INFLUENCE OF SUSTAINABLE STRATEGIC MANAGEMENT PRACTICES ON THE PERFORMANCE OF CONSTRUCTION INDUSTRY IN KENYA: A LITERATURE BASED REVIEW
Abstract
Background of the study: The construction industry is key to the Kenyan economy, as it provides important products such as buildings and other important infrastructures which assist in growth and development of the country's economy. Construction industry in Kenya is facing stiff competition from companies from abroad especially Chinese companies that are offering construction products cheaply as compared to their counter parts in the industry. Companies in Kenya require to cut their costs for them to compete with the increasing in number of companies. There are new regulations introduced that affect the construction industry, where companies have to register with national construction authority thereby adding cost of operations for the companies among other costs. Therefore, companies need strategize their operations, in order to maintain their employees and cut down their costs to remain competitive in the industry and to satisfy their clients as an end objective.
Objective of the Study: The objective was to review literature on the influence of sustainable strategic management practices on the performance of construction industry in Kenya.
Methodology: The study used a desk study review methodology where relevant empirical literature was reviewed to identify main themes. A critical review of empirical literature was conducted to determine the sustainable strategic management practices on the performance of construction industry in Kenya. This study provides empirical evidence in support of the notion that a competitive advantage via the implementation of a dynamic capability framework is an important way for the Kenyan construction enterprise to improve its organizational performance.
Results and Findings: The study finds that the construction industry is closely related to the uncertainty in the environment that may affect the performance of a firm. High competition and many other negative aspects in the external environment, which become threats to firms to develop their business that need to be handled carefully through strategic management approach. The implementation of strategic management practices in organizations can help them to enhance their performance through improved effectiveness, efficiency and flexibility.
Keywords: Sustainable Strategic Management Practices, Performance, Construction Industry Kenya
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