Production Development Strategy: A Tool for Improving Productivity and Profitability in Organizations

Abstract

Production Development Strategy (PDS) involves the systematic planning and implementation of activities to improve organizational productivity and profitability. This study examined the effect of PDS on organizational productivity and profitability using the Resource-Based View (RBV) as its theoretical framework. A mixed-methods design combined quantitative survey data and qualitative case insights from Sunex Nigeria Limited & Co., Uyo, Nigeria. Data were collected from 65 employees selected through simple random sampling from a population of 286 and analyzed using descriptive statistics and mean score analysis. Findings revealed that process optimization, talent development, technology adoption, lean manufacturing, and continuous improvement positively influence operational efficiency, quality improvement, cost reduction, and profitability. Talent development and continuous improvement emerged as the strongest performance drivers, supporting the RBV proposition that valuable organizational capabilities sustain competitive advantage. The study concludes that effective PDS enhances productivity and profitability, recommending strategic alignment, human capital development, technology investment, and continuous improvement in Nigerian manufacturing firms.