Developing Strategic Entrepreneurship for Organizational Profitability: Evidence of Nigerian Textile Firms

Abstract

The debate is that strategic entrepreneurship triggers firm's profitability with emphasis on strategic flexibility, adaptability, innovation, strategic leadership, risk taking and dynamic capabilities. Cross-sectional research design was adopted and primary data were sourced through an adapted questionnaire. Internal consistency confirmed the reliability of the instrument while the content, construct, and criterion validity were established. Three textile manufacturing organizations in Lagos State were purposively selected with a population of 253 senior management employees. Total enumeration was utilized and 237 copies of the questionnaire were retrieved. An econometric model was developed and multiple regression was applied as data analysis method. The findings indicated that strategic entrepreneurship has a significant effect on profitability (adjusted R² = 0.317, F_{(6, 230)} = 19.253, p=0.000). However, the individual coefficient results, identified adaptability, strategic flexibility, risk taking and dynamic capabilities to have exhibited positive and significant effect on firm profitability. The study recommended institutionalization of adaptive creativity in the areas of adaptability, strategic flexibility, risk taking and dynamic capabilities to sustain firm profitability.