Exploring the Influence of Strategy Implementation on the Performance of Pharmaceutical Firms in Nigeria.

Abstract

Strategic planning is vital to the survival and sustainable performance of any organisation in the face of the increasingly dynamic business environment. This study investigated the resultant effect and the relationships between strategic planning (strategy formulation, strategy implementation, and strategy evaluation) and firms’ performance (branch network, market share, profitability, volume of business and return on asset) of Divine Essential Formulations Limited, a pharmaceutical firm in Lagos, Nigeria. A total of 55 copies of the questionnaire were administered to employees of Divine Essential Formulations Limited, out of which fifty-three (53) were retrieved and analysed. Descriptive and inferential statistics multiple regression through Structural Equation Modelling (SMART PLS) were used for the analyses. The results also indicate that strategy formulation has significant effects on a firm's profitability at (?= 0.811, R2=0.658, t- statistics=13.297>1.96, P-value =0.000 <0.05). Similarly, the results also showed that strategy evaluation and control have a substantial effect on the firm's return on assets at (?= 0.797, R2=0.636, t-statistics=15.653>1.96, P-value =0.000 <0.05). It is therefore recommended that Divine Essential Formulations Limited management should regularly update its mission statement, sustain clear lines of authority, regularly appraisal the quality of its internal operations in line with the current happenings in the business environment, and update its key performance indicators to track the success of strategic initiatives and provides adequate financial resources needed for the firm’s strategy formulation, implementation, and evaluation

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