Strategic response and financial sustainability of sugar manufacturers in Nigeria

The pursuit of long-term business viability is central to organizational objectives, but the volatile global business environment poses significant financial sustainability challenges. This study investigates the impact of strategic responses on the financial sustainability of sugar manufacturers in Lagos State, Nigeria, focusing on BUA Sugar Refinery Ltd, Dangote Sugar Refinery PLC, and Flour Mills of Nigeria Plc. A cross-sectional survey design was employed, targeting 919 employees from the three companies, which dominate over 91% of Nigeria’s sugar market. A sample of 326 employees was selected using stratified random sampling, ensuring representation across management levels. Data was collected through a structured and validated questionnaire assessing strategic response and financial sustainability. The study's findings, based on regression analysis, reveal a moderately strong positive correlation between strategic response and financial sustainability (R = 0.617, R² = 0.380). The regression coefficient (β = 0.509) suggests that improvements in strategic response directly enhance financial sustainability. Statistical significance was confirmed by an F-value of 170.060 and a p-value of 0.000. The results underscore the importance of adopting sustainable business models, stakeholder engagement, and strategic adaptation to ensure long-term financial success. The study recommends that sugar manufacturers strengthen their strategic response capabilities to secure their financial future.