Authors: Henry Kehinde FASUA, Francis Kehinde EMENI, Oluwabunmi Akindele OLAWAYE
Abstract: This study examines the effect of strategic management practices on the financial performance of listed manufacturing firms in Nigeria. The research was motivated by inconsistent empirical findings and limited studies integrating strategic position, cost-leadership, differentiation, and strategic control within the Nigerian context. An ex post facto design was adopted, utilizing secondary data extracted from annual reports of 55 manufacturing firms listed on the Nigerian Exchange between 2014 and 2023. Return on Assets (ROA) was used as the proxy for financial performance, while strategic position, cost leadership, differentiation, and strategic control served as the independent variables, with gross profit as a control variable. The panel data were analyzed using Panel Least Squares, Fixed Effects, and Random Effects models, with the Hausman test guiding model selection. Findings reveal that strategic position, cost-leadership strategy, and strategic control significantly and positively influence financial performance, whereas differentiation strategy shows an insignificant effect. The results highlight the importance of competitive positioning, cost efficiency, and robust control mechanisms in driving profitability among manufacturing firms in Nigeria. The study concludes that firms should adopt an integrated strategic management approach to improve financial outcomes and sustain long-term competitiveness. It recommends that management prioritize cost-focused strategies, continuous environmental assessment, and effective monitoring frameworks to strengthen performance. Future studies may incorporate additional governance and macroeconomic variables to enhance explanatory power and provide broader insights.
