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Title page

Approval page




Table of content



1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study




3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis



4.1 Introductions

4.2 Data analysis


5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation














This study examines application of strategic thinking on the management of textile companies in Nigeria. Several studies on strategic thinking and firm performance have either revealed a positive relationship or negative relationship with firm performance of which most of these studies are carried out in developed countries. This study therefore investigates this topic using the Nigerian textile companies which has its own unique quality which differs from what is obtained from other parts of the world and as such there is need for managers of textile firms in Nigeria to think strategically in order to have large market share and produce goods, render services that is consumer oriented in order to gain competitive advantage in the market.








1.1 Background of the study

The textile industry is of strategic importance to Nigeria. This stems from the fact that agricultural produce such as cotton and jute are forwardly integrated into the textile process, thereby creating synergy of value added. The industry, therefore, provides ample opportunities for harnessing the Country’s agricultural potentials. It provides linkage employment to marketers, out growers, and fashion designers. The well being of the textile sector, therefore, is a determinant of the performance of industry segments that are both backwardly and forwardly integrated into the sector. Such segments include cotton farmers, ginneries, jute farmers, and bag manufacturers. As a formidable constituent of the manufacturing sector in Nigeria (Obadan, 1998), the performance of the textile sector affects the performance of the manufacturing sector. Nmadu (2005) rightly asserted that “The manufacturing sector is the engine of growth for industrialization for any nation and the hope of being part of the global economy”. Noe et al (2000) predicted that by the year 2020, the developing countries, of which Nigeria was a notable member going by population, would account for 60% of the world economy. For this prediction to become a reality the industrial sector has to be developed to perform its pivotal role.  Strategic thinking is seen as the generation and application of distinctive business ideas and opportunities intended to create competitive advantage for a firm or business. It is also seen as the ability to come up with an effective plan in line with organizational objectives within a particular economic situation. Strategic thinking transcends time, space, and resources to offer innovative solutions to complicated and perplexing issues a firm faces in its competitive arena (Hamel & Prahalad, 1994; Mintzberg, 1987). Alsaaty, (2007) asserts that strategic thinking is an act of creating a whole new business venture. As established by Abraham, (2005); Liedtka, (1998) strategic thinking has several interrelated qualities, including a long-term orientation, a systemic-integrative approach toward problem solving, and creativity. De Bono, (1982) in his study, concluded that, thinking is the ultimate human resource that involves moving from one state of knowledge to a better one. Thinking also involves memory, plans, ideas, and possibilities (Hayes, 1994). In the works of Larson and Hansen (2005) they defined thinking as a distinct form of pragmatic reasoning. The human central control, as the brain is often called regulates thinking as well as everything else human beings do. What happens in the brain is information, and the way it happens is thinking (De Bono, 1999). Different researchers, has given various names to thinking over the years. Strategic thinking is considered in this study as types of thinking. Vertical thinking is seen here as analytical thinking, rational thinking, logical thinking, and mathematical thinking. Although each of these thinking modes might be considered a particular method of thinking, their territories are in fact difficult to determine, and their boundaries are illusive and interlinked. Thus, it could be argued that, in real sense that they are fundamentally similar in terms of meaning. As Hussey (2001) points out, there is no strict sequence to whether bright ideas precede or follow analytical activities. De Bono, (1970) opines that vertical thinking is sequential, disciplined, and rule-based, and in it the individual moves in the thinking process forward by sequential steps, each of which must be justified. On the other hand, the term strategic thinking, which is the main theme of this study refer to thinking that is lateral, critical, and creative (Alsaaty, 2007). These terms has the same meaning, essentially the same and again interlinked. Due to its richness and clarity, strategic thinking is more fitting.   As is the case with vertical thinking, it appears that there is no generally accepted definition for strategic thinking. For example, Liedtka (1998) defines strategic thinking in terms of five attributes: a system of holistic view, a focus on intent, time-based, hypothesis- driven, and intelligently opportunistic. Dixit and Nalebuff (1991,) defined strategic thinking as the art of outdoing an adversary, knowing that the adversary is trying to do the same to you. In view with (Alsaaty, 2006), strategic thinking refers to sensible ideas, thoughtful analyses, and sound decisions. It is no longer news that strategic thinking is deeply embedded in human history. Examples of brilliant ideas and insightful thinking include, cultivation of the land through agricultural activities and domestication of animals, as well as the invention of writing and the wheel is few, to mention but a few. Strategic thinking is considered the foundation of civilizations, and the source of economic progress. Falih, (2007) is of the opinion that strategic thinking is proactive and reflective. It is particularly essential to those individuals who wish to become successful entrepreneurs, however, it is also essential to all mankind. Strategic thinking enables entrepreneurs to navigate with self-assurance in a dynamic, competitive environment. The benefits of this type of thinking skills are well recognized. In the study of (Barnett and Berland, 1999), they indicated that strategic thinking capability can help businesses identify ways to develop confident forecasts, and to reduce the uncertainty of business decisions. Graetz (2002) also asserts that strategic thinking is central to creating and sustaining competitive advantage. Textiles play a major role in the development and industrialization process of Nigeria and her integration into the world economy, in view of this application of strategic thinking in the management of such important sector is no negotiable.


Some of the problem facing firms is the lack of strategic skill in connecting with other firms or individuals to achieve the firms set goals and objectives. Managers also lack the technical know-how to integrate themselves to the connectivity of other companies thereby bringing out the target objectives. Furthermore, any problem identifies is that firm have rigid strategy which most times cannot be amended or adjusted to adapt to the connectivity of other firms. Also, lack of proactive thinking tends to hamper the ability of the firm in interacting with other firms so as to achieve the firm desired goals and also in providing the customers with goods and services that will satisfy their want. It is against this backdrop that the researcher embark on this study to explore the benefit of applying strategic thinking on the management of textile companies in Nigeria.


The main objective of this study is to examine the benefit of applying strategic thinking on the management of textile companies in Nigeria. The specific objectives are:

  1. i) To examine the effect of strategic thinking on management efficiency and decision making in an organization
  2. ii) To ascertain the relationship between strategic management and gaining comparative advantage in the industry


The following research questions were formulated by the researcher to aid the completion of the study;

  1. i) Is there any effect of strategic thinking on management efficiency and decision making in an organization?
  2. ii) Is there any relationship between strategic management and gaining comparative advantage in the industry?


It is believed that at the completion of the study, the findings will be of importance to the management of Nigeria textile companies as the study seeks to enumerate and explore the benefit of inculcating strategic thinking into the management process of these textile industries. The study will also be of significance to researchers who intend to embark on a study in a similar topic as the study will serve as a pathfinder to further research on the subject matter. The study will also be of great importance to academia’s, educationist, teachers, students and the general public as the study will contribute to the pool of existing literature on the subject matter and also contribute to knowledge.


The scope of the study covers application of strategic thinking on the management of textile companies in Nigeria. But in the course of the study, there are some factors that limited the scope of the study;

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection.

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

Availability of research material: Limited academic work on this field of study was a major constrain to the scope of the study, as there are very few empirical literature.



The process of considering or reasoning about something

Strategic thinking

Strategic thinking is defined as a mental or thinking process applied by an individual in the context of achieving a goal or set of goals in a game or other endeavor. As a cognitive activity, it produces thought


Management is the administration of an organization, whether it is a business, a not-for-profit organization, or government body

Strategic management

Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives



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