Performance of Domestic Airlines in Kenya

The Role of Strategic Management Practices

Abstract

Purpose: The study sought to examine the effect of strategic management practices on the performance of domestic airlines in Kenya. This comes when the domestic airlines in Kenya face tremendous challenges orchestrated by dynamics in the operating environment and disruptions in the global markets. Domestic airlines have seen a surge in customer shuns rates due to low customer satisfaction. Moreover, most domestic airline players have faced a steady decline in sales revenues and overall market share. This raises the question of what could be the remedy to upscale organizational performance of domestic airlines. The study specifically addressed the effect of environmental scanning, strategy formulation, strategy implementation, and strategy evaluation on the performance of domestic airlines in Kenya.

Methodology: The study employed a causal research approach and targeted 129 employees from 43 domestic Kenyan airlines. A questionnaire was used to collect primary data, which was analyzed using descriptive and inferential statistics.

Results: The findings revealed that strategic management practices (environmental scanning, strategy formulation, strategy implementation, and strategy evaluation) significantly influenced the performance of domestic airlines in Kenya. 

Implications: Domestic airlines should expand and continue performing in the competitive market. Managers have the duty to integrate strategic management practices through vigorous environmental scanning, formulation of strategies that respond to market demands, effective implementation of developed strategies, and evaluation of implemented strategies to ensure they align with the external operating market for enhanced performance.