Strategy Implementation and Non-Financial Performance of pharmaceutical firms in Lagos State, Nigeria: The Mediating Role of Technology Adoption

Abstract

This study investigates the impact of strategy implementation on non-financial performance, taking into account the moderating effect of technology adoption on the impact in the Nigerian pharmaceutical industry. Using the resource-based view, the technology acceptance model and the dynamic capabilities theory, the study formulated and tested a mediation model based on a cross sectional quantitative research methodology. Data were obtained through the use of self-administered questionnaires among 242 respondents who were proportionately selected from a target population of 616 employees from five leading pharmaceutical companies in Nigeria, namely Fidson Healthcare Plc, Emzor Pharmaceutical Industries, May & Baker Nigeria Plc, Neimeth Pharmaceuticals Plc, and Evans Medical Plc using stratified sampling method. The number of respondents used meets the minimum requirement of 50 samples as recommended by Yamane formula in 1967. As such, strategy implementation has been found to be positively associated with non-financial performance (β = 0.363, p = 0.002) and technology adoption (β = 0.577, p < 0.001), and technology adoption has also been found to have a positive influence on non-financial performance (β = 0.448, p < 0.001). Furthermore, the mediation analysis shows that technology adoption partially mediates the association between strategy implementation and non-financial performance, accounting for a Variance Accounted For (VAF) of about 41.5%. This research has provided an important contribution to strategic management and information systems research since it has shown that technology adoption is an important mediator of strategy execution towards superior non-financial performance. Based on these findings, it is recommended that pharmaceutical firms strengthen strategy implementation through clear communication of strategic objectives, adequate resource allocation, continuous monitoring and evaluation systems, and deliberate integration of technology adoption into core strategic processes, while simultaneously investing in employee digital skills development and fostering dynamic capabilities that enhance organizational flexibility, learning, and responsiveness to environmental changes.