STRATEGIC AGILITY AND PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN KENYA

Abstract

Rapid changes increase the volatility of the business environment and require flexible and creative strategies. Nowadays, firms face great environmental turbulence due to ever-evolving competition, changing technology, fluctuating demand, disruption to the supply chain caused by human-made or natural disasters, and so on. High levels of environmental turbulence can paralyze a firm’s operations. This research study, therefore, intended to establish the influence of strategic agility on the performance of listed manufacturing and allied companies in Kenya. It was guided by the subsequent definite objectives: to assess the influence of leadership agility and learning agility on the performance of listed manufacturing and allied companies in Kenya. The study used a descriptive survey research design. The target population for this study was the management staff of all nine (9) listed manufacturing allied industry firms at the NSE, who are charged with the formulation and implementation of strategies. A sample size of 187 managers was drawn from the target population. The study optimized the use of primary data. Primary data was collected using semi-structured questionnaires containing both open-ended and closed-ended questions. The questionnaires were administered through a drop-and-pick method. Qualitative analysis was done on the information collected from the results of the questionnaires. Quantitative analysis included descriptive statistical techniques. Descriptive statistics complemented the use of frequencies, means, and percentages that were summarized and presented using tables, graphs, and charts. The data was analyzed with the aid of a linear regression model. The study distributed 187 questionnaires, with 150 questionnaires being returned correctly filled. After analysis, the study found that leadership agility and learning agility have a positive and significant influence on organizational performance. The coefficient of determination of the dependent variable, organizational performance, is influenced by the corresponding independent variables, including leadership agility, and Learning Agility. The overall regression was significant, and hence the model was acceptable. The study recommended that companies should formulate and implement strategies that enable the organization to continuously adjust to the changing customer demand and competitive environment. Other studies should be conducted to explore the moderating factors that might be influencing the relationship between strategic agility and the performance of organizations.

Key Words: Strategic Agility, Leadership Agility, Learning Agility, Performance, Listed Manufacturing and Allied Companies, Kenya