Strategic Choice and Performance of Universities in Kenya: The Mediating Role of Organizational Learning

Abstract

Scholars and practitioners argue that organizational performance is important for both
empirical and conceptual research in strategic management.  Strategic choice is a major
connection between the organization and the environment and involves decisions on the
mix of business portfolio. Organizational learning, on the other hand, involves a process of
change which evolves around improving the organizational capability through new
knowledge.  However, different scholars conceptualize organizational learning differently
depending on their interests. This empirical research sought to contribute to knowledge by
assessing the extent to which organizational learning influences the relationship between
strategic choice and performance of universities in Kenya. The study premised on the view
that establishing the role of organizational learning maximizes the capabilities and
competitive advantage in the performance of universities in Kenya. The study was
anchored in the industrial organizations economics theory as the main theory. The study
adopted a positivistic orientation and used a cross sectional survey. This study used a
sample of fifty two and got responses from forty three private and public universities.
Primary data was collected using semi structured questionnaires. An analysis was done
using correlation and regression analysis to test the hypotheses. The study objective
confirmed mediation of organizational learning confirmed significant results on nonfinancial

performance. The findings of this study are consistent with most of the previous
studies. This study therefore extends the knowledge frontiers in strategic management
through the finding that strategic choice influences organizational performance both
directly and indirectly through mediation of organizational learning. The findings of this
study provide a diversity of implications on theory, policy and practice. Policy makers will
utilize the findings from this study as a guide in the policy formulation and implementation
of strategic choices aimed at improved performance of the universities in Kenya with focus
on strategic choice and organizational learning.

Key Words: Strategic Choice, Organizational Learning, Organizational Performance