Abstract
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.
Highlights
Threats and opportunities arising from environmental turbulence have been established to impact on business performance (Kim, 2018; Kwon, Ryu, & Park, 2018)
Considering the challenges created by business environmental turbulence in relation to firm performance, scholars around the globe have acknowledged the importance of strategic agility initiatives as a proactive business process in curtailing environmental turbulence so as to enhance firm performance especially in the oil and gas industry (Arokodare & Asikhia, 2020a)
Following the three hypotheses (H1a, H2a & H3a) stated in this study, it is shown that strategic agility significantly related with and affected firm performance as well as environmental turbulence significantly moderated the relationship between strategic agility and firm performance of selected oil and gas marketing companies in Lagos State, Nigeria
Summary
Threats and opportunities arising from environmental turbulence have been established to impact on business performance (Kim, 2018; Kwon, Ryu, & Park, 2018). In mitigating environmental turbulence risks, oil and gas marketing companies across the globe have focused on strategic workforce agility in achieving targeted performance. Volatility risks in the oil and gas industry triggered by environmental turbulence serves as a threat in achieving targeted performance. Oil and gas companies cannot survive without significant consideration given to strategic agility measures in and impact of environmental turbulence on their business and operation routines as well as decision making processes. Considering the challenges created by business environmental turbulence in relation to firm performance, scholars around the globe have acknowledged the importance of strategic agility initiatives as a proactive business process in curtailing environmental turbulence so as to enhance firm performance especially in the oil and gas industry (Arokodare & Asikhia, 2020a)
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