STRATEGIC DECISION-MAKING PROCESS AND PERFORMANCE OF ENERGY FIRMS IN NAIROBI CITY COUNTY, KENYA

Shem Kipkemoi Kong’a, Dr. Mary Kamaara

Abstract


The general objective of this study is to assess the influence of strategic decision-making process on performance of energy firms in Nairobi City County, Kenya. Specifically, the study sought to determine the effect of intuitive decision making on performance of energy firms in Nairobi City County, Kenya, and to determine the effect of crisis decision-making on performance of energy firms in Nairobi City County, Kenya. Because the study collected quantitative and qualitative data that explains the nature and features of the influence of strategic decision-making process on performance of energy firms, the study therefore used a descriptive research approach. The target population for the study was 315 managers in the 35 Petroleum firms in Kenya. This study adopted a census approach since the target population is small. The study used questionnaires to collect primary data. A total of 31 individuals participated in the pilot test which represents 10% of the target population. Data from questionnaires were coded and analyzed using the latest Statistical Package for Social Sciences (SPSS) computer software. Quantitative data collected was analyzed using descriptive statistics techniques. Qualitative data was analyzed using content analysis. Pearson R correlation was used to measure the strength and direction of linear relationship between variables. Multiple regression models were fitted to the data to determine how the independent variables affect the dependent variable. The analyzed data was presented in the form of tables and figures. The study concludes that intuitive decision making has a positive and significant effect on performance of energy firms in Nairobi City County, Kenya. The study also concludes that crisis decision making has a positive and significant effect on performance of energy firms in Nairobi City County, Kenya. This study recommends that the management of Energy firms should invest in improving and streamlining decision-making processes within the organization. This could involve adopting data-driven approaches, implementing decision-support systems, and encouraging cross-functional collaboration. In addition, the management should develop a robust risk assessment framework to identify potential risks and uncertainties in the energy sector. Create strategies for risk mitigation and contingency planning to ensure resilience during crises.

Key Words: Strategic decision-making process, Intuitive decision making, Crisis decision-making, Energy firms 


Full Text:

PDF

References


Alhawamdeh, H. M. &. Alsmairat, M. A. K. (2019). Strategic Decision Making and Organization Performance: A Literature Review. International Review of Management and Marketing, Econjournals, 9(4), 95-99.

Anagnostopoulou, S. C. (2012). Working capital management practices and Firm Listing Status. Multinational Finance Journal, 16(3), 261-301.

Anser, R., & Malik, Q. A. (2013). Cash conversion cycle practices and firms’ profitability–A study of listed manufacturing companies of Pakistan. IOSR Journal of Business and Management, 8(2), 83-87.

Bakonyi, Z. (2018). Why do firms centralise their strategic decision-making during crisis? A qualitative study. Journal of Organizational Change Management, 31 (5), 1191-1205.

Barine, M. N. (2012). Working capital management practices efficiency and corporate profitability: Evidences from quoted firms in Nigeria. Journal of applied finance and banking, 2(2), 215.

Bolt, W., De Haan, L., Hoeberichts, M., Van Oordt, M. R., & Swank, J. (2012). Bank profitability during recessions. Journal of Banking & Finance, 36(9), 2552-2564.

Darren, G. (2016). Predicting real-time adaptive performance in a dynamic decision-making context. Retrieved from https://www.cambridge.org/core/

Goldberg, K. I. (2017). Crisis decision-making: understanding the decision-making process during emergencies. Journal of Business and Behavioral Sciences, 25 (2), 17-22.

Kaufmann, L., Meschnig, G., & Reimann, F., (2018). Rational and intuitive decision-making in sourcing teams: Effects on decision outcomes.

Kostopoulos, K., Papalexandris, A., Papachroni, M., & Ioannou, G. (2011). Absorptive capacity, innovation, and financial performance. Journal of Business Research, 64(12), 1335-1343.

Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International

Kumar, R. (2016). Economic Order Quantity (EOQ) Model. Global Journal of Finance and Economic Management, 5(1), 1-5

Lack, J. H. (2013). How to Manage Accounts Payables Better. In Plan to Turn Your Company Around in 90 Days (pp. 21-30). Apress, Berkeley, CA.

Linh, N. T. P., & Mohanlingam, S. (2018). The effects of cash conversion cycle practices on profitability: an insight into the agriculture and food industries in Thailand. AJBA, 11(1), 97-119.

Mansoori, D. E., & Muhammad, D. (2012). The effect of working capital management practices on firm’s profitability: Evidence from Singapore. Interdisciplinary Journal of Contemporary Research in Business, 4(5).

Milicevic, N., Davidovic, M. & Stefanovic, M. (2012). Financial Effects of Inventory Management in Trading Companies - EOQ Model. Economics and Organization, 9(4), 507 - 519

Mugenda, O. &Mugenda A. (2003). Research methods: quantitative and qualitative approaches

Mugenda, O. and Mugenda, A. (1999). Research Methods: Quantitative and Qualitative Approaches. Act Press.

Muller, M. (2019). Essentials of inventory management. HarperCollins Leadership.

Nkuru, F.N. (2015). Factors affecting growth of SACCOs within the agricultural sector in Kenya: a case of Meru farmers SACCOs. Global Journal of commerce and management perspective, 4(1), 34-45.

Nobanee, H., & Al Hajjar, M. (2014). An optimal cash conversion cycle. International Research Journal of Finance and Economics. March (120), 13-22.

Nwude, E. C., Agbo, E. I., & Ibe, C. (2018). Effect of cash conversion cycle practices on the profitability of public listed insurance companies. International Journal of Economics and Financial Issues, 8(1), 111.

Opiyo, J. (2017). The Relationship between Financial Performance and Corporate Governance: Evidence from Savings and Credit Co-operatives based in Nairobi, Unpublished MBA Project, University of Nairobi.

Pais, M. A., & Gama, P. M. (2015). Working capital management practices and SMEs profitability: Portuguese evidence. International journal of managerial finance. 2(1), 9-17.

Ponsian, N., Chrispina, K., Tago, G., & Mkiibi, H. (2014). The effect of working capital management practices on profitability. International Journal of Economics, Finance and Management Sciences, 2(6), 347-355.

Richards, V. D. & Laughhin, E. J. (1980). A Cash conversion cycle practices Approach to Liquidity Analysis. Financial Management, 9 (1), 32-38.

Salas, E., Rosen, M. A., & DiazGranados, A. (2019). expertise-based intuition and decision making in organizations. Retrieved from https://journals.sagepub.com/doi/abs/10.1177/0149206309350084

Saronge, N. B., Bwonya, J. E., Owuori, P. J., Mudany, J. O., Ogutu, M. (2022). The Nexus Between Strategic Decision-Making, Strategic Communication and Organizational Performance: A Critical Literature Review. Journal of Strategic Management, 6(3), 37-49.

Sharma, A. K., & Kumar, S. (2011). Effect of working capital management practices on firm profitability: Empirical evidence from India. Global business review, 12(1), 159-173.

Singhania, M., & Mehta, P. (2017). Working capital management practices and firms’ profitability: evidence from emerging Asian countries. South Asian Journal of Business Studies. 4(1), 19-27.

Sniezek, J. A. (2017). Training for Crisis Decision-Making: Psychological Issues and Computer-Based Solutions. Journal of Management Information Systems, 18 (3), 12-31.

Torben, J. A. (2019). Information technology, strategic decision making approaches and organizational performance in different industrial settings. The Journal of Strategic Information Systems, 10 (2), 101-119.

Wanyoike, W. (2013). Effect of compliance to Sasra Regulations on financial performance of Savings and Credit Co-Operatives in Kenya. Journal of finance, 63(3), 119-136.


Refbacks

  • There are currently no refbacks.