MARKET COMPETITION, PRODUCT INNOVATION AND PERFORMANCE OF PENSION FUND ADMINISTRATORS (PFAS) IN PLATEAU STATE

Abstract

Pension Fund Administrators (PFAs) are saddled with the responsibility of managing pension funds. In Nigeria, several pension schemes have been experimented with few successes and failures. In understanding the failures, this study seeks to investigate the relationship between market competition, product innovation and performance of Pension Fund Administrator in Plateau State. Using a sample of 112 employees in 19 PFAs, a questionnaire was adopted for data collection, while multiple linear regression was used to analyze the data. The study found a significant relationship between market competition and performance, product innovation and performance, market competition and product innovation. Furthermore, the study found that product innovation mediates the relationship between market competition and performance. The findings show that for pension fund administrators to increase their market share, they need to put up a combative posture by intensively and directly competing with their competitors. Furthermore, product innovation needs to be improved in order to increase competitiveness, customer base and overall financial and non-financial performance. The study recommends that pension fund administrators should make appropriate policies that will ignite innovative consciousness among their workers, as well as devise appropriate measures that would create the enabling environment for market competition and product innovation to thrive which in turn will increase performance.