Eric McCoy’s individual talents in each of these areas, Heels.com was born.
This material content is developed to serve as a GUIDE for students to conduct academic research
IMPACT OF DIGITAL SOCIAL ENVIRONMENT ON LEADERSHIP OF SELECTED E-COMMERCE FIRMS IN SOUTH WEST NIGERIA
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