Market Innovation Capability and Performance of Indigenous Oil and Gas Companies in South-South, Nigeria
DOI:
https://doi.org/10.53819/81018102t4093Abstract
This study examined the relationship between market innovation capability and performance of indigenous oil and gas companies in South-South, Nigeria. The study adopted the cross-sectional research survey design. Primary data was generated through structured questionnaire. The population of this study was thirty-three (33) registered and functional indigenous oil and gas companies in South-South, Nigeria. In this study the researcher adopted a census sampling technique to study all the 33 indigenous oil and gas companies in Rivers State because the population was small. However, preliminary field survey revealed that there are at least five (5) employees in each of the indigenous oil and gas companies in Rivers State. The reliability of the instrument was achieved by the use of the Cronbach Alpha coefficient with all the items scoring above 0.70. The hypotheses were tested using the Spearman’s Rank Order Correlation Statistics while the partial correlation was used to test the moderating effect of organisational structure. The tests were carried out at a 0.05 significance level. Findings revealed that there is a significant relationship between market innovation capability and performance of indigenous oil and gas companies in South-South, Nigeria. Therefore, the study concludes that market innovation enhances the ventures into new markets and support better market shares. The implying that development to new marketing channels is vital in contributing to the performance indigenous oil and gas companies in the South-South, Nigeria. Hence the study recommends that the management of indigenous oil and gas companies should expand the capacity of their digital marketing teams as well as support digitalization of their marketing strategies as this will enhance market innovations. There is need also to invest in marketing innovation strategies including pricing, future customer engagement, product placement and product promotional avenues so as to improve performance in indigenous oil and gas sector.
Keywords: Market Innovation Capability, Performance, Sales Volume, Profitability, Growth
References
Achtenhagen, L., Naldi, L., & Melin, L. (2010). Business growth: Do practitioners and scholars really talk about the same thing? Entrepreneurship Theory and Practice, 34(2), 289-316.
Almatrooshi, B., Singh, S. K., & Farouk, S. (2016). Determinants of organizational performance: a proposed framework. International Journal of Productivity and Performance Management. 2(3) 15-16.
Ambad, S. N. A., & Wahab, K. A. (2013). Entrepreneurial orientation among large firms in Malaysia: Contingent effects of hostile environments. International Journal of Business and Social Science, 4(16), 96-107
Ambrosini, V. & Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic Management? International Journal of Management Review, 11 (1), 29-49.
Arokodare, M. A., & Asikhia, O. U. (2020). Strategic agility: Achieving superior organizational performance through strategic foresight. Global Journal of Management and Business Research, 20(3), 7-16.
Bahadir, S. C., Bharadwaj, S. G., & Srivastava, R. K. (2008). Financial value of brands in mergers and acquisitions: Is value in the eye of the beholder? Journal of Marketing, 72(6), 49-64.
Bayo, L. P., & Hamilton, D. I. (2022). Basic model of strategic management process. International Journal of Multidisciplinary Research and Growth Evaluation, 2 (4), 19-23.
Blal, I., Singal, M., & Templin, J. (2018). Airbnb’s effect on hotel Sales volume. International Journal of Hospitality Management, 73, 85-92.
Cascio, R. P. (2011). Marketing innovation and firm performance research model, research hypotheses, and managerial implications. A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the Department of Marketing in the College of Business Administration at the University of Central Florida Orlando, Florida
Cho, J., & Dansereau, F. (2010). Are transformational leaders fair? A multi-level study of transformational leadership, justice perceptions, and organizational citizenship behaviors. The Leadership Quarterly, 21(3), 409-421.
Dobbs, M., & Hamilton, R. T. (2007). Small business growth: recent evidence and new directions. International Journal of Entrepreneurship Behaviour and Research, 13(5), 296-322.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10‐11), 1105-1121.
Ejo-Orusa, H.E., & Adim, C.V. (2018). Strategic innovation management and organizational survival of hotels in Port Harcourt, Nigeria: The moderating role of organizational structure. British International Journal of Education and Social Sciences, 5 (12), 25-40.
Ellul, A., & Yerramilli, V. (2013). Stronger risk controls, lower risk: Evidence from US bank holding companies. The Journal of Finance, 68(5), 1757-1803.
Ernst, M. & Young, P. (2011). The Role of Green ICT in Enabling Smart Growth in Estonia. Availableat:http://www.pamlin.net/new/wp-content/uploads/EY_MKM_Green_ICT_study_2011_FINAL-REPORT2.pdf (18/9/2012).
Essmann, H., & Du Preez, N. (2009). An innovation capability maturity model–development and initial application. World Academy of Science, Engineering and Technology, 53(1), 435-446.
Etale, L. M., Bingilar, P. F., & Ifurueze, M. S. (2016). Market share and profitability relationship: A study of the banking sector in Nigeria. International Journal of Business, Economics and Management, 3(8), 103-112.
Gavrea, C., Ilies, L., & Stegerean, R. (2011). Determinants Of Organizational Performance: The Case of Romania. Management & Marketing Challenges for the Knowledge Society, 6, (2) 285-300
Geroski, P, Machin, S.,& Van Reenen, J. (1993). The profitability of innovating firms. RAND Journal of Economics, 24 (2), 198-211.
Hanvanach, S., Droge, C. & Calatone, R. (2003). Reconceptualizing the meaning and domain of marketing knowledge. Journal of Knowledge Management, 7(4), 23-34. https://doi.org/10.1108/13673270310492994
Helfat, C. E., & Martin, J. A. (2015). Dynamic managerial capabilities: Review and assessment of managerial impact on strategic change. Journal of Management, 41(5), 1281-1312.
Hui, Feng, Neil A. Morgan & Lopo L. Rego. (2015). Marketing department power and firm performance. Journal of Marketing, 79, 1- 20.
Hunger, J. D., & Wheelen, T. L. (2012). Strategic Management and Business Policy, Bentley University.
Janssen, F. (2009a). Do manager’s characteristics influence the employment growth of SMEs? Journal of Small Business and Entrepreneurship, 19(3), 293-315.
Jonash, R. S., Sommerlatte, T. (1999). The innovation Premium: How next generation companies are achieving peak performance and profitability. Jackson: Perseus.
Kanyabi, Y., & Devi, S. (2012). The impact of advisory services on Iranian SME performance: An empirical investigation of the role of professional accountants. South African Journal of Business Management, 43(2), 61-72.
Kipleting, N. (2017). Non-monetary motivation and employee performance: A case of Eldoret Polytechnic, Uasin Ngishu County, Kenya.
Krasnikov, A., & Jayachandran, S. (2008). The relative impact of marketing, research-and-development, and operations capabilities on firm performance. Journal of Marketing, 72(4), 1-11.
Monday, J. U., Akinola, G. O., Ologbenla, P., & Aladeraji, O. K. (2015). Strategic management and firm performance: A study of selected manufacturing companies in Nigeria. European Journal of Business and Management, 7(2), 161-171.
Ngamsutti, S., & Ussahawanitchakit, P. (2016). Marketing innovation capability and marketing performance: an empirical study of electrical and electronic appliances in Thailand. The Business & Management Review, 7(5), 339.
Nnabuife, E. (2009). Organizational behaviour and management theory. Nimo: Rex Charles & Patrick Limited.
Nnodim, I. O., Onuoha, B. C., & Needorn, R. S. (2020). Marketing Innovation Capability Nigerian Quoted Banks. International Journal of Business and Economics, 8(1), 16 – 24
OECD/Eurostat (2005). Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd Edition. Paris, France: OECD Publishing. Retrieved from: http://dx.doi.org/10.787/9789264013100-en
Oslo Manual, (2005). Proposed Guidelines for Collecting and Interpreting Technological Innovation Data, OECD.
Penrose, E. (2006). A teoria do crescimento da firma. Campinas: Editora da Unicamp.
Penrose, E. T. (1959). The Theory of the Growth of the Firm. New York: John Wiley.
Peteraf, M. A., & Barney, J. B. (2003). Unraveling the resource‐based tangle. Managerial and Decision Economics, 24(4), 309-323.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.
Robinson, P. M. (Ed.). (2003). Time series with long memory. Advanced Texts in Econometrics.
Rugman, A. M., & Verbeke, A. (2002). Edith Penrose's contribution to the resource‐based view of strategic management. Strategic Management Journal, 23(8), 769-780.
Salisu, B., Abu Bakar, J. L., & Abdul Rani, S. H. (2017). A proposed model of innovation as a mechanism for SMEs success in Nigeria. Asian Journal of Multidisciplinary Studies, 5(12), 37–42.
Santos, J. B., & Brito, L. A. L. (2012). Toward a subjective measurement model for firm performance. BAR-Brazilian Administration Review, 9(SPE), 95-117.
Tangen, S. (2003). An overview of frequently used performance measures. International Journal of Productivity and Performance Management, 52(7), 347-354.
Tinoco, J. (2005) Marketing Process Innovation: Antecedents and Consequences (Unpublished manuscript).
Tomal, D. R., & Jones Jr, K. J. (2022). A comparison of core competencies of women and men leaders in the manufacturing industry. The Coastal Business Journal, 14(1), 2.
Trivedi, S. M. (2010). An analysis of financial performance of state road transport corporation in Gujarat (Doctoral dissertation, Saurashtra University).
Wales, W., Beliaeva, T., Shirokova, G., Stettler, T. R., & Gupta, V. K. (2020). Orienting toward Sales volume? Decomposing the variance attributed to three fundamental organizational strategic orientations. Journal of Business Research, 109, 498-510.
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic management journal, 5(2), 171-180.
Xesha, D., Iwu, C. G., Slabbert, A., & Nduna, J. (2014). The impact of employer-employee relationships on business growth. Journal of Economics, 5(3), 313-324.
Zack, M., McKeen, J., & Singh, S. (2009). Knowledge management and organizational performance: an exploratory analysis. Journal of Knowledge Management,
Almatrooshi, B., Singh, S. K., & Farouk, S. (2016). Determinants of organizational performance: a proposed framework. International Journal of Productivity and Performance Management. 2(3) 15-16.
Ambad, S. N. A., & Wahab, K. A. (2013). Entrepreneurial orientation among large firms in Malaysia: Contingent effects of hostile environments. International Journal of Business and Social Science, 4(16), 96-107
Ambrosini, V. & Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic Management? International Journal of Management Review, 11 (1), 29-49.
Arokodare, M. A., & Asikhia, O. U. (2020). Strategic agility: Achieving superior organizational performance through strategic foresight. Global Journal of Management and Business Research, 20(3), 7-16.
Bahadir, S. C., Bharadwaj, S. G., & Srivastava, R. K. (2008). Financial value of brands in mergers and acquisitions: Is value in the eye of the beholder? Journal of Marketing, 72(6), 49-64.
Bayo, L. P., & Hamilton, D. I. (2022). Basic model of strategic management process. International Journal of Multidisciplinary Research and Growth Evaluation, 2 (4), 19-23.
Blal, I., Singal, M., & Templin, J. (2018). Airbnb’s effect on hotel Sales volume. International Journal of Hospitality Management, 73, 85-92.
Cascio, R. P. (2011). Marketing innovation and firm performance research model, research hypotheses, and managerial implications. A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the Department of Marketing in the College of Business Administration at the University of Central Florida Orlando, Florida
Cho, J., & Dansereau, F. (2010). Are transformational leaders fair? A multi-level study of transformational leadership, justice perceptions, and organizational citizenship behaviors. The Leadership Quarterly, 21(3), 409-421.
Dobbs, M., & Hamilton, R. T. (2007). Small business growth: recent evidence and new directions. International Journal of Entrepreneurship Behaviour and Research, 13(5), 296-322.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10‐11), 1105-1121.
Ejo-Orusa, H.E., & Adim, C.V. (2018). Strategic innovation management and organizational survival of hotels in Port Harcourt, Nigeria: The moderating role of organizational structure. British International Journal of Education and Social Sciences, 5 (12), 25-40.
Ellul, A., & Yerramilli, V. (2013). Stronger risk controls, lower risk: Evidence from US bank holding companies. The Journal of Finance, 68(5), 1757-1803.
Ernst, M. & Young, P. (2011). The Role of Green ICT in Enabling Smart Growth in Estonia. Availableat:http://www.pamlin.net/new/wp-content/uploads/EY_MKM_Green_ICT_study_2011_FINAL-REPORT2.pdf (18/9/2012).
Essmann, H., & Du Preez, N. (2009). An innovation capability maturity model–development and initial application. World Academy of Science, Engineering and Technology, 53(1), 435-446.
Etale, L. M., Bingilar, P. F., & Ifurueze, M. S. (2016). Market share and profitability relationship: A study of the banking sector in Nigeria. International Journal of Business, Economics and Management, 3(8), 103-112.
Gavrea, C., Ilies, L., & Stegerean, R. (2011). Determinants Of Organizational Performance: The Case of Romania. Management & Marketing Challenges for the Knowledge Society, 6, (2) 285-300
Geroski, P, Machin, S.,& Van Reenen, J. (1993). The profitability of innovating firms. RAND Journal of Economics, 24 (2), 198-211.
Hanvanach, S., Droge, C. & Calatone, R. (2003). Reconceptualizing the meaning and domain of marketing knowledge. Journal of Knowledge Management, 7(4), 23-34. https://doi.org/10.1108/13673270310492994
Helfat, C. E., & Martin, J. A. (2015). Dynamic managerial capabilities: Review and assessment of managerial impact on strategic change. Journal of Management, 41(5), 1281-1312.
Hui, Feng, Neil A. Morgan & Lopo L. Rego. (2015). Marketing department power and firm performance. Journal of Marketing, 79, 1- 20.
Hunger, J. D., & Wheelen, T. L. (2012). Strategic Management and Business Policy, Bentley University.
Janssen, F. (2009a). Do manager’s characteristics influence the employment growth of SMEs? Journal of Small Business and Entrepreneurship, 19(3), 293-315.
Jonash, R. S., Sommerlatte, T. (1999). The innovation Premium: How next generation companies are achieving peak performance and profitability. Jackson: Perseus.
Kanyabi, Y., & Devi, S. (2012). The impact of advisory services on Iranian SME performance: An empirical investigation of the role of professional accountants. South African Journal of Business Management, 43(2), 61-72.
Kipleting, N. (2017). Non-monetary motivation and employee performance: A case of Eldoret Polytechnic, Uasin Ngishu County, Kenya.
Krasnikov, A., & Jayachandran, S. (2008). The relative impact of marketing, research-and-development, and operations capabilities on firm performance. Journal of Marketing, 72(4), 1-11.
Monday, J. U., Akinola, G. O., Ologbenla, P., & Aladeraji, O. K. (2015). Strategic management and firm performance: A study of selected manufacturing companies in Nigeria. European Journal of Business and Management, 7(2), 161-171.
Ngamsutti, S., & Ussahawanitchakit, P. (2016). Marketing innovation capability and marketing performance: an empirical study of electrical and electronic appliances in Thailand. The Business & Management Review, 7(5), 339.
Nnabuife, E. (2009). Organizational behaviour and management theory. Nimo: Rex Charles & Patrick Limited.
Nnodim, I. O., Onuoha, B. C., & Needorn, R. S. (2020). Marketing Innovation Capability Nigerian Quoted Banks. International Journal of Business and Economics, 8(1), 16 – 24
OECD/Eurostat (2005). Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd Edition. Paris, France: OECD Publishing. Retrieved from: http://dx.doi.org/10.787/9789264013100-en
Oslo Manual, (2005). Proposed Guidelines for Collecting and Interpreting Technological Innovation Data, OECD.
Penrose, E. (2006). A teoria do crescimento da firma. Campinas: Editora da Unicamp.
Penrose, E. T. (1959). The Theory of the Growth of the Firm. New York: John Wiley.
Peteraf, M. A., & Barney, J. B. (2003). Unraveling the resource‐based tangle. Managerial and Decision Economics, 24(4), 309-323.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.
Robinson, P. M. (Ed.). (2003). Time series with long memory. Advanced Texts in Econometrics.
Rugman, A. M., & Verbeke, A. (2002). Edith Penrose's contribution to the resource‐based view of strategic management. Strategic Management Journal, 23(8), 769-780.
Salisu, B., Abu Bakar, J. L., & Abdul Rani, S. H. (2017). A proposed model of innovation as a mechanism for SMEs success in Nigeria. Asian Journal of Multidisciplinary Studies, 5(12), 37–42.
Santos, J. B., & Brito, L. A. L. (2012). Toward a subjective measurement model for firm performance. BAR-Brazilian Administration Review, 9(SPE), 95-117.
Tangen, S. (2003). An overview of frequently used performance measures. International Journal of Productivity and Performance Management, 52(7), 347-354.
Tinoco, J. (2005) Marketing Process Innovation: Antecedents and Consequences (Unpublished manuscript).
Tomal, D. R., & Jones Jr, K. J. (2022). A comparison of core competencies of women and men leaders in the manufacturing industry. The Coastal Business Journal, 14(1), 2.
Trivedi, S. M. (2010). An analysis of financial performance of state road transport corporation in Gujarat (Doctoral dissertation, Saurashtra University).
Wales, W., Beliaeva, T., Shirokova, G., Stettler, T. R., & Gupta, V. K. (2020). Orienting toward Sales volume? Decomposing the variance attributed to three fundamental organizational strategic orientations. Journal of Business Research, 109, 498-510.
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic management journal, 5(2), 171-180.
Xesha, D., Iwu, C. G., Slabbert, A., & Nduna, J. (2014). The impact of employer-employee relationships on business growth. Journal of Economics, 5(3), 313-324.
Zack, M., McKeen, J., & Singh, S. (2009). Knowledge management and organizational performance: an exploratory analysis. Journal of Knowledge Management,
Downloads
Published
2022-10-30
How to Cite
Emumena, D. E. . ., & Hamilton, D. I. . (2022). Market Innovation Capability and Performance of Indigenous Oil and Gas Companies in South-South, Nigeria. Journal of Strategic Management, 6(6), 63–76. https://doi.org/10.53819/81018102t4093
Issue
Section
Articles
