Strategic Management Practices and Performance of Family-owned Firms in Kitui County, Kenya

Abstract

Businesses experience multiple opportunities and challenges in an increasingly idynamic environment, thus it is becoming very important for businesses including Family businesses to understand their environment and how to adapt as they remain steadfast on their goals, and objectives. Strategies denote the decisions and actions that firms use to respond to changes in their environment. Family enterprises are more likely to face unique difficulties, including resource constraints and family members' meddling. Family-owned businesses may be able to adjust to the changes while maintaining their momentum toward goals and objectives by implementing strategic management techniques. The study's guiding theories are open systems theory and the resource-Based View. The main objective of the research is to ascertain how various methods to strategic management impact the performance of family-owned enterprises in Kitui County, Kenya. The goals are to ascertain how skills affect family-owned business success in Kitui County, Kenya, and how organizational procedures and structure design effect family-owned firm performance. Return on Assets is one metric used to assess how well family-owned businesses perform. The efficacy and protocols of strategic management are the phenomena under inquiry in this example, and the descriptive study methodology aids in collecting data and information to characterize the phenomenon. The study's target audience was family-run businesses in Kitui County, Kenya. Fifty-two of the sample companies provided semi-structured questionnaires to collect primary data. The data were examined using both inferential and descriptive statistics (such as percentages, frequencies, means, averages, and modes). To ascertain the importance and link between certain strategic management techniques and the performance of family-owned enterprises, the study used incredible linear regression and inferential statistics. The results of the analysis were presented using narratives, tables, charts, and graphs as needed. The results demonstrated that improving organizational structures, systems, and competencies is essential for improving performance. The medium- and long-term performance prospects have been bolstered by Family-owned firms by implementing several strategic management strategies. One suggestion is to gradually apply strategic management concepts to allow previous accomplishments to act as a springboard for new endeavors.