The moderating role of environment dynamism on the relationship between sustainability strategy and corporate survival of MSMSE in Lagos State, Nigeria

Abstract

This study looked at the moderating effect of environmental dynamism on the relationship between sustainability strategy and corporate survival of Micro, Small and Medium Scale enterprises (MSMSEs) in Lagos State. The population studied included all the micro, small and medium scale enterprises in Lagos State, Nigeria represented by their proprietor/managerial staff. According to SMEDAN (2023), we have 3,224,324 are from Lagos State alone. Sample size of 384 was used based on the rule of thumb for sample size which suggests using a sample size of 384 for a large population that is over 20,000. The research instrument was administered through random sampling. Research instrument was validated using face and content validity. Cronbach’s Alpha in SPSS version 25.0 was used to measure the instrument reliability and only items with 0.7 and above alpha values were considered. Structural Equation Modelling – AMOS Analysis was adopted to test the study hypotheses from which certain inferences were made from. The finding of the study reveals that while both environmental dynamism and sustainability strategy individually have a significant positive impact on the corporate survival of MSMEs in Lagos State, Nigeria, environmental dynamism does not significantly moderate the relationship between sustainability strategy and corporate survival. This suggests that the direct influences of environmental dynamism and sustainability strategies on corporate survival are more critical than their interactive effects. Thus, MSMSEs should focus on enhancing both their sustainability strategies and their adaptability to dynamic environments independently to improve their chances of long-term survival.