BUSINESS ENVIRONMENT AND CORPORATE PERFORMANCE THROUGH BUSINESS STRATEGIES: A STUDY OF CONSTRUCTION SERVICE INDUSTRY IN BENIN CITY, NIGERIA.

The Nigerian business environment has been very challenging and unpredictable such that most construction service industries find it difficult to survive while others have become insolvent. Generally, the lack of effective monitoring and assessing business environment has been identified as one of the major causes of this development. This study investigated the relationship between business environment and corporate performance in the construction service sector in Benin City, Nigeria, utilizing system theory as the theoretical framework. The formulated hypotheses were tested using the T-test at a 5% significance level. Employing a quantitative research approach, the study involved a sample of 384 senior management staff’s of construction service companies in Benin City. Data was analyzed through Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The results indicated that the external environment (t-statistics = 0.41, p = 0.000), internal business environment (tstatistics = 0.216, p = 0.005), and business strategy (t-statistics = 0.372, p = 0.000) significantly influence corporate performance. The study recommended that conducting regular environmental scans, staying abreast of political, economic, social, and technological changes, and fostering strategic partnerships to enhance the company's adaptability. It was also recommended that strengthening internal controls, fostering a positive workplace culture, and investing in employee development programs can contribute to improved corporate performance. More also , it was also recommended that continuous monitoring and adjustment of the business strategy in response to market changes will contribute to sustaining and enhancing corporate performance.

1 29 Mar, 2024

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