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GLOBAL JOURNAL OF
MULTIDISCIPLINARY AND
MULTIDIMENSIONAL STUDIES
Dr. N.M.Lall
B.com, M.A.(Eco), Ph.D.
FRAS (LONDON)
Patron
Dr. A.K.Jha
M.A.(Eco), Ph.D., PGDM
Managing Cum Chief Editor
Dr. Suresh Sachdeva Dr. Brajesh Mishra
M.A.(Eco), Ph.D., D.Lit., MBA MOT
Prof. of Economics HOD (OT)
Govt. SLP College Smt.K.P.P.I.P.O
Gwalior (M.P.) Annand (GUJRAT)
Editor Editor
ISSN No.2394-8965
SHRUTAAYUSH PUBLICATION
GREATER NOIDA
ii
Member of Editorial Board
----------------------------------------
Dr.V. D. Sharma
(M.Sc. M.A, B.Ed, PGDFM, Ph.D)
A Gandhian Professor,
Faculty of Management Studies & Ex Proctor
Gen. Secy, Rashtriya Shaikshik Mahsangh (University Campus)
VBS Purvanchal University Jaunpur-222003 (UP)
Dr. H.K.S.Kumar Chunduri
Sr. Faculty Member,
Department of Business Studies,
Ibra College of Technology, IBRA,
Sultanate of Oman
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Associate professor,
Public administration department,
Kuban State Univer-sity, 149,
Stavropolskaya st., Krasnodar Russia
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PhD, MPM, BE(Elect), MIMA, FIE(India), Dip TQM
(Former Vice Chancellor)
Founder Trustee and CEO
Quality Plus, Pune 411040 (MS)
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Asstt. Prof. (Mechanical)
Amity University Haryana, Gurgaon
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Asst. Professor, M.S.W Department,
Gujarat University, Ahmedabad
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Assistant Professor,
Mechanical Engg Dept., FET Agra College Agra
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Professor & HOD (Civil) at NIT, Nagpur
ROB WOOD
Department of Global Strategy & Management 2010
presentWestern Carolina University, Cullowhee, NC
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B.Sc, M.SC., Environmental scientist
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PhD., MBA, Electronics Technician
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iii
Dr. Dheeraj Pawar
Assistant Professor,
Amity Institute of Telecom Engineering and Management,
Amity University, Noida
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Faculty
College of Health Sciences, Walden University
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Associate Professor
Department of Banking and Financial Sciences
Amman University College for Banking and Financial and Sciences
Albalqa applied universityJordan
Professor (Dr) Rajesh Arora
Director
Dr D Y Patil Institute of Management Studies, Pune.
Dr. L. Govinda Rao,
PG in Mgt.(XLRI), Ph.D.,
Chairman & CEO,
Matrix Institute of Development Studies, Kameswari Kuteer,
Secunderabad 500 011 AP India.
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Aurangabad
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Ph D, M A, (Economics), M Sc (Ag Eco.), MBA (FM, MM),
Associate Professor
Institute oF Economics & Finance
Bundelkhand University, Jhansi 284128 (UP) India
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Distinguished Professor,
Department of Finance and Real Estate,
Rogers School of Management,
Ryerson UniversityToronto, Ontario M5B 2K3, Canada
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Govt Junior College SATHUPALLY
Khammam District, Telangana State
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Rutgers University School of Business – Camden
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(Research scholar Economics) 2 place viala, 34060 montpellier, France
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Professor & HOD (Civil) at NIT, Nagpur
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Louisville, KY, Professor of Management Author, Educator, Speaker
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FMS-WISDOM, Banasthali University,
P.O. Banasthali Vidyapith 304022Rajasthan, INDIA,
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Gellert Family Business Resource Center/
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University of San Francisco
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Ph.D. WANDEMBERG Sustainable Development Quito -
ROB WOOD
Associate - Graduate Faculty;
Department of Global Strategy & Management 2010
presentWestern Carolina University, Cullowhee, NC
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Assistant Professor
Marketing University Of Modern Science Dubai
Avil sinha
Fellow (ECONOMICS), IIM, Indore
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University of South Wales
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Heidenrod, Germany (Economics and Management)
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Marketing professional Noida
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Post-Doctoral Fellow,
Funded by MITACS Elevate (Canada),
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Indrajit Bandyopadhyay,
v
Registrar, Usha Martin Academy, Kolkata, India
Rijo Tom,
Asst. Professor , Dept. of ECE, Kalaivani College of Technology, Coimbatore
S.Praveen –
HR & Administration Executive – FDC International FZE (Dubai)
Anil kumar. S Hagargi,
Research scholar,
Dept of Management Studies and Research,
Gulbarga University,Gulbarga, Karnataka,
Ihor Yaskal,
PhD in Economics,
Yuriy Fedkovych Chernivtsi National University, Ukraine
Nilesh Borde,
Assistant Professor at Goa University
Dr. Kiran Mehta,
Associate Professor (Finance),
Chitkara Business School, Chitkara University
Dr. Renuka Sharma,
Associate Professor (Finance),
Chitkara Business School, Chitkara University
Pradeep Kumar
Owner ASPIRE OVERSEAS CO, Noida
Dr.prof.V.Raghu Raman,
Senior Faculty (Business Studies),
IBRA COLLEGE OF TECHNOLOGY, OMAN
PAZIENZA,
Department of Economics,
University of Foggia, Foggia, Italy
Dr. Tiyas Biswas,
Assistant Professor
Department of Business Administration
Bengal College of Engineering and Technology, Durgapur
Devanathan Elamparuthy
B.E.,M.B.A.,M.Phil.,P.G.D.P.E.,D.I.S.,(P.hd).,
Asst.Professor Business Administration, Annamalai University
MUFTI MD. IBRAHIM,
Faculty of Education
,Ahsanullah University of Science and Education.
Ahsanullah Teachers’ Training College,Dhaka
vi
SUDHASHREE PARVATI,
Lecturer,
Department of English,
Adi Keih College of Arts and Social Sciences,
Adi Keih, Zoba: Debub, State of Eritrea, N.E.Africa
Dr. SHAUKAT ALI,
M.Con., M.Phil., Ph.D.
Associate Professor and Head, Commerce Department.
Anjuman-I-Islam’s Akbar Peerbhoy College of Commerce & Economics,
University of Mumbai, Mumbai
Indrani Ganguly,
M.A. B.Ed. (Geography),
Principal of Shri Shikshayatan School., Kolkata.
Nagori Viral Y.,
Assistant Professor
GLS Institute of Computer Technology (MCA), Ahmedabad .
Dr. L. Govinda Rao,
PG in Mgt.(XLRI), Ph.D.,
Chairman & CEO,
Matrix Institute of Development Studies,
Secunderabad 500 011( A.P.) India
vii
Editorial
-------------
The current changes and challenges experienced by the
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this new forum of discussions on the real world issues affecting or
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society. A new orientation in research policy is imperative to respond
to the new needs of the society to guarantee environ-mental
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Dr.A.K.Jha
Managing and Chief Editor
GJMMS
viii
GLOBAL JOURNAL OF MULTIDISCIPLINARY
AND MULTIDIMENSIONAL STUDIES
Vol. 1 Issue No. 3 July- September 2015
1. AN ANALYTICAL STUDY OF THE FDI I IN INDIA 1
DR. I .JANAKI
2. INFORMATION NEEDS AND INFORMATION 8
SHARING AMONG MANAGERS OF SMALL
AND MEDIUM SCALE ENTERPRISES IN
EKPOMA, ESAN WEST LOCAL GOVERNMENT
AREA, EDO STATE.
JAMES AFEBUAMEH AIYEBELEHIN
3. HEALTH AND ECONOMIC IMPLICATIONS OF 28
SOLID WASTE DUMPSITES: A CASE STUDY
HAZAR KHWANI DUMPSITE – PESHAWAR CITY
Huma Salma Gillani
4. AN ANALYTICAL STUDY OF THE RELATIONSHIP BETWEEN 43
GDP, INFLATION AND STOCK MARKET
Sudha Swaroop
5. GLOBAL WARMING IS MAJOR CONCERN FOR 48
ENVIRONMENT & ECOLOGY
Dr. V. D. SHARMA
1
INFORMATION NEEDS AND INFORMATION SHARING AMONG
MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN
EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE.
ISSN NO. 2394- 8965 GJMMS
Vol. – 1, Issue – 3, July-September - 2015
An analytical study of the FDI in India
Dr.I.Janaki
Associate professor
Department of Economics
Wollo university ethopia
ABSTRACT
To attain accelerated economic growth domestic investment has to be complemented by
FDI. It increases employment opportunities, increases gross domestic product and
standards of living of people and population at large. There are inward and outward FDI
and the difference will be the net inflow of FDI. Another differentiation in FDI is
horizontal and vertical. There are two routes under which an Indian company receives
vertical FDI: automatic route and government route. The key advantage of FDI is
employment generation. More competition also leads to increased productivity and
greater efficiency in the host country. Make in India initiative also is resulting in more
FDI into different states in India. With regard to inflows and outflows we see fluctuations
during four year period. Most of the countries reduced outflows and increased inflows.
Multilateral Investment Guarantee Agency of World Bank opined that macroeconomic
instability is the main reason for this decline.
Key words: Economic development, employment, inflows, outflows
Introduction
“It is the intent and objective of the Government of India to attract and promote
foreign direct investment in order to supplement domestic capital, technology and skills,
for accelerated economic growth.”1
The fundamental requisite of the present Indian Government is to promote
employment opportunities and increased income levels of the residents of its nation
through „Make in India‟ approach as can be clearly noticed in its objective with reference
to FDI. Foreign Investment Promotion Board (FIPB) was also constituted to facilitate
investments from NRIs and resident Indians. It contributes to the growth of economy‟s
GDP and in turn increases the per capita income. The GDP of a nation is considered as Y
=C+I+G+(X-M) in which C stands for national consumption level, I stands for national
investment level, G stands for national expenditure level and (X-M) stands for balance of
trade. FDI belongs to the national level investment I, i.e., the net inflows of investment
(inflow minus outflow). It is the sum of equity capital, other long-term
1
“Consolidated FDI Policy (Effective from May 12, 2015)”, Department of Industrial Policy
and Promotion, Ministry of Commerce and Industry Government of India, 2015, P.1
Dr.I.Janaki
2
capital, and short-term capital. It customarily involves participation in different levels of
management, joint ventures, transfer of technology and expertise etc.
Foreign capital inflow is considered as FDI only if the investment is made in equity
shares, fully and mandatorily convertible preference shares and fully and mandatorily
convertible debentures with the pricing being decided upfront as a figure or based on the
formula that is decided upfront.
Objectives
To know the nature and kinds of FDI that operates in different countries.
To know why countries go for FDI
To know why countries deny FDI
To know India‟s stand on FDI and comparison between different conditions
Methodology
The study relies on secondary data compiled from various published sources like, RBI
Bulletins, Ministry of Finance, Department of Economic Affairs, Economic Division,
National Accounts Statistics, Central Statistical Organization, Government of India;
Ministry of Commerce and Industry, India; research papers and journals etc.
Literature Review
Foreign direct investment has a long history in India‟s economic record. Indian
kingdoms had enjoyed relations with Greek and Roman traders who visited India and
carried out business with them. In recent past also East India Company from the UK
carried out business and exercised authority almost all over India. India need not go
anywhere to attract but has to see that political and social conditions are stable and steady.
Dale R. Weigel, Neil F.Gregory, Dileep M.Wagle opine the same idea that the pace of
integration into the global economy is related to progress on creating and enabling policy
environment for FDI. Byung-Hwa Lee (2002) studied the Korean case which shows that
there is a large potential for other emerging economies to gain from FDI flows and that the
initial costs from lost internal investment are largely outweighed by the medium-term
benefits. Theodore H. Moran in his „Foreign Direct Investment and Development:
Launching a Second Generation of Policy Research: Avoiding the Mistakes of the First,
Reevaluating Policies for Developed and Developing Countries FDI is not a single
phenomenon‟, argued that FDI has such different impacts in the extractive sector,
infrastructure, manufacturing and assembly, and services and presents distinctive policy
challenges that each broad category of FDI must be treated on its own terms. Anthony
Bende Nabende focuses on the ongoing globalization process, which has ignited an
unprecedented worldwide debate. He seeks to provide a "one-stop centre" for unbiased
coverage of the theoretical, empirical and policy issues connecting globalization with
foreign direct investment, regional economic integration, sustainable development and
economic growth.
Types of FDI
Foreign Direct Investment (FDI) is a kind of investment that replicates the objective
of forming a long-lasting financial concern by a resident enterprise in one country (direct
entrepreneur) in an organization (direct enterprise) that is resident in another country. The
long-lasting financial concern denotes the presence of a long-term association between the
direct entrepreneur and the direct enterprise and a significant degree of control on the
3
INFORMATION NEEDS AND INFORMATION SHARING AMONG
MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN
EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE.
business administration of the enterprise. The direct or indirect ownership of 10% or more
of the voting power of an enterprise resident in one economy by an investor resident in
another economy is the statistical evidence of such a relationship.
There are two different types of FDI, namely inward and outward which results in a
Net FDI inflow which will be either positive or negative. The cumulative number for a
given period of time is known as „stock of foreign direct investment. It is an important
example for international factor movements.
There is another kind of differentiation in FDI.
1. Horizontal FDI: It takes place when a company replicates its parent country –
based activities at the same value chain stage in a host country by means of FDI. For
example, Wal-Mart opening retail chain in host countries.
2. Platform FDI: It originates from source country into another country for the
purpose of exporting to a third country. For example, some tobacco companies have their
European Headquarters and plants in Switzerland. The world famous Vinyl Chrolide
Mononer producer, Shinetsu Chemical has its plants in Portugal and supplies all European
countries from there.
3. Vertical FDI: When a company executes value addition activities phase by phase
in a upright manner in host country. For example capital imports to produce finished
products by companies like BHEL, HAL etc.
4. There are two routes under which an Indian company may receive vertical
Foreign Direct Investment:
a. Automatic Route: FDI is allowed under the automatic route without prior
approval either of the Government or the Reserve Bank of India in all sectors as specified
in the consolidated FDI policy, issued by the Government of India from time to time.
b. Government Route: FDI in activities not covered under the automatic route
requires prior approval of the Government which are considered by the Foreign
Investment Promotion Board, Department of Economic Affairs, Ministry of Finance.
Advantages of FDI
An increased inflow of FDI may cause improved economic growth due to the
increased technology, employment and income levels in the host country. In order to
augment the development process the host countries often make attempts to channelize
these FDI investments into new infrastructure and other projects. It encourages
investment in host country by providing new markets, demand for inputs like labor, new
technology, etc., employment generation is the key advantage of FDI.
Competition from multinational companies can lead to increased productivity and
greater efficiency in the host country. Furthermore, FDI also results in the transfer of
more advanced technology, job creation, skill development in host country.
It creates a sense of globalism and improves understanding between participating
countries and can lead to sustainable living conditions.
FDI in India
It was first introduced into India during 1991 after the liberalization of business and
trade policies. But India disallowed overseas corporate bodies to invest. It imposes cap
Dr.I.Janaki
4
on equity holding by foreign investors in various sectors. FDI is prohibited under the
Government Route as well as the Automatic Route in the following sectors.
i. Atomic Energy
ii. Lottery Business
iii. Gambling and Betting
iv. Business of Chit Fund
v. Nidhi Company
vi. Agricultural and Plantations activities with some exceptions
vii. Housing and Real Estate Business with some exceptions
viii.Trading in Transferable Development Rights (TDRs)
ix. Manufacture of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco
substitutes.
Recent Policy Measures by the Government of India:
 100% FDI allowed in medical appliances
 FDI cap increased in insurance & sub-activities from 26% to 49%
 100% FDI allowed in the telecom sector.
 100% FDI in single-brand retail.
 FDI in commodity exchanges, stock exchanges & depositories, power exchanges,
petroleum refining by PSUs, courier services under the government route has now been
brought under the automatic route.
 Restrictions in tea plantation sector are removed.
 FDI limit increased to 74% in credit information & 100% in asset reconstruction
companies.
 FDI limit in defense sector increased from 26% to 49% in Government approval
route and Foreign Portfolio Investment up to 24% is permitted under automatic route.
Construction, operation and maintenance of specified activities of Railway sector opened
to 100% foreign direct investment.
India needs around $ 1 trillion between 2012-2013 and 2016-2017, in the 12th
Five Year
Plan period to finance infrastructure development that include sectors such as ports,
airports, highways, and so on. In order to enter into Indian retail market, the foreign super
markets have to invest $50 million on infrastructure and logistics within a three year
periods. Also the investment must be in new back-end infrastructure, and not in existing
acquisitions. This includes cold chain, warehouses, processing plants and logistical
support and is critical for the smooth functioning of a retail firm.
FDI in Different States
Maharashtra was in first place to attract foreign in India during 2000 and 2014. The
National Capital Region (NCR) including some parts of UP and Haryana, received $45.77
billion FDI and counted 19% of India‟s total FDI. Tamil Nadu stood third highest in FDI
inflows worth $15.80 billion during the same period.
The highest FDI of USD 83.73 billion came from Mauritius, second by Singapore USD
29.19 billion, third the UK USD21.76 billion and fourth by the US USD 13.28 billion.
During the same period India received USD 236.46 billion foreign inflows. The
government is making efforts to attract FDI from all major investing nations. The FDI
5
INFORMATION NEEDS AND INFORMATION SHARING AMONG
MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN
EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE.
policy is liberalized in several important sectors like insurance, defense, construction and
medical apparatus sectors.
To magnetize foreign investors the government is ardently engaging with states through
„Make in India‟ campaign to improve ease of doing business. After the launch of „Make
in India‟ initiative in September 2014 there is an increase in FDI equity inflows by 48
during October 2014 and April 2015.2
Different surveys and industry experts have revealed that India is amongst the top
destinations for investments across the globe. Following are some facts and figures
pertaining to the FDI developments in the world.
Key trends in 2014
• Africa attracted the largest inward investment, with $87bn of FDI announced in 2014.
• India, Malaysia, Vietnam and Japan were four of the rapidly growing target countries
for FDI in 2014.
• Inward investment into the area comprising Russia, the Commonwealth of Independent
States, and central, eastern and south-eastern Europe decreased by 24%, with $44bn of
FDI.
The apex supply country in 2014 was the US, and peak sector was real estate, top target
country was China. Total capital investment from FDI was $649 billion and total
emploment created in 2014 were 1,843,609. FDI projects into India increased by 47% in
2014 with 641 projects declared. Indian overseas FDI decreased by 19% to 226 projects in
the same year. The table shown in Appendix – I gives the percentage of FDI net inflows
and outflows in GDP of concerned countries namely, Australia, Brazil, China, France,
Germany, India, Italy, Japan, Russian Federation, Singapore, South Africa, Spain,
Switzerland, Sweden, the UK and the USA. Among these countries except Japan, South
Africa, the UK and the USA all other countries reduced their outflows of FDIs. As far as
inflows are concerned most of the countries are welcoming the investments from abroad.
The major causes of fluctuations in FDI flows
According to a World Bank study, the FDI to emerging markets is going to decline in
2015 because of demanding concerns about the global economy. The major reason for
this decline in investment in these markets over the next two to three years would be the
macroeconomic instability. This opinion is expressed by Multilateral Investment
Guarantee Agency (MIGA) of World Bank.
The unwavering global economic uncertainty seems to have infected the overall business
attitude, and the economic pessimism is reinforcing the stagnant FDI levels. As fuel to the
existing fire the IMF lowered its world growth estimates for the 6th
straight time in two
years, in October, 2014, cautioning a slow growth in the developing world.
According to MIGA study the overseas financing into developing countries is believed to
fall 4.5% next year after raising 2% in 2013. However, the FDI has increased four times
at around $600 billion a year, than the levels seen a decade ago. Growing investments into
sub-Saharan Africa and South Asia are a bright spot, although Europe and Central Asia
are noticing declines.
2
Nirmala Sitaraman, E-government report , web pages.
Dr.I.Janaki
6
But the MIGA said most of the 459 companies it surveyed about their activities in
emerging markets were not planning to withdraw or cancel existing investments. Though
income gap between developed countries particularly OECD countries and emerging
countries like India has continued to whither but still remains large. It mainly stems from
the ever increasing population and relatively declining resources. It results in productivity
shortfall and structural bottlenecks. The hurdles in foreign direct investment have been
lessened in particular in telecom, civil aviation, railways, defense, construction and multi-
brand retail. Financial reforms are gradually implemented and the Reserve Bank of India
has taken steps to increase competition in the banking sector as well as its efficiency but
more is needed to achieve a more efficient allocation of capital. Moderation in
administrative and regulatory burden on companies and encouraging infrastructure
development would encourage foreign investors to start business in India. To increase the
creation of formal jobs, shrink labor market duality and help the participation of women,
labor laws should be simplified and rigorous employment protection policies should be
reconsidered. Improved learning and training systems would promote the group of
qualified workers and augment labor productivity. Women workers should be given
special concern and job guarantee. Updating labor laws is vital to support employment
formalization and to trim down labor market segmentation, gender bias and income
inequality. Raising the quality of education and training systems would also promote the
economy‟s ability to respond to new market opportunities and thus job creation, thereby
reducing severe poverty and income inequalities.
Conclusion
Foreign Direct Investment fundamentally exploits the existing natural resources in the host
country. When it is used people have to keep in mind that sustainable ways of utilizing
the FDI will save the country from disappearance of natural resources. These ways
include the customs, traditions, culture, social needs, age of population etc. They are
developed in a region on the basis of geological and environmental conditions. The
customs, traditions, environment and weather conditions, social needs etc., of a desert area
are not same with that of a green or wintry regions. Hence one cannot apply the same
rules all over the world. It is always better to avoid esteem needs of the society because
they drive away the health of both people and the nature. To maintain balance is crucial
for sustainable development. Otherwise world has to face poultry growth in sustainability
of natural resources in the years to come.
Referrences:
1. http://self.gutenberg.org/articles/foreign_direct_investment web pages
2. FDI http://self.gutenberg.org/articles/foreign_direct_investment
3. Tadashi ITO, „Export Platform Foreign Direct Investment: Theory and
Evidence‟,http://www.ide.go.jp/English/Publish/Download/Dp/pdf/378.pdf
4. ARUN KUMAR, „Walmart to buy 49% in holding company of Bharti Retail,
Cedar Support for Rs 455.8 cr‟, ET Bureau 9th
May, 2013
5. World Bank Report, 2013
6. http://economictimes.indiatimes.com/articleshow/20319850.cms?_source=content
ofinterest&utm_medium=text&utm_campaign=cppst web pages
7. http://finmin.nic.in/stats_data/nsdp_sdds/index.html web page
7
INFORMATION NEEDS AND INFORMATION SHARING AMONG
MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN
EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE.
8. Dale R. Weigel, Neil F.Gregory, Dileep M.Wagle, Lessons of Experience – FDI,
International Finance Corporation and Foreign Investment Advisory Service, Washington,
D.C. USA 1997.
9. Byung-Hwa Lee, FDI from Developing Countries: A vector for Trade and
Development, OECD ilibrary.org. EBooks.
10. Anthony Bende Nabende, „Globalization, Fdi, Regional Integration and
Sustainable Development: Theory, Evidence and Policy, ISBN-13 EBook.
APPENDIX - I
FDI – Outflows and Inflows
Count
ry
Percentage in GDP
Country
Percentage in GDP
2009 2010 2011 2012 2009 2010 `2011 2012
X Y X Y X Y X Y X Y X Y X Y X Y
Austra
lia
3.
1
1.
8
3.
1
2.
4
4.
8
1.
2
N.
A
1.
0
Russian
Federati
on
3.0 3.5 2.8 3.5 2.9 3.5 2.6 2.4
Brazil
1.
9
0.
3
2.
5
0.
8
2.
9
0.
2 3.4 0.
4
Singapo
re
12.
8
12.
4
24.
7
11.
7
22.
8
10.
7
20.
6
8.4
China 2.
6
1.
6
4.
1
1.
5
3.
8
1.
4 3.0 1.
4
South
Africa
1.9 0.5 0.3 0 1.5 0 N.
A
1.1
Franc
e
1.
0
4.
2
1.
5
2.
7
1.
6
2.
3 2.5
1.
5 Spain
1.3 1.5 3.3 3.1 2.2 2.9 2.7 0.4
Germ
any
1.
1
2.
5
0.
9
2.
8
1.
2
1.
3 0.8
2.
6
Switzerl
and
2.1 0.2 3.7 0.1 2.4 N.
A
N.
A
N.
A
India 2.
6
1.
2 1.
5
0.
9 1.
7
0.
8 N.
A
N
.
A
Sweden
2.2 6.3 0.4 5.0 0.5 3.9 0.7 4.1
Italy
1.
9
2.
1
-
0.
3
0
.
9
1.
3
2.
2
0.
4
1.
4
UK
0.
2
1.
2
2.
7
1.
7
1.
5
3.
8
2.
3
2.
9
Japan
0.
3
1.
6 0
1
.
1
0 1.
9
N.
A
2.
1
USA
1.
0
2.
3
1.
9
2.
5
1.
7
2.
9
1.
3
2.
7
Source: World Bank Report 2013. = Outflows; Y=Inflows
JAMES AFEBUAMEH AIYEBELEHIN
8
ISSN NO. 2394- 8965 GJMMS
Vol. – 1, Issue – 3, July-September - 2015
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS
OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST
LOCAL GOVERNMENT AREA, EDO STATE.
JAMES AFEBUAMEH AIYEBELEHIN
(B.SC, M.LIS, CLN)
Lecturer, Department Of Library And Information Science,
Ambrose Alli University, Ekopma-Nigeria
ABSTRACT
This study surveyed the information needs and information sharing among managers of
SMEs. The descriptive survey research design was used. The instrument used for data
collection was questionnaire. Descriptive statistics was used to analyze the data collected.
The population of this study consisted of all SME managers within Ekpoma, Esan West L.
G. A. However a sample size of 200 SME managers were randomly selected and used for
this study. It was found that SME managers require more customers' information and their
customers were viewed as the most essential sources of information. SME managers
possess SSCE as their highest educational qualification and their highest annual income
ranges from N 51,000-N100, 000. It was also found that SME managers have positive
attitude towards information sharing. However, SME managers were cautious about the
nature of information they share. Physical/verbal communication was found as the major
channel of sharing information. The recommendations were that; SME managers should
maintain cordial relationship with their customer, and SME managers should equally build
a positive attitude among their colleagues to enhance information sharing. Workshops,
seminars, conferences should be organized by Government and Non-Governmental
organizations to prepare SME managers for a competitive environment.
Words count: 193
Keywords: SME, Managers, Information need, Information Sharing.
INTRODUCTION
Information has remained a veritable tool to man just as air of life he breathes for healthy
growth. This simply means that information serves as the major basic need in a man's life.
It is imperative to note that man has need of wide range of information in other to run
daily activities most effectively in his life time. The need to find what has to be, people
utilize information in various ways. Thus information is a resource that must be acquired
and used in other to make informed decisions. Every individual whether literate or non
literate, self employed or civil servant need information for decision making.
According to Utor (2000), information is understood in terms of books, journals,
magazines, public and private sector, documents of all kind of whether published for mass
9
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
circulation or unpublished and of restricted or confident nature, results or research efforts
which are made available to colleagues in form of reports, books articles and non print
materials.Traditionally, information has been stored in people's mind and it has been
updated and modified through social contact, learning and communication. As society has
grown and become more complex, a large quantity of information has been required.
However, increasingly numbers of people have been deprived access to information
through poverty, illiteracy or lack of knowledge and the disadvantage have been suffering
from increased information deprivation.
There is no universally accepted definition of Small and Medium Scale Enterprise
as a term, many scholars and researchers have defined the term small and medium scale
enterprise from different angles and perspective. The definition even change with time
depending on the level of development of the country (Akinbinu, 2003).
Under the venture of Capital Trust Fund Act 2004 (ACT 680) small and
medium scale enterprise (SME) is characterized as an industry, project, undertaking or
economic activity whose asset base excluding land and building does not exceed the cedi
equivalent of U.S one million dollars in value (Aregbeyen, 1999 CBN: 1996). The small
and medium industries and Equity Investment Scheme (SMIEIS) defines small and
medium enterprise as any enterprise with a maximum asset base of two hundred (200)
million naira excluding land and working capital and with the number of staff employed
not less than ten (10) or more than three hundred (300). Small and medium enterprise
have been defined along a broad range of size and type in terms of size, measures
used to classify SMEs include employment assets and revenue.
The definition of medium- sized industries may vary among different countries. There are
majorly two keys and ways to define the size of a business:
- The number of revenue,
- The number of employees.
Some industries are a lot more labour intensive and the definition of "small" may include a
large number of employees, other industries especially those that rely on technology or
specific skills of an individual may reach only a low employee number before being
bumped into the next size category.
The central Bank of Nigeria defines small and medium scale enterprise in Nigeria
according to asset base and number of staffs employed. The criteria are an asset base
between five (5) million and five hundred (500) million naira and staff strength between
eleven (11) and three hundred (300) employees.
Whatever definition it takes, SMEs are important to socio-economic
transformation and it is estimated that SMEs employ 22% of the adult population in
developing countries (Daniels and Ngwira, 2003). Apart from the number of employees,
there are other key factors that characterize the SMEs and these are related to the
management and the nature of operations. The SMEs may be managed by their owners
who are often assisted by family members (Okello-obura….. et al, 2009) in this regard,
the decision making system is quite flexible, informal and dependent on the personal
drive of one or more executives. By their vary nature of operating, the SMEs have a
JAMES AFEBUAMEH AIYEBELEHIN
10
narrow range of products/services and a relatively simple and unsophisticated
management structure with a narrow tolerance of risks. Individual SMEs experience
difficulties in achieving economics of scale in the purchase of inputs and one often
unable to take advantage of market opportunities that requires large production quantities
homogenous standards and regular supply. Above all, SMEs are confronted with
situations where decisions are made haphazardly and not based on accurate information.
In information science literature, information is understood as the need and
demand necessary to life's success and fulfillment.
Apart from Land, Labour, Capital and entrepreneur which happens to be four (4)
factor of production in business , Nwalo (2009)noted that information is at present
believed to be a fifth factors of production which is by no means inferior to the four
factor of production. This is to say that information is of paramount importance to both
small and medium scale enterprise. Tamiyu (2002) cited by Odunewo and Omagbemi
(2008), noted
that at all levels of human needs, individual would require information about the nature
and extent of their needs and about the resources they can harness to meet these needs.
Information is crucial not only to an individual need but as well as handling
managerial processes of business. Aiyebelehin (2011) citing Buckland (1991) defines
information as a process which occurs in the mind when a problem is united with data that
can solve it. Information is a part of a process of converting messages received into
knowledge. Within a business organization like small and medium scale enterprise, this
information must be gathered in the form of data and appropriately processed by the
information managers before it can be utilized.
Vividly, information needs and information sharing habits are seldomly used
because they are different in terms of analysis, while information need in nature is the
findings of that which is to fill a conscious or unconscious gap, information sharing habit
on the other hand tends to display the way and manner one pass out his or her findings
after the search of a valuable information. According to Jorosi, Holland (2000) supports
the sharing of information and ideas for effective product development. Sharing
information appropriately and securely is a vital step in helping organizations work
together to deliver better services to the public. Information sharing is important in
business in helping to promptly meet customers and clients needs.
To Wilson (2008) information is an individual or groups desire to locate and
obtain information to satisfy a conscious or unconscious need. Information is desirable in
human life; information is not an opportunity cost i.e. To say information cannot be
forgone for another as it (information) is inevitable.
Information needs can also be defined as that which may be vocal or written and
made known to the library or to some other information system. Therefore the need and
sharing habit of information has to be expressed in a particular form either orally,
verbally, by asking or questioning for it in writing.
Information need and sharing habit of managers of small and medium scale
enterprise varies according to various factors responsible in perpetuating its functions. The
11
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
factors maybe background qualification of the manager's, job affiliation, individual's
employment has a great effort on his information need and sharing habit.
The need for the production of value added goods and services may put pressure on the
managers in business organization to seek for relevant information to improve their
information. Hwang (2011) reported that employees in a large insurance company in
Korea are motivated to use information effectively to make better decisions and seek for
information and share information to increase their productivity. When information is
appropriately managed, it goes a long way to enhance decision making, information is
paramount within the walls of an establishment, and information is a continuous process.
De Alwis and Higgins (2011) established that managers in Singapore used information to
prepare reports, strategic plan and executive summary. Information is necessary to make
plans, without good information an establishment will be stagnant.
The business environment is constantly changing and evolving. Business
themselves change over time and as they grow and develop, the information needs of the
managers change as well, the information system needed to support growth and
development will also need to change (Vakola and Wilson, 2004). It is therefore
important to review those information needs so as to continue to adjust business
operations with changing market needs. Information needs of managers varies from
manager to managers, the information needs of SMEs managers may range from accessing
finance/capital, developing managerial skills bench marking, business trends, new
technologies, government services available to business e.t.c.
Many managers do too much information seeking and less information sharing
and this often leads to information silo. Information silos exist because management
does not believe there to be enough benefit from sharing information and because
information might not be useful to personnel in other systems.
To ensure survival in today's competitive business world, small and medium
enterprise requires access to accurate and relevant information both at the start up
stage and during their day-to- day operations. small and medium enterprise generally
tend to be information intensive, this various interventions maybe required on the part of
the management to ensure that information needs and resources of the enterprise are met
and well managed through the use of information, top managers of firms are able to
reactively and pro-actively adapt their organizations environmental changes in order to
survive and prosper. Opara (2004) noted that the flow of information or data in an
organization is a continuous record of the status of the pertinent elements that affects the
survival and growth of the organization. Managers of SMEs need to have access to
adequate information to enhance productivity and to facilitate market access. The
establishment of an active SMEs sector and the effective utilization of quality business
information has been identified as crucial in attaining long-term and sustainable
economic growth for developed and developing countries alike (Corps, 2005). The
SMEs need tailor made information solutions i.e business information services that assess,
JAMES AFEBUAMEH AIYEBELEHIN
12
verify and apply information to a specific business problem (okello-Obura ….. et al,
2008). Human beings are continuously engaged in some activity or other in order to satisfy
their unlimited wants. Everyday, we come across the word "business" or "businessman"
directly or indirectly. Business has become essential part of modern world. Business is an
economic activity which is related with continuous and regular production and distribution
of goods and services for satisfying human wants.
The etymologies of 'business' stem from the state of being busy and imply
commercially viable and profitable work. Olagunju (2008) defines business as an
enterprise that engages in the production of goods and services that provide satisfaction for
consumer's i.e to say that apart from the objective of earning profit in establishing a
business enterprise, consumers satisfaction is also another objective. A business is a
concern, an enterprise or organization set up by an individual or group of individuals or
group of individuals for purpose of making profit.
STATEMENTS OF THE PROBLEM
Several studies on various aspects of information needs have been carried out in
the field of social science, humanities, science and technology, a number of reviews and
bibliography covers various aspects of information needs, however not many studies have
attempted to investigate information needs and sharing habit of small and medium scale
enterprise managers. Most previous literature are focused on information needs and
seeking behaviors, hence, not much has been done so far to cover the aspect of
information needs as well as information sharing habits in Nigeria.
Information is an essential resource for development. Small and medium scales
enterprise managers generally need information to enable them various duties in their
fields of endeavours.
Considering that the world and the rural areas in particular function on the flow of
information and that information itself is a prime resource, this study sought
to determine the characteristics that impact upon the manner in which information is
sought, used and shared by small and medium scale enterprise managers and the study
will cover all phrases of their information needs and sharing habits as opposed to previous
literature that focused on a particular aspect of information need and seeking behaviour.
This study is therefore designed to study the information needs and sharing habits of small
and medium scale enterprise managers.
OBJECTIVES OF THE STUDY
The general objective of this study is to survey the information needs and sharing
habits of managers of small and medium scale enterprise.
The specific objective of this research studies are:
1. To find out the information needs of managers of small and medium enterprise.
2. To identify their various sources of information.
3. To examine the attitudes of small and medium enterprise managers towards
information sharing.
4. To unveil how information sharing among managers of small and medium
enterprise is done.
5. To examine the type of information managers of SMEs are willing to share.
13
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
6. To discover the problems encountered by small and medium scale enterprise
managers when sharing information
RESEARCH QUESTION
1. What are the information needs of managers of small and medium enterprise
when carrying out their duties?
2. What are the various sources available to managers of SME when consulting
information?
3. What are the attitudes of SME managers towards information sharing?
4. How is information sharing carried out within small and medium enterprise?
5. What are the types of information managers of SMEs are willing to share?
6. What are problem encountered by SME managers in the course of information
sharing?
LITERATURE REVIEW
INFORMATION AND INFORMATION USE BY SME MANAGERS
Information is universally accepted as important resources. In any organization,
information is prerequisite for effective decision making. Consequently, the position or
handiness or awareness and use of right timely information ensure organizational
effectiveness. Information has been subjected to various definitions due to the increase
growth in the use of the term.
Aina (2004) opined that information means many things to different people. To
some people, information means news, while others refer to information as facts and yet
others view information as data. To the telecommunication engineer, information is
associated with bits and data, the philosophers identify it with recorded facts, with the
context or content or with the experience stored in the human mind, the microbiologist
consider information as the genres in DNA which are transmitted from one generation to
another and to the librarian, information is associated with recorded knowledge.
Information can be viewed as a "data that have been put into meaning and communicated
to a recipient who used it make decisions". Information is knowledge and wisdom that
contribute to the cultural, economic, educational, political and well being of a society or
nation. Afolabi (2003) identified setbacks to the flow of information like social, economic,
environmental, occupational and infrastructural setbacks. If these setbacks were not
removed, it would be difficult for any free flow of information from the sources through
media to the users.
Uhegbu (2001) saw information as power by which an individual or group can
get it's own ways in a social relationship. Information as powers confer unequal
opportunities on people as those who get it gets things done faster and easier while
those who do not have it are left out right in the scheme of opportunities. Information is
knowledge when it is performing the role of impacting knowledge on to an individual
where it reduces uncertainty. Information is intangible; it becomes tangible when it is a
thing, that is to say a physical object such as data or documents.
Austin (2007) is of the view that information starts whenever a message is
conveyed from one person to another. It starts from our room when instructions are passed
from one member of the household to another. It continues in the class when ideas are
JAMES AFEBUAMEH AIYEBELEHIN
14
passed across from the lecturers to the student, it is equally passed within subordinates in
an organization. Information is passed in different forms and has classification. In other
words, every individual or an organization needs a classified information on peculiar
information in order to function and achieve it's desired goals.
Afolabi (2003) argued that information is indispensable, an ingredient for social,
economic, industrial, political and technological advancement as it is apparent in every
facet of human endeavors. Burch and Grudinitski (2002) further viewed information as a
message of and reception of intelligence and knowledge which "appraise and notifies ,
surprises, reduce uncertainty, records additional alternative or help eliminates
individuals and stimulates them to action". Thus, information is not an end in itself but a
means to an end and so the origin of the need which can be intellectual, social and
cultural. Fosekette et al (2000) point out that "information is an explicit ingredient of
knowledge, but only when a human mind get to work on it becomes knowledge of itself.
Nwakwo (2004) perceives information to include "a wide range and variety of things
ranging from oral and printed words, figure, statements, files and documents to such
intangible elements as to needs, signals, rays or colour and waves". In the light of all the
definitions, it can be inferred that information is not a discipline like chemistry but it is
the bedrock of every discipline and every development. Without information, human
being will be wallowing in ignorance and thriving in chaos.
Information is the raw materials of managerial work. A large part of the
manager's information comes from or concerns the environment external to the
organization. Customer preference, competitor strategies, technological advancements,
government regulations and social and economic conditions are all in a constant state of
flux. Traditionally, management research has always recognized the important role of
information in managerial work. Managers use information in managerial decisions. The
work of managers is information intensive, managers are exposed to a huge amount of
information from a wide range of sources and selectively use the information to make
day to day decisions and to formulate longer term strategies.
The classic conceptualization of managerial work by Mintzberg (1999) clearly
articulates how the acquisition, dissemination and use of information lie at the heart of
managerial work. Mintzberg divides the work of mangers into three set of interlocking
roles.
- Interpersonal
- Informational and
- Decisional roles
By virtue of the formal authority vested in the position, the manager performs three
interpersonal roles:
- As figure head, the manager represent the organization in informal matters
- As leader the manger defines relationship with subordinates
- Finally, as liaison, the manager interacts with external persons to gain information
and favours.
Interpersonal roles give the manager access to many internal and external sources of
information and so enable three informational roles:
15
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
- As monitor, the managers continually seek and receive information from a variety
of sources in order to develop thorough understanding of the organization and its
environment.
- As disseminator, the manager transmits special information into the
organization's information out to the environment. The unique access to information
combined with the authority empowers the managers to use information he has to
discharge four decisional roles:
- As an entrepreneur, the manager initiates "improvement project" that exploits an
opportunity or solve problem.
- As disturbance handler, the manager deals with unexpected but important events.
- As resource allocator, the manager controls the distribution of all forms of
organizational resources.
- Finally, as negotiator, the manager engages in major negotiations with other
organizations or individuals. The three set of ten managerial roles meld into a portrait of a
manager as an "information processing system".
In essence, the manager is an input output system in which authority and status give rise to
interpersonal relationships that lead to inputs (information) and these in turn leads to
outputs (information and decision) one cannot artibitrarily remove one role and expect the
rest to remain intact (Mintzberg, 1999) in fact, "it is the manager's informational roles that
tie all managerial work together linking status and the interpersonal roles with the
decisional roles" (Mintzberg, 1999).
Managers in business organizations may seek for and use information for
problem solving, decision making, business planning, social competence, creativity and
innovation, conflict resolution, market research and improved productivity all of which
have direct impact on business performance of an organization. Information seeking by
managers includes searching, locating selecting, comparing or differentiating, acquiring,
consulting, trail and error and even environmental scanning. Environmental scanning is
defined as the acquisitions of external environment, the knowledge of which would assist
management in planning the organization's future course of action (Choo and Auster,
1999).
Aguilar (1997) defines environmental scanning as "scanning for information
about events and relationships in a company's outside environment, the knowledge of
which would assist top management in its task of charting the company's future course of
action" certainly not all of the information from scanning may be actually used in making
strategic decisions, yet an piece of such information whether it is obtained with or
without a purpose could have an impact on managerial decision making.
Research on environmental scanning began in the 1960s with path findings
studies by Aguilar (1967) and Keegan (1968) since then most of the studies have revolved
around a few research themes: the effect of perceived environmental uncertainly on
scanning; the focus of scanning; information sources used and scanning methods. In each
of these areas it is possible to discern a consistent picture of how managers scan. With
regard to environmental uncertainty, most studies found that managers who perceive
greater environmental uncertainty tend to do more scanning (Auster and Choo, 1993. The
JAMES AFEBUAMEH AIYEBELEHIN
16
focus of scanning is on market related sector of the external environment, with
information on customer's competitors and supplies being the most important (Jain, 2002).
SOURCES OF INFORMATION OF SME MANAGERS
Sources of information are those medium through which information seekers get
relevant information. There are two (2) broad sources of information: formal and informal
sources in the view of Efe (2006) information sources are divided into four (4) types
which include people, organization literature and information services. Efe (2006) further
referred to those sources of information as those who are highly knowledgeable in a
particular field of study, also referred to as resources, persons, they provide authentic of
first hand information, facts ideas and data on any issue, events, subject topic e.t.c. people
as a source of information are used when the required information cannot be found in
literature of publications or when the people are ignorant of how to sought for information
in the case of SME managers, newspapers, television broadcast, co-workers e.t.c. are
sources of information other activities that serves as information source includes, seminar,
workshops, conference, meetings e.t.c.
The third source of information as out together or introduced by Efe (2006) is
literature. They are either primary or secondary in nature; the primary literature consists
materials which are original in nature and represents new knowledge. Information in
primary literature has not been modified. Examples include research report, thesis and
dissertations, conferences, proceedings. The secondary literature originates from the
filtering of primary sources through modification or re-arrangement. They include
textbooks, encyclopedia, abstract and indexes, dictionaries e.tc. Which SME managers
can use in meeting their information needs.
Dua (2000), studying Chinese SMEs using face to face interviews concludes that
some managers mostly used personal sources of information and rarely used formal
information services. Mc Lachlan (2003) through telephone interviews investigated
various aspects associated with the information needs of small business executives.
Results suggested that:
- Business managers relied more on magazines and to a lesser degree on trade
show, workshops, suppliers, seminars and professional organizations were the most
frequently cited sources of oral information.
- Market and economic conditions were the most frequently cited sources of oral
information. In a national study of over 200 CEOs in the Canadian publishing and
telecommunication industries, Auster and Choo (2003) found that the most frequently
reported sources were internal and personal.
Chalmers (1999) undertook a qualitative study on the needs for and uses of published and
personal information by managers in New Zealand. Among the findings was that:
- Most respondents did not systematically seek information from secondary
published sources to assist them in decision making and
- Environmental scanning usually involved the use of primary sources and where
published sources used, in most cases, they were supplements to personal sources.
SME managers rarely use formal sources when seeking for information as they mainly
sought information via personal sources.
17
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
Bournois and Romani (2000) in their study of environmental scanning of firms in
France found that eight percent of the firms sourced their needed information form
databases and only five percent of them using competitive intelligence tools.
Popoola (2011) citing Jorosi (2005) reported that the managers in small and
medium enterprises in Botswana spent their time seeking for competition information,
customer information, economic information, technical organizations work in information
rich environment and they often faced with the problem of information overload. It must
be noted that managers are socialized to depend on an accurate, objective and generally
sufficient source of information, maybe to improve their creative and innovate efforts.
According to Popoola (2011) citing Rosewell (1997) asserted that company
information is commonly sought throughout industry and sources of business information
include information brokers, financial data, company accounts, financial news,
shareholders, stock brokers, internet, report, newspapers and magazines, broadcast media
(radio and television) textbooks e.t.c. similarly, Houtari and Wilson (2001) posited that
sources of business information are direct contact, printed information materials and
electronic information services. Business managers prefer to seek and obtained needed
information from the available sources that are current, relevant comprehensive and
reliable.
INFORMATION NEED AND SHARING HABITS OF SME MANAGERS
Line (2001) defined information need as what an individuals ought to have for his
or her work, his or her research, his or her edification, his or creation e.t.c. information
therefore is a necessity for substantial growth in all ramification of an individual's life.
Adewunmi (2003) also reported that information needs vary with users, time purpose,
location and alternatives. Hernon and Chen (2004) submit that information needs occur
whenever people find themselves in situation that required some form of knowledge
resolution.
Kumar (1998) also viewed that the identification of information needs maybe
expressed as an input process – output model the basic component of the systems are:
- Problems (Existing solution)
- Problem (Solving process) and
- Solution
With the afore-mentioned ideas by the investigators, information need is focused on an
individuals' best interest, when a problem exist, the most appropriate solution is needed,
and the solution hence is the information need. The concept of information need have been
proved intractable by Wilson (2000) by the simple reason that need is a subjective
experience which is not directly accessible to an observer. Information needs are those
innate desire or quest for relevant facts to be processed and used to settle life's option. The
information need of SME managers is determined by the type of information sought for,
the source of the information and the rate at which the information is being communicated
or transferred. Young (2002) found that information needs often reflect the age and
changing socio-economic, health, family and personal circumstances of people and are
therefore not permanent but ever-changing. Belkin et al (2004) describes information need
as an anomalous state of knowledge. It is pertinent to note that everybody needs
JAMES AFEBUAMEH AIYEBELEHIN
18
information to reach his or potential conscious activity under taken by human being is
directed towards the satisfaction of need. The more information available to a system
about itself and about it's environment, the more reliable it becomes and the greater its
chance of survivals (Ihenyen, 2010).
Mchombu's (2000) small explanatory study probed the information needs of
women in small business in Botswana in order to establish how these needs arose and
factors which create information sharing habits. The study employed structured
interviews as the main data gathering tool. Among the key findings, it was found that
respondents' information needs centred on business management, sources of financial
assistance, business diversification and legal information. Shokane (2003) investigated the
extent to which small and medium – sized enterprise in Acornhoek, (South Africa) make
use of business information for sustainable competitive advantage. The study utilized a
pre-structured questionnaire to gather data. The study's finding revealed that:
- Many business managers lacked information in managing their business.
- Many were not aware of their information needs and how business information
devices could support and advance their business activities when sharing information.
- Business managers still relied on informal sources for managing their business
enterprise consequently, the findings of a study conducted in one geographical and social
context have limited applicability in another context because of the significant differences
in the context, likewise, the information sharing habits of mangers in a developing country
context should not be generalized to a developing country or vise versa.
As a result, we know very little about sharing manager's information needs and sharing
habit. The net result of this limitation is a gap in the empirical literature that needs to be
filled.
RESEARCH METHOD
In order to achieve a comprehensive result, this research work was
carried out using the descriptive method because it involves a systematic and
comprehensive collection of data or information about the opinions, attitude, feelings and
behaviors of people. Utsoko (2002) reaffirmed this when he said that the descriptive
research is used to collect data from a relatively large number of classes at a particular
time in order to foster the current status of particular population. The data intended for this
study was collected through application of questionnaires.
The population of this study comprised of all small and medium scale enterprises
in Esan West Local Government Area, Ekpoma. Presently, there is no official data on the
exact number of small and medium scale enterprise in Esan West L.G.A., but empirical
evidence shows that there are hundreds of them scattered around the local government
with many of them situated at Ekpoma, the Local Government headquarter.
Considering the nature of this study, a sample of two hundred (200) SME managers were
randomly selected from the available managers of small and medium scale enterprise in
Esan West L.G.A., Ekpoma. The method of data analysis that was used in this project was
the simple percentage (%) and frequency tables. The essence of this was to help the
researcher to see the similarities and relationship of the data.
DATA ANALYSIS AND PRESENTATION OF RESULTS
QUESTIONNAIRE ADMINISTRATION AND RESPONSE RATE
19
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
A total of two hundred (200) questionnaires were administered. One hundred and
fifty eight (158) copies were successfully retrieved, representing 79% response rate and
these were found usable for analysis.
Table 1:
Demographic Profile of Respondents
Variables Frequency Percentage (%)
Gender Male
Female
57
107
36.1
63.9
Marital status Single
Married
Divorce
99
58
1
62.7
36.7
0.6
Highest Educational Qualification Primary Cert.
Junior
SSCE
Diploma
Degree
Post graduate
7
9
61
41
37
3
4.4
5.8
38.6
25.9
23.4
1.9
Income per annum 10,000- 50,000
51,000-100,000
100,000 & Above
31
68
59
19.6
43.1
37.3
Table 1 shows the results of the demographic profile of the respondents. From the table,
we can see that females were more than males with 101(36.9%) and (36.1%) respectively.
Among the managers, those that were single dominated the respondents with 99(66.7%) as
against those that were married with 58(36.7%) and divorce 1(0.6%) respectively. For the
highest education qualification of the managers, 61(38.6%) has SSCE, 41(25.9%)
diploma, degree 37(23.4%), post graduate 3(1.9%), Junior Certificate 6(5.8%) and primary
school certificate with 7(4.4%) respectively.
Finally, on the income per annum, managers that receive between 51,000-100,000
dominated the respondents with 68(43%) as against 10,000-50,000 with frequency of
31(19.6%) and 100,000 above with frequency of 59(37.3%).
Table 2:
What Information Do You Need?
S/N Items SA A D SD
1 Where to get goods 79
(50%)
70
(44.3%)
3
(1.9%)
6
(3.8%)
2 How to attract
customers
94
(59.5%)
51
(32.3%)
11
(6.9%)
2
(1.3%)
3 Taxes 26
(16.5%)
54
(34.2%)
65
(41.1%)
13
(8.2%)
JAMES AFEBUAMEH AIYEBELEHIN
20
4 Government
Regulations
20
(12.7%)
59
(37.3%)
65
(41.1%)
14
(8.9%)
5 Social-cultural issues 17
(10.8%)
59
(37.3%)
62
(39.2%)
20
(12.7%)
6 Festive seasons 53
(33.5%)
61
(38.6%)
33
(20.9%)
11
(7%)
7 Business management 54
(34.1%)
88
(55.7%)
14
(8.9%)
2
(1.3%)
8 Customer's retention 72
(45.5%)
70
(44.3%)
14
(8.9%)
2
(1.3%)
9 Customers information 63
(39.8%)
77
(48.8%)
14
(8.9%)
4
(2.5%)
Table 2 revealed that the most paramount information need of SME managers is on how
to attract customers with a total of 91.8% strongly agreed and agreed and the information
of less concern to SME managers is on social cultural issues as 51.9% Disagreed to the
need of this information.
Table 3:
Sources of information
S/N Where do you get
business information
from?
SA A D SD
1 From my customers 80
(50.6%)
50
(31.6%)
20
(12.7%)
8
(5.1%)
2 From my business
associates
54
(34.2%)
75
(47.4%)
24 (15.2%) 5
(3.2%)
3 Government officials 17
(10.8%)
36
(22.7)
85
(53.8%)
20
(12.7%)
4 Newspapers 32
(9.5%)
55 (23.4%) 55
(51.9%)
16
(15.2%)
5 Government
publications
15
(9.5%)
37
(23.4%)
82
(51.9%
24
(15.2%)
6 Union/Associations 25
(15.8%)
49
(31.1%)
68
(43%)
16
(10.1%)
7 Internet 36
(22.8%)
65
(41.1%)
41
(26%)
16
(10.1%)
8 Library 18
(11.4%)
38
(24.1%)
68
(43%)
34
(21.5%)
9 Television/Radio 30
(19%)
63
(39.9%)
41
(26%)
24
(15.1%)
10 Watching competitors 35
(22.2%)
72
(45.6%)
28
(17.7%)
23
(14.5%)
21
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
Table 3 revealed that the major source of information to SME managers is their customers
constituting a response rate of 82.2% strongly agreed and Agreed. The library was
however viewed as the least consulted information sources with a response rate of 64.5%
Disagreed and strongly Disagreed.
Table 4:
Reason for preferred source(s) of information
S/N Why Do You Prefer The Source
(s)?
SA A D SD
1 It is reliable 43
(27.2%)
64
(40.5%)
27
(17.1%)
24
(15.2%)
2 It is accessible 50
(31.6%)
74
(46.8%)
20
(12.7%)
14
(8.9%)
3 It is always current 55
(34.8%)
68
(43%)
23
(14.6%)
12
(7.6%)
4 It is easy to use 67
(42.4%)
54
(34.2%)
18
(11.4%)
19
(12%)
Table 4 revealed accessibility as the major reason why SME managers prefers their
consulted information sources. Accessibility superseded all other preferred sources with a
total of 78.4% responses on strongly agreed and Agreed. A close look at the table equally
shows that SME managers pay attention to reliability (67.7%), currency (77.8%) and ease
use (76.6%) while selecting a source of information.
Table 5:
Attitude towards information sharing
S/
N
What is Your Attitude towards
Information Sharing?
SA A D SD
1 To me, sharing information with my
workers is harmful
15
(9.5%)
42
(26.6%)
83
(52.5%)
18
(11.4%)
2 To me, sharing information with
workers is pleasant
14
(8.9%)
83
(52.5%)
51
(32.3%)
10
(6.3%)
3 To me, sharing information with my
workers is worthless
10
(6.3%)
22
(13.9%)
98
(62%)
28
(17.7%)
4 To me, sharing with my workers is
wise
26
(16.5%)
77
(58.7%)
43
(27.2%)
12
(7.6%)
5 I love sharing ideas with my
colleagues
22
(13.9%)
73
(46.2%)
55
(34.8%)
8
(5.1%)
6 I don‟t like sharing vital information
with competitors
53
(33.5%)
61
(38.6%)
29
(18.4%)
15
(9.5%)
7 I don't believe in hoarding vital
information as long as it won't affect
my salary
24
(15.2%)
70
(44.3%)
50
(31.6%)
14
(8.9%)
JAMES AFEBUAMEH AIYEBELEHIN
22
Table 5 Revealed that SME managers have a positive attitude towards information
sharing as 75.2% respondent perceive information sharing with workers to be wise.
However, the responses show that SME managers exercise great caution with regards to
the nature of information they give as 72.1% of managers are not willing to share vital
information.
Table 6:
Types of information SME managers are share
S/N What Type Of Information Are
You Willing To Share?
SA A D SD
1 Profit making 21
(13.3%)
23
(14.6%)
78
(49.4%)
26
(16.5%)
2 Information of products 30
(19%)
84
(53.2%)
35
(22.1%)
9
(5.7%)
3 Information on know-how 25
(15.8%)
81
(51.3%)
39
(24.7%)
5
(3.2%)
4 Customer retention 22
(13.9%)
73
(46.2%)
52
(32.9%)
11
(7%)
5 Price of goods 23
(14.6%)
64
(40.5%)
64
(40.5%)
7
(4.4%)
6 Personal management 20
(12.6%)
52
(32.9%)
75
(47.5%)
11
(7%)
7 Business management 21
(13.3%)
74
(46.8%)
51
(32.3%)
12
(7.6%)
8 Best business location 21
(13.3%)
74
(46.8%)
47
(29.8%)
16
(10.1%)
9 Wages/salary issues 15
(9.5%)
43
(27.2%)
72
(45.6%)
28
(17.7%)
Table 6 revealed that SME managers to a large extent relent in sharing information on
profit making with 65.9% total response rate of Disagreed and strongly. However, they are
willing to share information on information of product (72.2%), information on know-how
(67.1%), and business management (60.1%) respectively.
Table 7:
How SME managers share information
S/N How Is The Information
shared?
SA A D SD
1 Through phone calls 53
(33.5%)
64
(40.5%)
30
(19%)
11
(7%)
2 Physical/ verbal
communications
50
(31.7%)
80
(50.6%)
10
(6.3%)
18
(11.4%)
3 E-mail 59
(37.3%)
62
(39.2%)
17
(10.8%)
20
(12.7%)
23
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
4 Social networks (whatsapp,
facebook, 2go e.t.c.
47
(29.8%)
54
(34.2%)
32
(20.3%)
25
(15.8%)
5 Union/association meetings 46
(29.1%)
63
(39.9%)
24
(15.2%)
25
(15.8%)
Table 7 Revealed physical/ verbal communication to be the major channel/medium for
sharing information among managers with 82.3% total response for both strongly
Agreed and Agreed. The table equally revealed that Union/Association (69%) is the lease
likely medium of sharing information among managers
Table 8:
Challenges of information sharing
Table 8: revealed poor attitude of SME manager's colleagues to be the major problem
encountered by managers in the cause of information sharing with a total of 83.5%
agreed and strongly agreed.
DISCUSSION OF FINDINGS
Majority of the SME managers were found to be females (63.9%) while the males
accounted for (36.1%). This is similar to Jorosi (2000) findings on the information needs
and information seeking behaviour of SME managers in Botswana. It was found that there
were more females SME managers than males in Botswana.
Majority of the SME managers were found to be single (62.7%) and possess
SSCE as their highest educational qualification. This is also similar to Jorosi research
where it was found that SME managers in Botswana possess SSCE as their highest
educational qualification.
The findings revealed that information on how to attract customers with a total of
(91.8%) is the most paramount information need for SME managers. This finding is
equally similar to Olagunju (2008) findings that claims customers attraction and
satisfaction is the main objective of a business apart from the objective of earning profit.
S/N What Are The Problems
Encountered When Sharing
Information?
SA A D SD
1 Network failure 43
(27.2%)
34
(21.5%)
28
(17.7%)
53
(33.5%)
2 Poor attitudes of my colleagues 78
(49.3%)
54
(34.2%)
17
(10.8%)
9
(5.7%)
3 Lack of trust 63
(39.9%)
74
(46.8%)
10
(6.3%)
11
(7%)
4 Fear of losing customers 73
(46.2%)
66
(41.8%)
9
(5.7%)
10
(6.3%)
5 Poor power supply 29
(18.4%)
58
(36.7%)
41
(25.9%)
30
(19%)
JAMES AFEBUAMEH AIYEBELEHIN
24
The findings revealed that the major source of information to SME managers is their
customers (82.2%), similarly Shokane (2003) affirmed in his investigation to the extent to
which small and medium sized enterprise in Acornhoek (South Africa) make use of
business information for sustainable advantage, it was found that managers still relied
enormously on informal sources of information, customers being one of the informal
sources. Chalmers (1999) in this regard also found out that SME managers rarely use
formal sources when seeking information as they mainly sought for information via
personal sources.
The findings revealed that accessibility is the major reason why managers of SME
prefer informal sources of information with (78.4%) total response to accessibility
preference. This is also similar to Jorosi (2000) findings which saw accessibility as the
highest frequency of information sources preference.
The findings revealed that SME managers have a positive attitude towards
information sharing as 75.2% respondent attest to this. Similarly, Holland (2000) in his
research found out that most business personnel love to share information but however, on
some occasion they relent for fear of been retarded. This is slightly different from
Shokane (2003) investigation that found out most business were not aware of how
information devices could support and advance their business activities when sharing
information and as such, they relent in sharing information. Consequently, the findings of
a study conducted in one geographical and social context have limited applicability in
another context because of the significance differences in the context, likewise, the
information sharing habits of manager in a developing country context should not be
generalized to a developing country or vice versa. The findings also revealed that the
major channel/medium for sharing information is physical/verbal communication (82.3%)
and poor attitude of SME managers colleagues was revealed as the major problem
encountered by managers in the cause of information sharing with (83.5%) as affirmed in
Belkin (2004) study which revealed fear of been outshined in an enterprise as the major
reason why managers refuse to share information.
RECOMMENDATION
Based on the findings of the study it has been that SME managers should maintain cordial
relationship with their customer. Also SME managers should build a positive attitude
among their colleagues to enhance information sharing. Workshops, seminars,
conferences should be organized by Government and Non-Governmental organizations to
prepare SME managers for a competitive environment. This research generates a number
of potentially meaningful directions for further research, the researchers therefore
recommend that further research be conducted to explore different setting in order to
unveil what drives human information sharing habits in different environmental contexts.
CONCLUSION
As business environment becomes intensely competitive, firms are confronted
with challenges to adapt, survive and prosper. Numerous decisions on the source and
allocation of resources are necessary and executives need an abundance of information. In
fact, managers want a familiarity with the supply of resources and market conditions, an
25
INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL
GOVERNMENT AREA, EDO STATE.
awareness of these problems and potentials and a store of up-to-date facts, opinions and
insights which will facilitate their negotiation and decision making activities.
The information needs and sharing habit of SMEs has received little or no
attention from researchers in Esan West Local Government Area, despites the fact that an
understanding of this phenomenon is considered crucial to the growth and long-term
survival of these firms. This study is one of the few systematic probes into the information
needs and sharing habit SME managers in Esan West a developing Local Government
Area context as district from a developed L.G.A. context because of environmental
munificence. As such the study fills an apparent gap in the empirical literature and
broadens and enriches our understanding of the information sharing habit research by
presenting evidence from an environment that prior research has tended to neglect.
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INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF
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GOVERNMENT AREA, EDO STATE.
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Huma Salma Gillani
28
ISSN NO. 2394- 8965 GJMMS
Vol. – 1, Issue – 3, July-September - 2015
Health and Economic Implications of Solid Waste Dumpsites:
A Case Study Hazar Khwani Dumpsite - Peshawar City
Huma Salma Gillani
Department of Economics,
Institute of Management Sciences,
Peshawar - Pakistan
Abstract
This study evaluates the economic burden of diseases associated to the inappropriate
disposal of solid waste at dumpsite located at the Hazar Khwani, Peshawar provincial
headquarters of Khyber Pukhtoon Khawah Province of Pakistan. A sample of 200
respondents was selected from 5% of the total population residing in the target area based
on two-stage sampling technique. The sample data was regressed with the help of Tobit &
Poisson models for estimation of mitigation costs and work days lost. Poisson & Tobit
model estimates suggest an inverse and significant association between the distances and
work days lost and mitigation costs, respectively. Annualized monetary benefit of one
representative individual in Pakistani Rupees is from 186,612,897.66 to 192,559,787.244
for residential proximity within 4km radius of the dumpsite. Therefore, the study
recommends adoption of an alternate solid waste management solution, such as
composting or sanitary landfill, or providing the populace of the target area comprising of
residential facilities at a considerable distance from the dumpsite.
Keywords: Municipal Solid Waste; Dumpsite; Environmental Economics; Cost of Illness
I. INTRODUCTION
Waste also referred as rubbish, garbage or refuse is the by-product of the human
economic activities. The solid wastes have adverse impact on the environments as well as
public health, and are major source of water, land and air contamination. Municipal Solid
Waste Management (MSW) is a much bigger problem of developing economies as
compare to developed nations. The South Asian region, specifically Pakistan is no
different from the rest of the world and is faced with the challenge of providing scientific
SWM solution to its population. The lack of awareness and implementation of existing
faulty framework add to the problem of defective SWM.
The civic facilities managers of major cities in Pakistan in-spite of serious and
continuous efforts are unable to cope with the menace of municipal waste management.
The road sides and empty open areas overflow with filthy unhygienic heaps of wastes
portraying a sorry state of affair all over the country. This uncollected waste a cause of
environmental degradation and is a source of many life threatening diseases and economic
cost of huge magnitude to the general public. The waste management is the centre of
attention of the municipal authorities around globe because of increased pollution which
29
Health and Economic Implications of Solid Waste Dumpsites:
A Case Study Hazar Khwani Dumpsite - Peshawar City
leads to environmental hazards and economic costs due to non-existent or inappropriate
wastes management. The term waste management covers the collection, segregation,
handling and disposal of wastes in an environment- friendly manner. (A. A. Khan, Ahmed,
& Siddiqui, 2012; J. A. Khan, 2006; Mahar et al., 2007)
Study Area and Statement of the Problem
Peshawar lies between 33° 44′ and 34° 15′ north latitude and 71° 22′ and 71° 42′
east longitude covering an area of 1257 sq. km. According to a UNFPA report, the city’s
population has crossed 2.5 million3
. District Peshawar is the provincial capital of K-P
consisting of 92 union councils.
The Municipal Corporation (MC) is responsible for managing the solid waste of
urban as well as rural areas; the Peshawar Development authority (PDA) is responsible for
the management of Hayatabad and Regi Lalmah whereas the Cantontment is being
independenly supervised by the Cantonment Development authority (CDA).(J. A. Khan,
2006; Pak-EPA/OECC, 2007)
Peshawar Municipal Corporation is still utilizing old fashioned and discarded
waste management techniques of open dumping and burning. There are two dumping sites
on the outskirts of the city which have also become a part of the city due to population
explosion and city extension. These dumpsite situated at Hazar Khwani and Lundi Akhune
Ahmed employ the same techniques or open dumping and burning or burying along the
roadsides (J. A. Khan, 2006).
The dumpsite at Hazar Khwani is located at Ring Road about 7 km from the city
centre. The problems addressed by the study are; the inappropriate waste disposal methods
and costs evaluation of ill-planned and mis-managed waste. Dumping, burning and
burying of wastes in open spaces though reduce the quantities of wastes are no more a
desirable waste management solution. Resultantly, it impacts the health of the residents in
adjacent localities through spreading skin and respiratory tract infections, stomach and
chest related problems, malaria, dengue and other chronic diseases, psychological
disorders, gastrointestinal problems, and allergies. It is also worth mentioning that these
dumping sites have a very high economic and social cost not yet estimated. (Salam, 2010;
UNEP, 2007)
Various studies have proved that economic cost of illness to the people living
near dumpsite is much higher than to those living in a cleaner environment (Folefack,
2008). Therefore, the aim of this paper is also to estimate the costs of illness of the
residents residing near the Hazar Khwani dump site (the largest in-operation dumping
ground).
II.MATERIALS AND METHODS
A structured questionnaire was administered by three trained enumerators from the
targeted respondent households, living within the 4km radius of the Hazar Khuwani
1
Article published in Express Tribune: “Bane or boon: Urbanization, displacement pushes
Peshawar’s population over 2.5m” Posted By Irfan.Shaikh On Nov 5, 2013
Huma Salma Gillani
30
Dumpsite. Before conducting the final survey, questionnaire were pre-tested for checking
the reliability and validity and the econometric specification.
Cross-Sectional household survey collected health and medical expenditure data from
the household as a primary source. The research adopted multistage sampling procedure
following the sampling technique used in Gupta (2006) and Aggrey (2010). The purposive
sampling was used in the first stage and Union Council 37 (Hazar Khuwani-I) of Town VI
was identified as a sample unit for data collection. The second stage involved stratifying
the households in the area according to the residential proximity from the open dump
which included Afridi Ghari, Chamkani, Jameel Chowk and Dir Colony.
The sample size consists of 200 households from the Union council 37-Hazar
Khuwani I of Peshawar district. The sample constitutes 5% of households, out of the total
4,236 residential properties within four-kilometer radius of the dumpsite. Data collection
was carried out for one month, i.e. November, 2013, only due to time limitation.
Methodology:
The theoretical model that is being employed is the simplified version of the
health production function (Freeman, 1993) as used by (Adhikari, 2012), (Gupta, 2006)
and (Chowdhry & Imran, 2010), to estimate the optimal choice of medical expenditure.
The basic individual health production function can be written as
H = H (Q, M, X) (1)
Where, H represents the number of work days lost referring to the health status of
the individual which is positively related to the level exposure to pollution (Q); and
negatively related to the mitigation activities (M) carried out by the individual; and X
includes the vector of individual‟s health characteristics.
The utility function (U) of an individual is defined as
U = U (C, L, H (Q, M, Z), Q) (2)
with U/C, U/L O and U/H O.
C is consumption of other commodities, L is leisure and H is health status and Q
representing the level of pollution.
The individual allocates his non-labor income (Y); wage rate (w); the income
earned from work such that the sum of these two components gives the total income of an
individual (T-L-H) and the price per unit of mitigating activity (PM).
The budget constraint for an individual is expressed as
Y+ w (T-L-H) = C+PMM (3)
Here, w is the wage rate, while price of M are given by PM, respectively, and the
price of aggregate consumption is normalized to one. The individual maximizes U by
choosing C, L and M, subject to budget constraint (3).
The demand for mitigating activities for an individual can be written as:
M =M (PM, H, Q, X, Z) (4)
Where;
Given the pollution level (Q), prices of mitigating activities (PM), wage rate (w),
income
31
Health and Economic Implications of Solid Waste Dumpsites:
A Case Study Hazar Khwani Dumpsite - Peshawar City
(Y), and other exogenous variables (X), individuals maximize (1) with respect to X, M,
and L given the budget constraint (3). By solving the following problem,
Max G= U (X, L, H, Q) + [Y+ w (T-L-H)-X-PM M] (5)
Where,  represents the Lagrange multiplier
The first order conditions of the optimization problem yields the following
demand functions for mitigating activities (PM), which depend on prices, wage rate (w),
non labor income (Y), level of pollution (Q), and the vector of individual characteristics
(X).
The cost of illness (COI) can be derived as the sum of individual‟s COI as the
sum of lost earnings due to workdays lost and medical cost to the concerned individual as
follows:
dQ
dMP
dH
dQwCOI M (6)
ECONOMETRIC SPECIFICATION OF THE MODEL
The study aims to quantify the health costs associated with the inappropriate
waste management. Therefore, both the functions namely; health production and demand
for mitigating activities functions are being employed for cost assessments and evaluations
using Poisson and Tobit Regression models. is to be estimated. (Gupta, 2006; Chowdhry
& Imran 2010; Naveen, 2012)
The Poisson regression model estimates the household health production function
as:
Hit = E (Hit) + Uit = it + Uit
ln it = β1 1n Xit + Uit
According to this model it is the mean value of the number of sick days, β1 is the vector
of regression coefficients, and Xit is the vector of independent variables.
The Tobit model is used to estimate the demand function for mitigating activities is
specified as:
M*it = Xit β2 + Uit
M*it is a latent variable with
M*it = Mit if Mit >0
M*it =0 if Mit ≤ 0 Where, β2 is the regression coefficients vector and Xit is the
independent variables vector.
The two estimated reduced form equations of the health production function and
the demand for mitigation activities are:




LogPCIILLSUFAWRMRST
EDUGNDAgeAgeDSTPRCODRH
1211109
87
2
654321
(7)




LogPCIILLSUFAWRMRST
EDUGNDAgeAgeDSTPRCODRM
1211109
87
2
654321
(8)
Huma Salma Gillani
32
μ and ώ are the stochastic error terms
* Explanation of the variables is given in Table 1
III. RESULTS AND DISCUSSION
REGRESSION RESULTS
Using the statistics software STATA, the results of the regression analysis are
reported in this section. The estimated Tobit equations for the demand for mitigating
activities (Table 2) while in addition to the Poisson, and Negative Binomial Regressions
are estimated for the dose response function (Table 3 and 4). We used the Tobit results in
Table 2 and the Poisson results in Table 3 to compute the annual health benefits to a
representative individual and the entire city due to living in a polluted area.
For estimating the effects of pollution variables and the individual characteristics
on the mitigation costs incurred by the household, mitigation costs were taken as the
dependent variable. As it is a discrete variable, it violates the linearity assumption of the
least squares, therefore Tobit regression is being employed for getting better results.
Whereas the dose response function is being estimated by employing the Poisson and
Negative Binomial regression models s the dependent variable, i.e., number of work days
lost due to living in a dirty environment. However, there are two separate tables for
estimating the number of work days lost with distance and odor. The rationale for
estimating them separately was that odor and distance were not giving significant results
when computed together because of multicollinearity between them.
INTERPRETATION OF TABLE 2- TOBIT REGRESSION
The parameter estimates from the reduced form equation of mitigation cost are presented
in table 2. The significant and negative coefficient of distance (DST) measured in
kilometers, which was used as a proxy for the pollution variable, indicates a monthly
reduction in the mitigation costs by Rs. 1258/- after moving away from the dumpsite.
Similarly, the burning practice (PRC) adopted has a negative relationship with the
household cost on mitigating activities, which implies that the cost of people living at a
distance of 4km or more is PKR. 321/-, less than those who live within the 2km or less
radius of the dumpsite. The pollution variable, odor (ODR) as reported by 70% of the
respondents was troubling odor nuisance, so their mitigation costs increases although it is
statistically insignificant. The socio-economic variables such as gender (GND), education
(EDU), marital status (MRTS) have positive signs, as expected, but insignificant. The
coefficient of age is negative and that of age2
is positive. Both the coefficients are
significant at 1% and 5% levels, respectively. The coefficient of LogPCI is positive and
significant which means that as the level of income increases so does the mitigation cost of
the respondent. It can be seen that the coefficients for household type is negative and
significant, whereas the awareness level of the respondent is insignificant and have an
inverse relation with the mitigating costs.
Interpretation of Table 3- Poisson and Negative Binomial for distance and Work
Days lost
Table 3 shows the estimates of the reduced form of health production function
due to work days lost. The pollution variable, distance (DST) measured in kilometers is
negative; as me move away from the dumpsite the expected work days lost decreases. If
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GJMMS July september 2015 issue

  • 1.
  • 2. i GLOBAL JOURNAL OF MULTIDISCIPLINARY AND MULTIDIMENSIONAL STUDIES Dr. N.M.Lall B.com, M.A.(Eco), Ph.D. FRAS (LONDON) Patron Dr. A.K.Jha M.A.(Eco), Ph.D., PGDM Managing Cum Chief Editor Dr. Suresh Sachdeva Dr. Brajesh Mishra M.A.(Eco), Ph.D., D.Lit., MBA MOT Prof. of Economics HOD (OT) Govt. SLP College Smt.K.P.P.I.P.O Gwalior (M.P.) Annand (GUJRAT) Editor Editor ISSN No.2394-8965 SHRUTAAYUSH PUBLICATION GREATER NOIDA
  • 3. ii Member of Editorial Board ---------------------------------------- Dr.V. D. Sharma (M.Sc. M.A, B.Ed, PGDFM, Ph.D) A Gandhian Professor, Faculty of Management Studies & Ex Proctor Gen. Secy, Rashtriya Shaikshik Mahsangh (University Campus) VBS Purvanchal University Jaunpur-222003 (UP) Dr. H.K.S.Kumar Chunduri Sr. Faculty Member, Department of Business Studies, Ibra College of Technology, IBRA, Sultanate of Oman Dr. Violetta Gassiy Associate professor, Public administration department, Kuban State Univer-sity, 149, Stavropolskaya st., Krasnodar Russia Prof (Dr) Ramesh Balkrishna Kasetwar (Retd Colonel) PhD, MPM, BE(Elect), MIMA, FIE(India), Dip TQM (Former Vice Chancellor) Founder Trustee and CEO Quality Plus, Pune 411040 (MS) Vineet Jain, Asstt. Prof. (Mechanical) Amity University Haryana, Gurgaon Dr. Rushiraj Upadhyay, Asst. Professor, M.S.W Department, Gujarat University, Ahmedabad Deepak Pathak Assistant Professor, Mechanical Engg Dept., FET Agra College Agra Mahendra N. UmareAssociate Professor & HOD (Civil) at NIT, Nagpur ROB WOOD Department of Global Strategy & Management 2010 presentWestern Carolina University, Cullowhee, NC Judi Krzyzanowski B.Sc, M.SC., Environmental scientist Dr. Vijay Pithadia, PhD., MBA, Electronics Technician Director & Professor, SHG MBA Women college, Amreli
  • 4. iii Dr. Dheeraj Pawar Assistant Professor, Amity Institute of Telecom Engineering and Management, Amity University, Noida Raymond W. Thron, Ph.D Faculty College of Health Sciences, Walden University Dr. Mwafaq M. Dandan Associate Professor Department of Banking and Financial Sciences Amman University College for Banking and Financial and Sciences Albalqa applied universityJordan Professor (Dr) Rajesh Arora Director Dr D Y Patil Institute of Management Studies, Pune. Dr. L. Govinda Rao, PG in Mgt.(XLRI), Ph.D., Chairman & CEO, Matrix Institute of Development Studies, Kameswari Kuteer, Secunderabad 500 011 AP India. Shailkh.Shoeb Anwer Aurangabad Dr.C.B.Singh, Ph D, M A, (Economics), M Sc (Ag Eco.), MBA (FM, MM), Associate Professor Institute oF Economics & Finance Bundelkhand University, Jhansi 284128 (UP) India Dr. David Nickerson, Distinguished Professor, Department of Finance and Real Estate, Rogers School of Management, Ryerson UniversityToronto, Ontario M5B 2K3, Canada Dr Dilip Kumar Vinnakota Principal, Govt Junior College SATHUPALLY Khammam District, Telangana State Steve Pyser Fellow, Caux Round Table and Lecturer (PTL), Rutgers University School of Business – Camden
  • 5. iv Bocar Samba Ba (Research scholar Economics) 2 place viala, 34060 montpellier, France Mahendra N. UmareAssociate Professor & HOD (Civil) at NIT, Nagpur Charles "Randy" Nichols, Ph.D., Louisville, KY, Professor of Management Author, Educator, Speaker Shabnam Siddiqui, Assistant Professor, FMS-WISDOM, Banasthali University, P.O. Banasthali Vidyapith 304022Rajasthan, INDIA, Monika Hudson, DM Assistant Professor, Director, Gellert Family Business Resource Center/ Public Service Internship Program, University of San Francisco Juan Carlos WANDEMBERG – Ph.D. WANDEMBERG Sustainable Development Quito - ROB WOOD Associate - Graduate Faculty; Department of Global Strategy & Management 2010 presentWestern Carolina University, Cullowhee, NC Dr. Mohammed Rizwan Alam, Assistant Professor Marketing University Of Modern Science Dubai Avil sinha Fellow (ECONOMICS), IIM, Indore Mary Manana University of South Wales Dr. Stefan Walter, Heidenrod, Germany (Economics and Management) C.H.Raj Marketing professional Noida Greg Benzmiller Ph.D. MA, MBA Colorado Springs, CO 80919 Hazra Imran (PhD) Post-Doctoral Fellow, Funded by MITACS Elevate (Canada), Athabasca University, Edmonton, AB, Canada Indrajit Bandyopadhyay,
  • 6. v Registrar, Usha Martin Academy, Kolkata, India Rijo Tom, Asst. Professor , Dept. of ECE, Kalaivani College of Technology, Coimbatore S.Praveen – HR & Administration Executive – FDC International FZE (Dubai) Anil kumar. S Hagargi, Research scholar, Dept of Management Studies and Research, Gulbarga University,Gulbarga, Karnataka, Ihor Yaskal, PhD in Economics, Yuriy Fedkovych Chernivtsi National University, Ukraine Nilesh Borde, Assistant Professor at Goa University Dr. Kiran Mehta, Associate Professor (Finance), Chitkara Business School, Chitkara University Dr. Renuka Sharma, Associate Professor (Finance), Chitkara Business School, Chitkara University Pradeep Kumar Owner ASPIRE OVERSEAS CO, Noida Dr.prof.V.Raghu Raman, Senior Faculty (Business Studies), IBRA COLLEGE OF TECHNOLOGY, OMAN PAZIENZA, Department of Economics, University of Foggia, Foggia, Italy Dr. Tiyas Biswas, Assistant Professor Department of Business Administration Bengal College of Engineering and Technology, Durgapur Devanathan Elamparuthy B.E.,M.B.A.,M.Phil.,P.G.D.P.E.,D.I.S.,(P.hd)., Asst.Professor Business Administration, Annamalai University MUFTI MD. IBRAHIM, Faculty of Education ,Ahsanullah University of Science and Education. Ahsanullah Teachers’ Training College,Dhaka
  • 7. vi SUDHASHREE PARVATI, Lecturer, Department of English, Adi Keih College of Arts and Social Sciences, Adi Keih, Zoba: Debub, State of Eritrea, N.E.Africa Dr. SHAUKAT ALI, M.Con., M.Phil., Ph.D. Associate Professor and Head, Commerce Department. Anjuman-I-Islam’s Akbar Peerbhoy College of Commerce & Economics, University of Mumbai, Mumbai Indrani Ganguly, M.A. B.Ed. (Geography), Principal of Shri Shikshayatan School., Kolkata. Nagori Viral Y., Assistant Professor GLS Institute of Computer Technology (MCA), Ahmedabad . Dr. L. Govinda Rao, PG in Mgt.(XLRI), Ph.D., Chairman & CEO, Matrix Institute of Development Studies, Secunderabad 500 011( A.P.) India
  • 8. vii Editorial ------------- The current changes and challenges experienced by the contemporary world have been an inspiration for us in elaborating this new forum of discussions on the real world issues affecting or having a meaningful impact on the different segment of society and on our lives. This is an attempt of boldly and unrestrictedly contributing to new Ideas through research findings and doing things differently, thereby providing quality and value. Scholars, re- searchers, young researchers worldwide are encouraged to join efforts in find-ing solutions for the common issues raised by the recent social and environ-mental changes. It aims to be a dialogue between the scientific community and the citizens, as a testimony of their concern to place the results of their work in the service of the society. A new orientation in research policy is imperative to respond to the new needs of the society to guarantee environ-mental sustainability and economic growth in the knowledge society. The purpose of the Global Journal of Multidisciplinary and Multidimensional Studies is to make an area of free circulation of ideas and knowledge, of sharing experience and finding effective solutions for real-life problems, to under-stand their causes and foresee the consequences. While the society needs and calls for research, research needs to be accountable to society. To this end, the journal publishes Research papers, survey, articles, research findings, book reviews, and annotations of new books. Dr.A.K.Jha Managing and Chief Editor GJMMS
  • 9. viii GLOBAL JOURNAL OF MULTIDISCIPLINARY AND MULTIDIMENSIONAL STUDIES Vol. 1 Issue No. 3 July- September 2015 1. AN ANALYTICAL STUDY OF THE FDI I IN INDIA 1 DR. I .JANAKI 2. INFORMATION NEEDS AND INFORMATION 8 SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. JAMES AFEBUAMEH AIYEBELEHIN 3. HEALTH AND ECONOMIC IMPLICATIONS OF 28 SOLID WASTE DUMPSITES: A CASE STUDY HAZAR KHWANI DUMPSITE – PESHAWAR CITY Huma Salma Gillani 4. AN ANALYTICAL STUDY OF THE RELATIONSHIP BETWEEN 43 GDP, INFLATION AND STOCK MARKET Sudha Swaroop 5. GLOBAL WARMING IS MAJOR CONCERN FOR 48 ENVIRONMENT & ECOLOGY Dr. V. D. SHARMA
  • 10. 1 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. ISSN NO. 2394- 8965 GJMMS Vol. – 1, Issue – 3, July-September - 2015 An analytical study of the FDI in India Dr.I.Janaki Associate professor Department of Economics Wollo university ethopia ABSTRACT To attain accelerated economic growth domestic investment has to be complemented by FDI. It increases employment opportunities, increases gross domestic product and standards of living of people and population at large. There are inward and outward FDI and the difference will be the net inflow of FDI. Another differentiation in FDI is horizontal and vertical. There are two routes under which an Indian company receives vertical FDI: automatic route and government route. The key advantage of FDI is employment generation. More competition also leads to increased productivity and greater efficiency in the host country. Make in India initiative also is resulting in more FDI into different states in India. With regard to inflows and outflows we see fluctuations during four year period. Most of the countries reduced outflows and increased inflows. Multilateral Investment Guarantee Agency of World Bank opined that macroeconomic instability is the main reason for this decline. Key words: Economic development, employment, inflows, outflows Introduction “It is the intent and objective of the Government of India to attract and promote foreign direct investment in order to supplement domestic capital, technology and skills, for accelerated economic growth.”1 The fundamental requisite of the present Indian Government is to promote employment opportunities and increased income levels of the residents of its nation through „Make in India‟ approach as can be clearly noticed in its objective with reference to FDI. Foreign Investment Promotion Board (FIPB) was also constituted to facilitate investments from NRIs and resident Indians. It contributes to the growth of economy‟s GDP and in turn increases the per capita income. The GDP of a nation is considered as Y =C+I+G+(X-M) in which C stands for national consumption level, I stands for national investment level, G stands for national expenditure level and (X-M) stands for balance of trade. FDI belongs to the national level investment I, i.e., the net inflows of investment (inflow minus outflow). It is the sum of equity capital, other long-term 1 “Consolidated FDI Policy (Effective from May 12, 2015)”, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry Government of India, 2015, P.1
  • 11. Dr.I.Janaki 2 capital, and short-term capital. It customarily involves participation in different levels of management, joint ventures, transfer of technology and expertise etc. Foreign capital inflow is considered as FDI only if the investment is made in equity shares, fully and mandatorily convertible preference shares and fully and mandatorily convertible debentures with the pricing being decided upfront as a figure or based on the formula that is decided upfront. Objectives To know the nature and kinds of FDI that operates in different countries. To know why countries go for FDI To know why countries deny FDI To know India‟s stand on FDI and comparison between different conditions Methodology The study relies on secondary data compiled from various published sources like, RBI Bulletins, Ministry of Finance, Department of Economic Affairs, Economic Division, National Accounts Statistics, Central Statistical Organization, Government of India; Ministry of Commerce and Industry, India; research papers and journals etc. Literature Review Foreign direct investment has a long history in India‟s economic record. Indian kingdoms had enjoyed relations with Greek and Roman traders who visited India and carried out business with them. In recent past also East India Company from the UK carried out business and exercised authority almost all over India. India need not go anywhere to attract but has to see that political and social conditions are stable and steady. Dale R. Weigel, Neil F.Gregory, Dileep M.Wagle opine the same idea that the pace of integration into the global economy is related to progress on creating and enabling policy environment for FDI. Byung-Hwa Lee (2002) studied the Korean case which shows that there is a large potential for other emerging economies to gain from FDI flows and that the initial costs from lost internal investment are largely outweighed by the medium-term benefits. Theodore H. Moran in his „Foreign Direct Investment and Development: Launching a Second Generation of Policy Research: Avoiding the Mistakes of the First, Reevaluating Policies for Developed and Developing Countries FDI is not a single phenomenon‟, argued that FDI has such different impacts in the extractive sector, infrastructure, manufacturing and assembly, and services and presents distinctive policy challenges that each broad category of FDI must be treated on its own terms. Anthony Bende Nabende focuses on the ongoing globalization process, which has ignited an unprecedented worldwide debate. He seeks to provide a "one-stop centre" for unbiased coverage of the theoretical, empirical and policy issues connecting globalization with foreign direct investment, regional economic integration, sustainable development and economic growth. Types of FDI Foreign Direct Investment (FDI) is a kind of investment that replicates the objective of forming a long-lasting financial concern by a resident enterprise in one country (direct entrepreneur) in an organization (direct enterprise) that is resident in another country. The long-lasting financial concern denotes the presence of a long-term association between the direct entrepreneur and the direct enterprise and a significant degree of control on the
  • 12. 3 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. business administration of the enterprise. The direct or indirect ownership of 10% or more of the voting power of an enterprise resident in one economy by an investor resident in another economy is the statistical evidence of such a relationship. There are two different types of FDI, namely inward and outward which results in a Net FDI inflow which will be either positive or negative. The cumulative number for a given period of time is known as „stock of foreign direct investment. It is an important example for international factor movements. There is another kind of differentiation in FDI. 1. Horizontal FDI: It takes place when a company replicates its parent country – based activities at the same value chain stage in a host country by means of FDI. For example, Wal-Mart opening retail chain in host countries. 2. Platform FDI: It originates from source country into another country for the purpose of exporting to a third country. For example, some tobacco companies have their European Headquarters and plants in Switzerland. The world famous Vinyl Chrolide Mononer producer, Shinetsu Chemical has its plants in Portugal and supplies all European countries from there. 3. Vertical FDI: When a company executes value addition activities phase by phase in a upright manner in host country. For example capital imports to produce finished products by companies like BHEL, HAL etc. 4. There are two routes under which an Indian company may receive vertical Foreign Direct Investment: a. Automatic Route: FDI is allowed under the automatic route without prior approval either of the Government or the Reserve Bank of India in all sectors as specified in the consolidated FDI policy, issued by the Government of India from time to time. b. Government Route: FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board, Department of Economic Affairs, Ministry of Finance. Advantages of FDI An increased inflow of FDI may cause improved economic growth due to the increased technology, employment and income levels in the host country. In order to augment the development process the host countries often make attempts to channelize these FDI investments into new infrastructure and other projects. It encourages investment in host country by providing new markets, demand for inputs like labor, new technology, etc., employment generation is the key advantage of FDI. Competition from multinational companies can lead to increased productivity and greater efficiency in the host country. Furthermore, FDI also results in the transfer of more advanced technology, job creation, skill development in host country. It creates a sense of globalism and improves understanding between participating countries and can lead to sustainable living conditions. FDI in India It was first introduced into India during 1991 after the liberalization of business and trade policies. But India disallowed overseas corporate bodies to invest. It imposes cap
  • 13. Dr.I.Janaki 4 on equity holding by foreign investors in various sectors. FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors. i. Atomic Energy ii. Lottery Business iii. Gambling and Betting iv. Business of Chit Fund v. Nidhi Company vi. Agricultural and Plantations activities with some exceptions vii. Housing and Real Estate Business with some exceptions viii.Trading in Transferable Development Rights (TDRs) ix. Manufacture of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. Recent Policy Measures by the Government of India:  100% FDI allowed in medical appliances  FDI cap increased in insurance & sub-activities from 26% to 49%  100% FDI allowed in the telecom sector.  100% FDI in single-brand retail.  FDI in commodity exchanges, stock exchanges & depositories, power exchanges, petroleum refining by PSUs, courier services under the government route has now been brought under the automatic route.  Restrictions in tea plantation sector are removed.  FDI limit increased to 74% in credit information & 100% in asset reconstruction companies.  FDI limit in defense sector increased from 26% to 49% in Government approval route and Foreign Portfolio Investment up to 24% is permitted under automatic route. Construction, operation and maintenance of specified activities of Railway sector opened to 100% foreign direct investment. India needs around $ 1 trillion between 2012-2013 and 2016-2017, in the 12th Five Year Plan period to finance infrastructure development that include sectors such as ports, airports, highways, and so on. In order to enter into Indian retail market, the foreign super markets have to invest $50 million on infrastructure and logistics within a three year periods. Also the investment must be in new back-end infrastructure, and not in existing acquisitions. This includes cold chain, warehouses, processing plants and logistical support and is critical for the smooth functioning of a retail firm. FDI in Different States Maharashtra was in first place to attract foreign in India during 2000 and 2014. The National Capital Region (NCR) including some parts of UP and Haryana, received $45.77 billion FDI and counted 19% of India‟s total FDI. Tamil Nadu stood third highest in FDI inflows worth $15.80 billion during the same period. The highest FDI of USD 83.73 billion came from Mauritius, second by Singapore USD 29.19 billion, third the UK USD21.76 billion and fourth by the US USD 13.28 billion. During the same period India received USD 236.46 billion foreign inflows. The government is making efforts to attract FDI from all major investing nations. The FDI
  • 14. 5 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. policy is liberalized in several important sectors like insurance, defense, construction and medical apparatus sectors. To magnetize foreign investors the government is ardently engaging with states through „Make in India‟ campaign to improve ease of doing business. After the launch of „Make in India‟ initiative in September 2014 there is an increase in FDI equity inflows by 48 during October 2014 and April 2015.2 Different surveys and industry experts have revealed that India is amongst the top destinations for investments across the globe. Following are some facts and figures pertaining to the FDI developments in the world. Key trends in 2014 • Africa attracted the largest inward investment, with $87bn of FDI announced in 2014. • India, Malaysia, Vietnam and Japan were four of the rapidly growing target countries for FDI in 2014. • Inward investment into the area comprising Russia, the Commonwealth of Independent States, and central, eastern and south-eastern Europe decreased by 24%, with $44bn of FDI. The apex supply country in 2014 was the US, and peak sector was real estate, top target country was China. Total capital investment from FDI was $649 billion and total emploment created in 2014 were 1,843,609. FDI projects into India increased by 47% in 2014 with 641 projects declared. Indian overseas FDI decreased by 19% to 226 projects in the same year. The table shown in Appendix – I gives the percentage of FDI net inflows and outflows in GDP of concerned countries namely, Australia, Brazil, China, France, Germany, India, Italy, Japan, Russian Federation, Singapore, South Africa, Spain, Switzerland, Sweden, the UK and the USA. Among these countries except Japan, South Africa, the UK and the USA all other countries reduced their outflows of FDIs. As far as inflows are concerned most of the countries are welcoming the investments from abroad. The major causes of fluctuations in FDI flows According to a World Bank study, the FDI to emerging markets is going to decline in 2015 because of demanding concerns about the global economy. The major reason for this decline in investment in these markets over the next two to three years would be the macroeconomic instability. This opinion is expressed by Multilateral Investment Guarantee Agency (MIGA) of World Bank. The unwavering global economic uncertainty seems to have infected the overall business attitude, and the economic pessimism is reinforcing the stagnant FDI levels. As fuel to the existing fire the IMF lowered its world growth estimates for the 6th straight time in two years, in October, 2014, cautioning a slow growth in the developing world. According to MIGA study the overseas financing into developing countries is believed to fall 4.5% next year after raising 2% in 2013. However, the FDI has increased four times at around $600 billion a year, than the levels seen a decade ago. Growing investments into sub-Saharan Africa and South Asia are a bright spot, although Europe and Central Asia are noticing declines. 2 Nirmala Sitaraman, E-government report , web pages.
  • 15. Dr.I.Janaki 6 But the MIGA said most of the 459 companies it surveyed about their activities in emerging markets were not planning to withdraw or cancel existing investments. Though income gap between developed countries particularly OECD countries and emerging countries like India has continued to whither but still remains large. It mainly stems from the ever increasing population and relatively declining resources. It results in productivity shortfall and structural bottlenecks. The hurdles in foreign direct investment have been lessened in particular in telecom, civil aviation, railways, defense, construction and multi- brand retail. Financial reforms are gradually implemented and the Reserve Bank of India has taken steps to increase competition in the banking sector as well as its efficiency but more is needed to achieve a more efficient allocation of capital. Moderation in administrative and regulatory burden on companies and encouraging infrastructure development would encourage foreign investors to start business in India. To increase the creation of formal jobs, shrink labor market duality and help the participation of women, labor laws should be simplified and rigorous employment protection policies should be reconsidered. Improved learning and training systems would promote the group of qualified workers and augment labor productivity. Women workers should be given special concern and job guarantee. Updating labor laws is vital to support employment formalization and to trim down labor market segmentation, gender bias and income inequality. Raising the quality of education and training systems would also promote the economy‟s ability to respond to new market opportunities and thus job creation, thereby reducing severe poverty and income inequalities. Conclusion Foreign Direct Investment fundamentally exploits the existing natural resources in the host country. When it is used people have to keep in mind that sustainable ways of utilizing the FDI will save the country from disappearance of natural resources. These ways include the customs, traditions, culture, social needs, age of population etc. They are developed in a region on the basis of geological and environmental conditions. The customs, traditions, environment and weather conditions, social needs etc., of a desert area are not same with that of a green or wintry regions. Hence one cannot apply the same rules all over the world. It is always better to avoid esteem needs of the society because they drive away the health of both people and the nature. To maintain balance is crucial for sustainable development. Otherwise world has to face poultry growth in sustainability of natural resources in the years to come. Referrences: 1. http://self.gutenberg.org/articles/foreign_direct_investment web pages 2. FDI http://self.gutenberg.org/articles/foreign_direct_investment 3. Tadashi ITO, „Export Platform Foreign Direct Investment: Theory and Evidence‟,http://www.ide.go.jp/English/Publish/Download/Dp/pdf/378.pdf 4. ARUN KUMAR, „Walmart to buy 49% in holding company of Bharti Retail, Cedar Support for Rs 455.8 cr‟, ET Bureau 9th May, 2013 5. World Bank Report, 2013 6. http://economictimes.indiatimes.com/articleshow/20319850.cms?_source=content ofinterest&utm_medium=text&utm_campaign=cppst web pages 7. http://finmin.nic.in/stats_data/nsdp_sdds/index.html web page
  • 16. 7 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. 8. Dale R. Weigel, Neil F.Gregory, Dileep M.Wagle, Lessons of Experience – FDI, International Finance Corporation and Foreign Investment Advisory Service, Washington, D.C. USA 1997. 9. Byung-Hwa Lee, FDI from Developing Countries: A vector for Trade and Development, OECD ilibrary.org. EBooks. 10. Anthony Bende Nabende, „Globalization, Fdi, Regional Integration and Sustainable Development: Theory, Evidence and Policy, ISBN-13 EBook. APPENDIX - I FDI – Outflows and Inflows Count ry Percentage in GDP Country Percentage in GDP 2009 2010 2011 2012 2009 2010 `2011 2012 X Y X Y X Y X Y X Y X Y X Y X Y Austra lia 3. 1 1. 8 3. 1 2. 4 4. 8 1. 2 N. A 1. 0 Russian Federati on 3.0 3.5 2.8 3.5 2.9 3.5 2.6 2.4 Brazil 1. 9 0. 3 2. 5 0. 8 2. 9 0. 2 3.4 0. 4 Singapo re 12. 8 12. 4 24. 7 11. 7 22. 8 10. 7 20. 6 8.4 China 2. 6 1. 6 4. 1 1. 5 3. 8 1. 4 3.0 1. 4 South Africa 1.9 0.5 0.3 0 1.5 0 N. A 1.1 Franc e 1. 0 4. 2 1. 5 2. 7 1. 6 2. 3 2.5 1. 5 Spain 1.3 1.5 3.3 3.1 2.2 2.9 2.7 0.4 Germ any 1. 1 2. 5 0. 9 2. 8 1. 2 1. 3 0.8 2. 6 Switzerl and 2.1 0.2 3.7 0.1 2.4 N. A N. A N. A India 2. 6 1. 2 1. 5 0. 9 1. 7 0. 8 N. A N . A Sweden 2.2 6.3 0.4 5.0 0.5 3.9 0.7 4.1 Italy 1. 9 2. 1 - 0. 3 0 . 9 1. 3 2. 2 0. 4 1. 4 UK 0. 2 1. 2 2. 7 1. 7 1. 5 3. 8 2. 3 2. 9 Japan 0. 3 1. 6 0 1 . 1 0 1. 9 N. A 2. 1 USA 1. 0 2. 3 1. 9 2. 5 1. 7 2. 9 1. 3 2. 7 Source: World Bank Report 2013. = Outflows; Y=Inflows
  • 17. JAMES AFEBUAMEH AIYEBELEHIN 8 ISSN NO. 2394- 8965 GJMMS Vol. – 1, Issue – 3, July-September - 2015 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. JAMES AFEBUAMEH AIYEBELEHIN (B.SC, M.LIS, CLN) Lecturer, Department Of Library And Information Science, Ambrose Alli University, Ekopma-Nigeria ABSTRACT This study surveyed the information needs and information sharing among managers of SMEs. The descriptive survey research design was used. The instrument used for data collection was questionnaire. Descriptive statistics was used to analyze the data collected. The population of this study consisted of all SME managers within Ekpoma, Esan West L. G. A. However a sample size of 200 SME managers were randomly selected and used for this study. It was found that SME managers require more customers' information and their customers were viewed as the most essential sources of information. SME managers possess SSCE as their highest educational qualification and their highest annual income ranges from N 51,000-N100, 000. It was also found that SME managers have positive attitude towards information sharing. However, SME managers were cautious about the nature of information they share. Physical/verbal communication was found as the major channel of sharing information. The recommendations were that; SME managers should maintain cordial relationship with their customer, and SME managers should equally build a positive attitude among their colleagues to enhance information sharing. Workshops, seminars, conferences should be organized by Government and Non-Governmental organizations to prepare SME managers for a competitive environment. Words count: 193 Keywords: SME, Managers, Information need, Information Sharing. INTRODUCTION Information has remained a veritable tool to man just as air of life he breathes for healthy growth. This simply means that information serves as the major basic need in a man's life. It is imperative to note that man has need of wide range of information in other to run daily activities most effectively in his life time. The need to find what has to be, people utilize information in various ways. Thus information is a resource that must be acquired and used in other to make informed decisions. Every individual whether literate or non literate, self employed or civil servant need information for decision making. According to Utor (2000), information is understood in terms of books, journals, magazines, public and private sector, documents of all kind of whether published for mass
  • 18. 9 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. circulation or unpublished and of restricted or confident nature, results or research efforts which are made available to colleagues in form of reports, books articles and non print materials.Traditionally, information has been stored in people's mind and it has been updated and modified through social contact, learning and communication. As society has grown and become more complex, a large quantity of information has been required. However, increasingly numbers of people have been deprived access to information through poverty, illiteracy or lack of knowledge and the disadvantage have been suffering from increased information deprivation. There is no universally accepted definition of Small and Medium Scale Enterprise as a term, many scholars and researchers have defined the term small and medium scale enterprise from different angles and perspective. The definition even change with time depending on the level of development of the country (Akinbinu, 2003). Under the venture of Capital Trust Fund Act 2004 (ACT 680) small and medium scale enterprise (SME) is characterized as an industry, project, undertaking or economic activity whose asset base excluding land and building does not exceed the cedi equivalent of U.S one million dollars in value (Aregbeyen, 1999 CBN: 1996). The small and medium industries and Equity Investment Scheme (SMIEIS) defines small and medium enterprise as any enterprise with a maximum asset base of two hundred (200) million naira excluding land and working capital and with the number of staff employed not less than ten (10) or more than three hundred (300). Small and medium enterprise have been defined along a broad range of size and type in terms of size, measures used to classify SMEs include employment assets and revenue. The definition of medium- sized industries may vary among different countries. There are majorly two keys and ways to define the size of a business: - The number of revenue, - The number of employees. Some industries are a lot more labour intensive and the definition of "small" may include a large number of employees, other industries especially those that rely on technology or specific skills of an individual may reach only a low employee number before being bumped into the next size category. The central Bank of Nigeria defines small and medium scale enterprise in Nigeria according to asset base and number of staffs employed. The criteria are an asset base between five (5) million and five hundred (500) million naira and staff strength between eleven (11) and three hundred (300) employees. Whatever definition it takes, SMEs are important to socio-economic transformation and it is estimated that SMEs employ 22% of the adult population in developing countries (Daniels and Ngwira, 2003). Apart from the number of employees, there are other key factors that characterize the SMEs and these are related to the management and the nature of operations. The SMEs may be managed by their owners who are often assisted by family members (Okello-obura….. et al, 2009) in this regard, the decision making system is quite flexible, informal and dependent on the personal drive of one or more executives. By their vary nature of operating, the SMEs have a
  • 19. JAMES AFEBUAMEH AIYEBELEHIN 10 narrow range of products/services and a relatively simple and unsophisticated management structure with a narrow tolerance of risks. Individual SMEs experience difficulties in achieving economics of scale in the purchase of inputs and one often unable to take advantage of market opportunities that requires large production quantities homogenous standards and regular supply. Above all, SMEs are confronted with situations where decisions are made haphazardly and not based on accurate information. In information science literature, information is understood as the need and demand necessary to life's success and fulfillment. Apart from Land, Labour, Capital and entrepreneur which happens to be four (4) factor of production in business , Nwalo (2009)noted that information is at present believed to be a fifth factors of production which is by no means inferior to the four factor of production. This is to say that information is of paramount importance to both small and medium scale enterprise. Tamiyu (2002) cited by Odunewo and Omagbemi (2008), noted that at all levels of human needs, individual would require information about the nature and extent of their needs and about the resources they can harness to meet these needs. Information is crucial not only to an individual need but as well as handling managerial processes of business. Aiyebelehin (2011) citing Buckland (1991) defines information as a process which occurs in the mind when a problem is united with data that can solve it. Information is a part of a process of converting messages received into knowledge. Within a business organization like small and medium scale enterprise, this information must be gathered in the form of data and appropriately processed by the information managers before it can be utilized. Vividly, information needs and information sharing habits are seldomly used because they are different in terms of analysis, while information need in nature is the findings of that which is to fill a conscious or unconscious gap, information sharing habit on the other hand tends to display the way and manner one pass out his or her findings after the search of a valuable information. According to Jorosi, Holland (2000) supports the sharing of information and ideas for effective product development. Sharing information appropriately and securely is a vital step in helping organizations work together to deliver better services to the public. Information sharing is important in business in helping to promptly meet customers and clients needs. To Wilson (2008) information is an individual or groups desire to locate and obtain information to satisfy a conscious or unconscious need. Information is desirable in human life; information is not an opportunity cost i.e. To say information cannot be forgone for another as it (information) is inevitable. Information needs can also be defined as that which may be vocal or written and made known to the library or to some other information system. Therefore the need and sharing habit of information has to be expressed in a particular form either orally, verbally, by asking or questioning for it in writing. Information need and sharing habit of managers of small and medium scale enterprise varies according to various factors responsible in perpetuating its functions. The
  • 20. 11 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. factors maybe background qualification of the manager's, job affiliation, individual's employment has a great effort on his information need and sharing habit. The need for the production of value added goods and services may put pressure on the managers in business organization to seek for relevant information to improve their information. Hwang (2011) reported that employees in a large insurance company in Korea are motivated to use information effectively to make better decisions and seek for information and share information to increase their productivity. When information is appropriately managed, it goes a long way to enhance decision making, information is paramount within the walls of an establishment, and information is a continuous process. De Alwis and Higgins (2011) established that managers in Singapore used information to prepare reports, strategic plan and executive summary. Information is necessary to make plans, without good information an establishment will be stagnant. The business environment is constantly changing and evolving. Business themselves change over time and as they grow and develop, the information needs of the managers change as well, the information system needed to support growth and development will also need to change (Vakola and Wilson, 2004). It is therefore important to review those information needs so as to continue to adjust business operations with changing market needs. Information needs of managers varies from manager to managers, the information needs of SMEs managers may range from accessing finance/capital, developing managerial skills bench marking, business trends, new technologies, government services available to business e.t.c. Many managers do too much information seeking and less information sharing and this often leads to information silo. Information silos exist because management does not believe there to be enough benefit from sharing information and because information might not be useful to personnel in other systems. To ensure survival in today's competitive business world, small and medium enterprise requires access to accurate and relevant information both at the start up stage and during their day-to- day operations. small and medium enterprise generally tend to be information intensive, this various interventions maybe required on the part of the management to ensure that information needs and resources of the enterprise are met and well managed through the use of information, top managers of firms are able to reactively and pro-actively adapt their organizations environmental changes in order to survive and prosper. Opara (2004) noted that the flow of information or data in an organization is a continuous record of the status of the pertinent elements that affects the survival and growth of the organization. Managers of SMEs need to have access to adequate information to enhance productivity and to facilitate market access. The establishment of an active SMEs sector and the effective utilization of quality business information has been identified as crucial in attaining long-term and sustainable economic growth for developed and developing countries alike (Corps, 2005). The SMEs need tailor made information solutions i.e business information services that assess,
  • 21. JAMES AFEBUAMEH AIYEBELEHIN 12 verify and apply information to a specific business problem (okello-Obura ….. et al, 2008). Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Everyday, we come across the word "business" or "businessman" directly or indirectly. Business has become essential part of modern world. Business is an economic activity which is related with continuous and regular production and distribution of goods and services for satisfying human wants. The etymologies of 'business' stem from the state of being busy and imply commercially viable and profitable work. Olagunju (2008) defines business as an enterprise that engages in the production of goods and services that provide satisfaction for consumer's i.e to say that apart from the objective of earning profit in establishing a business enterprise, consumers satisfaction is also another objective. A business is a concern, an enterprise or organization set up by an individual or group of individuals or group of individuals for purpose of making profit. STATEMENTS OF THE PROBLEM Several studies on various aspects of information needs have been carried out in the field of social science, humanities, science and technology, a number of reviews and bibliography covers various aspects of information needs, however not many studies have attempted to investigate information needs and sharing habit of small and medium scale enterprise managers. Most previous literature are focused on information needs and seeking behaviors, hence, not much has been done so far to cover the aspect of information needs as well as information sharing habits in Nigeria. Information is an essential resource for development. Small and medium scales enterprise managers generally need information to enable them various duties in their fields of endeavours. Considering that the world and the rural areas in particular function on the flow of information and that information itself is a prime resource, this study sought to determine the characteristics that impact upon the manner in which information is sought, used and shared by small and medium scale enterprise managers and the study will cover all phrases of their information needs and sharing habits as opposed to previous literature that focused on a particular aspect of information need and seeking behaviour. This study is therefore designed to study the information needs and sharing habits of small and medium scale enterprise managers. OBJECTIVES OF THE STUDY The general objective of this study is to survey the information needs and sharing habits of managers of small and medium scale enterprise. The specific objective of this research studies are: 1. To find out the information needs of managers of small and medium enterprise. 2. To identify their various sources of information. 3. To examine the attitudes of small and medium enterprise managers towards information sharing. 4. To unveil how information sharing among managers of small and medium enterprise is done. 5. To examine the type of information managers of SMEs are willing to share.
  • 22. 13 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. 6. To discover the problems encountered by small and medium scale enterprise managers when sharing information RESEARCH QUESTION 1. What are the information needs of managers of small and medium enterprise when carrying out their duties? 2. What are the various sources available to managers of SME when consulting information? 3. What are the attitudes of SME managers towards information sharing? 4. How is information sharing carried out within small and medium enterprise? 5. What are the types of information managers of SMEs are willing to share? 6. What are problem encountered by SME managers in the course of information sharing? LITERATURE REVIEW INFORMATION AND INFORMATION USE BY SME MANAGERS Information is universally accepted as important resources. In any organization, information is prerequisite for effective decision making. Consequently, the position or handiness or awareness and use of right timely information ensure organizational effectiveness. Information has been subjected to various definitions due to the increase growth in the use of the term. Aina (2004) opined that information means many things to different people. To some people, information means news, while others refer to information as facts and yet others view information as data. To the telecommunication engineer, information is associated with bits and data, the philosophers identify it with recorded facts, with the context or content or with the experience stored in the human mind, the microbiologist consider information as the genres in DNA which are transmitted from one generation to another and to the librarian, information is associated with recorded knowledge. Information can be viewed as a "data that have been put into meaning and communicated to a recipient who used it make decisions". Information is knowledge and wisdom that contribute to the cultural, economic, educational, political and well being of a society or nation. Afolabi (2003) identified setbacks to the flow of information like social, economic, environmental, occupational and infrastructural setbacks. If these setbacks were not removed, it would be difficult for any free flow of information from the sources through media to the users. Uhegbu (2001) saw information as power by which an individual or group can get it's own ways in a social relationship. Information as powers confer unequal opportunities on people as those who get it gets things done faster and easier while those who do not have it are left out right in the scheme of opportunities. Information is knowledge when it is performing the role of impacting knowledge on to an individual where it reduces uncertainty. Information is intangible; it becomes tangible when it is a thing, that is to say a physical object such as data or documents. Austin (2007) is of the view that information starts whenever a message is conveyed from one person to another. It starts from our room when instructions are passed from one member of the household to another. It continues in the class when ideas are
  • 23. JAMES AFEBUAMEH AIYEBELEHIN 14 passed across from the lecturers to the student, it is equally passed within subordinates in an organization. Information is passed in different forms and has classification. In other words, every individual or an organization needs a classified information on peculiar information in order to function and achieve it's desired goals. Afolabi (2003) argued that information is indispensable, an ingredient for social, economic, industrial, political and technological advancement as it is apparent in every facet of human endeavors. Burch and Grudinitski (2002) further viewed information as a message of and reception of intelligence and knowledge which "appraise and notifies , surprises, reduce uncertainty, records additional alternative or help eliminates individuals and stimulates them to action". Thus, information is not an end in itself but a means to an end and so the origin of the need which can be intellectual, social and cultural. Fosekette et al (2000) point out that "information is an explicit ingredient of knowledge, but only when a human mind get to work on it becomes knowledge of itself. Nwakwo (2004) perceives information to include "a wide range and variety of things ranging from oral and printed words, figure, statements, files and documents to such intangible elements as to needs, signals, rays or colour and waves". In the light of all the definitions, it can be inferred that information is not a discipline like chemistry but it is the bedrock of every discipline and every development. Without information, human being will be wallowing in ignorance and thriving in chaos. Information is the raw materials of managerial work. A large part of the manager's information comes from or concerns the environment external to the organization. Customer preference, competitor strategies, technological advancements, government regulations and social and economic conditions are all in a constant state of flux. Traditionally, management research has always recognized the important role of information in managerial work. Managers use information in managerial decisions. The work of managers is information intensive, managers are exposed to a huge amount of information from a wide range of sources and selectively use the information to make day to day decisions and to formulate longer term strategies. The classic conceptualization of managerial work by Mintzberg (1999) clearly articulates how the acquisition, dissemination and use of information lie at the heart of managerial work. Mintzberg divides the work of mangers into three set of interlocking roles. - Interpersonal - Informational and - Decisional roles By virtue of the formal authority vested in the position, the manager performs three interpersonal roles: - As figure head, the manager represent the organization in informal matters - As leader the manger defines relationship with subordinates - Finally, as liaison, the manager interacts with external persons to gain information and favours. Interpersonal roles give the manager access to many internal and external sources of information and so enable three informational roles:
  • 24. 15 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. - As monitor, the managers continually seek and receive information from a variety of sources in order to develop thorough understanding of the organization and its environment. - As disseminator, the manager transmits special information into the organization's information out to the environment. The unique access to information combined with the authority empowers the managers to use information he has to discharge four decisional roles: - As an entrepreneur, the manager initiates "improvement project" that exploits an opportunity or solve problem. - As disturbance handler, the manager deals with unexpected but important events. - As resource allocator, the manager controls the distribution of all forms of organizational resources. - Finally, as negotiator, the manager engages in major negotiations with other organizations or individuals. The three set of ten managerial roles meld into a portrait of a manager as an "information processing system". In essence, the manager is an input output system in which authority and status give rise to interpersonal relationships that lead to inputs (information) and these in turn leads to outputs (information and decision) one cannot artibitrarily remove one role and expect the rest to remain intact (Mintzberg, 1999) in fact, "it is the manager's informational roles that tie all managerial work together linking status and the interpersonal roles with the decisional roles" (Mintzberg, 1999). Managers in business organizations may seek for and use information for problem solving, decision making, business planning, social competence, creativity and innovation, conflict resolution, market research and improved productivity all of which have direct impact on business performance of an organization. Information seeking by managers includes searching, locating selecting, comparing or differentiating, acquiring, consulting, trail and error and even environmental scanning. Environmental scanning is defined as the acquisitions of external environment, the knowledge of which would assist management in planning the organization's future course of action (Choo and Auster, 1999). Aguilar (1997) defines environmental scanning as "scanning for information about events and relationships in a company's outside environment, the knowledge of which would assist top management in its task of charting the company's future course of action" certainly not all of the information from scanning may be actually used in making strategic decisions, yet an piece of such information whether it is obtained with or without a purpose could have an impact on managerial decision making. Research on environmental scanning began in the 1960s with path findings studies by Aguilar (1967) and Keegan (1968) since then most of the studies have revolved around a few research themes: the effect of perceived environmental uncertainly on scanning; the focus of scanning; information sources used and scanning methods. In each of these areas it is possible to discern a consistent picture of how managers scan. With regard to environmental uncertainty, most studies found that managers who perceive greater environmental uncertainty tend to do more scanning (Auster and Choo, 1993. The
  • 25. JAMES AFEBUAMEH AIYEBELEHIN 16 focus of scanning is on market related sector of the external environment, with information on customer's competitors and supplies being the most important (Jain, 2002). SOURCES OF INFORMATION OF SME MANAGERS Sources of information are those medium through which information seekers get relevant information. There are two (2) broad sources of information: formal and informal sources in the view of Efe (2006) information sources are divided into four (4) types which include people, organization literature and information services. Efe (2006) further referred to those sources of information as those who are highly knowledgeable in a particular field of study, also referred to as resources, persons, they provide authentic of first hand information, facts ideas and data on any issue, events, subject topic e.t.c. people as a source of information are used when the required information cannot be found in literature of publications or when the people are ignorant of how to sought for information in the case of SME managers, newspapers, television broadcast, co-workers e.t.c. are sources of information other activities that serves as information source includes, seminar, workshops, conference, meetings e.t.c. The third source of information as out together or introduced by Efe (2006) is literature. They are either primary or secondary in nature; the primary literature consists materials which are original in nature and represents new knowledge. Information in primary literature has not been modified. Examples include research report, thesis and dissertations, conferences, proceedings. The secondary literature originates from the filtering of primary sources through modification or re-arrangement. They include textbooks, encyclopedia, abstract and indexes, dictionaries e.tc. Which SME managers can use in meeting their information needs. Dua (2000), studying Chinese SMEs using face to face interviews concludes that some managers mostly used personal sources of information and rarely used formal information services. Mc Lachlan (2003) through telephone interviews investigated various aspects associated with the information needs of small business executives. Results suggested that: - Business managers relied more on magazines and to a lesser degree on trade show, workshops, suppliers, seminars and professional organizations were the most frequently cited sources of oral information. - Market and economic conditions were the most frequently cited sources of oral information. In a national study of over 200 CEOs in the Canadian publishing and telecommunication industries, Auster and Choo (2003) found that the most frequently reported sources were internal and personal. Chalmers (1999) undertook a qualitative study on the needs for and uses of published and personal information by managers in New Zealand. Among the findings was that: - Most respondents did not systematically seek information from secondary published sources to assist them in decision making and - Environmental scanning usually involved the use of primary sources and where published sources used, in most cases, they were supplements to personal sources. SME managers rarely use formal sources when seeking for information as they mainly sought information via personal sources.
  • 26. 17 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. Bournois and Romani (2000) in their study of environmental scanning of firms in France found that eight percent of the firms sourced their needed information form databases and only five percent of them using competitive intelligence tools. Popoola (2011) citing Jorosi (2005) reported that the managers in small and medium enterprises in Botswana spent their time seeking for competition information, customer information, economic information, technical organizations work in information rich environment and they often faced with the problem of information overload. It must be noted that managers are socialized to depend on an accurate, objective and generally sufficient source of information, maybe to improve their creative and innovate efforts. According to Popoola (2011) citing Rosewell (1997) asserted that company information is commonly sought throughout industry and sources of business information include information brokers, financial data, company accounts, financial news, shareholders, stock brokers, internet, report, newspapers and magazines, broadcast media (radio and television) textbooks e.t.c. similarly, Houtari and Wilson (2001) posited that sources of business information are direct contact, printed information materials and electronic information services. Business managers prefer to seek and obtained needed information from the available sources that are current, relevant comprehensive and reliable. INFORMATION NEED AND SHARING HABITS OF SME MANAGERS Line (2001) defined information need as what an individuals ought to have for his or her work, his or her research, his or her edification, his or creation e.t.c. information therefore is a necessity for substantial growth in all ramification of an individual's life. Adewunmi (2003) also reported that information needs vary with users, time purpose, location and alternatives. Hernon and Chen (2004) submit that information needs occur whenever people find themselves in situation that required some form of knowledge resolution. Kumar (1998) also viewed that the identification of information needs maybe expressed as an input process – output model the basic component of the systems are: - Problems (Existing solution) - Problem (Solving process) and - Solution With the afore-mentioned ideas by the investigators, information need is focused on an individuals' best interest, when a problem exist, the most appropriate solution is needed, and the solution hence is the information need. The concept of information need have been proved intractable by Wilson (2000) by the simple reason that need is a subjective experience which is not directly accessible to an observer. Information needs are those innate desire or quest for relevant facts to be processed and used to settle life's option. The information need of SME managers is determined by the type of information sought for, the source of the information and the rate at which the information is being communicated or transferred. Young (2002) found that information needs often reflect the age and changing socio-economic, health, family and personal circumstances of people and are therefore not permanent but ever-changing. Belkin et al (2004) describes information need as an anomalous state of knowledge. It is pertinent to note that everybody needs
  • 27. JAMES AFEBUAMEH AIYEBELEHIN 18 information to reach his or potential conscious activity under taken by human being is directed towards the satisfaction of need. The more information available to a system about itself and about it's environment, the more reliable it becomes and the greater its chance of survivals (Ihenyen, 2010). Mchombu's (2000) small explanatory study probed the information needs of women in small business in Botswana in order to establish how these needs arose and factors which create information sharing habits. The study employed structured interviews as the main data gathering tool. Among the key findings, it was found that respondents' information needs centred on business management, sources of financial assistance, business diversification and legal information. Shokane (2003) investigated the extent to which small and medium – sized enterprise in Acornhoek, (South Africa) make use of business information for sustainable competitive advantage. The study utilized a pre-structured questionnaire to gather data. The study's finding revealed that: - Many business managers lacked information in managing their business. - Many were not aware of their information needs and how business information devices could support and advance their business activities when sharing information. - Business managers still relied on informal sources for managing their business enterprise consequently, the findings of a study conducted in one geographical and social context have limited applicability in another context because of the significant differences in the context, likewise, the information sharing habits of mangers in a developing country context should not be generalized to a developing country or vise versa. As a result, we know very little about sharing manager's information needs and sharing habit. The net result of this limitation is a gap in the empirical literature that needs to be filled. RESEARCH METHOD In order to achieve a comprehensive result, this research work was carried out using the descriptive method because it involves a systematic and comprehensive collection of data or information about the opinions, attitude, feelings and behaviors of people. Utsoko (2002) reaffirmed this when he said that the descriptive research is used to collect data from a relatively large number of classes at a particular time in order to foster the current status of particular population. The data intended for this study was collected through application of questionnaires. The population of this study comprised of all small and medium scale enterprises in Esan West Local Government Area, Ekpoma. Presently, there is no official data on the exact number of small and medium scale enterprise in Esan West L.G.A., but empirical evidence shows that there are hundreds of them scattered around the local government with many of them situated at Ekpoma, the Local Government headquarter. Considering the nature of this study, a sample of two hundred (200) SME managers were randomly selected from the available managers of small and medium scale enterprise in Esan West L.G.A., Ekpoma. The method of data analysis that was used in this project was the simple percentage (%) and frequency tables. The essence of this was to help the researcher to see the similarities and relationship of the data. DATA ANALYSIS AND PRESENTATION OF RESULTS QUESTIONNAIRE ADMINISTRATION AND RESPONSE RATE
  • 28. 19 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. A total of two hundred (200) questionnaires were administered. One hundred and fifty eight (158) copies were successfully retrieved, representing 79% response rate and these were found usable for analysis. Table 1: Demographic Profile of Respondents Variables Frequency Percentage (%) Gender Male Female 57 107 36.1 63.9 Marital status Single Married Divorce 99 58 1 62.7 36.7 0.6 Highest Educational Qualification Primary Cert. Junior SSCE Diploma Degree Post graduate 7 9 61 41 37 3 4.4 5.8 38.6 25.9 23.4 1.9 Income per annum 10,000- 50,000 51,000-100,000 100,000 & Above 31 68 59 19.6 43.1 37.3 Table 1 shows the results of the demographic profile of the respondents. From the table, we can see that females were more than males with 101(36.9%) and (36.1%) respectively. Among the managers, those that were single dominated the respondents with 99(66.7%) as against those that were married with 58(36.7%) and divorce 1(0.6%) respectively. For the highest education qualification of the managers, 61(38.6%) has SSCE, 41(25.9%) diploma, degree 37(23.4%), post graduate 3(1.9%), Junior Certificate 6(5.8%) and primary school certificate with 7(4.4%) respectively. Finally, on the income per annum, managers that receive between 51,000-100,000 dominated the respondents with 68(43%) as against 10,000-50,000 with frequency of 31(19.6%) and 100,000 above with frequency of 59(37.3%). Table 2: What Information Do You Need? S/N Items SA A D SD 1 Where to get goods 79 (50%) 70 (44.3%) 3 (1.9%) 6 (3.8%) 2 How to attract customers 94 (59.5%) 51 (32.3%) 11 (6.9%) 2 (1.3%) 3 Taxes 26 (16.5%) 54 (34.2%) 65 (41.1%) 13 (8.2%)
  • 29. JAMES AFEBUAMEH AIYEBELEHIN 20 4 Government Regulations 20 (12.7%) 59 (37.3%) 65 (41.1%) 14 (8.9%) 5 Social-cultural issues 17 (10.8%) 59 (37.3%) 62 (39.2%) 20 (12.7%) 6 Festive seasons 53 (33.5%) 61 (38.6%) 33 (20.9%) 11 (7%) 7 Business management 54 (34.1%) 88 (55.7%) 14 (8.9%) 2 (1.3%) 8 Customer's retention 72 (45.5%) 70 (44.3%) 14 (8.9%) 2 (1.3%) 9 Customers information 63 (39.8%) 77 (48.8%) 14 (8.9%) 4 (2.5%) Table 2 revealed that the most paramount information need of SME managers is on how to attract customers with a total of 91.8% strongly agreed and agreed and the information of less concern to SME managers is on social cultural issues as 51.9% Disagreed to the need of this information. Table 3: Sources of information S/N Where do you get business information from? SA A D SD 1 From my customers 80 (50.6%) 50 (31.6%) 20 (12.7%) 8 (5.1%) 2 From my business associates 54 (34.2%) 75 (47.4%) 24 (15.2%) 5 (3.2%) 3 Government officials 17 (10.8%) 36 (22.7) 85 (53.8%) 20 (12.7%) 4 Newspapers 32 (9.5%) 55 (23.4%) 55 (51.9%) 16 (15.2%) 5 Government publications 15 (9.5%) 37 (23.4%) 82 (51.9% 24 (15.2%) 6 Union/Associations 25 (15.8%) 49 (31.1%) 68 (43%) 16 (10.1%) 7 Internet 36 (22.8%) 65 (41.1%) 41 (26%) 16 (10.1%) 8 Library 18 (11.4%) 38 (24.1%) 68 (43%) 34 (21.5%) 9 Television/Radio 30 (19%) 63 (39.9%) 41 (26%) 24 (15.1%) 10 Watching competitors 35 (22.2%) 72 (45.6%) 28 (17.7%) 23 (14.5%)
  • 30. 21 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. Table 3 revealed that the major source of information to SME managers is their customers constituting a response rate of 82.2% strongly agreed and Agreed. The library was however viewed as the least consulted information sources with a response rate of 64.5% Disagreed and strongly Disagreed. Table 4: Reason for preferred source(s) of information S/N Why Do You Prefer The Source (s)? SA A D SD 1 It is reliable 43 (27.2%) 64 (40.5%) 27 (17.1%) 24 (15.2%) 2 It is accessible 50 (31.6%) 74 (46.8%) 20 (12.7%) 14 (8.9%) 3 It is always current 55 (34.8%) 68 (43%) 23 (14.6%) 12 (7.6%) 4 It is easy to use 67 (42.4%) 54 (34.2%) 18 (11.4%) 19 (12%) Table 4 revealed accessibility as the major reason why SME managers prefers their consulted information sources. Accessibility superseded all other preferred sources with a total of 78.4% responses on strongly agreed and Agreed. A close look at the table equally shows that SME managers pay attention to reliability (67.7%), currency (77.8%) and ease use (76.6%) while selecting a source of information. Table 5: Attitude towards information sharing S/ N What is Your Attitude towards Information Sharing? SA A D SD 1 To me, sharing information with my workers is harmful 15 (9.5%) 42 (26.6%) 83 (52.5%) 18 (11.4%) 2 To me, sharing information with workers is pleasant 14 (8.9%) 83 (52.5%) 51 (32.3%) 10 (6.3%) 3 To me, sharing information with my workers is worthless 10 (6.3%) 22 (13.9%) 98 (62%) 28 (17.7%) 4 To me, sharing with my workers is wise 26 (16.5%) 77 (58.7%) 43 (27.2%) 12 (7.6%) 5 I love sharing ideas with my colleagues 22 (13.9%) 73 (46.2%) 55 (34.8%) 8 (5.1%) 6 I don‟t like sharing vital information with competitors 53 (33.5%) 61 (38.6%) 29 (18.4%) 15 (9.5%) 7 I don't believe in hoarding vital information as long as it won't affect my salary 24 (15.2%) 70 (44.3%) 50 (31.6%) 14 (8.9%)
  • 31. JAMES AFEBUAMEH AIYEBELEHIN 22 Table 5 Revealed that SME managers have a positive attitude towards information sharing as 75.2% respondent perceive information sharing with workers to be wise. However, the responses show that SME managers exercise great caution with regards to the nature of information they give as 72.1% of managers are not willing to share vital information. Table 6: Types of information SME managers are share S/N What Type Of Information Are You Willing To Share? SA A D SD 1 Profit making 21 (13.3%) 23 (14.6%) 78 (49.4%) 26 (16.5%) 2 Information of products 30 (19%) 84 (53.2%) 35 (22.1%) 9 (5.7%) 3 Information on know-how 25 (15.8%) 81 (51.3%) 39 (24.7%) 5 (3.2%) 4 Customer retention 22 (13.9%) 73 (46.2%) 52 (32.9%) 11 (7%) 5 Price of goods 23 (14.6%) 64 (40.5%) 64 (40.5%) 7 (4.4%) 6 Personal management 20 (12.6%) 52 (32.9%) 75 (47.5%) 11 (7%) 7 Business management 21 (13.3%) 74 (46.8%) 51 (32.3%) 12 (7.6%) 8 Best business location 21 (13.3%) 74 (46.8%) 47 (29.8%) 16 (10.1%) 9 Wages/salary issues 15 (9.5%) 43 (27.2%) 72 (45.6%) 28 (17.7%) Table 6 revealed that SME managers to a large extent relent in sharing information on profit making with 65.9% total response rate of Disagreed and strongly. However, they are willing to share information on information of product (72.2%), information on know-how (67.1%), and business management (60.1%) respectively. Table 7: How SME managers share information S/N How Is The Information shared? SA A D SD 1 Through phone calls 53 (33.5%) 64 (40.5%) 30 (19%) 11 (7%) 2 Physical/ verbal communications 50 (31.7%) 80 (50.6%) 10 (6.3%) 18 (11.4%) 3 E-mail 59 (37.3%) 62 (39.2%) 17 (10.8%) 20 (12.7%)
  • 32. 23 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. 4 Social networks (whatsapp, facebook, 2go e.t.c. 47 (29.8%) 54 (34.2%) 32 (20.3%) 25 (15.8%) 5 Union/association meetings 46 (29.1%) 63 (39.9%) 24 (15.2%) 25 (15.8%) Table 7 Revealed physical/ verbal communication to be the major channel/medium for sharing information among managers with 82.3% total response for both strongly Agreed and Agreed. The table equally revealed that Union/Association (69%) is the lease likely medium of sharing information among managers Table 8: Challenges of information sharing Table 8: revealed poor attitude of SME manager's colleagues to be the major problem encountered by managers in the cause of information sharing with a total of 83.5% agreed and strongly agreed. DISCUSSION OF FINDINGS Majority of the SME managers were found to be females (63.9%) while the males accounted for (36.1%). This is similar to Jorosi (2000) findings on the information needs and information seeking behaviour of SME managers in Botswana. It was found that there were more females SME managers than males in Botswana. Majority of the SME managers were found to be single (62.7%) and possess SSCE as their highest educational qualification. This is also similar to Jorosi research where it was found that SME managers in Botswana possess SSCE as their highest educational qualification. The findings revealed that information on how to attract customers with a total of (91.8%) is the most paramount information need for SME managers. This finding is equally similar to Olagunju (2008) findings that claims customers attraction and satisfaction is the main objective of a business apart from the objective of earning profit. S/N What Are The Problems Encountered When Sharing Information? SA A D SD 1 Network failure 43 (27.2%) 34 (21.5%) 28 (17.7%) 53 (33.5%) 2 Poor attitudes of my colleagues 78 (49.3%) 54 (34.2%) 17 (10.8%) 9 (5.7%) 3 Lack of trust 63 (39.9%) 74 (46.8%) 10 (6.3%) 11 (7%) 4 Fear of losing customers 73 (46.2%) 66 (41.8%) 9 (5.7%) 10 (6.3%) 5 Poor power supply 29 (18.4%) 58 (36.7%) 41 (25.9%) 30 (19%)
  • 33. JAMES AFEBUAMEH AIYEBELEHIN 24 The findings revealed that the major source of information to SME managers is their customers (82.2%), similarly Shokane (2003) affirmed in his investigation to the extent to which small and medium sized enterprise in Acornhoek (South Africa) make use of business information for sustainable advantage, it was found that managers still relied enormously on informal sources of information, customers being one of the informal sources. Chalmers (1999) in this regard also found out that SME managers rarely use formal sources when seeking information as they mainly sought for information via personal sources. The findings revealed that accessibility is the major reason why managers of SME prefer informal sources of information with (78.4%) total response to accessibility preference. This is also similar to Jorosi (2000) findings which saw accessibility as the highest frequency of information sources preference. The findings revealed that SME managers have a positive attitude towards information sharing as 75.2% respondent attest to this. Similarly, Holland (2000) in his research found out that most business personnel love to share information but however, on some occasion they relent for fear of been retarded. This is slightly different from Shokane (2003) investigation that found out most business were not aware of how information devices could support and advance their business activities when sharing information and as such, they relent in sharing information. Consequently, the findings of a study conducted in one geographical and social context have limited applicability in another context because of the significance differences in the context, likewise, the information sharing habits of manager in a developing country context should not be generalized to a developing country or vice versa. The findings also revealed that the major channel/medium for sharing information is physical/verbal communication (82.3%) and poor attitude of SME managers colleagues was revealed as the major problem encountered by managers in the cause of information sharing with (83.5%) as affirmed in Belkin (2004) study which revealed fear of been outshined in an enterprise as the major reason why managers refuse to share information. RECOMMENDATION Based on the findings of the study it has been that SME managers should maintain cordial relationship with their customer. Also SME managers should build a positive attitude among their colleagues to enhance information sharing. Workshops, seminars, conferences should be organized by Government and Non-Governmental organizations to prepare SME managers for a competitive environment. This research generates a number of potentially meaningful directions for further research, the researchers therefore recommend that further research be conducted to explore different setting in order to unveil what drives human information sharing habits in different environmental contexts. CONCLUSION As business environment becomes intensely competitive, firms are confronted with challenges to adapt, survive and prosper. Numerous decisions on the source and allocation of resources are necessary and executives need an abundance of information. In fact, managers want a familiarity with the supply of resources and market conditions, an
  • 34. 25 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. awareness of these problems and potentials and a store of up-to-date facts, opinions and insights which will facilitate their negotiation and decision making activities. The information needs and sharing habit of SMEs has received little or no attention from researchers in Esan West Local Government Area, despites the fact that an understanding of this phenomenon is considered crucial to the growth and long-term survival of these firms. This study is one of the few systematic probes into the information needs and sharing habit SME managers in Esan West a developing Local Government Area context as district from a developed L.G.A. context because of environmental munificence. As such the study fills an apparent gap in the empirical literature and broadens and enriches our understanding of the information sharing habit research by presenting evidence from an environment that prior research has tended to neglect. REFERENCES Afolabi, A.K. (2003). "Information needs, information seeking behaviour of commercial Vehicle Drivers in Ondo State". Gateway Library Journal 6 (2): 1-2. Ahuilar, Francis, J. (1997). Scanning the Business Environment. New York, Ny: Macmillain co. Aina, L.O. (2004). Library and information science text for Africa. Ibadan: Third world Information service. Akinbinu, A. (2003). "Industrial reorganization for innovation: Current Knowledge on Small and Medium Enterprise Clusters in Western Nigeria" NISER Monograph series No. 8, Nigeria Institute of Social and economic research, Ibadan. Aregbeyen, J.B.O. (1999). "Constraints of Small and Medium Scale enterprise in sourcing funds from the Nigeria stock Markets" NISER Monograph Series No. 5, Nigeria Institute of Social and economic research, Ibadan. Auster, Ethel and Chun Wei Choo (2003). Environmental Scanning by CEOs in Two Canadian Industries. Journal of the American Society for Information Science 44, No 4: 194-203. Ayozie, D.O (2001). The role of small scale industry in National development in Nigeria. University Journal of Management And Social Science. Vol. No1: 23-34. Beaver, Graham and Hutching, Kate (2005). Training and development and age diverse Workforce in SMEs: The need for a Strategic Approach. Education and Training, 47 (8/9), Pp. 592-604. Belkin, N.J. Mureson, G. Zhang, X-M. (2004). Using user's context for IR personalization. In: SIGIR 2004 workshop on information Retrieved in Context (IRIX). Pp. 23-25. Beyene, A. (2002). Enhancing the Competitiveness and Productivity of small and medium scale Enterprises (SMMES) in Africa: An analysis of differential roles of national governments through improved support services. Africa Development 27(3): 130-156. Bournois, F and Romani, J.P (2000). L' intelligence economique et strategique clan les enterprises Francaises. Paris: Economica. Chalmers, A. (1999). Finding out: The use of business information by managers in New Zealand Business information science research 16(1): 23-40.
  • 35. JAMES AFEBUAMEH AIYEBELEHIN 26 Corps, M. (2005). Information and communication technologies in small and medium enterprise development. Available: www.globalenvision.org/library/7/698 (accessed 15th April 2014). Daniels, L and Ngwira, A. (2003). Results of a nation wide survey on micro, small and medium enterprise in Malawi. Dua, Z. (2000). The study and practice of information demand by small and medium sized enterprises in China. International Forum on Information and Documentation. Efe, S.I. (2006). The use of information and Information technology as a critical success factor in small and medium –sized companies. Journal of Business venturing 3:223-232. Hernon, P. and Chen, C. (2000). Information seeking: Assessing and Anticipating user Needs. No. 18 Pp. 43-45. Holland, S, Gaston, K and Gomes, J. (2000). Critical success factors for cross functional team work in new product development. Hwang, Y. (2011). "Measuring Information behavior performances inside a company: A case study". Information research, 16(2) paper 480. (Available at http://information R.net/ir/16.2/paper 480.html). Jorosi, B.N. (2006). The information needs and information seeking behaviours of SME managers in Botswana. Libri. 56(2):95-108. Keegan, W.J. (1968). The Acquisition of Global information, information management Review, 8(1), 54-56. Keegan, W.J. (1974). Multinational scanning: A study of the information sources utilized by Headquarters Executives in Multinational companies. Administration science quarterly 19(3), 411-421. Kumar, K. (1998). Competitive strategy, environmental scanning and performance: A context specific analysis of their relationship. International journal of commerce and management, 11(1): 1-13. Mc Lachlan, J. (2003). The small business's information needs and information sources. Graduate school of library and information studies. London. Mchombu, CM. (2000). Information needs of women in small businesses in Botswana International information and library Review 32: 39-67. Mintzberg, H.E. (1999). The nature of Managerial Work. New York: harper-Collins. Popoola, S.O. (2011). Planning and management of the information sector for sustainable Development in Nigeria. Journal of Research in Education 2(1):128-136. Sanusi, J.O. (2003). "Overview of government's effort in the development of SMEs and the emergence and the emergence of small and medium industries Equity Investment Scheme (SMIEIS). Presented .At The National summit on SMIEIS organized by the Bankers' Committee and Lagos Chambers of Commerce and Industry (LCCI), Lagos on 10th June. Schlogl, H. (2004). Small and medium Enterprises: Seizing the potential. Organizational for Economic Co-operation and Development, No. 243, Pp. 46-48. Shokane, J.K. (2003). The use of business information by small and medium sized enterprises in Acornhoek. South Africa Journal of Library and Information Science.
  • 36. 27 INFORMATION NEEDS AND INFORMATION SHARING AMONG MANAGERS OF SMALL AND MEDIUM SCALE ENTERPRISES IN EKPOMA, ESAN WEST LOCAL GOVERNMENT AREA, EDO STATE. Tijani-Alave. (2004). Entrepreneurship Process and Small Business Management Industrial Science Centre, Owoyemi, House, Abeokuta Road Sango Otta Ogun State, Nigeria. Uhegbu, A.N. (2001). The information user: Issues and Theme Enugu. John Jacobs. Wilson, T.D. (2000). Human information Behaviour in Pezeshki. Zaman, G. and Vilceanu, G. (2001). Coexistent intreprinderilor mari si mici, Tribuna Economic, No. 45, 2001.
  • 37. Huma Salma Gillani 28 ISSN NO. 2394- 8965 GJMMS Vol. – 1, Issue – 3, July-September - 2015 Health and Economic Implications of Solid Waste Dumpsites: A Case Study Hazar Khwani Dumpsite - Peshawar City Huma Salma Gillani Department of Economics, Institute of Management Sciences, Peshawar - Pakistan Abstract This study evaluates the economic burden of diseases associated to the inappropriate disposal of solid waste at dumpsite located at the Hazar Khwani, Peshawar provincial headquarters of Khyber Pukhtoon Khawah Province of Pakistan. A sample of 200 respondents was selected from 5% of the total population residing in the target area based on two-stage sampling technique. The sample data was regressed with the help of Tobit & Poisson models for estimation of mitigation costs and work days lost. Poisson & Tobit model estimates suggest an inverse and significant association between the distances and work days lost and mitigation costs, respectively. Annualized monetary benefit of one representative individual in Pakistani Rupees is from 186,612,897.66 to 192,559,787.244 for residential proximity within 4km radius of the dumpsite. Therefore, the study recommends adoption of an alternate solid waste management solution, such as composting or sanitary landfill, or providing the populace of the target area comprising of residential facilities at a considerable distance from the dumpsite. Keywords: Municipal Solid Waste; Dumpsite; Environmental Economics; Cost of Illness I. INTRODUCTION Waste also referred as rubbish, garbage or refuse is the by-product of the human economic activities. The solid wastes have adverse impact on the environments as well as public health, and are major source of water, land and air contamination. Municipal Solid Waste Management (MSW) is a much bigger problem of developing economies as compare to developed nations. The South Asian region, specifically Pakistan is no different from the rest of the world and is faced with the challenge of providing scientific SWM solution to its population. The lack of awareness and implementation of existing faulty framework add to the problem of defective SWM. The civic facilities managers of major cities in Pakistan in-spite of serious and continuous efforts are unable to cope with the menace of municipal waste management. The road sides and empty open areas overflow with filthy unhygienic heaps of wastes portraying a sorry state of affair all over the country. This uncollected waste a cause of environmental degradation and is a source of many life threatening diseases and economic cost of huge magnitude to the general public. The waste management is the centre of attention of the municipal authorities around globe because of increased pollution which
  • 38. 29 Health and Economic Implications of Solid Waste Dumpsites: A Case Study Hazar Khwani Dumpsite - Peshawar City leads to environmental hazards and economic costs due to non-existent or inappropriate wastes management. The term waste management covers the collection, segregation, handling and disposal of wastes in an environment- friendly manner. (A. A. Khan, Ahmed, & Siddiqui, 2012; J. A. Khan, 2006; Mahar et al., 2007) Study Area and Statement of the Problem Peshawar lies between 33° 44′ and 34° 15′ north latitude and 71° 22′ and 71° 42′ east longitude covering an area of 1257 sq. km. According to a UNFPA report, the city’s population has crossed 2.5 million3 . District Peshawar is the provincial capital of K-P consisting of 92 union councils. The Municipal Corporation (MC) is responsible for managing the solid waste of urban as well as rural areas; the Peshawar Development authority (PDA) is responsible for the management of Hayatabad and Regi Lalmah whereas the Cantontment is being independenly supervised by the Cantonment Development authority (CDA).(J. A. Khan, 2006; Pak-EPA/OECC, 2007) Peshawar Municipal Corporation is still utilizing old fashioned and discarded waste management techniques of open dumping and burning. There are two dumping sites on the outskirts of the city which have also become a part of the city due to population explosion and city extension. These dumpsite situated at Hazar Khwani and Lundi Akhune Ahmed employ the same techniques or open dumping and burning or burying along the roadsides (J. A. Khan, 2006). The dumpsite at Hazar Khwani is located at Ring Road about 7 km from the city centre. The problems addressed by the study are; the inappropriate waste disposal methods and costs evaluation of ill-planned and mis-managed waste. Dumping, burning and burying of wastes in open spaces though reduce the quantities of wastes are no more a desirable waste management solution. Resultantly, it impacts the health of the residents in adjacent localities through spreading skin and respiratory tract infections, stomach and chest related problems, malaria, dengue and other chronic diseases, psychological disorders, gastrointestinal problems, and allergies. It is also worth mentioning that these dumping sites have a very high economic and social cost not yet estimated. (Salam, 2010; UNEP, 2007) Various studies have proved that economic cost of illness to the people living near dumpsite is much higher than to those living in a cleaner environment (Folefack, 2008). Therefore, the aim of this paper is also to estimate the costs of illness of the residents residing near the Hazar Khwani dump site (the largest in-operation dumping ground). II.MATERIALS AND METHODS A structured questionnaire was administered by three trained enumerators from the targeted respondent households, living within the 4km radius of the Hazar Khuwani 1 Article published in Express Tribune: “Bane or boon: Urbanization, displacement pushes Peshawar’s population over 2.5m” Posted By Irfan.Shaikh On Nov 5, 2013
  • 39. Huma Salma Gillani 30 Dumpsite. Before conducting the final survey, questionnaire were pre-tested for checking the reliability and validity and the econometric specification. Cross-Sectional household survey collected health and medical expenditure data from the household as a primary source. The research adopted multistage sampling procedure following the sampling technique used in Gupta (2006) and Aggrey (2010). The purposive sampling was used in the first stage and Union Council 37 (Hazar Khuwani-I) of Town VI was identified as a sample unit for data collection. The second stage involved stratifying the households in the area according to the residential proximity from the open dump which included Afridi Ghari, Chamkani, Jameel Chowk and Dir Colony. The sample size consists of 200 households from the Union council 37-Hazar Khuwani I of Peshawar district. The sample constitutes 5% of households, out of the total 4,236 residential properties within four-kilometer radius of the dumpsite. Data collection was carried out for one month, i.e. November, 2013, only due to time limitation. Methodology: The theoretical model that is being employed is the simplified version of the health production function (Freeman, 1993) as used by (Adhikari, 2012), (Gupta, 2006) and (Chowdhry & Imran, 2010), to estimate the optimal choice of medical expenditure. The basic individual health production function can be written as H = H (Q, M, X) (1) Where, H represents the number of work days lost referring to the health status of the individual which is positively related to the level exposure to pollution (Q); and negatively related to the mitigation activities (M) carried out by the individual; and X includes the vector of individual‟s health characteristics. The utility function (U) of an individual is defined as U = U (C, L, H (Q, M, Z), Q) (2) with U/C, U/L O and U/H O. C is consumption of other commodities, L is leisure and H is health status and Q representing the level of pollution. The individual allocates his non-labor income (Y); wage rate (w); the income earned from work such that the sum of these two components gives the total income of an individual (T-L-H) and the price per unit of mitigating activity (PM). The budget constraint for an individual is expressed as Y+ w (T-L-H) = C+PMM (3) Here, w is the wage rate, while price of M are given by PM, respectively, and the price of aggregate consumption is normalized to one. The individual maximizes U by choosing C, L and M, subject to budget constraint (3). The demand for mitigating activities for an individual can be written as: M =M (PM, H, Q, X, Z) (4) Where; Given the pollution level (Q), prices of mitigating activities (PM), wage rate (w), income
  • 40. 31 Health and Economic Implications of Solid Waste Dumpsites: A Case Study Hazar Khwani Dumpsite - Peshawar City (Y), and other exogenous variables (X), individuals maximize (1) with respect to X, M, and L given the budget constraint (3). By solving the following problem, Max G= U (X, L, H, Q) + [Y+ w (T-L-H)-X-PM M] (5) Where,  represents the Lagrange multiplier The first order conditions of the optimization problem yields the following demand functions for mitigating activities (PM), which depend on prices, wage rate (w), non labor income (Y), level of pollution (Q), and the vector of individual characteristics (X). The cost of illness (COI) can be derived as the sum of individual‟s COI as the sum of lost earnings due to workdays lost and medical cost to the concerned individual as follows: dQ dMP dH dQwCOI M (6) ECONOMETRIC SPECIFICATION OF THE MODEL The study aims to quantify the health costs associated with the inappropriate waste management. Therefore, both the functions namely; health production and demand for mitigating activities functions are being employed for cost assessments and evaluations using Poisson and Tobit Regression models. is to be estimated. (Gupta, 2006; Chowdhry & Imran 2010; Naveen, 2012) The Poisson regression model estimates the household health production function as: Hit = E (Hit) + Uit = it + Uit ln it = β1 1n Xit + Uit According to this model it is the mean value of the number of sick days, β1 is the vector of regression coefficients, and Xit is the vector of independent variables. The Tobit model is used to estimate the demand function for mitigating activities is specified as: M*it = Xit β2 + Uit M*it is a latent variable with M*it = Mit if Mit >0 M*it =0 if Mit ≤ 0 Where, β2 is the regression coefficients vector and Xit is the independent variables vector. The two estimated reduced form equations of the health production function and the demand for mitigation activities are:     LogPCIILLSUFAWRMRST EDUGNDAgeAgeDSTPRCODRH 1211109 87 2 654321 (7)     LogPCIILLSUFAWRMRST EDUGNDAgeAgeDSTPRCODRM 1211109 87 2 654321 (8)
  • 41. Huma Salma Gillani 32 μ and ώ are the stochastic error terms * Explanation of the variables is given in Table 1 III. RESULTS AND DISCUSSION REGRESSION RESULTS Using the statistics software STATA, the results of the regression analysis are reported in this section. The estimated Tobit equations for the demand for mitigating activities (Table 2) while in addition to the Poisson, and Negative Binomial Regressions are estimated for the dose response function (Table 3 and 4). We used the Tobit results in Table 2 and the Poisson results in Table 3 to compute the annual health benefits to a representative individual and the entire city due to living in a polluted area. For estimating the effects of pollution variables and the individual characteristics on the mitigation costs incurred by the household, mitigation costs were taken as the dependent variable. As it is a discrete variable, it violates the linearity assumption of the least squares, therefore Tobit regression is being employed for getting better results. Whereas the dose response function is being estimated by employing the Poisson and Negative Binomial regression models s the dependent variable, i.e., number of work days lost due to living in a dirty environment. However, there are two separate tables for estimating the number of work days lost with distance and odor. The rationale for estimating them separately was that odor and distance were not giving significant results when computed together because of multicollinearity between them. INTERPRETATION OF TABLE 2- TOBIT REGRESSION The parameter estimates from the reduced form equation of mitigation cost are presented in table 2. The significant and negative coefficient of distance (DST) measured in kilometers, which was used as a proxy for the pollution variable, indicates a monthly reduction in the mitigation costs by Rs. 1258/- after moving away from the dumpsite. Similarly, the burning practice (PRC) adopted has a negative relationship with the household cost on mitigating activities, which implies that the cost of people living at a distance of 4km or more is PKR. 321/-, less than those who live within the 2km or less radius of the dumpsite. The pollution variable, odor (ODR) as reported by 70% of the respondents was troubling odor nuisance, so their mitigation costs increases although it is statistically insignificant. The socio-economic variables such as gender (GND), education (EDU), marital status (MRTS) have positive signs, as expected, but insignificant. The coefficient of age is negative and that of age2 is positive. Both the coefficients are significant at 1% and 5% levels, respectively. The coefficient of LogPCI is positive and significant which means that as the level of income increases so does the mitigation cost of the respondent. It can be seen that the coefficients for household type is negative and significant, whereas the awareness level of the respondent is insignificant and have an inverse relation with the mitigating costs. Interpretation of Table 3- Poisson and Negative Binomial for distance and Work Days lost Table 3 shows the estimates of the reduced form of health production function due to work days lost. The pollution variable, distance (DST) measured in kilometers is negative; as me move away from the dumpsite the expected work days lost decreases. If