REGIONAL STRATEGIES AND PERFORMANCE OF MULTINATIONAL CORPORATIONS IN NIGERIA: EVIDENCE FROM UNILEVER PLC.

Abstract

This article examined regional strategies and performance of multinational corporations in Nigeria using data collected from Unilever Plc, Lagos, Nigeria to consummate the study.  Originally, multinational enterprises (MNEs) design their business strategies at their headquarters overseas and then sell the strategies to their subsidiaries in various regions of the world.  However, under the present dispensation, multinational enterprises are beginning to shift from central strategy formulation and implementation to regional approach. They are realizing that centralization strategy is no longer the best approach for global competitiveness in a digital world. This study therefore sought to survey how regional strategies affect the efficiency of multinational subsidiaries, how regional decision making influences cost-effective operations and how output control affects profitability of the subsidiaries. The study adopted mixed method research approach whereby quantitative and qualitative methods were used (triangulation technique). Total population of the study was 5500 from which 380 was derived as the sample size using Yamane’s formula. Copies of structured questionnaire were administered to 380 employees of Unilever Nigeria Plc., Lagos, to obtain the quantitative data. For the qualitative data, 25 participants from other stakeholder groups were interviewed. The results of the regression and content analyses showed that regional strategies have significant effect on the efficiency of subsidiaries, regional decision making positively influences cost-effective operations and output control has significant effect on the profitability of the subsidiaries. The article therefore recommended that multinational enterprises should give more autonomy to their regional subsidiaries in the interest of superior performance.