FACTORS INFLUENCING EFFECTIVE ADOPTION OF STRATEGIC PLANS AMONG SMALL AND MEDIUM REAL ESTATE FIRMS IN NAIROBI

Abstract

Effective adoption of strategic plans is important to the success of organizations. The adoption of strategic plans determines the competitiveness of organizations. Organizations are guided by plans, which are formulated by top management to provide a guideline to employees and stakeholders on service delivery and operations. The adoption of plans does not always lead to organizational growth due to failure in the alignment of strategic plans to the organization structure and overall vision. This study sought to examine the factors influencing effective adoption of strategic plans among SMEs in Kenya, a case of Real Estate firms in Nairobi. The specific objectives were to establish how Access to finance, management styles, organizational structure and ICT influence effective adoption of strategic plans. This study used descriptive design with questionnaire as the instrument for data collection. The target population was 220 managers of registered real estate firms. The sample size was 142 managers. Multiple regression analysis was used to make a prediction of a dependent variable in relation to the independent variables. Correlation results revealed that organization structure influences effective adoption of strategic plans among SMEs in Kenya positively. The results also indicated that there was a positive and significant correlation between ICT and effective adoption of strategic plans. Furthermore, the study indicated that management styles influences effective adoption of strategic plans positively. Additionally, the study indicated that access to finance effective adoption of strategic plans positively and significantly. The study recommends the SMEs in Kenya to embrace departmentalization and centralization of organizational structures. Further, the study recommended the SMEs in Kenya top management team to practice more use of autocratic, democratic as well as transactional management style. There is also need for effective delegation of operations. The study also recommends for participative decision making process to be put in place. Finally, the study recommends for a more affordable access to financial plans to SMEs in Kenya. There is also need for affordable loan repayment plans.