STRATEGIC MANAGEMENT PRACTICES, TECHNOLOGICAL CAPABILITY AMONG LAW FIRMS IN KENYA
Abstract
Law firms in Kenya operate primarily as sole proprietorships or partnerships within the legal services industry, with operations governed by professional regulations. These firms exhibit considerable diversity in their size, ownership structure, and resource base, leading to varying levels of organizational performance. While some firms have achieved notable success, others have struggled to maintain viability, occasionally resulting in dissolution or disbarment. The entry of international law firms has emerged as a significant challenge, compelling the industry to adopt strategic management approaches. In response, firms have implemented various strategies including marketing initiatives, service diversification, outsourcing, and strategic mergers. In today's globalized environment, maintaining competitive advantage through unique capabilities, assets, and strategic decisions has become crucial. The technological revolution has provided law firms with opportunities to expand their reach, though this has simultaneously intensified competition from global players. Local firms face increasing pressure as legal services become accessible worldwide, forcing them to differentiate themselves and develop sophisticated business strategies focused on market positioning and client retention. Kenyan law firms now acknowledge competition and uncertainty as permanent features of their business landscape. Forward-thinking firms have embraced strategic planning processes that emphasize shared commitment and externally-focused strategies. However, many firms still struggle with short-term thinking, often prioritizing immediate concerns over long-term strategic objectives. The legal profession faces disruption from multiple factors including service unbundling, online delivery, and technological advances such as artificial intelligence, blockchain, and automation. While the profession has historically enjoyed protected market access through regulation, technological innovations are reshaping the competitive landscape. Many attorneys continue to resist these technological changes in an effort to preserve their traditional market position and revenue streams. This evolving environment demands a more sophisticated approach to strategic planning for law firms seeking to secure their future in an increasingly competitive market.
Key words: Strategic Management Practices, Technological Capability
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