Emmanuella, O., OGUNRO, V. O., OLADIMEJI, S. B., IBOSIOLA, J. O., & ABUBAKAR, Y. S. (2026). Strategic Decision-Making Practices and Organizational Performance of Selected Pharmaceutical Firms in Owo, Ondo State. International Journal of Research, 12(4), 877–907. https://doi.org/10.26643/ijr/2026/22
OKPIABHELE Emmanuella (PhD)*
Achievers University Owo, Ondo State, Nigeria.
OGUNRO Victor Olukayode (PhD)
Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria
OLADIMEJI Samuel Bayode
Achievers University Owo, Ondo State, Nigeria
IBOSIOLA Joseph Oluwasola
Achievers University Owo, Ondo State, Nigeria
ABUBAKAR Yusuf Sumaila
Achievers University Owo, Ondo State, Nigeria
ABSTRACT
The study investigates the relationship between strategic decision-making practuces and organizational performance of selected pharmaceutical firms in Owo, Ondo state. Intuition Strategic Decision-Making (ISDM), Rational Strategic Decision-Making (RSDM) and Participatory Strategic Decision-Making (PSDM) were used as proxy for measuring strategic decision-making practices while organizational performance was measured using productivity (PRD). Using the sample size of 94, 120 questionnaire were administered to staff of selected pharmaceutical firms in Owo and 116 was retrieved for analysis. Descriptive survey design was adopted. Descriptive statistics, correlation and multiple regression alongside ANOVA were carried for data analysis using SPSS (26). The findings revealed that intuition strategic decision-making (ISDM) and participatory strategic decision-making (PSDM) were positively and significantly related with organizational performance while rational strategic decision-making (RSDM) was positively and insignificantly related with organizational performance during the study under review. In concluaion, the study revealed that strategic decision-making practices is positively and significantly related with organizational performance. Furthermore, it indicates that strategic managers or decision makers worked with these practices in determining and providing solutions of treating issues that they may or have encounter by adopting these practices in actualizing their aims and objectives during the study under review. It was recommended that, firms should encourage the use of these SDM practices such as intuition strategic decision-making, rational strategic decision-making and participatory strategic decision making as it enhances performance of both the employees and organization.
Keywords: Strategic Decision-Making Practices, Intuition Strategic Decision-Making, Rational Strategic Decision-Making, Participatory Strategic Decision-Making and Organizational Performance
- Introduction
Organizations do consider how strategic decisions are made and not only how it affects their activities and relationship with the environment though it differs between cultures as the implications and degree varies (Abubakar et al., 2019). The modern top managers’ responsibilities go beyond supervising internal activities which includes different tasks and the external environment where the business operates (George et al., 2019). Management do design procedures for strategic management to address factors that may influence an organizations’ ability to prosper and grow thereby achieving optimal positions (Anwar & Abdullah, 2021). According to Asikhia and Mba (2021) a good decision-maker chooses actions that might give best outcome after researching on the alternatives and consequences. Strategic decision-making is an important area in organization as it clearly shows the responsibility of the top management level. For enhanced organizational performance, quality decisions, team member participation, consensus are necessary (Yılmaz & Ameen, 2022).
The growth, productiveness and successes of any entrepreneurial firms or business organization in this contemporary period in the history of business wellness and stability depends mostly on effective strategic decision-making practices among decision makers in an organization (Eromafunu et al., 2022). Moreso, in todays’ competitive and dynamic business world, strategic decision-making is vital for organizations to lead or stay ahead and it strategic decision-making do encourages continual progress and organizational culture in terms of innovation. Thereby, managers may be able to identify areas that needs improvement and take advantage on new ideas by continuous testing or research and reassessing such ideas or strategies which will eventually lead to long-term success and growth (Gagan, 2023).
1.1 Statement of the Problem
Aladesoun et al. (2020) assert that in both private and public decision-making contexts, it is recognized that decisions yielding positive outcomes may also entail negative repercussions. A common challenge in decision-making processes, whether within organizations or under government oversight, is the potential for interference from organizational owners or the current administration. In certain organizations, governmental intervention presents a significant obstacle to effective decision-making, either through direct involvement in organizational operations or by influencing policy formulation that directly or indirectly impacts organizational functioning. Despite the persistent presence of such challenges, which range from management’s inability to make sound decisions to deficiencies in manpower and communication channels necessary for implementing decisions effectively, there remains a prevailing understanding of the importance of decision-making as a fundamental tool within every organization ((Malecka 2020).
The majority of management research tends to concentrate on decision-making within risky environments due to the feasibility of modeling and experimenting with expected utility maximization such as (Malel & Kemboi, 2019; Malecka 2020; Yilmaz & Ameen, 2022; Muzanenhamo & Chikosha, 2022). Academic scholars and practitioners emphasize the significance of strategic decision-making practices in evaluating organizational performance across various dimensions such as innovation, entrepreneurship, technology, knowledge, economics, healthcare, and overall organizational performance such as Ewah 2018; Sev et al. 2018; Alosani et al. 2020; Asikhia and Mba 2021; Al-Hashimi et al. 2021; Nauhaus et al. 2021; Sinnaiah et al. 2023 and revealed how strategic decision-making impacts on organizational performance.
Put differently, prior investigations into the characteristics or factors influencing the effectiveness of strategic decision-making have not produced widely applicable results or conclusions. Consequently, further empirical research is needed to ascertain which practices, characteristics or factors contribute to strategic decision-making effectiveness within organizations before definitive assertions can be made and this study aims to address this gap. Thus, the study investigated the relationship between strategic decision-making practices and organizational performance of selected pharmaceutical firms in Owo, Ondo state.
1.2 Research Questions
The under-listed research questions have been highlighted for this study:
i. Does intuition strategic decision-making influence organizational performance of pharmaceutical firms in Owo, Ondo State?
ii. To what extent has rational strategic decision-making impacted on organizational performance of selected pharmaceutical firms in Owo, Ondo state?
iii. Does participatory strategic decision-making influence organizational performance of selected pharmaceutical firms in Owo, Ondo state?
1.3 Research Objectives
This study seeks to:
i. Examine the influence of intuition strategic decision-making on organizational performance of selected pharmaceutical firms in Owo, Ondo state.
ii. ascertain to what extent rational strategic decision-making impacts on organizational performance of selected pharmaceutical firms in Owo, Ondo state.
iii. determine the influence of participatory strategic decision-making on organizational performance of selected pharmaceutical firms in Owo, Ondo state.
1.4 Scope of the Study
The study investigates the relationship between SDM practices and organizational performance using intuition strategic decision-making, rational strategic decision-making and participatory strategic decision-making in measuring SDM practices (independent variable) while productivity was used in measuring organizational performance (dependent variable). Descriptive research design was adopted using primary source of data with a sample size of 94 (ninety-four) which was done using stratified probability sampling technique of staff in selected pharmaceutical firms in Owo, Ondo state. Multiple regression analysis was carried out alongside ANOVA using SPSS version 26. The timeframe for this study was within the month of September, 2023 to February, 2024.
2.0 Literature Review
2.1 Organizational Performance
The main goal of any business is to make profit and to achieve this, organizations would put in place methods in attaining it and what drives organizations’ failure or success has been a vital subject in business which has led to investigating determinants of organizational performance (Taofeeq et al., 2019). Organizational performance has engaged the focus of many researches as performance most times are measured in monetary terms using indicators such as sales turnover, profitability. Though the interest in the research of performance is due to the fact it is the major primary objective of every business and the survival of the business depends solely on how profitable the outcome of the organization is (Orishede, 2020).
It also refers to as the capacity of a firm to realize set objectives thereby the organization achieve its goals through effective and efficient utilization of its resources and it can be reflected due to the results of the organizations’ common objectives and the method used or implemented are consistently used (Tsai et al., 2020; Sarraf & Nejad, 2020). According to Al-Hashimi et al. (2021) it can be defined as an analysis of an organizational performance as compared to its objectives and goals and it is measured in both financial and non-financial terms (Camilleri, 2021; Sinnaiah et al., 2023). Though there are different factors that can be related with organizational performance such as conflict, social influences, cross-cultural and organizational structures (Madume et al., 2024). For this study productivity will be use as proxy for organizational performance.
2.1.1 Productivity
Aladesoun et al. (2020) stated that performance of a business which determines its continued existence and development is largely dependent on the degree of productivity of its workers. Productivity is a total measure of the efficiency or capacity to transform inputs that is raw materials into finished products or services. Also, productivity is a measure that shows how well essential resources are used to achieve specified objectives in terms of quality and quantity within a given period of time. It is suitable when measuring the actual output produced compared to the input of resources, taking time into consideration (Omenazu, 2022).
2.2 Strategic Decision Making
The goal of strategic decision-making is to maximize an organizations long-term success by planning for the future (George et al., 2019). Making decisions that are important in terms of precedents created, actions performed or resources committed, strategic decision-making is a specific sort of decision-making and there is a difference between strategic decisions and tactical and operational ones (Abdullah & Othman, 2019). An important aspect of SDM is to assess the strength of organizational capacity is to maintain its position as regards changing environment as well as making daily choices and deal with issues (Adigbole et al., 2019; Ur Rehman et al., 2019). It is a systematic and logical move by top managers in choosing best approach to success in line with organizations’ long-term goals and expectations (Harappa, 2020; Aladesoun et al., 2020). It is often a non-routine and very important to organizations where top management usually plays important role which consists of competitive approaches and moves they developed to attracts customers (Osazevbaru, 2021).
According to Eromafunu et al. (2022) SDM has over-time surfaced as one of the main active phases of recent business researchers and management. Among different forms of decision- making facets, strategic decisions are very vital decisions and they play ilk central roles in any organization. SDM is very useful when addressing poorly structured issues for which there are no possible solution procedures (Asikhia & Mba, 2021). Thus, SDM involves the use of decision support systems including external and internal environmental factors that may influence the performance of managers while making decisions (Omenazu, 2022).
2.2.1 Intuition Strategic Decision-Making
One of the areas of strategic decision-making in an organization is where the strategic thinker is often based on his/her intuitive attributes in predicting what might happen and thereby take precaution steps to ascertain its expectations by nurturing the ideas being associated with inner feelings (Battaglio et al., 2019). Intuition is a fast mental perception of circumstances of decision based on past experiences without focus or reference on the main thinking of the subject matter to be decided and it is not unreasonable or administrative due to the fact that it is based on years of experience that enables top managers to opt for solutions to issues without must interest in hectic calculations as well as guesses (Ali, 2019). Though some researches have highlighted in their studies the roles of strategic thinking process among some managers within the concept of cognitive capacities which postulate that mental flexibility can influence it (Al-Jaifi and Al-Rassas, 2019; Barlach and Plonski, 2021).
Moreso, it is vital to know that making decisions depends on the problems faced by the organizations and not all problems or issues require and utilizing the process of intuition uses available information which may quicken the process of decision-making (Bozhinov et al., 2021; Sinnaiah et al., 2023).
2.2.2 Rational Strategic Decision-Making
This approach of strategic decision-making is linked by the existence of a specific and reliable detailed quantitative analysis of alternatives in decision taken thereby relatively state boundaries of the issue being analyzed and solution is identified by optimizing the selecting alternatives and development process (Deslatte, 2020). For decision-making it should be taken into consideration the efforts is to minimize risk, uncertainty, environmental instability amongst others which might influence and structure of decision-making mechanism based on hierarchical relationships that is being applied and predetermined in the organization (Nagtegaal et al., 2020; Acciarini et al., 2021).
Most scholars agree that this type of strategic decision-making will assist managers highlight issues, produce effective solutions, select the most important solutions and apply then evaluate the solution. (Hamidullah et al., 2021).
2.2.3 Participatory Strategic Decision-Making
According to Al-Hashimi et al. (2021) Participatory strategic decision-making refers to as the extent to which relevant people in organization are involved in the process of decision-making and it is the best way of securing dissemination of ideas for implementation. It should have a positive effect when successfully implemented due to the fact that it involves employees with sufficient knowledge and information of a particular circumstances or issues of place and time thereby diverse perspectives that are essential in making high quality decision (Aleksovska et al., 2021). Participatory strategic decision-making provides opportunities in achieving their agreed solutions, improved commitment and develop sense of ownership. With high level of this strategic decision-making practices, it is an important mechanism in increasing organizational adaptability to deal with uncertainties and unpredictable situations in the external environment during the process of implementation. Thus, participatory strategic decision-making also can demonstrate the objectivity of decisions to a multitude of accountability forums and increase equity (Cepiku & Mastrodascio, 2021).
2.4 Conceptual Framework
| INTUITION STRATEGIC DECISION-MAKING |
| RATIONAL STRATEGIC DECISION-MAKING |
| PARTICIPATORY STRATEGIC DECISION-MAKING |
| STRATEGIC DECISION-MAKING PRACTICES |
| ORGANIZATIONAL PERFORMANCE |
| PRODUCTIVITY |
Figure 2.0: Conceptual paradigm
(Researcher’s conceptualization, 2024)
From the diagram above, strategic decision-making practices (independent variable) is measured with intuition strategic decision-making, rational decision-making and participatory decision-making while organizational performance (dependent variable) is measured with productivity.
2.5 Theoretical Review
This study made use of Satisficing theory and Garbage-Can theory
2.5.1 Satisficing Theory
Simon (1957) introduced the concept of bounded rationality, which acknowledges that decision-makers face constraints such as limited information, time, and cognitive capacity due to the dynamic and competitive nature of industries and business environments. Instead of aiming for optimization, decision-makers operate within these limitations by working with simplified and restricted knowledge to arrive at satisfactory, compromise choices, a concept termed “satisficing” (Marshall, 1998). Simon argued against the existence of pure optimization in the real world, asserting that only “good enough” alternatives are attainable.
In contrast to the rational decision-making paradigm, bounded rationality emphasizes the pragmatic pursuit of satisfactory outcomes rather than exhaustive optimization (Williams, 2002). It acknowledges the inherent uncertainty and complexity of decision-making processes, recognizing that the search for the optimal solution may be endless, impractical, and costly. Instead, bounded rationality suggests that decision-makers are better served by accepting compromise solutions that adequately address the challenges they face, rather than endlessly seeking the elusive “best” solution (Ahmen et al., 2014; Elikwu & Mohammed, 2019).
2.5.2 Garbage-Can Theory
Cohen et al. (1972) were among the first to explore the garbage-can model within the realm of organizational decision-making (DM), aiming to refine and adapt prevailing theoretical frameworks to better understand empirical observations (Olsen, 2001). This model is widely regarded as the most unpredictable and fluid approach to strategic decision-making (SDM), typically manifesting in organizations grappling with high levels of uncertainty. Strategic decisions are triggered by participants’ attention to issues and opportunities, as well as their level of engagement in the decision-making process. These decisions unfold within environments characterized by incomplete rationality (Teasley & Harrell, 1996).
In complex environments, problems and solutions defy straightforward translation into a logical sequence of steps, as proposed by the rational decision-making model. Decision-making processes that deviate from the assumptions of traditional models are often labeled as “organized anarchies.” These environments typically exhibit three key traits. Firstly, decision-makers may possess ambiguous, inconsistent, or conflicting preferences. Secondly, there is often a lack of clarity regarding the technology or methodology employed in decision-making processes, leading to solutions being discovered through trial and error rather than through systematic analysis. Finally, decision-makers exhibit varying degrees of flexibility, and their alignment towards a common goal may be uncertain.
In relating this theory with the strategic decision-making, scholars have suggested that Cohen and his associates introduced the garbage-can model as a reaction to the perceived inadequacies of rational models in addressing decision-making challenges within complex and turbulent environments (Eisenhardt & Zbaracki, 1992). Olsen (2001) further elucidates that the garbage-can model aims to shed light on empirical observations, refining existing organizational DM theories to offer greater clarity. Unlike other models, it eschews a linear policy development process, as such an approach would be deemed overly rational (Tiernan & Burke, 2002).
2.6 Empirical Review
Malel and Kemboi (2019) determined the influence of strategic decision making on the performance of commercial banks in Eldoret town, Kenya which was reinforced by the theory of innovation diffusion. The study findings showed that innovation strategy have a positive and significant influence with (β=0.244, p< 0.05) on performance of commercial banks in Eldoret town. The study recommends that the management of commercial banks need to at all times evaluate and monitor the implementation of the decision reached for them to have an overview of their progress and if they are achieving their intended goals and objectives.
Asikhia and Mba (2021) evaluated the impact of strategic decision-making on organizational performance, highlighting those effective decisions stem from thorough information analysis. Through a systematic review of articles, the paper sheds light on factors affecting organizational performance, such as management, employee behavior, decision-making processes, and environmental dynamics. Drawing on Herbert Simon’s administrative behavior theory, the study concludes by affirming the vital role of strategic decision-making in enhancing organizational effectiveness.
Al-Hashimi et al. (2021) developed and evaluated an integrated model of the strategic decision-making process and its outcomes within public organizations. Their model incorporates procedural rationality, intuition, participation, and constructive politics as factors influencing the successful implementation of strategic decisions. The study found that successful implementation fully mediated the relationships between procedural rationality, participation, constructive politics, and the outcomes of strategic decisions.
Eromafunu et al. (2022) investigate the influence of strategic decision makers’ characteristics on effective strategic decision-making in various government agencies and commissions in Delta state, Nigeria. The findings reveal a significant positive relationship between strategic decision makers’ cognitive diversity and effective strategic decision-making. However, no direct relationship was found between cognitive complexity and effective decision-making. Interestingly, when cognitive complexity was considered alongside cognitive diversity, a positive correlation emerged.
Yılmaz and Ameen (2022) determined the impact of strategic decision-making in improving organizational performance and the relationship between strategic decision-making and organizational performance, identifying the demographic characteristics of manager and learn about decision-making approaches and their role in organizational performance. The study was a descriptive cross-sectional design. The findings indicated the existence of the relationship and correlation between the research variables, which stated that depending on strategic decision-making will lead to increase organizational performance and employee performance, this revealed an impact of strategic decision-making on organizational performance.
Muzanenhamo and Chikosha (2022) examined the effect of strategic decision-making context on organizational performance in culturally diverse occupational settings of Bindura Nickel Mine. Descriptive research design was adopted. It was established that leader psychological path and follower psychological path had a significant direct effect on organizational performance, while legislative context, economic context and firm resources had some weak association. It was concluded that strategic decision-making context is the predictor of organizational performance. Finally, recommends further research on the impact of strategic influence and strategic talent development on organizational performance.
Omenazu (2022) focused on presenting and discussing the relationship between strategic decision-making and organizational performance in greater depth. The findings shed light on the factors that influence managers’ decision-making and performance, such as the environment in which they work and the leadership style they employ. Strategic decisions involving the use of decision support systems, as well as internal and external environmental factors that influence the performance of managers in making them, have been shown to have an impact on the performance of strategic decisions that have a direct impact on the overall performance of the organization.
Sinnaiah et al. (2023) presented a conceptual framework for integrating strategic thinking factors, organizational performance and the decision-making process. This involves a synthesis of literature and proposes a framework that explores the relationship between strategic thinking enabling factors, organizational performance and the moderating effect of decision-making styles which includes strategic thinking enabling factors (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis), organizational performance and the moderating effect of decision-making styles (intuitive and rational). From the results in conceptual model, it remains to be tested in actual practice.
2.7 Research Gap
The majority of management research tends to concentrate on decision-making within risky environments due to the feasibility of modeling and experimenting with expected utility maximization such as (Malel & Kemboi, 2019; Malecka 2020; Yilmaz & Ameen, 2022; Muzanenhamo & Chikosha, 2022). Academic scholars and practitioners emphasize the significance of strategic decision-making practices in evaluating organizational performance across various dimensions such as innovation, entrepreneurship, technology, knowledge, economics, healthcare, and overall organizational performance such as Ewah 2018; Sev et al. 2018; Alosani et al. 2020; Asikhia and Mba 2021; Al-Hashimi et al. 2021; Nauhaus et al. 2021; Sinnaiah et al. 2023 and revealed how strategic decision-making impacts on organizational performance.
Put differently, prior investigations into the characteristics or factors influencing the effectiveness of strategic decision-making have not produced widely applicable results or conclusions. Consequently, further empirical research is needed to ascertain which practices, characteristics or factors contribute to strategic decision-making effectiveness within organizations before definitive assertions can be made and this study aims to address this gap. Thus, the study investigated the relationship between strategic decision-making practices and organizational performance of selected pharmaceutical firms in Owo, Ondo state.
3.0 RESEARCH METHODOLOGY
3.1 Research Design
The study used a descriptive survey research design. Descriptive survey is restricted to factual registration and that there is no quest for an explanation why reality is showing itself this way (Voordt, 2014). This ensures objectivity and neutrality in drawing conclusions (Mugenda & Mugenda, 2003). This was appropriate for the study since it sought to create the actual understanding of strategic decision-making practices and organizational performance.
3.2 Population of the Study
The population of this study, consists of staff of selected pharmaceutical firms in Owo, Ondo State. Table 1 illustrates the selected pharmaceutical firms along-side with the number of staff.
Table 1: Distribution of staff of selected branches
| S/N | NAME OF PHARMACY | NUMBER OF STAFF |
| 1 | Chinare Ani Pharmacy | 12 |
| 2 | Emmayemi Pharmacy | 12 |
| 3 | Femih Pharmacy Ltd | 13 |
| 4 | Godman Pharmacy | 10 |
| 5 | HealthWatch Pharmacy | 23 |
| 6 | Ifeoluwa Medicine Store | 10 |
| 7 | Jobath Pharmacy | 14 |
| 8 | N. O. Chrisval Pharmacy | 11 |
| 9 | Wellfast Pharmacy | 10 |
| 10 | Wondacare Limited Pharmacy | 8 |
| Total | 123 |
Source: Field Survey, 2024
3.3 Sample and Sampling Technique
The sample size for the study is 94 staff of selected pharmaceutical firms in Owo, Ondo state. The sampling technique used for this study was stratified random probability sampling technique. The reason for the choice was due to the fact that the firms consist of different units (full and contract staff), the selection was done based on these categories to ensure that all employees are represented in the choice of the sample. The sample size for this study was arrived at using Taro Yamane formular which is illustrated below:
3.4 Research Instrument
The instrument used to gather information in this research work was primary data through the use of questionnaire. The questionnaire seeks information about the respondents’ demographic data and opinion on the impact of strategic decision-making practices on organizational performance of selected pharmaceutical firms in Owo, Ondo state. All statement items were measured on a five-point Likert scale ranging from Strongly Agree (SA) to Strongly Disagree (SD).
3.5 Validity and Reliability of Instrument
The validity of the research instrument used for this study was carried out, the questionnaire design was given to my supervisor for vetting and after series of corrections on the instrument, it was discovered to be valid based on the variables used for this study. Therefore, face and content validity were used for the research instrument. The result of the reliability test shows that each of the variables are reliable since they are more than 0.828 coefficient which is illustrated below.
Table 2: Result of Reliability Test (n=)
| Construct | Number of Items | Cronbach’s Alpha Coefficient |
| PRD | 5 | 0.821 |
| ISDM | 5 | 0.922 |
| RSDM | 5 | 0.810 |
| PSDM | 5 | 0.733 |
| Overall Alpha | 0.828 |
Source: Researcher’s Fieldwork, 2024.
3.6 Method of Data Analysis
Data analysis was in two parts. Frequencies, means and percentages were used to describe the characteristics of the sample. Further, regression analysis was used to infer meaning about the entire population from the sample findings. Analysis of variances, model summaries and regression coefficients were used to describe the characteristics of population of study. Statistical Package of Social Sciences (SPSS) version 26 and excel were used as the principal data analysis tools. The findings were presented in tables.
3.7 Model of Specification
This comprises of the elements used in measuring the independent variable (Strategic Decision-Making Practices) which are Intuition Strategic Decision-Making (ISDM), Rational Strategic Decision-Making (RSDM), Participatory Strategic Decision-Making (PSDM) on the dependent variable (Organizational Performance) which is measured by Productivity (PRD).
The model for the study is functionally state below:
PRD’= ƒ(ISDM, RSDM, PSDM)’ …………………………………………………. 3.1
The model is econometrically stated as:
PRDⅈ = β0 + β1ISDMⅈ + β2RSDMⅈ + β3PSDMⅈ + Ɛⅈ …………………………………3.2
Where:
PRD = Productivity
ISDM = Intuition Strategic Decision-Making
RSDM = Rational Strategic Decision-Making
PSDM = Participatory Strategic Decision-Making
β0 = Intercept
β1 – β3 > 0 = Coefficient of ISDM, RSDM and PSDM
Ɛⅈ = Error term
ⅈ = Samples of Selected Pharmaceutical firms in Owo, Ondo State.
The apriori expectation for this study is stated that:
β1, β2, β3 > 0, the reason been that the variables used here is a process dimension
4.0 Data Presentation and Analysis
From the total number of 120 (one hundred and twenty) questionnaire distributed to all staff of selected pharmaceutical firms in Owo, Ondo state, 116 (one hundred and sixteen) questionnaire was retrieved representing 97% for analysis.
4.1 Demographic Characteristics
Table 4.1: Demographic Characteristics of Respondents
| Demographic Characteristics | Categories | Frequency | Percentage |
| Gender | Male Female Total | 44 72 116 | 38 62 100 |
| Age | 21 – 30 years 31 – 40 years 41 – 50 years 51 and above Total | 48 32 26 10 116 | 41 28 22 9 100 |
| aaMarital Status | Married Single Widow/Widower Divorced/Separated Total | 41 52 5 18 116 | 35 45 4 16 100 |
| Qualification | O’ Level ND/NCE HND/B.Sc. MBA/M.Sc. PhD Total | 24 48 36 6 2 116 | 21 41 31 5 2 100 |
| Work Experience | 0 – 2 years 3 – 5 years 6 – 10 years Total | 40 52 24 116 | 34 45 21 100 |
| Designation | Chief Executive Officer Manager Pharmacist Laboratory Officer Front Desk Officer Secretary Cashiers Cleaners Total | 8 10 12 14 34 8 18 12 116 | 7 9 10 12 29 7 16 10 100 |
Source: Researchers’ computation (2024)
From Table 4.1, 116 respondents’ staff of selected pharmaceutical firms in Owo, Ondo state were captured for gender, 44 representing (38%) were male while 72 representing (62%) were female. This indicates that staff of selected pharmaceutical firms in Owo, Ondo state are more dorminated with female. Out of 116 respondents captured for age, 48 staff representing (41%) ranged between 21-30 years, 32, (28%) of staff captured were between 31-40 years, 26, (22%) of staff ranged between 41-50 years while 10, (9%) were within the range of 51 years and above. This implies that most of the staff of these selected pharmaceutical firms are young and fit for responsibilities. Out of 116 respondents captured for marital status, 41 staff representing (35%) were married, 52, (45%) were single, 5, (4%) were stated as widows/widowers and 18, (16%) were recorded as divorced/separated. This implies that the majority of the staff working at these firms are single. 116 respondents recorded for qualification, 24 staff obtained Ordinary Certificate representing (21%), 48 of them obtained ND/NCE representing (41%), and 36, (31%) attained HND/B.Sc, 6, (5%) were having either MBA or MSc while 2, (2%) were PhD holders. This shows that these firms have more of ND/NCE certificates holders. For work experience, out of 116 respondents recorded, 40, (34%) have spent between 0 – 2 years, 52 (45%) have spent 3 – 5 years, 24 respondents representing (21%) have spent 6 – 10 years working experience in these firms. This indicates that they have more dedicated and competent staff who have been with them for long. Finally, 8 respondents representing (7%) are CEO of these selected firms, 10, (9%) recorded were managers, 12, (10%) are stationed pharmacist of these selected firms, 14, (12%) are laboratory staff, 34, (29%) are recorded as front desk officers of these selected firms, 8, (7%) are secretaries, 18, (16%) recorded are cashiers while 12, (10%) are cleaner of these firms. This implies that the selected pharmaceutical firms have more of front desk officers that other designated staff during the period under review.
4.2 Data Analysis
4.2.1 Descriptive Statistics
Table 4.2: Descriptive Statistics
| N | Mean | Min | Max | Std. Devation | Skewness | ||
| Stat | Stat | Stat | Stat | Stat | Stat | Std. Error | |
| PRD ISDM RSDM PSDM Valid N (listwise) | 116 116 116 116 116 | 5.651 4.357 4.121 5.422 | 2.64 6.31 10.51 11.46 | 8.641 11.051 14.442 14.512 | 1.422 2.211 2.651 2.550 | .605 .860 .462 .061 | .630 .611 .621 .654 |
Source: Researchers’ Computation (2024)
The summary of descriptive statistics from the above table indicates that during the study under review, the average productivity (PRD) is 5.67 with a standard deviation of 1.42, a minimum of 2.64 and a maximum of 8.64, this implies that organizational performance is been determined based on how the top managers or decision makers made use of their essential resources effectively well in accomplishing their objectives in terms of quality and quantity during the period under review. Intuition strategic decision-making (ISDM) on average is 4.35, with a standard deviation of 2.21 and minimum of 6.31, maximum of 11.05 which shows that they were able to predict what might happen in the future by taking precaution steps to ascertain their expectations thereby nurturing ideas based on past experience in solving issues that may arise. Rational strategic decision-making (RSDM) on average is 4.121 with a standard deviation of 2.651, a minimum value of 10.51 and a maximum value of 11.44 this indicates that the decision makers were able to highlight issues thereby providing effective solutions by selecting the most important solutions to apply then evaluate the solution. Participatory strategic decision-making (PSDM) on average is 5.42 with a standard deviation of 2.55, a minimum value of 11.46 and a maximum value of 14.51 this shows that managers or decision makers allow employees to participate in providing ideas or solutions in solving issues concerning their firms. Thereby, providing opportunities in achieving agreed solutions, improvement in commitment and developing sense of ownership.
4.2.2 Correlation Analysis
Table 4.3: Pearson Correlation Matrix of the Dependent Variable and Independent Variable
| Variable | PRD | ISDM | RSDM | PSDM | |
| PRD | 1.000 | ||||
| ISDM | .863** | 1.000 | |||
| RSDM | .681** | .641** | 1.000 | ||
| PSDM | .721** | .664** | .671** | 1.000 | |
| **Correlation is significant at the 0.000 level (2-tailed). Sample size =116 | |||||
Source: (SPSS Output Own Survey Result, 2024)
The table above present the relationship that exists between strategic decision-making practices variables (intuition strategic decision-making, rational strategic decision-making and participatory strategic decision-making as against organizational performance (productivity) of staff of selected pharmaceutical firms in Owo, Ondo state. It revealed that intuition strategic decision-making (ISDM) shows a positively and strongly relationship with productivity (PRD) at 0.863 representing 86%. Rational strategic decision-making (RSDM) shows a positive and average relationship with productivity (PRD) at 0.681 representing 68% while participatory strategic decision making (PSDM) indicates a positive and strong relationship with productivity (PRD) at 0.721 representing 72%. Therefore, the table presented shows that the variables tested were significant statistically at 0.000 which indicates that strategic decision-making has a direct relationship with organizational performance.
4.2.3 Regression Analysis
Table 4.4 Multiple Regression Results
| Model Summary | ||||||||||||||
| Model | R | R Square | Adjusted R Square | Std. Error of the Estimate | ||||||||||
| 1 | .671a | .443 | .316 | 1.84069 | ||||||||||
| a. Predictors: (Constant), Productivity, Intuition Strategic Decision-Making, Rational Strategic Decision Making and Participatory Decision-Making | ||||||||||||||
| ANOVAa | ||||||||||||||
| Model | Sum of Squares | df | Mean Square | F | Sig. | |||||||||
| 1 | Regression | 254.640 | 63 | 68.361 | 14.132 | .000b | ||||||||
| Residual | 1159.670 | 560 | 8.654 | |||||||||||
| Total | 1417.110 | 595 | ||||||||||||
| a. Dependent Variable: Productivity | ||||||||||||||
| b. Predictors: (Constant), Intuition Strategic Decision-Making, Rational Strategic Decision Making and Participatory Decision-Making | ||||||||||||||
| Coefficients | ||||||||||||||
| Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||||||||||
| B | Std. Error | Beta | ||||||||||||
| 1 | (Constant) | 2.522 | 1.132 | 2.227 | .000 | |||||||||
| Intuition Strategy Decision-Making | .236 | .113 | .246 | 2.088 | .000 | |||||||||
| Rational Strategic Decision-Making | .150 | .066 | .163 | 2.272 | .063 | |||||||||
| Participatory Strategic Decision-Making | .242 | .057 | .225 | 4.298 | .001 | |||||||||
| a. Dependent Variable: Productivity | ||||||||||||||
Source: Researcher’s Computation (2024).
Source: SPSS Version 26.0
4.2.4 Discussion of Findings
The study investigates the relationship between strategic decision-making practices and organizational performance of selected pharmaceutical firms in Owo, Ondo state. Three components of strategic decision-making practices were examined, intuition strategic decision-making, rational strategic decision-making and participatory strategic decision-making in relationship with the dependent variable organizational performance which was measured with productivity. From the findings intuition strategic decision-making (ISDM) shows a coeff-value of 0.236, t-value of 2.088 and P-value of 0.000 which is positive and significantly related to organizational performance. which implies that strategic managers or decision makers of the selected pharmaceutical firms under review were able to predict the issue that might arise in future thereby providing solutions based on their past experiences. This is related to the studies Al-Hashimi et al. (2021); Yilmaz and Ameen (2022); Sinnaiah et al. (2023) which indicates a positive and significant relationship with organizational performance. Rational strategic decision-making (RSDM) has a coeff-value of 0.150, t-value 2.272 and P-value 0.063 implying that RSDM is positively and insignificantly related to organizational performance during the study under review, which indicates that they were not able analyzed some of the possible solutions provided in solving their issues which might lead to these firms not actualizing their objectives if this option is opted for. The result of the findings did not aligns with the studies carried out by Al-Hashimi et al. (2021); Nauhaus et al. (2021); Asikhia and Mba (2021); Yilmaz and Ameen (2022); Sinnaiah et al. (2023) whose findings stated that rational strategic decision-making is positively and significantly related to organizational performance. Participatory strategic decision making (PSDM) has a coeff-value of 0.242, t-value of 4.298 and P-value of 0.001 which means that PSDM is positively and significantly related to organizational performance. This implies that the decision makers of these pharmaceutical firms provide opportunities for employees to participates in providing solutions or ideas thereby achieving agreed solutions, improvement of commitment and developing sense of ownership during the period under review. This study aligns with the studies carried Sev et al. (2018); Al-Hashimi et al. (2021); Asikhia and Mba (2021); Muzanenhamo and Chikosha (2022) which states that participatory strategic decision-making is positively and significantly related with organizational performance during the study under review.
From the study it reveals that strategic decision-making practices is positively and significantly related with organizational performance of selected pharmaceutical firms in Owo, Ondo state which aligns with the studies of Sev et al. (2018); Malel and Kemboi (2019); Aladesoun et al. (2020); Arend (2020); Al-Hashimi et al. (2021); Asikhia and Mba (2021); Muzanenhamo and Chikosha (2022); Bonnyventure et al. (2022); Yilmaz and Ameen (2022); Eromafunu et al. (2022); Sinnaiah et al. (2023); Gagan (2023) during the study under review.
5.0 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
This study investigates the relationship between strategic decision-making practices and organizational performance of selected pharmaceutical firms in Owo, Ondo state. Three components of strategic decision-making practices examined which are intuition strategic decision-making, rational strategic decision-making and participatory strategic decision-making in determining the relationship with organizational performance (productivity). The results show that intuition strategic decision-making (ISDM) and participatory strategic decision-making (PSDM) were positively and significantly related with organizational performance while rational strategic decision-making (RSDM) was positively and insignificantly related with organizational performance during the study under review. Thus, the study revealed that strategic decision-making practices is positively and significantly related with organizational performance. Furthermore, it indicates that strategic managers or decision makers worked with these practices in determining and providing solutions of treating issues that they may or have encounter by adopting these practices in actualizing their aims and objectives during the study under review.
5.2 Recommendations
Based on the result above, the following recommendations are highlighted below:
- That firms should encourage the use of these SDM practices such as intuition strategic decision-making, rational strategic decision-making and participatory strategic decision making as it enhances performance of both the employees and organization.
- That firm’s decision makers should more conscious when adopting intuition strategic decision-making as it is based on steps in ascertaining expectations.
- That decision makers should encourage the use participatory strategic decision-making as its one of the best method of motivating and providing opportunities of employees to showcase their abilities and capabilities in the organization for better commitment development of employee.
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