Moderating the Role Environmental Turbulence between Strategic Management Practices and the Performance of Bank of Industry, (BOI) Nigeria

Abstract

This study investigates the moderating effect of environmental turbulence on the relationship between strategic management practices specifically strategic planning and innovation strategy and the performance, measured via innovation output, of the Bank of Industry (BOI) in Nigeria. Grounded in Dynamic Capabilities and Contingency theories, the research adopted a post-positivist philosophy and a quantitative, cross-sectional design. A complete census survey yielded 450 valid responses from professional staff across key operational departments. Using hierarchical multiple regression and Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings reveal that while individual direct effects of strategic planning and innovation strategy on innovation output are non-significant, environmental turbulence exerts a significant positive moderating effect. This demonstrates that strategic management tools become profoundly more consequential under high-volatility conditions. Consequently, the study concludes that formal strategies require adaptive execution and recommends that BOI institutionalize agile, turbulence-responsive strategic frameworks to enhance its developmental and innovation performance amid macroeconomic uncertainty. Based on this finding, the study recommends that BOI management institutionalize agile, rolling strategic frameworks and enhance internal absorptive capacities to dynamically respond to macroeconomic uncertainty and drive sustainable developmental innovation.