Workers’ Participation and Firm Performance in Lagos and Ogun States’ Internal Revenue Services, Nigeria

Abstract

The objective of the study is to examine the effect of workers’ participation on firm performance in Lagos and Ogun States’ Internal Revenue Services. Survey research design was used for the study. Data was collected through the use of questionnaire. Sample size comprised of 128 workers in Lagos State Internal Revenue Service and 95 workers in Ogun State Internal Revenue Service head offices at Ikeja and Abeokuta. Simple random sampling technique was used for the study. Descriptive statistics was used to analyze the respondents’ biodata while multiple regression analysis was used to test the hypotheses formulated. Findings of the study revealed that workers’ participation (autocratic participation, consultative participation and delegative participation) had no combined significant effect on tax administration in Lagos State Internal Revenue Service. Autocratic participation, consultative participation and delegative participation had combined significant effect on tax administration in Ogun State Internal Revenue Service. Autocratic participation, consultative participation and delegative participation had combined significant effect on tax inspection in Lagos and Ogun States Internal Revenue Services. Autocratic participation, consultative participation and delegative participation had combined significant effect on tax conformity in Lagos and Ogun States Internal Revenue Services. The study concluded that workers’ participation in decision making did not bring about efficient tax administration in Lagos State Internal Revenue Service. Workers’ participation brought about efficient tax administration in Ogun State Internal Revenue Service. Management’s decision to involve workers in decision making in Lagos and Ogun States’ Internal Revenue Service firms will motivate workers to always examine the tax report of individuals and businesses effectively and also encourage them to generate sufficient revenue needed by the government to enhance the social and economic development of their states and the nation as a whole