Determinants of Organizational Performance in Nigeria: Evidence from Service Firms

This paper examined tacit knowledge, motivational incentives, participative leadership and workers competence as determinants of organizational performance in Nigeria. The examination is planned to identify the highest predicting variables of organizational performance. The study utilized questionnaire, which was administered to five hundred (500) employees of some selected service firms in Nigeria. Data obtained were analyzed using correlation and factor analyses. Findings indicated that tacit knowledge and participative leadership has the highest factors loading, hence both predict organizational performance compared to workers’ competence with the lowest factor loading. Given the correlation result, it was found that tacit knowledge and participative leadership contribute positively organizational performance. On the other hand, workers’ competence and motivational incentive negatively affect organizational performance. Based on the findings, it was recommended among others that since tacit knowledge predicts organizational performance, it should be properly managed taking into cognizance all the other factors such as motivational incentives, participative leadership and workers competence that tend to have any connection with management of tacit knowledge and organizational performance.