Determinants of Productivity among Firms Producing Agribusiness-Based Raw Materials and Those Using Them for Production in Abia State, Nigeria

Abstract

The study was designed to analyze the determinants of productivity among firms with specialization in producing and using agricultural products respectively in Abia State, Nigeria. Data were collected with structured questionnaire from 72 randomly selected firms comprising firms using and producing agricultural products respectively. Data were analyzed using simple descriptive statistics, chi-square and multiple regression analyses models. Results show that majority (56.25%) of firms using agricultural products are experienced and acclimatized to the investment climate of the area, 68.75% and 71.42% of the firms using and producing agricultural products respectively never borrowed their start-up capital, 87.7% and 100% of the firms producing and using of agricultural products in the study area have asset worth of  N1-N10 million naira respectively and, there is a deep impression that marketing problems in conjunction with capital inadequacy (68.75%) have profoundly constrained the productivity of both firms. It further revealed that there is a significant difference between employee qualification and productivity and also a significant difference between on-job training and productivity of the firms. The multiple regression analysis showed that taxation and amount paid to employees was significant and negatively related to productivity whereas, amount invested in manpower and working condition of employees was significant and positively related to productivity. On the basis of the results, the study recommended among other factors, improved and good wages and salaries incentives to employees as a panacea for their continual stay with the firms. This will also boost their morale and enhance productivity.

Keywords: productivity, firms, producing, agricultural products.