Strategy typology, organizational factors and performance of freight forwarding companies in Kenya

Abstract

The aim of this study was to determine whether organizational factors had an intervening effect on the relationship between strategy typology and organizational performance. Organizational factors which comprise of shared values, skills and systems enable companies to adapt the correct strategy and direct the conduct of their business to achieve superior performance. The research was based on Resource based theory which postulates that firm resources consist of assets, capabilities, competences and definitive techniques among other organizational factors. The firm resources enable the firm to formulate and implement strategies that are aimed at enhancing organizational performance. Positivism research philosophy and descriptive cross-sectional survey were used in this study. Stratified random sampling was applied to obtain a study sample of 120 freight forwarding firms. Primary data was collected using semi-structured questionnaires. Data was analyzed using regression analysis. The results of the study showed that there was a significant influence of strategy typology on organizational performance. However, the study found that organizational factors have no significant intervening influence on the relationship between strategy typology and organizational performance. This indicates that the management should consider enhancing skills of their human resources and instill the virtues of shared values across various organizational functions. Also, develop systems that are endowed with technology that would ensure seamless flow of communication that enhances firm performance.