Performance Of Domestic Airlines In Kenya: The Role Of Strategic Management Practices

Georgina Shiboko Ichingwa; Sarah Kamau

doi:10.61994/equivalent.v3i2.932

Authors

Georgina Shiboko Ichingwa Kenyatta University, Nairobi, Kenya, Afrika Timur
Sarah Kamau Kenyatta University, Nairobi, Kenya, Afrika Timur

DOI:

https://doi.org/10.61994/equivalent.v3i2.932

Abstract

The study sought to examine the effect of strategic management practices on performance of domestic airlines in Kenya. This comes at a time when the domestic airlines in Kenya have been facing tremendous challenges orchestrated by dynamics in the operating environment and disruptions in the global markets. The domestic airlines have seen a surge in customer-shun rate due to low customer satisfaction. Moreover, most of the players in domestic airlines have faced a steady decline in sales revenues and the overall market share. This raises the question on what could be the remedy to upscale organizational performance of domestic airlines. The study specifically addressed the effect of environmental scanning, strategy formulation, strategy implementation and strategy evaluation on performance of domestic airlines in Kenya. The study employed a descriptive survey approach, and targeted 129 employees drawn from 43 domestic Kenyan airlines. A questionnaire was used to collected primary data for the study, which was analysed using descriptive and inferential statistics. The findings revealed that strategic management practices (environmental scanning, strategy formulation, strategy implementation and strategy evaluation) significantly influenced performance of domestic airlines in Kenya. It was therefore concluded that the deficiencies in performance of domestic airlines in Kenya was strongly associated with effective embrace of strategic management practices. It is recommended that for the domestic airlines to expand and continue performing in the current competitive market, the managers have a duty to integrate strategic management practices through vigorous environmental scanning, formulation of strategies that respond to market demands, effective implementation of developed strategies and evaluation of implemented strategies to ensure they align with the external operating market for enhanced performance.

References

Ahmadi, H., Rajabpour, E., & Doghezlo, A. S. (2021). The Role of Strategic Management in Creating employees Adjustment and well-being for Organizational Excellence (Case Study: Social Security Organization of Bushehr). Journal of Sustainable Human Resource Management, 3(5), 64-51.

Akinrinlola, M. O. P., Aribaba, F. O., & Ahmodu, A. L. O. (2022). Strategic Management Practices And Entrepreneurial Orientation Among Small And Medium Scale Enterprises In Osun States, Nigeria. Fuoye Journal of Management, Innovation and Entrepreneurship, 1(2).

Alkhodary, D. (2023). Integrating Sustainability into Strategic Management: a Path Towards Long-Term Business Success. International Journal of Professional Business Review, 8(4), e01627-e01627.

Aydın, U., Karadayı, M. A., Ülengin, F., &Ülengin, K. B. (2021). Enhanced performance assessment of airlines with integrated balanced scorecard, network-based superefficiency DEA and PCA methods. Multiple Criteria Decision Making: Beyond the Information Age 25, 225-247.

Bolang, O., Liliweri, A., &Djaha, A. S. A. (2023). Implementation Of Strategic Management For Waste Management In Kalabahi City. Journal of Industrial Engineering & Management Research, 4(2), 64-73.

Chiwawa, N., Wissink, H., & Fox, W. (2021). Strategic management practices in organisations with specific reference to the public sector. Africa’s Public Service Delivery & Performance Review, 9(1), 9.

Chmielewska, M., Stokwiszewski, J., Markowska, J., &Hermanowski, T. (2022). Evaluating organizational performance of public hospitals using the McKinsey 7-S framework. BMC health services research, 22, 1-12.

Dahal, R. K., Ghimire, B., & Rai, B. (2022). A Balanced Scorecard Approach for Evaluating Organizational Performance of Nepal Telecom. Management Dynamics, 25(1), 63-73

Dahir, A. M. & Nyang’au, S. P. (2019). Effect Of Strategic Management Practices On Organizational Performance Of State Corporations In Kenya; Case Study Of Kenya Power. International Journal of Recent Research in Commerce Economics and Management, 6(4), 150-157.

Dehisat, M. M., & Awang, Z. (2020). Exploring items and developing instrument for measuring organizational performance among small medium enterprises in Jordan. International Review of Management and Marketing, 10(6), 51.

Desderio, C., Lawrence, M., Obert, S., & Patrick, M. (2022). Enhancement of Sustainable Strategic Management Practices at the Zimbabwe National Parks and Wildlife Management Authority: A Brief Review. Research Aspects in Arts and Social Studies Vol. 3, 1-14.

Farah, H. A., Munga, J., & Mbebe, J. (2018). Influence of competitive strategies on performance of commercial airlines in Kenya: A survey of the airline industry in Kenya. International Academic Journal of Human Resource and Business Administration, 3(1), 170-189.

Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R., &Sabattin, J. (2020). Conceptual framework for the strategic management: a literature review—descriptive. Journal of engineering, 2020(1), 6253013.

Ingara, K. M., &Omwenga, J. (2024). Strategic Approaches And Organizational Performance Of Airlines In Kenya: A Case Of Kenya Airways. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 8(2).

Karanja, M. N., &Juma, D. (2020). Effect of strategic management practices on service delivery in state parastatals in Kenya: A case of National Transport and Safety Authority. The Strategic Journal of Business & Change Management, 7 (4), 1247 – 1259.

Karikari, J. A., &Famiyeh, S. (2018). Strategic Planning and Financial Performance of Manufacturing Companies in Ghana. American Journal of Business and Management, 7(4), 99-107.

Lee, Y. C., & Tsai, C. L. (2019). A Study of Moderating Effect on the Relationship between Strategic Orientation and Business Performance: The Case of Regional Banks in Taiwan. Open Journal of Business and Management, 07(03), 1383-1397.

Li, Z., Zhi, Y., & Guo, Y. (2021). Strategy execution control in supply chain organizations: A literature review. Sustainability, 13(4), 2082.

Mati, P. M., &Atikiya, R. (2022). Strategy Implementation Practices And Performance Of Aviation Industry In Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 6(2).

Mutia, E. B., & Kipruto, H. K. (2020). Strategy Implementation and Organizational Performance in Selected National Water Service Providers in Kenya. European Journal of Business and Management, 11(1), 22-32.

Nyangoto, D. M., &Nyang’au, S. (2022). Strategic Management Practices And Implementation Of Road Construction Projects In Kisii County Government, Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 6(2).

Ongongo, L. A., & Mang’ana, R. (2022). Effect of strategic management practices on performance of Commercial Banks In Kenya. Journal of International Business, Innovation and Strategic Management, 6(1), 58-72.

Sinnaiah, T., Adam, S., &Mahadi, B. (2023). A strategic management process: the role of decision-making style and organisational performance. Journal of Work-Applied Management, 15(1), 37-50.

Soelton, M., Noermijati, N., Rohman, F., &Mugiono, M. (2021). Conceptualizing the role of organizational performance in Indonesia. The Journal of Asian Finance, Economics and Business, 8(6), 1151-1160.

Soleiman, M. A., Khodadad, H., Kordnaeij, A., &Hajipour, B. (2022). Conceptualization of the corporate strategy assessment model with Meta-Synthesis approach. Commercial Strategies, 18(18), 1-24.

Supardi, R. E., Utami, V. Y., &Dewi, D. C. (2023). Strategic Management at the Zainuddin Abdul Madjid International Airport during the COVID-19 Pandemic. JurnalStudiIlmuPemerintahan, 4(1), 81-92.

Williams, R. I., Smith, A., R Aaron, J., C Manley, S., & C McDowell, W. (2020). Small business strategic management practices and performance: A configurational approach. Economic research-Ekonomskaistraživanja, 33(1), 2378-2396.

Yao, Y., Lei, J., Shi, Y., Ai, F., & Lu, Y. C. (2021). Assessment methods and performance metrics for redox flow batteries. Nature Energy, 6(6), 582-588.

Yusuf, A. I., &Galoji, S. I. (2022). Strategic Orientation, Corporate Social Responsibilities and Firm Performance in Nigerian Airports. IIARD International Journal of Economics and Business Management, 8(6); 36-52.

Zainuddin, M. Z. (2022). The Impact of Implementation Strategic Management and Technology on SMEs in South Sulawesi. International Journal of Management and Education in Human Development, 2(01), 119-126.