ENTREPRENEURIAL ORIENTATION AND ORGANIZATIONAL PERFORMANCE OF AIRLINES IN NIGERIA
Keywords:
Strategic Aviation Industry, Organizationl Performance, Public Sector, Niger DeltaAbstract
The Nigerian aviation industry faces persistent challenges in achieving optimal organisational performance, highlighting the need for strategic drivers such as entrepreneurial orientation (EO) and effective leadership in a highly regulated environment. This study examined the effects of EO - measured through risk-taking, proactiveness, and innovativeness - on the organizational performance of domestic airlines in Nigeria, assessed via financial and non-financial indicators. The mediating role of leadership style and the moderating effect of the regulatory environment were also investigated. A cross-sectional survey design was adopted, targeting 198 representatives across eleven domestic airline operators. Data were analyzed using Structural Equation Modeling (SEM) with SmartPLS. The results revealed that risk-taking, proactiveness, and innovativeness significantly improved financial performance, while non-financial outcomes also benefited, though with varying effect sizes across EO dimensions. Leadership style significantly mediated the EO–performance relationship, and the regulatory environment significantly moderated this link, confirming the stability of the estimates and supporting the mediation and moderation hypotheses. These findings underscore the critical roles of entrepreneurial behaviours, leadership, and regulatory frameworks in enhancing profitability, operational efficiency, service quality, and customer satisfaction in the Nigerian aviation sector. The study recommended implementing structured risk-assessment frameworks to optimize risk-taking, adopting proactive strategies through market intelligence and customer engagement, investing in innovative and eco-friendly technologies, and developing an effective leadership style to channel EO into measurable outcomes. Furthermore, regulatory reforms, including streamlined licensing procedures and tax incentives, can strengthen the moderating effect of the regulatory environment, enabling airlines to convert entrepreneurial capabilities into improved organizational performance.
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