Impact on Strategic Management Elements in Enhancing firms sustainable competitive advantage, a Moderating Role of Environment

Abstract

Nigeria has allowed itself to be used for all sorts of imported goods from foreign industries and Asian Tigers in the name of globalization. Consequently, this has greatly affected the capacity utilization of various firms of the Nigeria’s manufacturing sector. it is a thing of concern that even the oil which Nigeria produces, part of it is refined abroad and imported back to the country to meet-up local consumption, the situation becomes more aggravated due to Nigerians preference for foreign good. There are few researches on strategic management in emergent markets i.e. developing economy as such Manufacturers in Nigeria do not apply properly strategic management concepts for future development, hence this study to turn around the minds of regulators and manufacturers in Nigeria should focus on competitive advantage and push towards sustaining it. The purpose of this study giving this background is to examine the strategic management elements (Formulation, Implementation and Control), Elements of Competitive advantage (value, rareness and inimitability) and Environmental factors in enhancing sustainable competitive advantage in Nigerian’s manufacturing sector. Hence, Strategic management elements as independent variables, competitive advantage elements as mediator and sustainable competitive advantage as dependent variable, while environmental factors moderate the relationship. Data were collected through personal questionnaire from166 manufacturing firms in Nigeria who are Members of Manufacturing Association of Nigeria within North West and North Central zones with 70% response rate. Five Main Hypotheses were tested, and the results from the study indicated that there is positive and significant relationship between strategic management elements and elements of competitive advantage, a positive relationship between Value and inimitability with sustainable competitive advantage; innovation. Findings indicated the mediating influence of elements of competitive advantage between strategic management elements and sustainable competitive advantage as well as the moderation role of hard technology between elements of competitive advantage and sustainable competitive advantage innovation. According to the result manufacturers in Nigeria fully agreed that implementing strategy that leads to value, rare and inimitable resource yield firms competitive advantage and continues innovation sustained the advantage. This study adds Knowledge to the theory and practice of sustainable competitive advantage particularly in Nigeria’s manufacturing firms. Its theoretical and empirical significance adds more insight on the previous empirical studies in the field that is to say it gives guidelines to manufacturers in Nigeria on the application of strategic management. It gives guidelines to manufacturers in Nigeria on the impact of strategic management approaches on sustainable competitive advantage. For government and firms, the study provides avenue of enhancing sustainable competitive advantage in Nigeria and Africa as a whole since the phenomena is general. Based on the study findings, limitations and suggestions for future research were also presented.