Strategic entrepreneurship and performance of Nigerian banks: A quantitative approach

Abstract

Objective: Strategic entrepreneurship provides value that allows companies to compete favourably in the market compared to their competitors, especially in the banking sector, and thus influence their performance. Therefore, this study examined the impact of strategic entrepreneurship on the performance of Nigerian banks.
Research Design & Methods: A quantitative approach was adopted for the study, which used a post facto study design. The sample size consists of 10 banks listed before 2009 that were only excluded in 2018 with related data. Secondary data collected from annual reports and financial statements of all sample banks over ten years (2010-2019) were analysed. Panel data analysis was used to measure the relationship between independent and dependent variables at p< 0.05.
Findings: The study demonstrates that strategic dimensions of entrepreneurship (strategic renewal, sustainable innovation, and domain renewal) play a key role in joint and significant organizational performance. It has also been confirmed that strategic renewal independently affects business organizational performance, while domain definition has a positive but minor relevance. However, permanent regeneration has the opposite effect on organizational performance.
Implications & Recommendations: This finding means that many Nigerian banks have failed to put into practice the knowledge and financial commitment to take advantage of opportunities, which is an important means of strengthening the sector amid the pandemic syndrome and highly turbulent environment. It is therefore imperative that the management of Nigerian banks be financially engaged in formulating innovative strategies and activities.
Contribution & Value Added: The study has established that strategic entrepreneurship components jointly and independently influence the performance of Nigerian banks. It was also discovered that strategic renewal, sustainable innovation, and domain renewal are strong predictors of banks’ performance.

Keywords

strategic entrepreneurship; strategic renewal; sustained regeneration; domain re-definition; firm performance

Author Biography

Praise Oluwatoyin Omoshagba

Post-Graduate Student at the Federal University of Technology, Minna (Nigeria). Her research interests include strategic entrepreneurship, small businesses, social entrepreneurship and sustainable entrepreneurship. She has published many articles in both local and international journals.

Correspondence to: Ms. Praise Oluwatoyin Omoshagba, Department of Entrepreneurship and Business Studies, Federal University of Technology, Minna, Nigeria, e-mail: omoshagbatoyin@gmail.com

Mercy Modupe Adeyeye

PhD in entrepreneurship (2013, University of Essex, UK). Associate Professor in the Department of Entrepreneurship and Business Studies, Federal University of Technology, Minna (Nigeria). Her research interest includes social entrepreneurship, strategic entrepreneurship, developing economies and small and medium-sized enterprises. She has published many journal articles to her credit. A team leader in the SDG groups 1 and 5 (no poverty and gender equality) groups.

Correspondence to: Prof. Mercy Modupe Adeyeye, PhD, Department of Entrepreneurship and Business Studies, Federal University of Technology, Minna, Nigeria, e-mail: memoade4real@yahoo.com

Ademola Samuel Sajuyigbe

PhD in management, A lecturer and the secretary of SDG-1 (No Poverty Research Group) at Landmark University in Omu-Aran (Nigeria). His research interests include social entrepreneurship, strategic entrepreneurship, rural entrepreneurship, human resources, and finance. He has published over forty journal publication articles to his credit. He has won TETFUND research grants in Nigeria and he was also honoured by African – Asian Journal of Rural Development Organization in India for a research carried out on rural entrepreneurship development in Nigeria.

Correspondence to: Dr. Ademola Samuel Sajuyigbe, Department of Business studies, Landmark University, Omu-Aran, Nigeria, e-mail: sajuyigbeademola@yahoo.com

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