Influence of Strategic Orientation on Performance of Telecommunication Firms in Kenya

Abstract

The greatness, speed and direction of environmental change in business is increasing at an unprecedented rate and for firms to survive, strategies have to be applied so as to answer to the forces that threaten to halt survival. Such variations are being brought about by globalization. This study aimed at determining the influence of strategic orientation on organizational performance of telecommunication firms in Kenya. The researcher reviewed related research material that has been previously studied and identified a knowledge gap which the research endeavored to fill. The study aimed at determining whether the identified strategic orientations of entrepreneurial, market, customer and technology orientations influenced the performance of telecommunication firms in Kenya. The research then used environment strategy performance theory and configuration theory to support the topic in addition to the reviewed literature of the identified variables. Further the research adopted descriptive survey design and targeted specific employees working in the telecommunication firms. The targeted population was the IT, marketing and business development managers because they were the ideal individuals who are directly involved in identifying appropriate strategic orientations and policy implementation. Primary data was collected and used for this study using questionnaires administered through a drop and pick mode. The collected data was analyzed and tabulated by use of tables and the findings summarized. The research concluded that majority of the individuals who were interviewed were top ranked officials in the organizations where they worked and were involved in the long term strategies undertaken by their respective firms. In most cases, they were the ones who implemented them thus making them the ideal target respondents for this study. Lastly, most respondents of this study have served their firms for long periods hence are well informed of the processes and activities in their organization. This study finding established that strategic orientations indeed do influence the performance of organizations in the telecommunication sector in Kenya. The study recommends that organizations within this sector of study, should embrace different strategic orientations due to technological advancement and the need to always catch up with latest trends which will help them in identifying the needs of their customers and the market at large so as to fulfill them, which is equally a great opportunity to grow their businesses. Further, Telecommunication firms should invest in innovation and sophisticated telecommunication technologies in new product development. This is because it will create a new market niche for their products and services hence being competitive in the telecommunication industry. Further, the firms should endeavor to focus on identifying customers expressed needs that guide it in developing products and services. In return, this will give them an opportunity in shifting the paradigm in the way things are done in the environment they operate in.