The Effect of Strategic Flexibility on Innovation Performance of Quoted Pharmaceutical Companies in Nigeria

Abstract

The pharmaceutical industry is key to the survival of human race, but equally becoming increasingly susceptible to global disruptions. In Nigeria, records have shown that the industry is plagued with several problems, inclusive of low innovation performance, which may be due to lack of strategic flexibility in the face of increasing environment turbulence and intense competition. This study examined the effect of strategic flexibility on innovation performance of quoted pharmaceutical companies in Nigeria. The study adopted survey research design. The population comprised 642 management and senior staff employees of the six quoted pharmaceutical firms in Nigeria. Findings showed that strategic flexibility has positive significant effects on innovation performance (Adj. R2 = 0.425, p = 0.000, Q 2 = 0.409) of quoted pharmaceutical companies in Nigeria. Specifically, coordination flexibility (β = 0.124, t = 2.688), futurity (β = 0.191, t = 3.788), proactive flexibility (β = 0.197, t = 3.57), reactive flexibility (β = 0.232, t = 4.192), and resource flexibility (β = 0.103, t = 2.867) all have positive significant effects on innovation performance. The study concluded that strategic flexibility enhanced innovation performance of quoted pharmaceutical firms in Nigeria. The study recommended that management of quoted pharma companies in Nigeria should pay serious attention to strategic flexibility as organizational capability that can help enhance innovation capacity of the firms, in the face of increasing uncertainties in and unpredictability nature of the business environment.