Thesis:

Strategic management practices and performance of Retail chain stores in Nairobi, Kenya

This study examined the influence of strategic management practices on the performance of retail chain stores in Nairobi City County, Kenya. Specifically, it explored the impact of strategic planning, resource allocation, environmental scanning, and risk management on organizational performance. Anchored in the Resource-Based View (RBV) and Dynamic Capability Theory, the research employed a descriptive design targeting 250 top and middle-level managers within major retail chains. A sample of 94 respondents was determined using Slovin’s formula, and data were collected through structured questionnaires. The findings indicated a positive and statistically significant relationship between the identified strategic management practices and retail performance. Among these, strategic planning emerged as the most influential factor, facilitating the effective alignment of organizational resources with market demands. Strategic resource allocation was associated with enhanced operational efficiency and improved service delivery. Environmental scanning enabled retail firms to anticipate market shifts and adapt accordingly, while risk management contributed to organizational resilience and more proactive decision-making. The study reported a coefficient of determination (R²) of 0.806, suggesting that approximately 80.6% of the variation in performance could be explained by the four strategic management practices analyzed. Based on these insights, the study recommends that retail chain stores adopt modern technologies, ensure efficient resource allocation, and strengthen market intelligence through continuous environmental scanning. It also emphasizes the importance of cultivating a culture of adaptability and investing in employee training as key drivers of customer satisfaction and competitive advantage. For further research, the study proposes exploring the effects of emerging technologies, evolving consumer behavior, and conducting comparative studies across different countries to broaden the understanding of strategic management within the retail sector.