Citation:

Adefulu, A.D., Akinlabi, B. H., Makinde, O.G., Balogun, S. M. "Ecopreneurship and Firm Profitability in Food and Beverage Manufacturing Firms in Lagos and Ogun States, Nigeria" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 404-412, 2023.

Abstract:

Manufacturing plays a vital role in achieving economic sustainability and stability. An examination of the Nigerian manufacturing sector's performance from 1981 to 2020 reveals a concerning lack of growth. This can be attributed to the adverse impact of manufacturing companies that have contributed to environmental contamination in their operating communities. As a result, the compromised environmental sustainability has significantly affected the productivity, market share, and job satisfaction of employees in these manufacturing firms. It has also hindered the sustainable development of the host communities. This research study investigated the influence of ecopreneurship and its dimensions on the profitability of selected food and beverage manufacturers in Lagos and Ogun States, Nigeria. The study employed a survey research design and included a population of 863 employees from 10 food and beverage manufacturing firms in the specified regions. The sample size of 415 was determined using the Cochran (1997) formula, with an additional 30% accounted for potential attrition. A random sampling technique and proportional allocation method were utilized to distribute samples to businesses in the two states. Primary data was collected using a modified, structured, and validated questionnaire, with Cronbach's alpha coefficients ranging from 0.76 to 0.80 for the constructs. The response rate was 89.15%. Data analysis involved multiple regression analysis, which revealed that ecopreneurship dimensions significantly impact profitability (Adjusted R-squared = 0.78; F (5, 364) = 274.665, p < 0.05). Thus, it was concluded that ecopreneurship influences the profitability of selected food and beverage manufacturing firms in Lagos and Ogun States, Nigeria. It is recommended that the management of these firms develop a policy linking ecopreneurship to organizational objectives to achieve substantial and sustainable long-term progress. Such a policy would serve as the foundation for proposed and adopted ecopreneurship-related actions by the firms.

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Keywords:

Ecopreneurship, Profitability, Manufacturing companies, Eco-innovation, Pro-Environmental Orientation.