Strategic Management and Organisational Performance in Select Automobile Industries in Nigeria

Background: Firms in an increasingly globalised and competitive business environment must adopt effective strategic management practices to enhance performance and sustain competitive advantage. Thus, strategic management comes to mind as it involves planning, implementing and evaluating strategies that enable organisations to meet their objectives.

Objective: This study examined how strategic management practices influenced organisational performance within Nigeria’s automobile industry. Drawing on contingency theory and resource-based view, the research investigated the relationships between strategic planning, strategy formulation (setting objectives and identifying strategic options), strategy implementation (allocation of resources and execution of plans) and, strategy evaluation and control (monitoring, revising strategy) in the context of Nigerian automobile firms

Method: The study adopted a comparative approach across selected automobile firms- Innoson Vehicle Manufacturing Co., Ltd, Stallion Group, Peugeot Automobile Nigeria (PAN) and, Volkswagen Nigeria. Primary data were collected through two hundred and forty (240) structured questionnaires administered to managerial staff of four automobile firms namely: Innoson Vehicle Manufacturing Co., Ltd, Stallion Group, Peugeot Automobile Nigeria (PAN) and, Volkswagen Nigeria in Nigeria.

Result: Regression analysis revealed that strategic management dimensions significantly impact organisational performance of the selected firms, though the magnitude and significance vary among the firms. The findings highlight the need for tailored strategic practices considering local industry dynamics and the unique challenges of the Nigerian automobile sector.

Conclusion: The study concludes that strategic management has a significant positive impact on organisational performance in Nigeria’s automobile manufacturing sector.

Unique Contributions: This study confirms that strategic management is a critical determinant of organisational performance in Nigeria’s automobile sector. The findings provide use insights for government and regulatory bodies as it provides evidence to guide the National Automotive Industry Development Plan. Findings of this -study would lead to improved performance in the industry thereby leading to increased economic growth, higher quality vehicles at competitive prices, employment and business expansion

Key Recommendations: Indigenous automobile firms should invest in strategic planning tools and market intelligence systems to improve long-term decision-making. Also, government and industry regulators should encourage targeted incentives (tax reliefs, grants and low interest loans) as well as support capacity-building (human capital development, technological capability enhancement, strengthening legal framework and innovation system development) in strategic management for local assemblers.