Influence Of Strategic Decisions On Performance Of Paint Manufacturing Firms In Kenya

Abstract

Strategic decisions are key determinants of a firm's success, as they shape the overall direction, resource allocation, and competitive positioning of the organization. While the paint manufacturing sector has experienced steady growth, firms encounter significant challenges that hinder optimal performance and competitiveness. This research examined the influence of strategic decisions on the performance of paint manufacturing firms in Kenya. Importantly, the following objectives were established ; influence of strategic resource allocation, influence of organizational structure, influence of alliances, and influence of strategic human resource staffing on the performance of paint manufacturing firms in Kenya. The study applied a descriptive research design, while focusing on 26 paint manufacturing firms in Kenya. A total of 156 employees in finance , marketing and production were selected from each paint manufacturing firm. Taro Yamane model was used to arrive at a sample size of 113 respondents. The study applied questionnaires and administered both physically and online. Filled questionnaires were entered into SPSS and analysed for descriptive and inferential statistics. Both descriptive and binary regression analysis were used in data analysis. The findings were presented in tables and narratives. Findings revealed that firms that utilized optimal strategic resource allocation were 15 times more likely to register better performance than ones using sub-optimal allocation of resources. Paint manufacturing companies with flat organizational structure were 6 times more likely to have better performance outcome than ones with tall structure. Organiztaions with Strategic alliances were 8 times more likely to register better performance than ones with non-strategic alliances. Lastly, paint firms applying High-Performance Work System were 10 times more likely to enhance their performance than ones using control-based approach. The study concluded that strategic resource allocation, organizational structure, and alliances significantly and positively influenced performance of paint maufacuring companies in kenya. The study recommended that paint manufacturing firms in Kenya prioritize strategic resource allocation through materials distribution, capital expenditure and budgeting and machine sheduling. The study also recommends that firms should develop clear and flexible organizational structures, to enhance decision-making, coordination, and operational productivity. Further, the study recommended that firms are encouraged to actively build strategic alliances focused on mutual benefit, differential efficiency acquisition, synergy , resource sharing, and continuous evaluation to strengthen performance. Lastly the paint manufacturing companies should use strategic staffing strategies decisions in employee retention, engagement of employees and training.