Effect of Entrepreneurial Orientation on Profitability of Selected Quoted Consumer Goods Manufacturing Companies in Nigeria

Abstract

Consumer goods manufacturing industry in Nigeria continue to report poor performance in the areas of profitability, market share, sales growth, competitive advantage, and productivity resulting from poor application of entrepreneurial orientation measures. There is need for a study examining the interaction between entrepreneurial orientation and profitability of selected quoted consumer goods manufacturing companies in Nigeria.The study adopted cross sectional survey research design. The population of the study was 1,551 of twelve (12) quoted consumer goods manufacturing companies in Nigeria. A total enumeration was used to sample the entire population. A self-developed structured and validated questionnaire was used for data collection. The reliability test yielded Cronbach's alpha for the constructs ranging from 0.721 to 0.892. The response rate was 90.5%. Data were analyzed using descriptive and inferential statistics (Multiple and Hierarchical regression analysis). Findings revealed that entrepreneurial orientation had significant effects on profitability of selected quoted consumer goods companies in Nigeria (Adj. R² = 0.708; F _(5,441) = 209.027, p= 0.000). The study concluded that entrepreneurial orientation (innovativeness, competitive aggressiveness, proactiveness, risk-taking and planning flexibility) had significant effect on profitability of selected quoted consumer goods companies in Nigeria. It was recommended that managers of selected quoted consumer goods manufacturing companies should practice entrepreneurial orientation ideologies to ensure a boost on companies' investments and rejig their working methods, set their own targets and regulate their time without wrong ideology from external forces, thus enhancing profitability of quoted consumer goods companies.