Influence of Goal Setting and Branch Network of Asset on the Performance of Pharmaceutical Firms in Nigeria

Abstract

Goal Setting is vital to the survival and sustainable performance of any organization in the face of the increasingly dynamic business environment. This study investigated the influence of goal setting and branch network of asset on the performance of pharmaceutical firms in Nigeria. A total of 55 copies of the questionnaire were administered to employees of Divine Essential Formulations Limited, out of which fifty-three (53) were retrieved and analyzed. Descriptive and inferential statistics multiple regression through Structural Equation Modelling (SMART PLS) were used for the analyses. The results show significant relationships between strategic planning and the firm's performance variables. The results also indicate that goal setting has significant effects on branch network of the firm at (?= 0.782, R2=0.611, t- statistics=8.970>1.96, P-value =0.000 <0.05). Also, the findings revealed that environmental scanning has considerable influence on a firm's market share at (?= 0.840, R2=0.706, t- statistics=23.685>1.96, P-value =0.000 <0.05). The results also indicate that strategy formulation has significant effects on a firm's profitability at (?= 0.811, R2=0.658, t- statistics=13.297>1.96, P-value =0.000 <0.05). It is therefore recommended that Divine Essential Formulations Limited management should regularly update its mission statement, sustain clear lines of authority, regularly appraisal the quality of its internal operations in line with the current happenings in the business environment, and update its key performance indicators to track the success of strategic initiatives and provides adequate financial resources needed forthe firm’sstrategy formulation, implementation, and evaluation.