Effect of Strategic Agility on Performance of Construction Firms in Nairobi

Abstract

There is a growing need for firms to be agile in their activities in order to be able to effectively adapt to an ever turbulent environment. This in turn determines how quickly organizations can recognize opportunities in the midst of crisis and fluidly mobilize their resources to enhance their performance. The study's aim was to establish how Nairobi's construction firms performed and how their strategic agility affected that performance. Organization, human resource, technology, and planning agility are some of the predictor factors that examined strategic agility. Dynamic capability theory and contingency theory served as the guides for the study. All Class One construction businesses with offices in Nairobi made up the study's population, which was studied using a descriptive research approach. There were 84 construction enterprises in all, and a census was taken. Nine firms, however, were not taken into account for the research since they had just been added to that category of firms. A questionnaire was used to collect data from the intended responder. The research included descriptive and inferential metrics such as mean, standard deviation, and regression equation, and tables were used to present the results. The findings indicate that there is a large positive relationship between strategic agility and the performance of Kenyan construction businesses, and that the four strategic agility elements analysed account for a considerable percentage of that performance. According to the regression coefficient components, organizational agility, human agility, and technological agility seem to have had a positive and significant influence on performance. However, planning agility was found to have no statistical significance in affecting performance of the construction firms. These findings imply that the performance of the construction firms with high strategic agility will be higher than those with low strategic agility. Thus, managers should consider strategic agility in developing and protecting existing market shares, increasing shareholders value and enhancing firm performance. Construction firms contribute significantly towards improved infrastructure and policies should be created that steer firms to be agile. Since this study investigated only four dimensions, there is a need for further research to determine how other agility variables affect organizational performance.