Mburung’a p Amburuka, Awino z Bolo, Ken Ogollah, Pokhariyal G. P


This study was based on conceptualized relationship between strategic planning (SP),
firm-level factors 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. Other
researchers have posited that the central tenet in strategic management is that a match
between firm resources and capabilities are critical to performance, and that a
strategist’s job is to find or create this match. Hence, there was need for more research
on the moderating influence of firm-level factors on the relationship between strategic
planning and performance. These variables were contextualized in the manufacturing
firms in Kenya. The current study had one objective, to establish the influence of firmlevel
factors on the relationship between strategic planning and performance of
manufacturing firms in Kenya. A corresponding hypothesis, firm-level factors have a
moderated influence on the 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 was 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 firm-level factors had a significant moderating influence on the
relationship between strategic planning and performance. The independent influences
of the firm-level factors’ indicators used were all significant. The study suggested that
the managers of the manufacturing firms in Kenya need to synchronize the strategic
planning and firm-level factors for superior performance. Current study’s findings
have theory, policy, managerial practice and methodological implications. The findings
support resource based view theory. On policy and managerial practice, manufacturing
firms’ management should be motivated to attract valuable resources anto attract valuable resources and capabilities
which are valuable, rare, not easily imitated, and cannot be substituted as they create sustainable competitive advantage hence propel organizations to better performance.
The use of regression method in analysis made it very easy to test the hypothesis which  was developed to attain research objective.

Full Text: PDF


  • 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: Tel +254 722306185, 720565317