Strategic Management Practices and Performance of Selected Logistics Firms in Mombasa County, Kenya
Abstract
This study examined the influence of strategic management practices on the performance of selected logistics firms in Mombasa, Kenya. Firm performance was assessed in terms of operational efficiency, customer satisfaction, innovation, and employee productivity. Despite the significant contribution of logistics firms to the Kenyan economy through transportation and storage services, many continue to face challenges related to competition, rising operational costs, government regulations, and internal inefficiencies. The study focused on four strategic management practices: environmental analysis, employee empowerment, leadership, and stakeholder involvement. The research was guided by the Resource-Based View Theory, Porter's Generic Strategies Theory, and Agency Theory. A descriptive research design was adopted targeting 245 employees from three logistics firms, comprising directors, managers, administrators, and operations staff. Using stratified and proportionate sampling techniques, a sample of 75 respondents was selected. Primary data were collected through questionnaires, while validity was enhanced through expert review. Data were analyzed using regression analysis. The findings revealed a strong positive relationship between strategic management practices and firm performance (R = 0.943; R² = 0.889), indicating that 88.9% of performance variation was explained by the independent variables. ANOVA results confirmed the statistical significance of the model (F = 241.449, p < 0.05). All variables had a significant positive effect on performance, with stakeholder involvement emerging as the strongest predictor (β = 0.482, p = 0.000). The study concluded that integrated strategic management practices significantly enhance the performance and competitiveness of logistics firms. The study recommends strengthening stakeholder engagement, leadership development, employee empowerment, and continuous environmental analysis to achieve sustainable organizational performance.
Keywords: Strategic Management, Practices, Performance, Logistics Firms, Mombasa County
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