Environmental Uncertainty and Organization Performance in Medium Sized Enterprises (MEs)
Keywords:
Technological Turbulence, Market Turbulence; Environmental Uncertainty; Organization Performance; Medium sized Enterprises
Abstract
In the new global economy, marked by environmental uncertainty is an opportunity and a threat to businesses. Organization performance is a major concern for all organizations and involves multitudes of antecedents. Hence, reducing environmental uncertainty and dependency through the use ofstrategic actions in the resource dependency theory (RDT) framework led to higher levels of organization performance. The objective of the study was to determine the effect of environmental uncertainty on organizational performance of medium sized enterprises in Kenya. The study was guided by Structural Contingency Theory. To test the current study hypothesis, we apply linear regressions. The study targeted 10,974 medium sized enterprises in Nairobi County. Utilizing a sample size of 291 firms; selected using stratified and simple random sampling techniques. Data was collected using structured questioners and items anchored on a five-point likert scale. The results showed that technological turbulence (β =.428, ρ < 0.05).and market turbulence (β = .380, ρ < 0.05) had a positive and significant effect on organization performance respectively. The study concludes that environmental uncertaintyenhances product development to meet consumer changing preferences. Therefore, environmental uncertainty enhances competitive capabilities and long-term organizational performance.
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Published
2023-11-12
How to Cite
Kioma, S., Kosgei, D., Boit, R., & Keter, C. (2023, November 12). Environmental Uncertainty and Organization Performance in Medium Sized Enterprises (MEs). African Journal of Education,Science and Technology, 7(3), Pg 996-1014. https://doi.org/https://doi.org/10.2022/ajest.v7i3.825
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