Artificial Intelligence and the Performance of Manufacturing Firms in North-Central Nigeria: Reward System as the Moderator

Audu Yakubu Philemon and Aziwe Nwakaego Ihuoma
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Audu Yakubu Philemon: Department of Business Administration and Management, the Federal Polytechnic, Idah, Kogi State, Nigeria
Aziwe Nwakaego Ihuoma: Department of Business Administration, Faculty of Management and Social Sciences, Tansian University Umunya, Anambra State, Nigeria

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 1, 1738-1755

Abstract: Purpose: The study investigates the influence of Artificial Intelligence (AI) on the performance of Manufacturing Firms in North-central Nigeria with Reward System as a moderator. The study labored to identify how AI technology has been leverage upon by Managers of Manufacturing Firms to cut-costs and improves performance of their organizations and the near futility in such application without factoring in the human elements whose work AI technology complements. Hence, the study factored in this missing link by introducing a moderator- Reward System. The study proved empirically that performance of the target manufacturing Firms has improved much more when the moderator was introduced. This is achieved by conducting test when AI technology is applied before the moderator and after the inclusion of the moderator respectively. Research Methods: The study adopted a descriptive research design. Data were gathered from the population of 200 respondents made up of Top, Senior and Middle level Executives of the target Manufacturing Firms using proportional sampling method. Primary data was used for the study, and it was gathered through questionnaire designed in five points Likert Scale of strongly agree to strongly disagree. Factor analysis was conducted to ascertain the content validity and reliability of the research instruments. All the factors were significant. Data gathered through questionnaire were analyzed using descriptive and parametric statistical instruments. Tables, percentages, and mean scores were the descriptive statistical tools used while simple linear regression was the parametric statistical tool used to test the hypotheses. Results: The study found a positive and significant influence of AI on Manufacturing Firms performance on one hand, and that performance of the targeted Manufacturing Firms improved more when a moderating variable was introduced. Limitations: The study focused on the Manufacturing Firms in North-Central Nigeria only whereas there are other geographical zones of Nigeria that was not touched by the study. This may impair the generalization of the findings of this study. Equally, been a relatively new area of study, there is scarcity of literatures that would have enriched the study more. However, the researcher does not leave any stone unturned by engaging in all available and relevant search Goggles to look for available literature. Novelty: Although there are skeletal studies in the area of AI technology and its application in the world of business, no work to the best of the researchers’ knowledge has been undertaken to examine the moderating role of reward system on the application of an AI technology to cut-costs and improve performance of the Manufacturing subsector in Nigeria and North-Central in particular. The study has uniquely distinguish itself from other studies by introducing a moderator to explain that AI are robots which complements the work of humans, and as such, the human elements must be adequately rewarded if the goal of adopting AI in organizations must be achieved. This, the study has been able to prove empirically.

Date: 2025
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