Green Ocean Strategy and Sustainability of the Oil Palm Industry in the Niger Delta, Nigeria

Abstract

This study examined the relationship between Green Ocean Strategy and the sustainability of the oil palm industry in the Niger Delta, Nigeria. Specifically, the study examined the association between Market Innovation and sustainability, assessed the association between Value Proposition and sustainability, examined the association between Cost Structure and sustainability, and determined the joint associations between the three variables and overall sustainability of the oil palm industry. The study adopted a quantitative research design. A total of 540 questionnaires were administered, of which 501 valid responses from stakeholders in the oil palm industry across the selected Local Government Areas in Delta, Edo and Akwa Ibom States, representing a 92.8% response rate were subsequently analysed using descriptive statistics and multiple regression analysis. The regression results showed that the model explained 76.8% of the variance in Overall Sustainability (R² = 0.768; Adjusted R² = 0.766). Market Innovation (MI) has a positive and statistically significant association with Overall Sustainability (β = 0.378, p < .001). Holding the other determinants constant, a one-unit increase in Market Innovation is associated with an estimated 0.389-unit increase in Overall Sustainability. Value Proposition had the largest standardized coefficient among the three predictors (β = 0.564, p < .001). In contrast, Cost Structure (CS) has a very small positive coefficient (β = 0.026) and is not statistically significant (t = 0.777, p = .438). The findings indicate that Value Proposition and Market Innovation are more prominent strategic variables in explaining sustainability within the study sample, whereas Cost Structure appears to play a more limited role in the overall model. The study concludes that sustainability-oriented value creation and market innovation constitute important strategic considerations for the oil palm industry. It recommends greater emphasis on sustainable value creation and market innovation, while encouraging firms to integrate cost management with resource efficiency and other sustainability-oriented practices.