STRATEGIC MANAGEMENT PRACTICES AND PERFORMANCE OF TELECOMMUNICATION COMPANIES IN KENYA

Kenneth Odundo Ogindo, Dr. Mary Mwanzia, Dr. Judith Chepkemoi

Abstract


The main objective of this study was to establish the influence of strategic management practices on performance of telecommunication companies in Kenya. Specifically, the study sought to assess the effect of strategic planning on performance of telecommunication companies in Kenya and to establish the effect of strategic stakeholder consultation on performance of telecommunication companies in Kenya. This study focused on the telecommunication companies in Kenya. According to the communication authority in Kenya there are 5 registered telecommunication companies and they include; Safaricom PLC, Airtel, Telkom Kenya, Finserve, and Jamii Telecommunications. The study targeted management level employees at telecommunication companies in Kenya. Target populace comprised all 950 management level employees working with the telecommunication companies in Kenya. This involved all levels of management i.e. senior, middle and low level management staff. The study sample size was 282 employees, which represents 29.7% of the entire population. Stratified random sampling was applied to get the respondents. The study used questionnaires as the tool for data collection. The questionnaire was self-administered using drop-and-pick-up later technique. The questionnaire was piloted to a group of 28 managers who were excluded in the actual study. SPSS (version 22) was applied in analysing quantitative data where descriptive statistics was computed and presentations done in percentages, means, SD and frequencies. Displaying of the information was done in table and figures. Pearson R correlation was used to measure strength and the direction of linear relationship between variables. Multiple regression models were fitted to establish the impact of strategic management practices on performance of telecommunication companies in Kenya. The study concludes that strategic planning has a positive and significant influence on performance of telecommunication companies in Kenya. In addition, the study concludes that strategic stakeholder consultation has a positive and significant influence on performance of telecommunication companies in Kenya. Based on the findings, this study recommends that the management of telecommunication companies in Kenya should implement targeted infrastructure development. By investing strategically in expanding and upgrading their network infrastructure, companies can improve service reliability, coverage, and data speeds. In addition, the study recommends that the management of telecommunication companies should prioritize engagement with local communities and regulatory bodies during infrastructure development projects.

Key Words: Strategic Management Practices, Strategic Planning, Strategic Stakeholder Consultation, Performance of Telecommunication Companies in Kenya


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