Investigating the Impact of Organization Structure on the Performance of the Nigerian Securities and Exchange Commission (NSEC)

Abstract

Studies abound on the determinants of corporate performance including the impact organisation structure. However, such research have been rarely extended to supervisory / regulatory authorities that referee the conduct of business in some critical sectors of the Nigerian national economy. Many of these agencies have weak structures which account for their poor performance but research in this area is hard to come across. In particular, most studies on the Nigeria Securities and Exchange Commission (NSEC) either focused on the intermittent crisis in the capital market or the challenges that NSEC faces with other institutions. A review of the organisation design literature was conducted, as a result of which a conceptual model and a set of hypotheses were justified. The management staff of the NSEC headquarters office constitute the study population. A census survey was carried out through a self-designed multi-item questionnaire that was duly validated. The software package SPSS 16.0 for Windows was used for data analysis. A number of organization design variables were found to impact positively and negatively on NSEC performance. Specifically, regression test of the effects of structure on  (1) the effectiveness of sanctions on defaulters and (2) the NSEC overall performance returned adjusted R² values of 0.889 and 0.768 at p=0.000 as well as F-values of 57.623 and 23.756 respectively. Regression coefficients (ᵦ) of the impact of information flows, employee commitment, and innovation and creativity were 0.976, -0.226 and -0.210 respectively. This and similar studies could provide insights on reorganisation as a means of enhancing the performance of agencies like the NNPC, CBN and the NUC; which are often saddled with huge national responsibilities in a dynamically changing global environment.

Keywords: Organisation structure, Mechanistic, Organic, Environment, NSEC