Industry structure and the performance of the Global System for Mobile-telecommunication operators in Nigeria

Abstract

This study investigates industry structure and its relationship with the performance of GSM network operators in Nigeria. A cross-sectional survey research design was adopted with the use of primary data, which were gathered with the aid of a questionnaire. The questionnaire was structured to elicit information from respondents. Three hundred and eight-five (385) copies of questionnaire were administered on the respondents using the stratified sampling technique. The strata comprised of the four GSM service providers operating in Nigeria as at when this study was carried out. The Pearson Product Moment Correlation and Multiple Regression Model were the statistical tools used to test the formulated hypothesis at 5% level of significance. The findings revealed that there was positive statistical significant relationship between the combination of industry structure variables and the performance of the GSM network operators in Nigeria. Based on the findings, the study recommended that, managers of the four sampled GSM service providers need to constantly carry-out strategic industry analysis and environmental scanning. This will serve to ensure rapid responses to both favourable and adverse industry conditions as business manager has little or no control over the industry structure.

Keywords: GSM, industry structure, performance, profitability