Influence of strategic management practices on performance of family-owned businesses: case of Mehta electrical limited

Abstract

The study, titled Influence of Strategic Management Practices on Performance of Family Owned Businesses: A Case Study of Mehta Electricals Limited, explored the critical role of strategic management practices in enhancing the performance of family-owned businesses in Kenya. The purpose of the study was to examine how strategic intent, strategy formulation, strategy implementation, and strategy control impacted the performance of Mehta Electricals Limited. The research objectives were to establish the effect of strategic intent on performance, determine the influence of strategy formulation, analyze the impact of strategy implementation, and examine the effect of strategy control on the performance of Mehta Electricals Limited. The study was grounded in the Resource-Based View and Balanced Scorecard theories, which provided a comprehensive framework for understanding how internal resources and strategic management practices contributed to organizational performance. A descriptive research design was employed, targeting a population of 460 employees from Mehta Electricals Limited across various levels of management and functional areas. The sample size was determined to be 210 respondents, selected through a combination of stratified, simple random, and purposive sampling procedures to ensure representation and relevance. Data were collected using semi structured questionnaires designed to capture both quantitative and qualitative insights. Additionally, a pilot study involving 21 respondents from Campcraft Group, another family owned business in Kenya, was conducted to validate the research instruments and methodologies. The pilot study aimed to identify potential issues in the research design and ensure the reliability and validity of the data collection instruments. The collected data were examined to identify any gaps, inaccuracies, omissions, or other types of irregularities. SPSS Version 29.0 was used alongside MS Excel software to analyze both descriptive and inferential statistics. In the study, descriptive statistics were presented in the form of tables, bar charts, and graphs, with the mean and standard deviation used as key measures. The Pearson correlation coefficient and the OLS regression approach were employed as part of the inferential statistics to determine the nature of the relationships among the study's variables. The findings revealed that strategic management practices, particularly strategic intent, strategy formulation, implementation, and control, significantly enhanced the performance of Mehta Electricals Limited by improving operational efficiency, financial outcomes, and employee engagement. The study concluded that aligning organizational goals with strategic intent and fostering effective strategy execution are critical for the sustainability of family-owned businesses. Recommendations included adopting robust monitoring mechanisms, enhancing stakeholder involvement in strategy formulation, and prioritizing capacity-building initiatives to sustain competitive advantage. These insights provide a blueprint for other family-owned businesses in Kenya aiming to optimize performance through strategic management.