The Moderating Effect of Environmental Turbulence on the Strategic Agility-Performance Relationship: Empirical Evidence from Lagos State, Nigeria

Abstract

Scholars in strategic management argued that strategic agility measures do enhance firm performance and mitigate environmental turbulence risks. This study therefore examined the moderating effect of environmental turbulence on the relationship between strategic agility and performance of oil and gas marketing companies in Lagos State, Nigeria. Population of the study was 515 managers of major oil and gas marketing companies in Lagos State. Cross-sectional survey research design was adopted with total enumeration. The research instrument was found reliable and valid with Cronbach’s alpha and KMO greater than 0.7 and 0.5 respectively. The data was analyzed using descriptive statistics, Pearson correlation, and multiple and hierarchical regression methods of analyses. Findings revealed that among oil and gas marketing companies in Lagos State, Nigeria, there was positive and significant relationship between strategic agility and performance; strategic agility had positive and significant effect on performance while environmental turbulence significantly moderated the relationship between strategic agility and performance. The study concluded that strategic agility affected and related with firm performance and also environmental turbulence moderated the relationship between strategic agility and performance of oil and gas marketing companies in Lagos State, Nigeria. Therefore, it is recommended that oil and gas marketing companies in Nigeria should fully and dynamically embrace strategic agility practices and continuously develop their capabilities for proper and timely sensing of and responding to changes in their business environment in order to improve their performance over their competitors. Limitations of the study and areas for future research were highlighted.