Abstract
As organisations struggle to deal with an increasingly uncertain world, they are looking to their managers to findways in helping them to prepare for possible futures. Many organisations now apply scenario planning methodsas means of evaluating their effectiveness and performance under different sets of assumptions about the future.This study investigates the relationship between scenario planning and corporate performance in themanufacturing sector in Nigeria. A survey research method was used to generate data from a sample ofmanufacturing firms in Nigeria on scenario planning and corporate performance variables. Responses from thesurvey were statistically analyzed using descriptive statistics, product moment correlation, regression analysis andZ-test (approximated with the independent sample t-test). The results of the study indicate a statistical significantrelationship between scenario planning and corporate performance as well as reveal a significant differencebetween the performance of firms whose scenario planning are low and the performance of firms whose scenarioplanning are high. The research findings provide insights regarding how the interaction between scenarioplanning and corporate performance would assist the growth and development of the manufacturing sector inNigeria.
Highlights
The context in which most firms operate has become increasingly dynamic, uncertain, and unpredictable
This study investigates the relationship between scenario planning and corporate performance in the manufacturing sector in Nigeria
To investigate the relationships that exist between scenario planning and corporate performance in the Nigerian manufacturing sector, a cross-sectional survey design was employed by collecting data from a defined population
Summary
The context in which most firms operate has become increasingly dynamic, uncertain, and unpredictable. Firms that have the ability to scan the environment effectively with a shared mental model, leading to innovation, can achieve success and profit potential in the long run This is the function of scenario planning which ensures long-term sustainable survival of an organization (Sevaguru and Safa, 2009; Geus, 1997). Despite the potentials of the Nigerian manufacturing sector as the engine of growth, an antidote of unemployment, a creation of wealth and the threshold for sustainable development, it has suffered severe decline in its contribution to national output (Imhonlele, 2009). This is probably because the sector is not crises-prepared. Lagos offers an attractive place for the study (Oghojafor, Kuye and Sulaimon, 2011)
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