| dc.description.abstract | This study investigated the effect of the external environment on corporate performance. Based
on a survey of 23 companies listed on the Nairobi Stock Exchange, three environmental
dimensions of complexity, dynamism and munificence were used to describe Kenya’s business
environment. Performance implications of these environmental dimensions were then examined.
The study reports that for the surveyed companies, varying degrees of external environmental
complexity, dynamism, and munificence exist which tend to be mostly manifested in economic
factors, competitive rivalry, market factors, technological factors, regulatory factors as well as
threat of new entrants. Consequently, these factors appeared to have great influence in the
companies’ strategic decision making. However, the overall results for the effect of external
environment on corporate performance were statistically not significant. Based on the findings,
implications of the study and suggestions for further study are presented. | en |
