1

UNIT 4:STRATEGIC MANAGEMENT

IN KENYA

2

A. Development/Empirical Evidence

• Tremendous developments in strategic management since 1960s.

- Theory developed

- Technology

• Increased knowledge in strategic management derives from developed country contexts.

3

• Little is known about strategic management in developing countries.

- Africa

- Kenya

• Knowledge gap on strategic management in:- Africa- Kenya

4

B. Comparative Management

• The similarities and differences among business and management practices form different contexts.

- Variation in management practice between countries

- Variations in management practice between organizations

5

• Basics of managerial work are similar all over the world.

– Environment dependence

– Leadership, motivation

– Planning, organizing, controlling

6

• Comparative Management: Some Research Results

– There is no one way one way of doing things. Managers may achieve given objectives through various methods.

– There is no universal applicability of either dictatorial or participative management styles.

7

–There are similarities and differences among managers around the world. Cultural factors are considered the most influential variables.

8

Influence of Context• Management is sensitive to the context in which

it is practiced.

• Management context is defined by two sets of factors:

– Environmental factors

– Organizational factors

9

Replication Research

• Repetition of research that has already been done.

– Investigating the influence of context

– Validating previous research

– Facilitating theory building

– Knowledge accumulation

• Ansoff 1. (1987), “The Emerging Paradigm of Strategic Behaviour”, Strategic Management Journal, 8(6).

- Theories advanced to explain strategic behaviour often differed because they are based on observations of companies in different settings.

10

• Hussey D. (1990), “Developments in Strategic

Management”, In, Hussey D. (ED.), International Review of Strategic Management, Vol. 1.

- Environmental and organizational differences across countries may affect the way strategic management is practiced.

• Nelson R. (1990) “ Is there strategy in Brazil?”

• Popular strategic management concepts may have no application in developing countries.

11

12

C. Empirical Evidence (Africa, Kenya)

• Woodburn T. (1984). “Corporate planning in South African Companies”.

17(1), February.

- Companies practiced formal strategic planning.

- Foreign companies more involved in formal strategic planning than local ones.

13

• Fubara B. (1986) “ Corporate planning in Nigeria”, LRP, 19(2). April.

- Planning in Nigeria was informal

- Only formal plans were budgets.

- Study focused on indigenours Nigerian

companies.

14

• Adegbite (1986). “ Planning in Nigerian business”. LRP, 19(4), August.

- Formal strategic planning widespread in Nigeria.

- Study covered companies which had substantial foreign ownership.

15

• Aosa (1992). “An Empirical Investigation of Aspects of Strategy Formulation and Implementation within Large, Private Manufacturing Companies in Kenya”.

Unpublished Doctoral Thesis.

- Formal strategic planning practiced in Kenya’s large manufacturing companies.

- Foreign companies more involved in strategic planning than local ones.

16

- Indigenous Kenya companies more involved in formal strategic planning than Indian Kenya companies.

- Professional companies differed from family companies in strategic practices

- Family companies largely informal in the strategic planning activities.