Strategic Agility and Organisational Performance Nexus: Evidence from Selected Deposit Money Banks in Lagos, Nigeria

Abstract

The performance of deposit money banks in all nations has a key role to play in the growth, enhancement and development of a nation.  Studies have shown that strategic agility factors such as sensitivity, leadership cohesion, proactiveness significantly to organisational performance. However, poor adoption of these factors has posed problems for deposit money banks thus leading to the decline in organisational flexibility, corporate image and competitive advantage. The increasing nature of the decline in the performance of financial institutions in recent years poses serious threats to the stability and survival of the financial sector and banks in particular. The poor organisational culture also affects the extent to which strategic agility contributes to the organisational performance. The study therefore evaluated the nexus between strategic agility and performance of selected deposit money banks in Lagos, Nigeria.  The study adopted a cross-sectional survey research design. This design is adopted because it described extensively, the relationships between the study variables. The population comprised 3000 management-level employees of the selected quoted deposit money banks. These banks were selected because they are among the top ten performing banks in the Nigerian banking sector. Taro Yamani sampling formula was used to determine the sample of 459. A validated questionnaire was administered.  The Cronbach's alpha reliability coefficients of the constructs ranged from 0.71 to 0.93. The response rate was 91.2%. Data were analysed using descriptive and inferential statistics. Findings revealed that sensitivity significantly affects the organisational flexibility of selected deposit money banks in Lagos, Nigeria (R = 0.522, R² = 0.305, F (1,417) = 182.674, p < 0.05). Leadership cohesion has a significant influence on corporate Image of selected deposit money banks in Lagos, Nigeria (R = 0.227, R² = 0.051, F (1,417) = 22.554, p < 0.05). The study concluded that strategic agility significantly affected the performance of selected quoted deposit money banks in Lagos State, Nigeria. The study recommends that deposit money banks should constantly be evaluated in order to seek out ways to become agile in order to improve performance level.