Strategic Agility, Cultural Intelligence, and Sustainability of Medium-sized Enterprises in Ogun State, Nigeria
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Date
2024-12
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Lead City University, Ibadan
Abstract
This research examines the impact of strategic agility and cultural intelligence on the sustainability of medium-sized enterprises (MEs) in Ogun State, Nigeria. This study utilises Dynamic Capabilities Theory as a theoretical framework to address a critical gap in understanding the interaction of these components in promoting long-term sustainability. Although prior research has investigated strategic agility and sustainability separately, limited studies have analysed the synergistic effect of strategic agility and cultural intelligence on sustainability in MEs, especially in Nigeria. This research addresses this gap by offering insights into the interplay between agility and cultural
adaptability in attaining sustainable outcomes in a growing economy. A descriptive study design was employed, focusing on a population of 1,868 medium-sized enterprises within the three senatorial districts of Ogun State, as documented by SMEDAN in 2021. A sample of 122 enterprises was obtained by stratified sampling, guaranteeing a representative cross-section while accommodating resource constraints. Data were collected utilising a standardised questionnaire, which had a Cronbach’s alpha of 0.81, indicating robust internal consistency and reliability. Hierarchical multiple regression analysis was utilised to investigate the effects of distinct dimensions of strategic agility - Resource Fluidity, Strategic Sensitivity, Innovation Culture, Collaboration and Networking, and Employee Empowerment - alongside the moderating influence of cultural intelligence on sustainability. Critical findings showed that strategic agility improves sustainability. Resources Fluidity positively affected Environmental Sustainability, as shown by an unstandardised coefficient (B) of 0.344 and a standardised coefficient (Beta) of 0.244 (t = 2.807, p = 0.006). Adaptable resource allocation helps enterprises meet environmental demands, emphasising the importance of dynamic resource management in turbulent markets. Strategic Sensitivity had no statistically significant effect at 0.061 (Beta = 0.046, t = 0.384, p = 0.702). Reactivity to external stimuli may improve strategic alignment but not sustainability. Innovation
Culture, while important for agility, had no significant impact on sustainability (Beta = -0.12, t = - 0.969, p = 0.334). Collaboration and Networking emerged as a crucial fator for sustainability, exhibiting a notable effect with a value of 0.608 (Beta = 0.478, t = 4.065, p < 0.001). Partnership and networks are essential for facilitating knowledge exchange, enhancing resource accessibility, and promoting collaborative problem-solving, thereby advancing sustainability objectives. Employee empowerment significantly influences sustainability, as demonstrated by a coefficient of 0.307 (Beta = 0.25, t = 2.613, p = 0.01). This indicates that promoting employee ownership and
engagement enhances their contributions to sustainable outcomes. The examination of cultural intelligence as a moderating variable revealed a negligible and statistically insignificant effect on the relationship between strategic agility and sustainability. The interaction terms between cultural intelligence and elements of strategic agility were not significant, suggesting that while cultural intelligence may aid adaptability, it is not essential for fostering sustainability in this context. Business leaders in Ogun State should prioritise the enhancement of critical aspects of strategic agility to improve sustainability outcomes, rather than depending on cultural intelligence as the
primary moderating factor.
Keywords: Strategic Agility, Cultural Intelligence, and Sustainability
Word Count: 480
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Keywords
Strategic Agility, Cultural Intelligence, and Sustainability
Citation
Kate Turabia