DIGITAL STRATEGIC MANAGEMENT PRACTICES AND OPERATIONAL PERFORMANCE: EXAMINING THE MODERATING INFLUENCE OF TECHNOLOGICAL INNOVATION AMONG MANUFACTURING FIRMS IN NIGERIA
Manufacturing firms in Lagos State, Nigeria, increasingly rely on digital strategic management practices (DSMP) to improve operational performance. However, the extent to which technological innovation influences the effectiveness of these digital practices remains unclear. This study examined the moderating role of technological innovation in the relationship between DSMP and operational performance among selected manufacturing firms. A quantitative survey design was employed, targeting 1,402 senior management staff across ten purposively selected listed manufacturing firms in Lagos State. A sample of 302 respondents was determined using the Krejcie and Morgan table, with 269 valid responses obtained, yielding an 89.1% return rate. Data were collected using a structured questionnaire and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to assess both direct and moderating effects of technological innovation. Findings indicated that DSMP had a significant positive effect on operational performance (β = 0.277, T = 4.696, p < 0.001). Among the dimensions of technological innovation, Innovation Capacity exerted a statistically significant negative moderating effect on the DSMP–operational performance relationship (β = −0.160, T = 2.401, p = 0.016), while Research and Development Investment showed a weak negative moderation (β = -0.107, T = 1.861, p = 0.063). Technological Absorptive Capacity and the aggregated Technological Innovation construct did not significantly moderate this relationship. Direct effects of technological innovation constructs were positive and significant, with the aggregated innovation construct showing the strongest direct effect on operational performance (β = 0.331, T = 5.551, p < 0.001). The model explained 21.4% of the variance in operational performance when technological innovation and interaction terms were included, indicating moderate explanatory power. The study concludes that while DSMP and technological innovation independently enhance operational performance, technological innovation does not universally strengthen the DSMP–performance relationship. It is recommended that firms strategically develop internal innovation capacity, aligning it with organisational goals to maximise operational gains from digital strategic initiatives.
Keywords: Digital Strategic Management Practices, Technological Innovation, Innovation Capacity, Operational Performance, Manufacturing Firms, Moderation.
