55 Olufemiakintunde & Godbless Onoriode Akaighe Nigerian Journal of Management Studies Volume 15, No. 1, 2015, 55-67 CORPORATE RESTRUCTURING AND ORGANIZATIONAL PRODUCTIVITY IN NIGERIA INSURANCE INDUSTRY Olufemi Akintunde 1 & Godbless Onoriode Akaighe 2 Department of Business Administration, University of Lagos, Akoka, Lagos State, Nigeria oluakintunde@unilag.edu.ng; godbless247@yahoo.com Abstract The appropriate strategies and strategy mix to adopt for corporate restructuring and managing the gains of restructuring are central to corporate restructuring. The study assesses corporate restructuring and organizational productivity in Nigeria insurance industry. Three (3) objectives and hypotheses are developed for the study. Quantitative research method is employed with a sample of 220 respondents from three insurance companies using simple random sampling technique. Multiple regression analysis is employed in testing the multivariate model specifications. The findings of the study shows that there are reasons necessitating corporate restructuring with effects on organizational productivity. In conclusion, insurance firms require corporate restructuring as occasion demands, to be able to compete favorably given the enormous individual and business needs for mitigating losses. Therefore, management should apply tact in the selection of appropriate restructuring strategies. Keywords: Corporate Restructuring, Organizational Productivity, Strategies, Competition, Insurance, Nigeria. 1. INTRODUCTION Corporate restructuring has increased over the years as a strategic action since the 1980s leading to a change in the focus and operationalization of business operations and activities (Wiersema, 1995). The increase in corporate restructuring continued in the 1990 and has become a strategic option for organizations in the new millennium (Lin, Lee & Peterson, 2006). Sulaiman (2012) defines corporate restructuring as altering of ownership, asset an business alliances with the intent of optimizing the wealth of shareholders and repositioning the organization for added value. Corporate restructuring encompasses a change in the portfolio combination, ownership structure, asset and liability mix. Norley, Swanson and Marshall (2001) defines restructuring as the reorganization of a company’s ownership, legal framework, and operational structure to make the firm more competitive, make higher profits and meet business needs. Norley et al (2001) notes that organizational restructuring positions an organization to have a flat structure that will be more effective and concentrate on its core operations. Christa, Garashi, Odhiambo and Ochieng (2012) asserts that restructuring as implemented in many industries has produced results in terms of increasing revenues and productivity, reduction in operational cost, better welfare for employees, improvement of the wealth of shareholders and aided better organizational productivity. Gibbs (2007) defines organizational restructuring as deviation in the operational mechanism, financing mix, investment and governance structure of the organization. Sulaiman (2012) asserts that the need for organizational restructuring is born out of the