ABSTRACT

This study, Strategy Implementation and Organizational Competitiveness in Akwa Ibom State Transport Company, Uyo, Akwa Ibom State was designed to underscore the relationship between strategy implementation and organizational competitiveness. Specifically, the study examine the extent to which strategy operationalization influence organizational competitiveness; it also ascertain the extent to which strategy institutionalization influence organizational competitiveness; lastly the study went further to determine the combine effect of strategy operationalization and institutionalization on organizational competitiveness. The survey research design was adopted in this study. The study population was the entire managerial staff of AKTC. Descriptive and inferential statistics was used in analyzing the data of the study. Findings from the results of analysis indicates that both aspect of strategy implementation (strategy institutionalization and operationalization) has a significant relationship with organizational competitiveness in AKTC, Uyo. The multiple regression analysis also reveal that, jointly they significantly predict organizational competitiveness in AKTC, Uyo. Based on the findings of this study, it was concluded that strategy implementation affects organizational competitiveness in the Nigerian transportation industry. Consequently, it was recommended that firms should endeavour to embrace the principles of strategic management. First, by analyzing their environment, formulating value creating strategies, and most importantly, ensuring that formulated strategies are properly implemented.

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Organizations operate in a very competitive environment. To develop and sustain competitive advantage, firms practice strategic management. Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantage (Gregory, Lumpkin and Taylor, 2005). According to Davenport (2007) creating a brilliant strategy is nothing compared to executing it successfully. Execution is critical to success. This is so because, without a carefully and well planned approach to execution, strategic goals cannot be attained.

Transportation is an essential part of economic development. It is one of the indices for measuring the development of a country. As the society and economic organizations becomes complex, the relevance of transport grows. Also the demand for transport is a derived one, because it depends on the demand for the commodities carried or the benefits of personal travel and each travel is unique in time and space. Hence, the demand for transport services increases with the extension of the input-output relationships of an economy. Transport system is classified into four basic categories, namely; road, rail, air and water transport.

Organizations including those in the transport industry compete for the same resources, competencies, and customers. These are the cruel realities of management that cannot be neglected. This also means that the notion of strategy and strategic management cannot be neglected as an integral part of what managers do. Strategy is about affecting the overall activities of an organization in ways to make the organization a winner. Strategy is about survival in fierce competition.

Strategy implementation is an important aspect of the strategic management process. Strategy implementation is the process of transforming strategic intentions into actions, then into acceptable results. While many people believe that formulating an innovative and unique strategy is critical and by itself, sufficient to lead a firm to success in today’s business world, ensuring that such a strategy works is equally as important.

Organizational competitiveness is achieved when a firm successfully formulates and implements a value creating strategy. When a firm implements a value creating strategy of which other companies or firms are unable to duplicate the benefits or find it too costly to imitate, this firm is said to have a sustained or sustainable competitive advantage. A firm is assured of it’ competitiveness only after others effort to duplicate its strategy have seized or failed (Akpan and Ayandele 2012). Therefore, in striving to achieve intended results of competitiveness and earn above average return, good strategies should be properly implemented.

 

1.2       Statement of the Problem

The business context of organizations is an ever-changing environment. May it be a modified law, an innovative technology or a new behavior of people or customers, organizations find themselves often in a different setting and need to react accordingly. In the current turbulent economic times, industries in Nigeria operate under increasing competitive and ever changing environment. The nature of competition today could be referred to as hyper competition. A new competitive landscape is emerging as a result of the technological revolution and increasing globalization. The fundamental nature of competition in many of the world’s industry is also changing. The pace of the change is relentless and increasing. Conventional sources of competitive advantage such as; economic of scale, huge advertising budget etc, are not as effective in the new competitive landscape (they are almost outdated). Similarly, the traditional managerial mindset cannot lead a firm to strategic competitiveness in the new competitive landscape. Managers must adopt “a new mindset”, one that values flexibility, speed, innovation and integration.

The Nigerian transportation industry is not an exception in this competitive dynamics. Transportation is an essential part of economic development. It is one of the indices for measuring the development of a country. As the society and economic organizations becomes complex, the relevance of transport grows. Also the demand for transport is a derived one, because it depends on the demand for the commodities carried or the benefits of personal travel and each travel is unique in time and space. Hence, the demand for transport services increases with the extension of the input-output relationships of an economy. Transport system is classified into four basic categories, namely; road, rail, air and water transport. Economic transformation, and indeed, the development of any country are nearly impossible without an efficient transport system.  According to transportation statistics transportation is an essential part of human activity and in many ways forms the basis of all socio-economic interactions. Indeed, no two locations will interact effectively without a viable means of movement. Hence, the importance of transportation and the opportunities that abound in the industry. World demand for transport services is growing at alarming rate. For example, global demand for passengers transport services is predicted to grow from 26 trillion passenger kilometers in 1990 to 103 trillion passenger kilometers in 2050 on average.

In recent years, the Nigeria transportation industry has recorded and influx of firms and the quest for greater market share had pulls these firms from the fence of complacency to the state of competiveness. However, despite having a robust strategy formulation process coupled with enormous opportunities and prospect in the industry, many firms could not achieve strategic competiveness in terms of sustain growth and profitability, innovation, creativity, skill workforce, quality service delivery, efficient and ethical management etc, many firms in the industry still find themselves in dead end or earning below average return. The inability of this firms to achieve strategic competitiveness is attributed to faulty or non-implementation of formulated strategies.

Strategic management is important for organizational competiveness. For strategic management to result to organizational competitiveness, all the steps in the process need to be effectively managed. A brilliant strategy may put a company on the competitive map and increase its performance. Unfortunately, most companies struggle with implementation and therefore fail in performance enhancement. However, little or no empirical work has been done to ascertain the relationship between strategy implementation and organizational competitiveness in the Nigerian transportation industry. This study therefore sought to ascertain the relationship between strategy implementation and organizational competitiveness in the Nigerian transportation industry.

1.3       Objectives of the Study

The general objective of the study was to ascertain the relationship between strategy implementation and organizational competitiveness in the transportation industry with specific reference to Akwa Ibom State Transport Company (AKTC), Uyo. The specific objectives are to:

i.                    examine the extent to which strategy institutionalization influence organizational competitiveness in AKTC, Uyo.

ii.                 ascertain the extent to which strategy operationalization influence organizational competitiveness in AKTC, Uyo

iii.               assess the combine effect of strategy institutionalization and operationalization on organizational competitiveness in AKTC, Uyo

 

1.4       Research Questions

The following research questions were raised.

i.                    To what extent does strategy institutionalization influence organizational competitiveness in AKTC, Uyo?

ii.                 To what extent does strategy operationalization influence organizational competitiveness in AKTC, Uyo?

iii.               What is the combine effect of strategy institutionalization and operationalization on organizational competitiveness in AKTC, Uyo?

1.5       Hypotheses of the Study

The study is guided by the following research hypothesis.

i.          There is no significant relationship between strategy institutionalization and organizational competitiveness in AKTC, Uyo.

ii:        There is no significant relationship between strategy operationalization and organizational competitiveness in AKTC, Uyo.

iii.       Strategy institutionalization and operationalization does not have any significant positive effect on organizational competitiveness in AKTC, Uyo.

 

1.6       Significance of the Study

This study is of great value. The study would give insights to the need for strategy implementation as a means of achieving organizational competitiveness, first to firms in the transportation industry and business organizations in general. Moreover, the study would act as a guide for achieving strategic competiveness and also provide a framework for firms to assess their competitiveness.

The recommendations of this study will help firms achieve competitive advantage and earn above average returns and also sustain their competitiveness. When this happens, firms will think of acquiring more market shares by way of diversification and expansion, thereby creating more job opportunities and in turn improve standard of living and the GDP of Nigeria.

The study would be a source of reference material for future researchers on the topic and other related topics. The study was also expected to highlight other important areas in the study that require further research.

 

1.7       Scope of the Study

The context of this study is well linked to strategic management. Content wise the study is limited to strategy implementation and organizational competitiveness in the Nigeria transportation industry. Geographically, the study focuses on strategy implementation and organizational competitiveness in the Nigeria transportation industry. No doubt, it will be practically difficult to cover all organizations in this study. Hence, the geographical scope of this study is restricted to Akwa Ibom State Transport Company (AKTC), Uyo, Akwa Ibom State.

 

1.8       Limitations of the Study

The following are the limitations of the study;

The restriction of the study to only one corporate organization is the major limitation to this research work. The study would have been extensive and findings generalized if more organizations were included.

Also, as in all research efforts of this nature, time poses a constraint. The researcher could not complete the study within a record time because of the pressure of other academic works.

In view of the implications of these problems on any research effort, consistent attempt were made to mitigate their potentially negative impacts on the quality of this study.

 

1.9       Operational Definition of Terms

i.                        Above Average Return - Above-average returnsare returns in excess ofwhat an investor expectsto earn from other investmentswith a similaramount of risk.

ii.                        AKTC – Akwa Ibom State Transport Company

iii.                        Average Returns - Average returnsare returns equal to those an investor expects to earn from other investments with a similar amount of risk.

iv.                        Competitive Advantage - A firm is said to have a competitive advantagewhen it implements a value creating strategy of which competitors are unable to duplicate or find too costly to try to imitate.

v.                        Organizational Competitiveness - A firm’s competitiveness is its economic strength against its rivals in the global marketplace where products, services, people and innovations move freely despite the geographical boundaries.

vi.                        Strategic Competitiveness - Strategic competitiveness is achieved when afirm successfully formulates and implements a value-creating strategy.

vii.                        Strategic Management - Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantage.

viii.                        Strategic Management Process - This is a full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.

ix.                        Strategy - A strategyis an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.

x.                        Strategy Formulation - Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision.

xi.                        Strategy Implementation - Strategy implementation entails converting the strategic plan into action and then into results.

xii.                        Sustainable Competitive Advantage - A firm is said to have a sustainable competitive advantage only after competitors’ efforts to duplicate its strategy have ceased or failed.

---