| dc.description.abstract | The study sought to investigate the effect of strategic risks on organizational
performance of amongst quoted manufacturing and allied companies in Kenya. The
research was based on three specific objectives: to establish the effect of competition
risk, regulatory requirements, economic risk on organizational performance of
amongst quoted manufacturing and allied companies in Kenya. The study was guided
by protection motivation theory and habitual action theory as the theoretical reviews
of the study. The research adopted descriptive survey research design. The target
population was the manufacturing and allied companies quoted at the Nairobi
Securities Exchange (NSE) where there were 9 companies in this category. The study
also targeted 90 strategic risk management and management team as the respondents
from the three levels of management that is top, middle and lower management as
unit of observation. A census of the 104 respondents was carried out of a target of
109. 5 respondents were used for pilot study. The census technique was more
appropriate because strategic risk staff and management team were relatively few and
therefore, it was possible to include all of them in the study. Data was collected using
structured questionnaires. The data was then analyzed using descriptive statistics and
linear regression analysis were used to show the relationship between independent
variable and dependent variable. Data was presented in form of frequency tables,
figures, percentage, and description forms. The study found that the regression
coefficient for competition risk was positive implying that competition risk increased
the organizational performance amongst quoted manufacturing and allied companies
in Kenya. The coefficient had a p-value of 0.002 which was less than 0.05 leading to
the rejection of the null hypothesis. The regression coefficient for regulatory
requirements was found to be positive. This implied that the more regulatory
requirements the higher the organizational performance amongst quoted
manufacturing and allied companies in Kenya. The coefficient had a p-value of 0.001
which was less than 0.05. Thus, the null hypothesis was rejected. In the case of
economic risk, the regression coefficient was also positive implying that
organizational performance amongst quoted manufacturing and allied companies in
Kenya improved by putting economic risk strategies. The coefficient had a p-value of
0.001 which was less than 0.05 leading to the rejection of the null hypothesis. Thus,
economic risk had a significant effect on organizational performance amongst quoted
manufacturing and allied companies in Kenya. The conclusion was that competition
risk, regulatory requirements, economic risk had a significant effect on organizational
performance amongst quoted manufacturing and allied companies in Kenya. Overall,
the study recommends that organizations should remain agile and responsive to
strategic risk through continuous scenario analysis of strategic risk. On competition
risk, the study recommends that companies need to innovate products and services
which will compete favorably with other companies’ products and capture a larger
market. Based on the importance of regulatory framework, it is necessary for
manufacturing and allied organizations to develop systems for tracking emergence
and compliance to regulatory requirements to enhance organizational performance.
There is also need for managers in the manufacturing and allied institutions to pay
adequate attention to the economic risk by continuous analysis of costs to ensure the
organizational performance is within set standards. | en_US |
