THE INFLUENCE OF FIRM-LEVEL FACTORS ON THE RELATIONSHIP BETWEEN STRATEGIC PLANNING AND PERFORMANCE OF ORGANIZATIONS

This study was based on conceptualized relationship between strategic planning (SP),firm-level factors and performance. Some researchers have argued that strategicplanning influences performance positively while others contend that the influence isnegative. Therefore, the past empirical studies have produced many contradictoryfindings and there is a need for further studies to fix this empirical conundrum. Otherresearchers have posited that the central tenet in strategic management is that a matchbetween firm resources and capabilities are critical to performance, and that astrategist’s job is to find or create this match. Hence, there was need for more researchon the moderating influence of firm-level factors on the relationship between strategicplanning and performance. These variables were contextualized in the manufacturingfirms in Kenya. The current study had one objective, to establish the influence of firmlevelfactors on the relationship between strategic planning and performance ofmanufacturing firms in Kenya. A corresponding hypothesis, firm-level factors have amoderated influence on the relationship between strategic planning and performance ofmanufacturing firms in Kenya, was formulated and tested at 95 percent confidence level.Through a cross-sectional descriptive survey, data was obtained using a structuredquestionnaire from 72 manufacturing firms representing 52.17 percent response rate.Data obtained were analyzed using both descriptive and inferential statistics.Hypothesis was tested using both simple and multiple regression analysis. StatisticalPackage for Social Sciences (SPSS) was used to analyze the data. The findingsestablished that firm-level factors had a significant moderating influence on therelationship between strategic planning and performance. The independent influencesof the firm-level factors’ indicators used were all significant. The study suggested thatthe managers of the manufacturing firms in Kenya need to synchronize the strategicplanning and firm-level factors for superior performance. Current study’s findingshave theory, policy, managerial practice and methodological implications. The findingssupport resource based view theory. On policy and managerial practice, manufacturingfirms’ management should be motivated to attract valuable resources anto attract valuable resources and capabilitieswhich are valuable, rare, not easily imitated, and cannot be substituted as they create sustainable competitive advantage hence propel organizations to better performance.The use of regression method in analysis made it very easy to test the hypothesis which  was developed to attain research objective

STRATEGIC PLANNING AND PERFORMANCE OF ORGANIZATIONS

This study was based on conceptualized relationship between strategic planning andperformance. Some researchers have argued that strategic planning influencesperformance positively while others contend that the influence is negative. Therefore,the past empirical studies have produced many contradictory findings and there is aneed for further studies to fix this empirical conundrum. These variables werecontextualized in the manufacturing firms in Kenya. Current study’s objective was todetermine the relationship between strategic planning and performance ofmanufacturing firms in Kenya. A corresponding hypothesis, there is a relationshipbetween strategic planning and performance of manufacturing firms in Kenya, wasformulated and tested at 95 percent confidence level. Through a cross-sectionaldescriptive survey, data were obtained using a structured questionnaire from 72manufacturing firms representing 52.17 percent response rate. Data obtained wereanalyzed using both descriptive and inferential statistics. Hypothesis was tested usingboth simple and multiple regression analysis. Statistical Package for Social Sciences(SPSS) was used to analyze the data. The findings established that strategic planninghad a strong positive relationship with performance of manufacturing firms in Kenyaand the influence was statistically significant. However there were mixed results asregards the independent influence of various strategic planning indicators onperformance. But when combined, they have strong positive relationship withperformance and influence was statistically significant. The study suggested thatmanufacturing firms in Kenya should practice strategic planning for superiorperformance. For further study, it was suggested that the relationship to be moderatedwith organizational variables, external environment dynamics and also to try differentstrategic planning steps. Current study’s findings have theory, policy, managerialpractice and methodological implications. The current study findings added to theexisting body of literature by empirically corroborating that strategic planning andperformance had a positive relationship. Manufacturing firms should have policieswhich enforce various accreditations which for