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

Table 3: Summary of the PLS-SEM for the effect of Strategy Execution on firm profitability of Quoted DMBs in Lagos State, Nigeria Path Description Original sample (o) Unstandardized Beta t Sig. f 2 R 2 Adj. R 2 Sig. Q 2 Management communication → Firm profitability -0.020 0.098 0.922 0.001 Monitoring & Evaluation → Firm profitability 0.316 2.950 0.003 0.142 0.430 0.373 0.000 0.183 Organisational Structure → Firm profitability -0.065 0.412 0.681 0.003 Strategy Unfolding → Firm profitability 0.403 3.442 0.001 0.136 Work System → Firm profitability 0.389 3.731 0.000 0.244 Source: Researcher’s Result via SmartPLS Version 3.3.6 (2022) Figure 1 presents the results of PLS-SEM analysis for the effect of strategy execution dimensions on firm profitability selected deposit money banks in Lagos State, Nigeria. The Adjusted R 2 was used to establish the predictive power of the study’s model. From the results, the adjusted coefficient of determination ( Adj R 2 ) of 0.373 showed that strategy execution dimensions explained 37.3% of the variation in firm profitability DMBs understudy, and the remaining 72.7% variation in firm profitability is explained by other exogenous variables different from strategy execution dimensions considered in this study. The effect is statistically significant at a 95% confidence interval with a p-value less than 0.05. This result suggests that strategy execution influences 37.3% of the firm profitability selected deposit money banks in Lagos State, Nigeria. The path coefficient of each strategy execution dimension (strategy unfolding, management communication, organisational structure, work system, and monitoring and evaluation) represents the coefficient of determination ( β ) which shows the relative effect of each strategy execution dimensions on firm profitability selected deposit money banks in Lagos State, Nigeria. PLS-SEM results in fig. 1 and 2 revealed that all strategy execution dimensions have positive and significant effects except for management communication and organisational structure with insignificant relative effects. Specifically, the results revealed that at 95% confidence level, monitoring and evaluation ( β = 0.320, t= 2.291), strategy unfolding ( β = 0.403, t= 3.344), and work system ( β = 0.389, t= 3.731) of the quoted DMBs in Lagos State, Nigeria were statistically significant as their p-values were less than 0.05 and their t-values greater than 1.96. However, the relative effect of management communication ( β = - 0.020, t= 0.098) and organisational structure ( β = - 0.065, t= 0.412) has at-value below the acceptable threshold of 1.96 to suggest that the relative effect is statistically insignificant. Based on the path coefficient, the regression model is restated as follows: FP = 0.00 + 0.403SU + 0.389WS + 0.320ME-------- (i) FP= Firm profitability SU= Strategy unfolding WS= Work system ME= Monitoring and Evaluation Further analysis indicates that taking all other independent variables at zero, a unit change in Strategy unfolding holds a potential increase of 0.403 in firm profitability for the quoted DMBs in Lagos State, Nigeria, given that all other factors are held constant. Similarly, the result shows that a unit change in the Work system will lead to a 0.389 increase in firm profitability for the quoted DMBs in Lagos State, Nigeria, given that all other factors are held constant. Lastly, the result shows that a unit change in Work sys Monitoring and Evaluation will lead to a 0.320 increase in firm profitability for the quoted DMBs in Lagos State, Nigeria, given that all other factors are held constant. Overall, from the results, Strategy unfolding had the highest relative effect on firm profitability for the quoted DMBs in Lagos State, Nigeria, with a coefficient of 0.403 and t value of t= 3.344. In second place is the Work system with a coefficient of 0.389 and t value of t= 3.731. Lastly, monitoring and evaluation with a coefficient of 0.308 and t value of 2.950. The PLS-SEM offers the opportunity to detect the effect size of the predictor variables (strategy execution dimension) on the outcome variable (firm profitability) using the F-Square (f 2 ) statistic. Scholars provided thresholds for f 2 Values of 0.02, 0.15, and 0.35, representing small, medium, and large effects, respectively (Cohen, 1988, Fasola, Asikhia, Akinlabi, & Makinde, 2020). Table 3 represents the effect size of all strategy execution dimensions on firm profitability of the quoted DMBs in Lagos State, Nigeria. The effect size of strategy unfolding, work system, and monitoring and The Affinity to Execute Strategy could Drive Firm Profitability. Is this True? What Role Does Anagile Leader Play? 55 Global Journal of Management and Business Research Volume XXII Issue V Version I Year 2022 ( ) A © 2022 Global Journals