STRATEGIC ORIENTATION AND PERFORMANCE OF MANUFACTURING FIRMS IN THE NIGERIAN UNSTABLE BUSINESS ENVIRONMENT: THE MODERATING EFFECT OF INNOVATION, ORGANIZATIONAL STRUCTURE, DESIGN AND LEADERSHIP

Abstract

In recent times, the Nigerian business environment has been unstable and turbulent, many manufacturing firms
have closed operations in the country and the overall contribution of the sector to GDP has been decreasing. This study examines the effects of strategic orientation on the performance of manufacturing firms in the country, using Lagos State as a case study. The study adopted the mixed method research design by combining
qualitative and quantitative methods. Multistage sampling technique was used to select 120 respondents from
the eight industrial estates in Lagos. All the variables of strategic orientation and the moderating variables were
measured with 5 items Likert scale. Collected data was analyzed with the use descriptive statistics such as;
frequency distribution table, percentages, mean and standard deviation, while formulated hypotheses were
tested with the chi-square statistical formula. Findings revealed that entrepreneurial orientation, market
orientation, learning orientation and business network orientation all influences organizational innovations, which in turn influence organizational performance. Organizational structure and organizational design
significantly moderate the effects of innovations on organizational performance, while organizational
leadership has insignificant impact in moderating the effect of innovation on organizational performance. The
study recommends that manufacturing companies operating in unstable business environment should not be
conservative, they need to constantly monitor trends in their internal and external business environment and
develop strategies to ward of these threats and take emerging opportunities. They should avoid the strategic
orientation of defenders and reactors, rather, they should be prospectors and analyzers, striving to become cost
leaders in their chosen market segment and using differentiation strategies to become unique in their industry, based on features that customers values. Manufacturing firms in Nigeria should invest in research and
development, use market penetration, product and market development strategies to increase mar