Executive Environmental Scanning, Information Source Utilisation, and Firm Performance: The case of Nigeria

Abstract

This study examined sources of information used, environmental scanning practices, and organisational performance of CEOs of 47 small to medium-sized Nigerian manufacturing firms. The results show that environmental scanning practices vary from firm to firm depending on the characteristics of the environment within which they have to operate. For the Nigerian sample there was greater scanning frequency in the economic and political/legal sectors of the environment, followed by the customer/market and competitor sectors. Environmental scanning frequency did not appear to affect organisational performance as measured by profit margin and return on equity. There was a preference for internal over external sources of information, but there was no difference in the use of personal and impersonal sources. The results are evaluated in light of the characteristics of the Nigerian environment and the results of prior scanning research.