Growth Potential of Strategy Implementation by Deposit Money Banks in Lagos State, Nigeria

The banking sector plays a critical role in economic growth, acting as a financial intermediary between surplus and deficit units. However, Nigerian Deposit Money Banks (DMBs) face significant challenges such as rising non-performing loans, regulatory hurdles, and economic instability, which adversely impact their growth and operational performance. This study examines the effect of strategy implementation(strategic planning, management communication, organizational structure, work systems, and monitoring and evaluation) on the firm growth of selected DMBs in Lagos State, Nigeria. Utilizing a cross-sectional survey design, data were gathered from 381 management staff across six publicly quoted banks and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that strategy implementation has a significant effect on firm growth, explaining 43.8% of the variance (Adjusted R² = 0.438). Monitoring and evaluation (β = 0.300, t = 2.109) and work systems (β = 0.263, t = 2.631) emerged as the most impactful dimensions, while management communication, organizational structure, and strategic planning showed insignificant contributions, indicating areas for improvement. The findings highlight the critical role of effective strategy implementation in driving firm growth, particularly through robust monitoring processes and adaptive work systems. Banks are encouraged to address inefficiencies in management communication and organizational structure to enhance their competitive advantage and sustain long-term growth.