Strategy Implementation and Non-Financial Performance of Pharmaceutical Firms in Lagos State, Nigeria: The Moderating Role of Regulatory Compliance

The study focuses on the influence of strategy implementation on non-financial performance of pharmaceutical companies in Lagos State, Nigeria, with special attention given to the moderating effect of regulatory compliance in the relationship. Grounded on the resource-based view and the contingency theory, the study applied quantitative cross-sectional research design. Data collection has been performed with the use of self-administered questionnaires distributed among 202 respondents proportionally selected from the total number of 406 employees of Fidson Healthcare Plc, May & Baker Nigeria Plc, and Neimeth International Pharmaceuticals Plc by means of stratified sampling technique. In order to calculate the sample size, Yamane (1967) formula was utilized. Data analysis has been performed with the help of Structural Equation Modelling (SEM) technique via SmartPLS, using bootstrapping with 5,000 resamples. As a result, the study found out that strategy implementation positively and significantly affects non-financial performance (β = 0.257, p = 0.003), and regulatory compliance positively and significantly affects non-financial performance (β = 0.438, p < 0.001) of pharmaceutical firms in Lagos State. On the other hand, the study found out that regulatory compliance does not significantly moderate the relationship between strategy implementation and the non-financial performance of pharmaceutical firms in Lagos State (β = -0.088, p = 0.122). The study, therefore, concludes that although both strategy implementation and regulatory compliance individually have a positive impact on non-financial performance, regulatory compliance does not moderate the relationship between strategy implementation and non-financial performance in the current study scenario. It is therefore recommended that the pharmaceutical industry needs to develop its strategic implementation and compliance abilities. This research is significant to the body of knowledge as it provides empirical evidence in the case of a developing country’s pharmaceutical industry and explains the separate contributions of strategy implementation and regulatory compliance towards non-financial performance results.