Response Strategies Adopted by Audit Firms Operating in Nairobi to Changing Operating Environment in Kenya
Abstract
The operating environment in which an organisation works assumes a key part in
determining the organization‟s performance. Keeping in mind the end goal to keep up its
competitiveness, an organisation needs to ceaselessly create proper response strategies
that would encourage the arrangement of authoritative operations to the evolving
environment. The fundamental goal of this study was to define and establish the response
strategies employed by audit firms to changing operating environment in Kenya. The
research work employed a cross-sectional descriptive research design since it cuts
crosswise over various audit firms operating in Kenya. The populace of this study
contained 819 enrolled audit firms working in Nairobi, Kenya as at September 2015. The
study employed simple random sampling method to choose a specimen of 82 audit firms
which speaks to 10% of the population. The research study utilized primary data to
guarantee thorough accomplishment of the objective of the research. The required
primary data was acquired from the field by utilization of a questionnaire. In request to
appreciate the reactions and make surmising‟s, the surveys gathered from the field were
coded and went into Statistical Package for Social Sciences (SPSS. 22.00) for analysis.
The study found out that the audit firms had entered in collaborations, partnerships and
business alliances with other organizations, audit firms had distinguished services for
different customer segments, the audit firms had several service offerings to customers,
invested in other industries supporting the operations of the company, had several
services portfolios and involved in development of industry practices. The study
concludes that response strategies can be a capable and in fact a fundamental instrument
for fulfilling an organisation's key objectives through cooperation and sharing of
resources. Response strategies can give a viable high ground in new markets, cost, speed
and access of technology. The recommendations of the study are that in order to increase
chances of creating competitive advantage, firms must follow a careful, well thought out
process in strategy formulation through strategic conception to alliance termination. It is
therefore critical to properly set the strategy for the alliance and to create an optimum
organizational structure to ensure the strategic alliance strategy works, to establish clear
governance structures and to monitor the results proactively.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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