Effect of Strategic Responses on Performance of Petroleum Firms in Nairobi, Kenya

Abstract

The objective of the study was to determine the effect of strategic responses on performance of petroleum companies in Nairobi, Kenya. The study adopted a descriptive research design. The target population of the study was 31 petroleum firms in Nairobi and a census was undertaken on all these firms. The study collected primary data using questionnaires. The analysis was done by the help of means, standard deviations and regression. With a response rate of 83.9%, the findings showed that 73.4% change in performance of petroleum is explained by their strategic responses in place. The study concludes that strategic responses have significant effect on performance. The study recommends that the senior management team of all petroleum firms in Kenya need to improve on their innovation strategies in order to positively influence performance. The regulatory bodies including the Energy Regulatory Commission should formulate effective policies and regulations to support innovation, outsourcing and differentiation among petroleum firms. The Capital Market Authority as a regulator of listed petroleum firms (Total Kenya and KenolKobil) should also come up with sound rules and regulations that help these firms to effectively respond to changes in their environment. Future studies should incorporate the energy firms including Kenya Power and Lighting Company (KPLC) and KenGen.