ASSESSMENT OF TECHNOLOGICAL CAPABILITY AND UTILIZATION OF INDIGENOUS BUILDING MATERIALS ON FIRM PERFORMANCE IN SOUTHWEST NIGERIA

Abstract

The study investigated the effects of technological capability and utilization of indigenous building materials on firms’ performance in southwest, Nigeria. It assessed the level of technological capability in indigenous building materials in study area, it evaluated the effects of inhibitors of indigenous building materials utilization on the firms’ performance in the study area and analysed the effect of technological capability on indigenous building material firms’ performance in the study area. This was with a view to promoting the use of local raw materials in the manufacturing process of building materials. The data for this study was collected through primary source using questionnaire. A total number of two hundred and twenty two (222) questionnaire were administered to thirty seven (37) firms, out of which one hundred and sixty four (164) were returned. Statistical tools such as mean, frequencies, percentages and regression were used for objective one, while objective two and three were analysed using regression analysis to analyse the data generated. The study discovered that capability to carry out improvements of existing product(s) or process(es) and/ or development of new ones has the most contribution to technological capability with a mean score of 7.680. Study also revealed that inhibitors of indigenous building materials utilization has a small effect on firm performance with the value of effect size (f2) of 0.081 which is within the range of 0.020 and 0.150. Consequently, this study obtained a result that technological capability has large effect size of indigenous building materials with an effect size (f2) of 2.326. The study concluded that the level of technological capability in indigenous building materials in the study area is high. It further established that inhibitors of indigenous building materials utilization have a small effect on firm performance in the study area. Lastly, the study concluded that technological capability has a significant effect on indigenous building materials firm performance in the study area. It recommended improvement in the quality and durability of indigenous building materials with the aim of solving low demand and deep seated psychological resentment towards it utilization, while also advocating for adequate training of personnel resource acquisition and strategic planning in the indigenous building materials sector to further enhance technological capability.