Strategic Management Practices and Organizational Performance of Mobile Telecommunication Firms in Kenya

Authors

  • Naomi Sapato Ngeto Scholar, Jomo Kenyatta University of Agriculture and Technology image/svg+xml
  • Dr. Joyce Amuhaya, (Ph.D) Senior Lecturer: Jomo Kenyatta University of Agriculture and Technology image/svg+xml

DOI:

https://doi.org/10.61108/ijsshr.v3i3.239

Keywords:

Strategic Management Practices, Strategic Planning, Strategic Leadership, Strategic Alliance, Strategic Innovation, Organizational Performance

Abstract

This study examined the influence of strategic management practices on the organizational performance of mobile telecommunication firms in Kenya. Specifically, it investigated the effects of Strategic Planning, Strategic Leadership, Strategic Alliance, Strategic Innovation on firm performance. The study was guided by strategic fit theory, Ricky Griffin’s model, human capital theory, organizational culture theory, and the resource-based view theory. The research focused on the three main mobile telecommunication companies in Kenya—Safaricom, Airtel, and Equitel—and targeted all senior managers within these organizations. A total of 188 managers were identified as the study population, from which a sample size of 156 respondents was drawn using a simple random sampling technique. Data were analyzed using both descriptive statistics, including percentages, means, and standard deviations, and inferential statistics, primarily regression analysis, to test the study hypotheses. The findings revealed that strategic planning practices had a strong positive correlation with organizational performance, and regression analysis indicated a significant positive causal effect. Strategic leadership was found to exert a statistically significant influence on firm performance, with improvements in leadership practices likely to enhance overall organizational outcomes. The study also established that strategic alliances contributed significantly to firm performance, while strategic innovation demonstrated a positive and statistically significant impact on operational efficiency and competitive advantage. The results suggested that firms emphasizing strategic planning set clear objectives, allocate resources efficiently, and enhance performance. Similarly, strategic leadership facilitated a clear organizational vision and adaptability to dynamic market conditions. Furthermore, strategic alliances and innovation were found to strengthen competitiveness, operational efficiency, and responsiveness to evolving customer demands. The study recommended that mobile telecommunication firms in Kenya invest in continuous leadership development, actively pursue strategic alliances, and leverage innovation to sustain competitive advantage. Future research could examine the individual effects of these strategic management practices on specific performance indicators such as financial outcomes, customer satisfaction, and market share

Downloads

Download data is not yet available.

References

. Aduda, J. & Kingoo, N. (2018). The relationship between electronic banking and financial performance among commercial banks in Kenya. Journal of Finance and Investment Analysis, 1(3), 99-118.

. Afsar, B., Rehman, Z. U., & Shahjehan, A. (2016). Determinants of customer loyalty in the banking sector: The case of Pakistan. African Journal of Business Management, 4(6), 1040-1047.

. Afzal, F., Mahmoud, K., Sherazi, S.R., Sajid, M. & Hassan, M. (2017). Effect of human resource planning on organizational performance of Telecom Sector. Journal of Information and Knowledge Management, 3(2), (34-65).

. Aithal, P. S., (2016) Creating Innovators Through Setting Up Organizational Vision, Mission and Core Values: A Strategic Model in Higher Education International Journal of Management, IT and Engineering, 6(1), 310- 324.

. Aleksić, A., & Rašić Jelavić, S. (2017). Testing for strategy-structure fit and its importance for performance. Management: journal of contemporary management issues, 22(1), 85-102

. Alin, A. (2019). Multicollinearity. Wiley interdisciplinary reviews: computational statistics, 2(3), 370-374.

. Alkhafaji, A. F. (2019). Strategic management formulation, implementation, and control in a dynamic environment. New York: The Haworth Press, Inc.

. Arasa, R., & Gathinji, L. (2018). The relationship between competitive strategies and firm performance: A case of mobile telecommunication companies in Kenya

. Bakar, A. H. A., Tufail, M. A., Yusof, M. N. & Virgiyanti, W. (2018). Implementation of strategic management practices in the Malaysian construction industry. Journal of Commerce and Social Sciences, 5(1), 140-154.

. Bathula, H. (2018). Board characteristics and firm performance: Evidence from New Zealand. Unpublished PhD thesis, Auckland, New Zealand: Auckland University of Technology.

. Baumüller, H. (2022). Towards smart farming? Mobile technology trends and their potential for developing country agriculture. In Handbook on ICT in Developing Countries (pp. 191-210). River Publishers.

. Becker, G. S. (1993). Human capital: A theoretical and empirical analysis with special reference to education. New York: University of Chicago Press

. Best, R. J. (2019). Market-Based Management: Strategies for Growing Customer Value and Profitability. (5th Ed.), Upper Saddle River, NJ: Pearson Prentice Hall.

. Cameron, K., & Quinn, R. (2019). Diagnosing and changing organizational culture: Based on the competing values framework. 3rdedition. San Francisco, CA: Jossey-Bass.

. Carmines, E. G., & Zeller, R. A. (2017). Reliability and Validity Assessment (Vol. 17). Sage publications.

. Chebet, J. (2015). Determinants of employees‟ performance in the County Governments of Kenya; a case of Bungoma County. Unpublished Master’s thesis, University of Nairobi repository, Kenya.

. Colgate, M., & Lang, B. (2017), Switching Barriers in Consumer Markets: an investigation of the Financial Services industry, Journal of Consumer Marketing, 18(4), 323-347

. Collis, J. & Hussey, R. (2018). Business research: A practical guide for undergraduate and postgraduate students (4th ed.). London: Palgrave Macmillan.

. Cooper, R. D. & Schindler, S. P. (2016). Business research methods (11th ed.). New York: McGraw-Hill International Edition.

. Crowther, D. & Lancaster, G. (2016). Research methods: A concise introduction to research in management and business consultancy. Oxford: Elsevier Butterworth-Heinemann.

. Dauda, Y. A., Akinbade, W. A. & Akinlabi, H. B. (2019). Strategic management practice and corporate performance of selected small business enterprises in Lagos Metropolis. International Journal of Business and Management, 5 (11), 97-105.

. Dawson, C. (2018). Leading culture change: what every CEO needs to know. Stanford University Press.

. Dossi, A., Patelli, L., & Zoni, L. (2016). The missng link between corporate performance measurement systems and cheif executive officer incentive plans. Journal of Accounting, Auditing and Finance, 25(4), 531–558.

. Eisenberg, E. M., & Goodall, H. L. (1993). Organizational Communication: Balancing Creativity and Constraint. New York: St. Martin's Press.

. Forbes. (2019). Adapting corporate strategy on the changing economy among developing countries in Africa. New York: Author.

. Garavan, T. N. & Carbery, R. (2019). Strategic human resource development. In J.P. Wilson (Ed.), International human resource development: Learning, education, and training for individual and organizations (3rd ed.). London: Kogan Page Limited.

. Gerald, A., & Elisifa, N. (2020). Analysis of Business Growth Strategies and Their Contribution to Business Growth: A Tanzania case study.

. Ghosh, S. & Mukhertjee, S. (2016). Measurement of Corporate Performance through Balance Scorecard. Overview Vidyasagar University Journal of Commerce, 11(1), 64-69.

. Griffin, R. (2017). Strategy implementation model. London: Harvard Business Press.

. Horovitz, J. H. (2018). Strategic control: A new task for top management. Long Range Planning, 12, 2–7.

. Hoskinsson, R. E., Hitt, M. A., Johnson, R. A., & Grossman, W. (2021). Conflicting voices: The effects of institutional ownership heterogeneity and interna governance on corporate innovation strategies. The Academy of Management Journal, 45(4), 695–716.

. Hrebiniak, L. G. (2016). Obstacles to effective strategic implementation: Organizational Dynamic, 35, 12-31.

. Huang, G., Roy, M., Ahmed, Z., Heng, J. & Lim, J. (2018). Benchmarking the human capital strategies of multinational corporations in Singapore. Benchmarking, 9 (4), 357-373.

. Jarzabkowski, P. (2018), Strategic Practices: An Activity Theory Perspective on Continuity and Change. Journal of Management Studies, 40, 23-55.

. Johnson, G., Scholes, K., & Whittington, R. (2015). exploring Corporate Strategy, Academy of Management Learning and Education, 4(4), 517-51.

. K‟obonyo, P. & Arasa, R. (2019). The relationship between strategic planning and firm performance. International Journal of Humanities and Social Science, 2 (22), (Special Issue-November, 2012).

. Kaplan, R. & Norton, D. P. (2016). Translating strategy into action. London: Harvard Business Press.

. Karani, S.R., & Okibo, B.W. (2018). Effects of Total Quality Management implementation on business performance in service institutions: A case of Kenya Wildlife Services. International Journal of Research Studies in Management, 1 (1), 59-76.

. Kariuki, J. N. (2016). The effect of strategic innovation on performance of mobile telecommunication firms in Kenya (Doctoral dissertation, University of Nairobi).

. Kimalel, B. C., Muriithi, S. & Kihara, P. (2017). Strategic responses and performance of saving and credit co-operative societies in Nairobi County, Kenya. Strategic Journal of Business and Change Management, 4(18), 236-245..

. Kutllovci E,& Shala V,(2016) The role of strategic management on small business growth in Kosova International Journal of Business and Social Research (IJBSR), 3(4), 13-20.

. Kuye, O. L. (2016). Strategic control and corporate entrepreneurship: An empirical study. International Journal of Entrepreneurship and Small Business, 20(2), 214–232.

. Martindale, N. (2019). Leadership styles: How to handle the different personas. Strategic Communication Management, 15(8), 32-35.

. Mburu, V. N. (2017). Competitive strategies adopted by private hospitals in Mombasa. Unpublished Masters thesis, Nairobi: University of nairobi. Retrieved from http://erepository.uonbi.ac.ke.

. Melchorita, S. S. (2021). The influence of strategic management practices and competitive advantage on the organizational performance of higher education institutions. International Journal of Social Sciences and Entrepreneurship, 1(1), 56-72.

. Mohamud, G. Y., Mohamud, A. S. & Mohamed, B. H. (2015). The relationship between strategic management and organizational performance in Mogadishu-Somalia. European Journal of Research and Reflection in Management Sciences, 3(2), 42-51.

. Muogbo, U. S. (2017). The impact of strategic management on organizational growth and development (A study of selected manufacturing firms in Anambra State). IOSR Journal of Business and Management, 7 (1), 24-32.

. Murimbika, M. & Urban, B. (2018). Influence of strategic management practices and corporate entrepreneurship: A cluster analysis of financial and business services firms in South Africa. African Journal of Business Management, 7(16), 1522-1535.

. Namdeo, S. K., & Rout, S. D. (2017). Calculating And Interpreting Cronbach’s Alpha Using Rosenberg Assessment Scale on Paediatrician’s Attitude and Perception On Self Esteem. International Journal of Community Medicine and Public Health, 3(6), 1371-1374.

. Ngethe, J. M., Iravo, M. E., and Namusonge, G. S. (2016). Determinants of Academic Staff Retention in Public Universities in Kenya. Empirical Review International Journal of Humanities and social science, 2(3), 205-212.

. Ojera, P. B., Ogutu, M., Siringi, E. M., & Othuon, L. A. (2019). Belief control practices and organizational performance. African Research Review, 5(4), 1–17.

. Okibo, W. & Agili, J. (2015). Factors influencing Implementation of change in selected public universities in Kenya. International Journal of Economics, Commerce and Management, 3(5), 1201-1217.

. Ombui, K. & Mwende, K. J. (2018). Factors affecting effective implementation of strategic change at Co-operative Bank of Kenya. International Journal of Social Sciences, Management and Entrepreneurship, 1(1), 111-129.

. Ongore, V. O. (2018). The relationship between ownership structure and firm performance: An empirical analysis of listed companies in Kenya. African Journal of Business Management, 5(6), 2120 - 2135.

. Pearce II, J. A. & Robinson, R. B. (2017). Strategic management: Formulation, implementation, and control. New York: McGraw Hill.

. Redman, T. & Wilkinson, A. (2016). Contemporary human resource management: Texts and cases. Harlow: Pearson Education.

. Robinson, R., Pearce, J. & Mital, A. (2019). Strategic Management: formulation, implementation and control. New Delhi: McGraw Hill Education.

. Rodríguez-Ponce, E. & Pedraja-Rejas, L. (2018). Quality of strategic decision making: An empirical study of behavioral variables. African Journal of Business Management, 6(34), 9704-9717.

. Shankar, R. K., & Shepherd, D. A. (2019). Accelerating strategic fit or venture emergence: Different paths adopted by corporate accelerators. Journal of Business Venturing, 34(5), 105886.

. Silvi, R., Bartolini, M., Raffoni, A., & Visani, F. (2017). The practice of strategic performance measurement systems: Models, drivers and information effectiveness. International Journal of Productivity and Performance Management, 64(2), 194–227. https://doi.org/10.1108/IJPPM-01-2014-0010

. Venkatraman, N., & Ramanujam, V. (2017). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.

. Waititu, J. W. (2016). Relationship between strategy implementation and performance in commercial banks in Nairobi County in Kenya. International Journal of Business and Management, 11(9)

. Wambugu, W. C. & Waiganjo, E. W. (2015). Effects of strategic management practices on organizational performance of construction companies in Nairobi City County, Kenya. International Academic Journal of Human Resource and Business Administration, 1 (4), 41-51.

. Wang, G., Dou, W., & Zhou, N. (2015). The effects of firm capabilities and external collaboration and performance: the moderating role of market turbulence. Journal of Business Research, 68(9), 1928–1936.

. Wright, P. M., Dunford, B. B., & Snell, S. A. (2019). Human resources and the resource based view of the firm. Journal of management, 27(6), 701-721.

. Zikmund, W.G. (2018). Business Research Method.9th edition. Cengage Learning 2013

Downloads

Published

2025-11-23

How to Cite

Ngeto, N. S., & Amuhaya, J. (2025). Strategic Management Practices and Organizational Performance of Mobile Telecommunication Firms in Kenya. International Journal of Social Science and Humanities Research (IJSSHR) ISSN 2959-7056 (o); 2959-7048 (p), 3(3), 324–342. https://doi.org/10.61108/ijsshr.v3i3.239