INFLUENCE OF STRATEGIC CONTROLS ON THE ORGANIZATIONAL PERFORMANCE OF FINANCIAL FIRMS LISTED AT THE NAIROBI STOCK EXCHANGE

Serah Ngendo Githinji, Jane Munga, Mary Mbithi

Abstract


Effective strategic controls serve as important mechanisms for optimizing organizational performance, facilitating the alignment of actions with strategic goals, and ensuring sustained competitive advantage. However, many firms have neglected strategic control measures leading to inefficiencies, thus jeopardizing their overall performance. This paper sought to examine the influence of strategic controls on the organizational performance of financial firms listed on the Nairobi Stock Exchange (NSE). The study applied a descriptive research design. The population for the study was 138 employees of financial firms listed on the Nairobi Stock Exchange. Stratified random sampling was applied in addition to the Taro Yamane formula to come up with a sample size of 103 respondents. The study gathered data through questionnaires which were administered both physically and online. Data collected was analyzed through both descriptive and inferential analysis. Results revealed a ? of 0.643 and a p-value of 0.001, between strategic controls and the organizational performance of financial firms listed on the Nairobi Stock Exchange. The study concluded that strategic controls had a positive and significant influence on the organizational performance of financial firms listed on the NSE. The study recommended fostering robust feedback mechanisms for employees through digital platforms to enhance morale and productivity. Additionally, the study recommended for optimization of resource allocation to minimize wastage by redirecting resources toward strategic endeavors. Financial firms listed at the NSE should enhance analysis capabilities to detect deviations early and implement benchmarking against competitors for continuous improvement. Lastly, the study recommended for integration of strategic controls into organizational processes and decision-making frameworks.

Key Words: Strategic Controls, Organizational Performance, Financial Firms, Nairobi Stock Exchange


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