scholarly journals The Moderating Effect of Environmental Turbulence on the Strategic Agility-Performance Relationship: Empirical Evidence from Lagos State, Nigeria

2020 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
M. A. Arokodare
Keyword(s):  
Firm Performance ◽  
Oil And Gas ◽  
Pearson Correlation ◽  
Business Environment ◽  
Moderating Effect ◽  
Environmental Turbulence ◽  
Lagos State ◽  
Strategic Agility ◽  
And Performance ◽  
The Relationship

Scholars in strategic management argued that strategic agility measures do enhance firm performance and mitigate environmental turbulence risks. This study therefore examined the moderating effect of environmental turbulence on the relationship between strategic agility and performance of oil and gas marketing companies in Lagos State, Nigeria. Population of the study was 515 managers of major oil and gas marketing companies in Lagos State. Cross-sectional survey research design was adopted with total enumeration. The research instrument was found reliable and valid with Cronbach’s alpha and KMO greater than 0.7 and 0.5 respectively. The data was analyzed using descriptive statistics, Pearson correlation, and multiple and hierarchical regression methods of analyses. Findings revealed that among oil and gas marketing companies in Lagos State, Nigeria, there was positive and significant relationship between strategic agility and performance; strategic agility had positive and significant effect on performance while environmental turbulence significantly moderated the relationship between strategic agility and performance. The study concluded that strategic agility affected and related with firm performance and also environmental turbulence moderated the relationship between strategic agility and performance of oil and gas marketing companies in Lagos State, Nigeria. Therefore, it is recommended that oil and gas marketing companies in Nigeria should fully and dynamically embrace strategic agility practices and continuously develop their capabilities for proper and timely sensing of and responding to changes in their business environment in order to improve their performance over their competitors. Limitations of the study and areas for future research were highlighted.

scholarly journals Entry Mode Strategy and Firm Performance in Emerging Economy: Moderating Role of Organisational Structure and Environmental Turbulence

2021 ◽  
Author(s):  
Abiodun Babatunde Onamusi
Keyword(s):  
Firm Performance ◽  
Organizational Structure ◽  
Entry Mode ◽  
Business Environment ◽  
Moderating Effect ◽  
Environmental Turbulence ◽  
Organisational Structure ◽  
Axiomatic Theory ◽  
Lagos State ◽  
Strategy Performance

Research question: This study assessed the combined moderating effect of organizational structure and environmental turbulence on entry mode strategy - performance link focusing on baby care industry in Lagos State, Nigeria. Motivation: The manufacturers of baby care products in Nigeria have struggled to understand the complexities of entry mode strategy and how to use firm-specific capabilities to contain the threats from new entrants given the idiosyncrasies of the business environment in Nigeria. Also, considering the fast changing business environment and the need for firms to align internal organisational structure to manage the external environmental challenges, this study via the supposition of Hage (1965) axiomatic theory of organisations examined the joint moderating effect of organisational structure and environmental turbulence on entry mode strategy - performance linkage focusing on the baby care industry in Lagos State, Nigeria. Idea: Empirical submissions on the combined moderating effect of organizational structure and environmental turbulence on the interactions of entry mode strategy and organizational performance are sparse. Hence, this study addressed this gap in literature. Data: The survey research design and a sample of 518 employees engaged in FMCG manufacturers in Lagos State, Nigeria were adopted for this study. Tools: A validated structured questionnaire was the instrument of data collection for this study and the hierarchical regression analysis was adopted to test the hypotheses formulated. Findings: The results showed that the interaction between entry mode strategy and firm performance was positive and significant. Further analysis revealed that the interaction term of organizational structure and environmental turbulence accounted for the rise in firm performance to suggest that organizational structure and environmental turbulence are joint significant moderators. This suggests that entry mode strategy appropriateness is key to firm performance and that the fit between organisational structure and the macro-environment is a precondition to higher performance. Contribution: This study adds to recent empirical literature on the link between entry mode strategy, organizational structure, environmental turbulence, and firm performance within emerging economy context, and it provides additional support for the assumptions of the eclectic theory and Hage’s axiomatic theory of organization.

Strategic agility and the effects of firm age and environmental turbulence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jonathan H. Reed
Keyword(s):  
Firm Performance ◽  
Longitudinal Research ◽  
Three Dimensions ◽  
Environmental Turbulence ◽  
Firm Age ◽  
Content Type ◽  
Similar Criterion ◽  
Strategic Agility ◽  
And Performance ◽  
The Relationship

PurposeThe purpose of this empirical paper is to operationalize the Doz and Kosonen (2010) model of strategic agility, consisting of three dimensions and 15 subfactors and to test its relationship with firm performance under multiple contingencies.Design/methodology/approachA CEO-level survey is conducted to collect a sample of 73 firms from three industries in the US state of Florida. Factor analysis and convergence with similar criterion are used to validate the strategic agility construct. Multiple regression is used to test hypothesized relationships.FindingsThe findings support construct validity of Doz and Kosonen's model. Moreover, firm age and environmental turbulence are found to be important contingency factors. Environmental turbulence is found to moderate the relationship between firm age and strategic agility. Firm age and environmental turbulence are found to jointly moderate the relationship between strategic agility and firm performance.Research limitations/implicationsIt is evident that firms may benefit from strategic agility depending on their age and environment. The results encourage future longitudinal research addressing causality.Originality/valueThe paper contributes to research by validating a more comprehensive model of strategic agility and identifying contingency factors that help to explain prior mixed results on the relationship between strategic agility and performance.

Industry innovation spending and openness to collaboration as levers for firm performance

2019 ◽  
Vol 22 (4) ◽  
pp. 617-638 ◽  
Author(s):  
Luiz Fernando de Paris Caldas ◽  
Fabio de Oliveira Paula ◽  
T. Diana L. van Aduard de Macedo-Soares
Keyword(s):  
Firm Performance ◽  
Knowledge Spillovers ◽  
Moderating Effect ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Industry Collaboration ◽  
And Performance ◽  
Italian Manufacturing Firms ◽  
The Relationship

Purpose The purpose of this paper is to analyze to what extent spending on innovation activities and collaboration at the industry level affects the relationship between firm innovation and performance. Design/methodology/approach A conceptual model was proposed and empirically tested using multiple linear regression. The data were obtained from the Community Innovation Survey 2012, composing a sample of 890 Italian manufacturing firms. Findings The results provided full support for the positive moderating effect of intra-industry innovation spending and partial support for the positive moderating effect of intra-industry collaboration, both regarding the relationship between firm innovation spending and performance. Knowledge spillovers derived from intra-industry innovation spending and intra-industry collaboration affect firm performance. While this finding corroborates other studies that have found that the intra-industry R&D spending influences firms’ innovation and performance, it also contributes to improve the understanding about the complementarity of internal innovation activities and knowledge spillovers. Originality/value This study contributes to theory by filling a gap concerning the complementarity of internal innovation activities and the effect of knowledge spillovers to improve firm performance. Our findings suggested that intra-industry openness to collaboration and innovation spending, as proxies of knowledge spillovers, plays an important role in complementing firm level innovative efforts, even in the case of firms that spend less on innovation and have a lower degree of collaboration. This is especially relevant for small and medium enterprises, which can take advantage of access to the necessary information to overcome their internal resource constraints for R&D and innovation. The originality of these findings adds value in terms of furthering the understanding of this phenomenon.

scholarly journals Moderating Effect Of Organizational Factors Between Competitive Intelligence Practices And Performance Of Firms Listed On The Nairobi Securities Exchange, Kenya

2016 ◽  
Vol 12 (22) ◽  
pp. 213
Author(s):  
Paul Waithaka
Keyword(s):  
Organizational Factors ◽  
Business Environment ◽  
Moderating Effect ◽  
Competitive Intelligence ◽  
Financial Measures ◽  
And Performance ◽  
General Business ◽  
The Relationship ◽  
Competitive Forces ◽  
Number Of Firms

Performance is critical for every listed firm, as it enhances shareholder’s value and capability to generate earnings from invested capital. Some of the firms listed on the Nairobi Securities Exchange (NSE) have been performing poorly as indicated by the rising number of firms issuing profit warnings. The competitive business environment is continuously working to drive down the rate of return on invested capital. To counter these competitive forces, firms have resorted to gathering information at their disposal and converting it into competitive intelligence through analysis and human judgment. Competitive intelligence can be viewed both as a process and a product. As a process, it is the set of legal and ethical methods for collecting, developing, analyzing and disseminating actionable information pertaining to competitors, suppliers, customers, the organization itself and business environment that can affect a company’s plans, decisions and operations. Competitive intelligence as a product is information about the present and future behavior of competitors, suppliers, customers, technologies, government, market and the general business environment. This study sought to determine the moderating effect of organizational factors between competitive intelligence practices and performance of firms listed on the NSE. Firm performance was evaluated using both financial and non-financial measures. The findings indicate that organizational factors specifically organizational culture, organizational structure and managerial attitudes toward competitive intelligence were found to moderate in the relationship between the competitive intelligence practices and performance of firms listed on the NSE, Kenya.

The Relationships Among Environmental Turbulence and Socio-Technical Risk Factors Affecting Project Risks and Performance in NPD Project Teams

2018 ◽  
pp. 1353-1373
Author(s):  
Jengchung Victor Chen ◽  
Andree E. Widjaja ◽  
Bianca Chen
Keyword(s):  
Risk Factors ◽  
Project Performance ◽  
Moderating Effect ◽  
Environmental Turbulence ◽  
Project Risk ◽  
Public Firms ◽  
Technical Risk ◽  
Project Risks ◽  
And Performance ◽  
The Relationship

This study proposes a research framework to empirically examine the relationships among environmental turbulence, socio-technical risk factors, project risk, and project performance for a New Product Development (NPD) project team in the telecommunications industry. In addition, the moderating effect of communication on the relationship between project risk and project performance is also analyzed. The samples were collected from NPD team projects in 17 of Taiwan's telecommunication public firms. Our results indicate a positive relationship between: (1) environmental turbulence and social-related risks, (2) social-related risks and technical-related risks, (3) socio-technical related risks and project risks, and (4) a strong negative relationship between project risks and project performance. Meanwhile, although statistically insignificant, the moderating effect of communication could weaken the relationship between project risk and project performance.

Financial Leverage, International Orientation, And Firm Performance

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Hanin Rialsa
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Moderating Effect ◽  
Financial Leverage ◽  
International Orientation ◽  
And Performance ◽  
The Relationship ◽  
Second International

This paper re-examines the effect of leverage on firm performance by looking at the moderating effect of international orientation. This study uses data of<br />manufacturing 93 firms listed in the Indonesian Stock Exchange over the period of 2011 – 2014 resulting in 372 observations. Results show that financial leverage has negative and significant effect on firm performance. Second, international orientation does not significantly moderate the relationship between financial leverage and performance. The more internationally oriented the firms; it does not imply that the effect of leverage on performance should be stronger.

scholarly journals Corporate Growth Strategies, External Operating Environment and Firm Performance: An Empirical Survey of Large Manufacturing Firms in Nairobi City County, Kenya

2019 ◽  
Vol 10 (4) ◽  
pp. 21
Author(s):  
Alexander Irungu Wanjiru ◽  
Stephen Makau Muathe ◽  
Jane W. Kinyua-Njuguna
Keyword(s):  
Firm Performance ◽  
Sampling Technique ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Primary Data ◽  
Growth Strategies ◽  
Operating Environment ◽  
Corporate Growth ◽  
And Performance ◽  
The Relationship

Theoretical literature in strategic management describes performance as outcome of firm’s strategic objectives, which are developed and executed at the corporate level of management. Conceptual propositions also suggest that the external operating environment of a firm influences the relationship between its corporate strategies and performance. This paper examines the direct effect of corporate growth strategies on performance of large manufacturing firms in Nairobi City County, Kenya. The strategies under study are market development, product development and diversification. The paper also examines the moderating effect of external operating environment on the relationship between corporate growth strategies and performance of the large manufacturing firms. The authors adopted indicators of competitive position, consumer behaviour and credit accessibility to measure external operating environment.Multistage probability sampling technique was used to select study sample of 189 firms. One hundred forty eight firms responded where primary data was collected using a semi-structured questionnaire. Data was analysed using descriptive and inferential statistics. The study findings indicate that corporate growth strategies have a positive and significant impact on a firm’s performance. It also found out that external operating environment has a moderating effect on the relationship between corporate growth strategies and firm performance. The study has important implications for managers and policy makers of the manufacturing firms.

scholarly journals Moderating Effect of Environmental Uncertainties on the Relationship between Risk Hedging Supply Chain Strategy and Performance of Manufacturing Firms in Kenya

2021 ◽  
Vol 8 (1) ◽  
pp. 45-49
Author(s):  
Karani Anthony Muriithi ◽  
Odari Sammy ◽  
Noor Shalle
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Production Costs ◽  
Supply Chain Strategy ◽  
Risk Hedging ◽  
And Performance ◽  
The Relationship

The manufacturing sector in Kenya is faced by the challenges of performance and unstructured supply chain strategy. Further, the manufacturing sector growth in 2014 was 3.4% compared to a 5.6% growth in 2013 (Waiguru, 2015). This slow growth in manufacturing sector performance can be attributed to several environmental uncertainties such as the general election, high production costs, supply disruptions, political stability, unavailability of raw materials or demand fluctuations, technological changes, employees’ strikes, financial risk, terrorism and competition from imported goods (KNBS, 2018).The purpose of the study was to determine the moderating effect of environmental uncertainties on the relationship between risk hedging supply chain strategy and performance of manufacturing firms in Kenya. The study utilized descriptive research design. The target population was 829 managers from manufacturing firms around the country. A sample of 270 managers was selected using stratified random sampling. Results indicated that risk hedging supply chain strategy explained 63.8% of the total variations in performance of manufacturing firms. In addition, risk hedging supply chain strategy had a positive and significant effect on firm performance (β=0.675, P < .000). With introduction of moderating variable (environmental uncertainties); risk hedging supply chain strategy explained 34% of the total variations in performance of manufacturing firms. This denoted those environmental uncertainties had a negative moderating effect on the relationship between risk hedging supply chain strategy and performance of manufacturing firms in Kenya. The study concluded that risk hedging supply chain strategy had a positive and statistically significant effect on performance of manufacturing firms in Kenya. The study further concluded that environmental uncertainties lower the effect of risk hedging supply chain strategy on firm performance. The study recommends that manufacturing firms should strengthen aspects related to risk hedging supply chain strategy. The firms should particularly strengthen safety stock, suppliers’ management and quality. The improvement of these aspects is expected to enhance performance of the manufacturing firms. This study further recommends that manufacturing firms should factor in environmental uncertainties related to demand, supply and technology when implementing supply chain strategies.

scholarly journals Inventory management, cost of capital and firm performance: evidence from manufacturing firms in Jordan

2017 ◽  
Vol 14 (3) ◽  
pp. 4-14 ◽  
Author(s):  
Ashraf Mohammad Salem Alrjoub ◽  
Muhannad Akram Ahmad
Keyword(s):  
Firm Performance ◽  
Inventory Management ◽  
Method Of Moments ◽  
Cost Of Capital ◽  
Pearson Correlation ◽  
Generalized Method Of Moments ◽  
Business Environment ◽  
The Impact ◽  
The Relationship

Several studies have examined the relationship between inventory management and firm performance. However, most of these studies ignore the impact of inventory types on the relationship. Moreover, the relationship is influenced by some factors such as cost of capital which has not been considered. This study examines the moderating effect of cost of capital on the relationship between inventory types and firm performance. The data of 48 firms for the period 2010-2016 which formed 279 firm-year observations were used in this study. With the use of Pearson correlation and panel Generalized Method of Moments (GMM) estimation, the findings show that inventory management with consideration of its types influence firm performance in the long term. In addition, it is also found that cost of capital moderates the relationship between inventory management and firm performance. However, the interaction between cost of capital and inventory types has different implications. It is suggested that firms should consider cost of capital when making decision on inventory types and align their inventory control to fit in to the changes in their business environment.

scholarly journals Strategic Agility: Achieving Superior Organizational Performance through Strategic Foresight

2020 ◽  
pp. 7-16
Author(s):  
Arokodare M. A. ◽  
Asikhia O. U.
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
21St Century ◽  
Business Performance ◽  
Business Environment ◽  
Environmental Turbulence ◽  
Superior Performance ◽  
Global Business ◽  
Strategic Foresight ◽  
Strategic Agility

Firms globally encounter challenges of maintaining business superior performance over a long period. Most business organizations managers in today’s modern age, find it difficult to constantly achieve targeted business performance due to poor strategic insight and agility to manage uncertainty business environment and globalization in the 21st century. The majority of firms in the 21st century have recorded a fast decline in financial and non- financial performance resulting from a poor understanding of strategic agility dimensions to tackle global business trends and environmental turbulence. Theoretically, the study was conducted to investigate the link between strategic agility and firm performance through strategic foresight as part of antecedent of strategic foresight. The Dynamic Capability and Entrepreneurship Innovation theories were the underpinning theories for the study. Thus a conceptual model was developed to depict the interaction between strategic agility and firm performance through strategic foresight. Majority of past literature shown that strategic agility and strategic foresight have significantly enhanced firm superior performance.

Sign in / Sign up

Export Citation Format

Share Document