Effect of Strategic Adaptability on Financial Sustainability of Deposit Money Banks in Nigeria

Abstract

Banks that have experienced policy reforms and restructuring, to properly position the industry having realized that financial sustainability of their success in the long term depends on strategic adaptability through internal collaboration, external partnership, technological innovation, strategic flexibility and workforce agility. Thus, this study investigated the effect of strategic adaptability on the financial sustainability of deposit money banks in Nigeria. The study adopted the survey research design. The population was 3, 416 management level employees of 10 selected deposit money banks in Nigeria licensed by Central Bank of Nigeria (CBN). A sample size of 664 was determined using Cochran (1997) formula with an additional 30% for attrition. The study used the stratified proportionate random sampling technique. Primary data were collected using a structured and validated questionnaire. The Cronbach's alpha coefficients for the constructs ranged from 0.763 to 0.842. The response rate was 86.9%. The data were analyzed using the multiple regression analysis. The result revealed that strategic adaptability had positive significant effect on financial sustainability of deposit money banks in Nigeria (Adj R² = 0.345, F (5,554) = 61.025, p< 0.05). It was concluded that strategic adaptability affects financial sustainability of deposit money banks in Nigeria and it was recommended that management of deposit money banks advance effective strategic adaptability policies in respect to internal collaboration, external partnership, technological innovation, and workforce agility to improve financial sustainability.