Leadership Styles, Corporate Culture and Performance of Fast-Moving Consumer Goods Manufacturing Companies in South West Nigeria
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Date
2024-12
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Lead City University, Ibadan
Abstract
The fast-moving consumer goods manufacturing industry in Nigeria is a pivotal driver of economic growth. However, its recent performance with respect to profitability, return on investment, product quality, and customer satisfaction has been a daunting task given the challenges associated with Nigeria’s harsh business environment. The roles of leadership and corporate culture remains critical in addressing performance challenges within the fast- moving consumer goods in South west Nigeria. On the strength of assumptions of Contingency theory, this study investigated the effect of leadership styles (humanistic and non-humanistic) with the moderating influence of corporate culture on firm performance in the selected firms. This study adopted a descriptive research design. The population of the study comprised two thousand, four hundred and six (2406) employees of selected firms. The Taro Yamane sample size formula was utilized to arrive at a sample size of 446 employees. The study adopted stratified random sampling technique to select employees in the selected affirms. A validated questionnaire was utilised. Data collected were analysed using multiple
and hierarchical regression. Findings revealed that humanistic Leadership styles have significant effect on profitability of the selected firms (Adj R 2= 0.063, F(2,414)= 15.027, p= 0.000); non-humanistic Leadership styles have significant effect on return on investment of the selected firms (Adj R 2= -0.584, F(2,414)= 293.193, p= 0.000); non-humanistic Leadership styles have significant effect on product quality enhancement in the selected firms (Adj R 2= 0.139, F(2,414)= 30.280, p= 0.000); humanistic Leadership styles have no significant effect on customer satisfaction of selected firms (Adj R 2= 0.009, F(2,414)= 2.854, p= 0.059) and corporate culture have a significant and positive moderating effect on the relationship between leadership styles and firm performance of the selected firms. (ΔR 2= 0.013, ΔF = 16.035, P= 0.000). This study concluded that leadership styles (humanistic and non-humanistic) had a statistically significant effect on firm performance of the selected firms. Given the significant influence of leadership styles and corporate culture on firm performance in the selected firms. It is recommended that firms should prioritize the alignment of leadership approaches with their unique cultural context to enhance overall firm performance.
Keywords: Corporate Culture, Fast-moving Consumer Goods Firms, Firm Performance, Leadership Styles
Word Count: 343
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Keywords
Corporate Culture, Fast-moving Consumer Goods Firms, Firm Performance, Leadership Styles
Citation
Kate Turabia