Strategic Planning and Performance of Chinese Infrastructural Firms in Kenya

Abstract

Infrastructural projects are prone to changes in technology, government regulations, change in customer tastes and preferences as well as purchasing power. In responding to these external factors, competition among firms is becoming high and more intense as organizations implement procedures and practices to aid them survive. In this rapid dynamic environment, infrastructural entities will be more forward looking and vigilant to survive by employing more strategic decisions to realize performance. Embracing strategic planning enables companies to appreciate their strategic position and understand how to advance future strategic choices and implement current strategies. This study explored the effect of strategic planning on competitive advantage of Chinese Infrastructural firms in Kenya. The investigation employed a mixed-method research design. Twelve Chinese infrastructural firms operating in Kenya were studied. Qualitative data was gathered using interview guides from top manager and executives of the infrastructural firms. Quantitative data was collected using structured questionnaires and analysis performed to generate descriptive statistics. Qualitative data was analyzed using content analysis. The findings revealed that although Chinese infrastructural projects were implemented within a strategic framework, there was less involvement of employees on matters strategy as the strategic plans were developed in China. The findings also showed that strategy identification and appraisal mechanisms have been successful due to proper environmental scanning with the help of tools such as the SWOT analysis. Additionally, the findings revealed that strategy implementation was confronted by challenges such as communication breakdown since the management was not aware of the strategic goals in some instances, political instability due to change in regimes which affect contracts and inconsistencies in funding as well as site accidents among others. The study recommends Chinese firms to consider developing strategic plans that are country specific and formulate a modality for involving the employees in strategic planning. The government should create a conducive environment for the operation of foreign firms through favorable policies.