RELATIONSHIP BETWEEN STRATEGIC AGILITY AND ORGANIZATION PERFORMANCE

Abstract

Strategic decision-making theories suggest that organizations that pool strategic Agility and its constructs are likely to perform better than those that emphasize on traditional strategic planning. To assess whether these arguments apply to the public sector; This study explores the Strategic agility construct and their influence on performance through organizations perceived service effectiveness, efficiency and equity of State corporations in Kenya; hence the main objective of this study is to explore the relationship between strategic agility and performance of organizations (considering the components of both concepts and contextual variables). The population of the study included top managers and senior staffs working at the state corporations in Kenya. Results showed a significant positive correlation between strategic agility and organizational performance. All components of organizational performance had a positive significant relationship with Strategic agility. The relationship between the individual components of strategic agility and organizational performance is positive and significant. Variables of Age, work experience, and organizational position, had a positive significant relationship with the strategic agility of the organization, while about sex and educational level, no significant relationship found. The study recommend that strategic sensitivity (It is about an organization’s ability to move all personnel up the strategic agility spectrum from ‘Individual totally unaware to the potential changes that might impact the company’ to perceiving it and be prepared to do something about it’must be considered.