Organization Policies And Performance Of Mobile Telecommunication Companies In Kenya

Abstract

The Mobile Telephony Industry has created many employment opportunities. In order to create a sustainable and profitable business, it’s important to have proper organizational policies; firms with clear policies perform better than those companies that lack. Increasing intensity of competition in Kenya’s mobile telecommunication industry has negatively affected financial performance of mobile companies with most of them incurring huge losses in the recent past (CAK, 2019). From the study done there’s limited empirical proof on the association existing between organizational policies and performance, therefore the research gap this study sought to fill by answering the following research questions, is there a relationship between organizational policies and performance of mobile telecommunication companies in Kenya? This study was anchored on three theories which includes, competitive advantage theory, stakeholder theory and resource-based view theory. The study is important to the management of mobile telecommunication companies, as it guides them in understanding how strategic organizational policies are of importance in organizational performance. The study findings benefits policy makers as they get to understand how strategic organizational policies affects performance of mobile telecommunications companies. Researchers and academicians can use the study as a reference for future related studies. The study adopted a descriptive cross-sectional survey. This study focused on four major telecommunication firms operating in Kenya. The study focused on 178 managerial staffs of four mobile telecommunication companies firms based at the head office. The study sampled 50% of the population chosen through stratified random sampling. Stratification was based on mobile telecommunication company. This study used a questionnaire as data collection tool. Quantitative data collected was analysed by the use of descriptive statistics using SPSS (Version 23). Content analysis was used to test data that is qualitative in nature or aspect of the data collected from the open ended questions. Multiple regressions were done to establish the relationship between organizational policies and performance of mobile telecommunication companies in Kenya. Data was presented using tables, and pie charts to make them reader friendly. The study established that organization policies directly influences organizational performance suggesting that a unit increase in organizational policies will result in an increase in organizational performance. The study recommends management of the telecommunication companies to ensure that their policies are well-structured and suitable in order to ensure that the organization functions effectively and improves its performance. Mobile telecommunication companies should be concerned with operational policies especially policies focused on decision structures and team synergy and ensure they are flexible and adjusts accordingly depending on the current conditions. The study also recommends the companies to focus more on productivity policies to ensure there is speedy decision making; this ensures that professionals and management is protected from adhocracy details that negatively affect their creativity and performance. The study further recommends the companies to focus more on quality-management policies as strategies that can guide the company in attaining sustainable competitive advantage.