Strategic management practices and performance of Technology start-up companies in Nairobi City County, Kenya
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Date
2025-11
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Kenyatta University
Abstract
As the epicentre of innovation and entrepreneurial fervour in Kenya, Nairobi provides a compelling backdrop to investigate the strategic decisions and operational frameworks that
underpin the success or challenges faced by emerging technology ventures. The study identified a disconnect between strategy formulation and execution, both critical to
strategic management in most businesses. Its primary aim was to examine the effect of strategic management practice on performance of start-up technology firms in Nairobi
County. The specific objectives of the study were; i. to assess the effect of strategy formulation on the performance of technology start-up companies in Nairobi County; to
evaluate the effect of strategy implementation on the performance of technology start-up companies in Nairobi County; to examine the effect of strategy control on the performance
of technology start-up companies in Nairobi County; and to explore the effect of strategy evaluation on the performance of technology start-up companies in Nairobi County. To
determine the sample size, 191 respondents were chosen using stratified random selection. Questionnaires were used to collect primary data. Instruments with alpha values between
0 and 1, 0 denoting low internal consistency and 1 denoting good internal consistency, were subjected to Cronbach's alpha testing. The study revealed a strong positive correlation
between the success of tech start-ups in Nairobi County and key strategies: design, execution, control, and assessment. The study concluded that start-ups that invest time and
resources into crafting comprehensive strategies are more likely to achieve their business objectives and sustain growth. Start-ups have adopted and executed well-defined strategies
such as effective marketing approaches, innovative product development, robust financial management, and strategic partnerships that enabled them experience enhanced
performance outcomesStart-ups may use strategic control's useful data and analytics to make well-informed decisions by taking competition research, consumer preferences, and
market trends into account. Frequent strategy evaluation yields useful information that can guide decision-making. According to the survey, businesses should carry out in-depth
market research to determine consumer trends, preferences, and pain areas in order to assist start-ups in successfully customizing their goods and services. The companies should
implement training programs focused on leadership and management skills that can empower founders and managers to make informed decisions and lead their teams
effectively. The companies should identify specific goals for technology start-ups, such as revenue growth, user acquisition, and market penetration. The companies should establish
a set of KPIs tailored to the technology sector, such as revenue growth, customer acquisition cost, churn rate, and user engagement metrics.
Description
A research project submitted to the school of business, Economics and tourism in partial fulfilment of the Requirements for the award of degree of master of Business administration (strategic management option) of Kenyatta University, November 2025
Supervisor
Dr. Eliud obere