STRATEGIC PLANNING AND PERFORMANCE OF ORGANIZATIONS

Mburung’a A Amburuka, Awino z Bolo, Kennedy Ogollah, Pokhariyal G. P

Abstract


This study was based on conceptualized relationship between strategic planning and
performance. Some researchers have argued that strategic planning influences
performance positively while others contend that the influence is negative. Therefore,
the past empirical studies have produced many contradictory findings and there is a
need for further studies to fix this empirical conundrum. These variables were
contextualized in the manufacturing firms in Kenya. Current study’s objective was to
determine the relationship between strategic planning and performance of
manufacturing firms in Kenya. A corresponding hypothesis, there is a relationship
between strategic planning and performance of manufacturing firms in Kenya, was
formulated and tested at 95 percent confidence level. Through a cross-sectional
descriptive survey, data were obtained using a structured questionnaire from 72
manufacturing firms representing 52.17 percent response rate. Data obtained were
analyzed using both descriptive and inferential statistics. Hypothesis was tested using
both simple and multiple regression analysis. Statistical Package for Social Sciences
(SPSS) was used to analyze the data. The findings established that strategic planning
had a strong positive relationship with performance of manufacturing firms in Kenya
and the influence was statistically significant. However there were mixed results as
regards the independent influence of various strategic planning indicators on
performance. But when combined, they have strong positive relationship with
performance and influence was statistically significant. The study suggested that
manufacturing firms in Kenya should practice strategic planning for superior
performance. For further study, it was suggested that the relationship to be moderated
with organizational variables, external environment dynamics and also to try different
strategic planning steps. Current study’s findings have theory, policy, managerial
practice and methodological implications. The current study findings added to the
existing body of literature by empirically corroborating that strategic planning and
performance had a positive relationship. Manufacturing firms should have policies
which enforce various accreditations which form


Full Text: PDF

Refbacks

  • There are currently no refbacks.


The Africa Management Review is published quaterly by the Department of Business Administration, School of Business, University of Nairobi.

For more information, contact The Editor-in-Chief email: editoramr@uonbi.ac.ke Tel +254 722306185, 720565317