TOWARDS GREENER CORPORATE OPERATIONS: INFORMATION TECHNOLOGY STRATEGY AS MODERATOR OF CHIEF EXECUTIVE OFFICER EQUITY BASED COMPENSATION AND FIRM’S COMPETIVENESS IN NIGERIA
TOWARDS GREENER CORPORATE OPERATIONS: INFORMATION TECHNOLOGY STRATEGY AS MODERATOR OF CHIEF EXECUTIVE OFFICER EQUITY BASED COMPENSATION AND FIRM’S COMPETIVENESS IN NIGERIA

Summary/Abstract: The current economic realities of the business world require firms to focus on all areas of organizational activities necessary to implementing a chosen course of action. It has been asserted that deploying information technology strategy can be quite helpful in engendering sustainable growth, greener corporate environment, and promoting environmental consciousness. In corporate governance, Chief Executive Officers (CEOs) are saddled with the responsibility of designing firm’s strategies for competitiveness and they do this based on their assessment of risk involved, the long term nature, and uncertainty connected with IT strategies. This study therefore examined whether IT strategy moderates the nexus between CEO equity based compensation and firm’s competitiveness. To investigate this, the study used firm-level secondary data of 106 quoted firms on the Nigerian Exchange Group for the period 2011 - 2020. Ordinary least square and panel data estimation techniques were used. The Hausman test conducted to choose between fixed effect and random effect models revealed the appropriateness of the random effect model. In the OLS and random effect models, the coefficient of CEO equity compensation was negative, implying that higher CEO compensation is not contemporaneous with higher firm’s competitiveness. However, this estimate is not statistically significant and so the weight of this negative relationship is rather insignificant. The introduction of IT strategy as a moderator into the model produced positive interaction effect on firm’s competitiveness. Overall, there is the tendency for CEO compensation to enhance firm’s competitiveness in the presence of IT strategy. Accordingly, IT enabled greener corporate environment encourages competitiveness and firm’s sustainable growth.

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