Strategic Management Practices and Performance of Technology Start-Up Companies in Nairobi City County, Kenya
DOI:
https://doi.org/10.53819/81018102t5368Abstract
Nairobi serves as Kenya's innovation and entrepreneurial centre, providing an appropriate setting to investigate strategic decisions and operational frameworks that determine success or challenges faced by emerging technology ventures. The study identified a disconnect between strategy formulation and execution, both critical to strategic management. Thus, the study examined strategic management practices and performance of technology start-up companies in Nairobi City County, Kenya. The objectives were to evaluate the effects of strategy formulation, implementation, control, and evaluation on start-up technology enterprise performance. Using stratified random sampling, 191 respondents were selected from Nairobi City start-up companies. Primary data was collected using pre-structured questionnaires with closed-ended and open-ended items organized on a Likert scale. Cronbach's alpha testing yielded reliability scores between 0.706-0.796, indicating good internal consistency. The study revealed strong positive correlations between tech start-up success and strategic management practices: formulation, implementation, control, and evaluation. Start-ups investing in comprehensive strategies achieved better business objectives and sustained growth. Those adopting well-defined strategies including effective marketing, innovative product development, robust financial management, and strategic partnerships experienced enhanced performance outcomes. Strategic control provided data enabling informed decisions based on competition research, consumer preferences, and market trends. Strategy evaluation yielded useful information guiding decision-making. The study recommends that companies should conduct market research to determine consumer trends and preferences, implement leadership training programs for founders and managers, identify specific goals such as revenue growth and user acquisition, and establish technology sector KPIs including customer acquisition cost, churn rate, and user engagement metrics.
Keywords: Strategic Management Practices, Performance, Technology Start-Up Companies, Nairobi City County, Kenya
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