The purpose of the study was to establish the effect of organizational strategy on performance of companies listed in NSE in Kenya. The theoretical framework that was anchored on the study includes chaos and complexity theory and industrial organizational economic theory. The study objective was to determine how organizational strategy affects performance of companies listed in NSE. The study tested the null hypothesis that organizational strategy does not significantly affect performance of companies listed in Nairobi Securities Exchange. The study used a cross sectional survey design on 64 companies listed in the NSE in Kenya with a sample of 38 companies covering five years (2013-2017) as at 30th June, 2017. Purposive sampling technique was used on 4 senior managers namely, Chief Executive Officers, heads of divisions in Human Resource, Finance and Marketing from the listed companies in NSE giving a sample size of 152 managers. Pre-testing was conducted on 15 respondents and reliability coefficient(r) was above the recommended threshold of 0.7.The study used five point Likert Scale to measure organizational culture and performance. Secondary data was obtained from published sources and primary data was obtained from the semi-structured questionnaire. The analysis comprised descriptive statistics, Pearson’s correlation, and hypothesis testing and regression analysis using ANOVA. The study determined that organizational strategy had a significant positive effect on performance of companies listed in Nairobi Securities Exchange. The study concluded that organization strategy needs to be adopted by companies as this helps in coming up with strategic plans either short term or long term that propels the company to better performance in the changing business environment. The study recommended that management should adopt organizational strategy that develops competitive market strategy that builds long-term objectives and annual corporate goals which defines key performance indicators for the companies listed in NSE. Further studies may also consider inclusion of either moderating variables or mediating variables which may affect the relationship between organizational strategy and performance of companies listed in NSE in Kenya.
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In-Text Citation: (Ng’ong’a, Oloko, Rambo, & Orwa, 2018)
To Cite this Article: Ng’ong’a, A. E., Oloko, M., Rambo, C. M., & Orwa, G. (2018). Effect of Organizational Strategy on Performance of Companies Listed in Nairobi Securities Exchange in Kenya. International Journal of Academic Research in Business and Social Sciences, 8(5), 505–523.
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