The Role of Perceived Environmental Uncertainty and Strategic Agility on the Performance of Selected Banks in Oyo State of Nigeria

Abstract

This study examined the impact of perceived environmental uncertainty and strategic agility on the perceived performance of selected banks in Oyo State of Nigeria. The study aimed at determining the main and interactive effect of perceived market turbulence, competitive intensity, strategic sensitivity, leadership unity and resource fluidity on organizational performance. It also looked at the connection between perceived environmental uncertainty variables(perceived market turbulence and competitive intensity) as well as strategic agility variables(strategic sensitivity, leadership unity and resource fluidity) and organizational performance.   Four hypotheses were formulated and tested using Multiple Analysis of Variance (MANOVA), Canonical Correlation and Multiple Regression. The findings showed that the independent variables (perceived market turbulence, competitive intensity, strategic sensitivity, leadership unity and resource fluidity) were predictors of organizational performance. The study also established a significant positive relationship between perceived environmental uncertainty variables as well as strategic agility variables and organizational performance. Based on the findings, it was recommended that there is a need for organizations especially banks to understand the dimensions and nature of environmental uncertainty and evolve appropriate strategies to deal or cope with the uncertainty. Organizations should also be strategically agile by making concerted efforts to deploy resources to achieve objectives, strategically sensitive to the environment and leaders should support and implement strategic decisions that can bring about improved organizational performance and sustainable competitive advantage.

Keywords: Perceived environmental uncertainty, strategic agility, strategic management, resource based view, organizational performance