Strategic Choices and Performance: Evidence from an Ailing Industry in Nigeria

N.D Gado

Bingham University, Kodope, Nasarawa State, Nigeria

Email: nuhugado@yahoo.com

Accepted 08 October 2013

Abstract

The textile industry in North West Zone of Nigeria is ailing resulting in massive unemployment. The objective of this paper was to assess the role of strategy in this unpleasant development. Primary and secondary data on resources, strategy and performance were collected for seven surviving companies and analysed using the Kendall’s tau-b. The results showed robust correlation between strategic choices and resource levels and an even stronger correlation between strategic choices and performance levels. Amongst the recommendations were that companies should concentrate on innovative strategies supported by identified relevant resources. Identified pertinent resources included power, raw materials, machine technology and current assets. Management capabilities needed to be beefed up to transform other resources into performance. The Nigerian Government was requested to intensify efforts at creating an enabling environment with particular reference to the provision of electricity and funding at single digit interest rate.

Keywords: Choices, Performance, Ailing Industry