Institutional Environment, Strategic Adaptation, and Firm Survival in Nigeria’s Fintech Sector

This study investigates how institutional environmental factors shape strategic adaptation choices and influence firm survival in Nigeria's fintech sector. The rapid regulatory evolution of Nigeria's digital financial services landscape, driven by the Central Bank of Nigeria's policy interventions between 2020 and 2024, creates a dynamic institutional context for examining strategic management responses. Institutional theory provides the primary theoretical framework, complemented by dynamic capabilities theory. The research employs a qualitative multiple-case study design, selecting eight fintech firms of varying sizes and business models from Lagos, representing diverse adaptation strategies. In-depth interviews were conducted with founders, chief strategy officers, and regulatory affairs managers. Data were analyzed using thematic and cross-case analysis. Findings reveal that fintech firms demonstrating institutional entrepreneurship capacities, characterized by the ability to proactively engage with regulatory actors and shape rather than merely respond to institutional rules, achieve superior survival and growth outcomes. Regulatory compliance as a strategic investment, rather than a cost, is identified as a differentiating mindset among firms with high institutional adaptability scores. The study also finds that network embeddedness in industry associations provides critical institutional intelligence advantages. The research concludes that Nigerian fintech firms must develop institutional strategy capabilities alongside their technology and market strategies to navigate Nigeria's evolving regulatory landscape. Keywords: institutional environment, strategic adaptation, fintech sector, Nigeria, regulatory strategy.