STRATEGY TYPOLOGY, ORGANIZATIONAL FACTORS AND PERFORMANCE OF FREIGHT FORWARDING COMPANIES IN KENYA

Abstract

The aim of this study was to determine whether organizational factors had
an intervening effect on the relationship between strategy typology and
organizational performance. Organizational factors which comprise of
shared values, skills and systems enable companies to adapt the correct
strategy and direct the conduct of their business to achieve superior
performance. The research was based on Resource based theory which
postulates that firm resources consist of assets, capabilities, competences and
definitive techniques among other organizational factors. The firm resources
enable the firm to formulate and implement strategies that are aimed at
enhancing organizational performance. Positivism research philosophy and
descriptive cross-sectional survey were used in this study. Stratified random
sampling was applied to obtain a study sample of 120 freight forwarding
firms. Primary data was collected using semi-structured questionnaires. Data
was analyzed using regression analysis. The results of the study showed that
there was a significant influence of strategy typology on organizational
performance. However, the study found that organizational factors have no
significant intervening influence on the relationship between strategy
typology and organizational performance. This indicates that the
management should consider enhancing skills of their human resources and
instill the virtues of shared values across various organizational functions.
Also, develop systems that are endowed with technology that would ensure
seamless flow of communication that enhances firm performance.