RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT AND FIRMS’ PERFORMANCE IN NIGERIAN BANKING INDUSTRY

Abstract

The current trends in the business environment revealed that the only inevitable thing is change. An organization that desires to survive and succeed must strategically manage all the resources at its disposal to obtain maximum output. The change in the business environment is such a one that can be likened to the speed of a light and any organization that is not proactive in its managerial approach to responding and adapting to this change is most likely going to underperformed and hence not survive it. It is in view of this that this research work aimed at examining the impact of strategic management on organizational performance with a focus on some selected banks in Ilorin Metropolis, Ilorin, Kwara State, Nigeria. The objectives of this study were to evaluate the significant relationship between strategic management and organizational performance and also to assess the difficulties associated with implementing the strategic plans which hinders effective organizational performance. This study employed survey research. Primary data were used for the study with questionnaires as research instruments. The organization under review pertained to financial
institutions. Thus, five banks were randomly selected and one hundred questionnaires were administered. Statistical techniques were adopted in order to express the variables in statistical, measurable terms. The hypothesis was tested using T-test and Multiple Regression Analysis with the aid of Statistical Package for Social Science (SPSS). The findings of the study revealed that the strategic management affected organizational performance. The research work also showed that no matter how well-structured and organized a plan may be, if not implemented business failure is inevitable. Based on the findings, it is recommended that the process of strategic management must be strictly adhered to in order for an organization to be outstanding in its performance (i.e. competitive advantage) and therefore stay afloat in the dynamic competitive environment.