Macro environment and performance of multinational agricultural enterprises: a case from Nigeria

Solomon Kowo, Olalekan Akinrinola, Olalekan Sabitu

Abstract


Purpose. The objectives of the study are to determine if macroeconomic environment has a significant effect on performance of multinational agricultural enterprises and also to examine if there is a significant relationship between macroeconomic variables and multinational agricultural enterprises profitability.

Methodology / approach. The study adopted survey method, the Yamane formula and Cronbach Alpha for test retest reliability. 114 copies of questionnaire were administered to employees of AGRIC International Technology & Trade Ltd Lagos Nigeria to get primary data that treated and tested appropriate research questions and hypotheses accordingly. SPSS was also employed in testing the research hypothesis.

Results. The study found out that macroeconomic environment has a significant effect on Multinational agricultural enterprises performance and there exists a significant relationship between macroeconomic variables and multinational agricultural enterprises profitability.

Originality / scientific novelty. The results of regression analysis revealed that variance in multinational agricultural enterprise performance can be explained by service macroeconomic environment and that there is exist a significant relationship between macroeconomic variables and multinational agricultural enterprise profitability. Therefore, it is important for multinational agricultural enterprises to understand all type of macro factor and their implications on organizational performance of their business. Constant monitoring and conducting environmental scanning of theses macro environment factor should be the concern of multinational agricultural enterprise.

Practical value / implications. Based on the above findings, it is recommended that all macroeconomic variables must be well understood and monitored by multinational agricultural enterprises to enhance greater profitability and sustainability. Moreover, multinational agricultural enterprise must demonstrate through their marketing tactics that their effort to sustain local economy and the labor market within a foreign market makes them a valuable contributor to the prosperity of their operating region. 


Keywords


macro environment; performance; multinational agricultural enterprise; PESTLE; macroeconomic factors; profitability.

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