Abstract: Strategic management practices involves strategic planning; strategy implementation and strategy evaluation and control, which have in the past studies been seen to influence the competitive positioning of the firm in the industry, thus determine the performance. The objective of the study was to determine the effect of strategic management practices on the performance of oil sector firms in Mombasa County. The specific objectives of the study were: to determine the effect of cost leadership on performance of oil sector firms in Mombasa county, to establish the effect of planning on performance of oil sector firms in Mombasa county, to determine the effect of innovation on performance of oil sector firms in Mombasa county and effect of product diversification on performance of oil sector firms in Mombasa county. The study employed competitive advantage and resource based as theories for the study. The metrics for measuring the company’s performance were the quality of product and customer satisfaction. The descriptive research design was used in the formulation of knowledge on the effect of strategic management practices on the performance of oil sector firms in Mombasa County and provided solutions to areas that needed improvement. Structured questionnaires and oral interviews research techniques were used to get primary data from selected oil sector firms in Mombasa County. Both quantitative and qualitative research techniques was used during data presentation using inferential statistics to draw conclusions from the nominal measurement scale. Purposive sampling technique was used to identify and select eligible participants for the study sampling since it allowed the researcher to choose subjects who are in the best position to provide information required. Reliability was tested using Cronbach’s Alpha. Inferential statistics such as Pearson’s correlation and multiple regression analysis was used for further analysis. Data was analyzed using statistical packaging social sciences software (SPSS) version 23 to find the relationships and averages of the data in addition to tabular presentations for understandable presentation. From the finding results strategic cost leadership is driven by company efficiency, size, scale, scope and cumulative experience. Cost leadership aims to exploit scale production, well defined scope and other economies. Strategic planning plays a vibrant role of organization process of defining its strategy, or direction and making decisions on allocating its resources to pursue this strategy. From the findings the study concluded that strategic cost leadership, strategic planning, strategic innovation and strategic product diversification have a positive significant effect on the performance of firm’s oils in Mombasa County. It is recommended that leaders in oil firms need to motivate, support, and communicate, innovate the organization in building up shared behavior, vision, mission, norms and values formation among the employees for strategy management practices. The study also revealed that a part from leadership and planning, innovation and product diversification also posed challenges in strategy management practices. It is therefore recommended that the oil firms adopts policies and procedures that support strategic management practices. It is recommended that firm oils organization corporate managers and other key stakeholders have to invest in robust innovation and technological systems that enhances performance which plays a critical part to the economy growth and development. It is also recommended that key players and corporate leaders in oil firms’ entities to diverge their efforts and intelligence minds in formulating viable decisions and policies that cultivates the culture of performance totality for the organization.
Keywords: Cost Leadership, Planning, Innovation & Product Diversification.
Title: EFFECTS OF STRATEGIC MANAGEMENT PRACTICES ON THE ORGANIZATIONAL PERFORMANCE OF OIL FIRMS IN KENYA. A SURVEY OF MOMBASA OIL FIRMS IN MOMBASA COUNTY
Author: Lilian Chepkorir Langat, Dr. Eric Lewa
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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