The relationship between strategic planning and financial performance of firms within the ICT sector in Kenya
The lCT industry is characterized by rapid technological changes, intense regulatory requirements, irregular firm performances and great influence of globalization. It is thus befitting to refer to this industry as being highly turbulent. However, researchers in the subject of strategy have severally studied the essence of strategic planning in general, and specifically in turbulent business environment, often with mixed results. This thought triggered the objective of this research, which is to establish the extent of strategic planning within the lCT industry, Kenya and further establish the relationship between strategic planning and firm financial performance. A survey was conducted with questionnaire submitted 30 sampled firms in the lCT Industry. Interviews were done face to face and also through availing forms on-line on the internet. It was established that strategic planning practices were to a great extent established amongst the lCT firms, beating the logic that firms within rapidly changing environment do not have time for formal and planned approaches to strategy. It was also found that strategic planning is positively related to firm financial performance and that firms which employ strategic planning realize positive financial performance as opposed to firms that do not. This realization is significant in that practice of strategic planning need to be underscored across all sectors of economy, even in environment where technological changes are deemed to occur. In fact, the more the changes in the nature of business, the more the need to adopt and follow formalized strategic planning approaches.