Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 5

The Affinity to Execute Strategy could Drive Firm Profitability. Is this True? What Role Does Anagile Leader Play? Asihkia, O. U. α , Adewole, A. A. σ , Onamusi A. B. ρ & Makinde G. O. Ѡ Abstract- Purpose: Based on the assumption of the ADKAR theory and the dynamic capability theory, the interactions between strategy execution, agile leadership, and Deposit Money Banks (DMBs) firm profitability were examined. Methodology: Survey design was adopted, and a sample of 452 staff of eleven quoted DMBs in Lagos State, Nigeria, was the unit of analysis. PLS-SEM was used to test the study’s hypotheses. Findings: The results showed that strategy execution significantly impact DMBs profitability (Adj R2 =0.373, p=0.000, Q2 =0.183). Supplementary test posited that agile leadership is a significant moderating variable given its ability to enhance the functional relationship between strategy execution and firm profitability of the DMBs in Lagos State, Nigeria ( β =0.160; p< 0.050, Q2 =0.198). Implications: The study, through its findings, established that strategy execution enhance firm profitability when manager exhibit agile leadership orientation. Thus, the DMBs should ensure that it looks into formulating strategies and identifying critical factors that can aid its successful implementation. It is equally critical for the management of the DMBs examined to imbibe the agile leadership orientation because such a leadership attribute potentially aid firm profitability. Originality: This study offers significant contribution to strategy execution literature within DMBs context in Lagos State, Nigeria. More so, add to scant empirical submission about the relevance of strategy execution and agile leadership. Keywords: strategy execution, agile leadership, firm profitability, dynamic capability theory, ADKAR theory. I. I ntroduction he recovery of the Deposit Money Banks (DMBs) loaned funds in Nigeria has remained a challenge. This is evident in the CBN report, which confirms that DMBs NPL stood at a threshold contrary to the statutory acceptable minimum (National Bureau of Statistics (NBS), 2021). This development has a negative ripple effect on the efficiency of operation and real profitability of the banking industry in Nigeria. According to a Moody report in 2019, when bank Author α σ Ѡ : Department of Business Administration & Marketing, Babcock University Ilisan-Remo, Nigeria. Author ρ : Department of Management & Accounting, Lead City University, Ibadan, Nigeria. e-mail: abiodunonamusi@gmail.com debtors fail to honour credit agreements, it has serious attendant consequences for the creditor (DMBs) and the economy as a whole. The fallout on this issue of NPL is that DMBs have become risk-averse and are against actively providing funds to businesses; they have concentrated on loans recovery. While Nigerian banks appear to be posting profit growth year on year, this is primarily due to the exchange rate of the Nigerian Naira. Banks' real profitability has been declining in absolute terms and dollar terms. In addition, the recent CBN stress test revealed that banks are carrying a lot of bad restructured loans, which will further erode profitability and capital if the prudential guideline is not strictly applied. Statistics Africa in its 2019 ranking of banks in Africa further lent credence to the weak profitability of Nigerian Deposit Money Banks. Nigeria's most profitable bank, Zenith Bank, was ranked eighth in profitability in the report. The $532m recorded by Zenith bank was 23 of South Africa's Standard Bank Group's profit for the period, despite Nigeria being the largest economy in Africa. This indicates a potential problem of how strategies execution influences Nigerian banks. This development raises the question, what is the effect of strategy execution on firm profitability of DMBs in Lagos State, Nigeria? Achieving significant financial performance for organisations in an environment characterized by uncertainties and intense competition warrants those organisations to formulate and execute strategies to contend with these business realities. Despite the relevance of strategy execution, a well-thought-out plan without the framework for execution is another failed strategy. The field of strategic management has recorded only a handful of studies (Adetayo, 2018; Auka & Langat, 2016; Bhimavarapu, Kim & Xiong, 2019; De Oliveira, Carneiro & Esteves, 2019; George, Monster, & Walker. 2019; Gumel, 2019; Korkmaz, 2020; Srivastava & Sushil, 2017; Waititu, 2016), applying majorly systematic reviews and cross-sectional survey research approach. Their findings suggested that the interaction between strategy execution factors such as unfolding, communication, structure, control, and high- performance working system on firm profitability remain unclear. Hence, this limits the understanding of the strategy execution-firm profitability link within the context T 49 Global Journal of Management and Business Research Volume XXII Issue V Version I Year 2022 ( ) A © 2022 Global Journals