DETERMINANTS OF DIGITAL STRATEGIC MANAGEMENT PRACTICES IN MANUFACTURING FIRMS: EVIDENCE FROM LAGOS STATE, NIGERIA

Digital transformation has become essential for manufacturing firms seeking operational efficiency, strategic alignment, and competitive advantage. In Lagos State, Nigeria, many firms face challenges in implementing digital strategic management practices due to variations in technological capabilities, leadership commitment, workforce digital skills, and market pressures. This study aimed to examine the factors influencing digital strategic management practices among manufacturing firms in Lagos State. A quantitative survey research design was adopted, targeting senior management staff across ten purposively selected listed manufacturing firms. A sample of 302 respondents was proportionately drawn using stratified random sampling. Structured questionnaires were administered, and 269 valid responses were returned, representing a response rate of 89.1%. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM), with significance evaluated at the 0.05 level. The findings revealed that Technological Capabilities (β = 0.271, T = 4.512, p < 0.001), External Market Pressure (β = 0.240, T = 4.700, p < 0.001), Digital Skills and Capabilities (β = 0.171, T = 2.800, p = 0.005), and Leadership Commitment and Support (β = 0.156, T = 2.633, p = 0.008) significantly influenced digital strategic management practices. Collectively, these factors explained 27.3% of the variance in digital strategic management practices (R² = 0.273; Adjusted R² = 0.262), indicating substantial explanatory power. The study concludes that effective digital strategic management in manufacturing firms depends on technological readiness, responsive leadership, employee digital competence, and sensitivity to market dynamics. It is recommended that firms invest in continuous technological upgrades, workforce digital training, and strategic leadership to strengthen digital transformation outcomes. Policymakers are encouraged to support infrastructural development and provide incentives that enable firms to adopt digital strategies effectively.