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Wachira Gioko - Masters of Business Administration, Kenyatta University, Kenya

Dr. Reuben Njuguna - Department of Business Administration, School of Business, Kenyatta University, Kenya


The strategic decision process was considered as one of the most important determinants of organizational performance in contemporary organizations. The purpose of this study was to establish the influence of strategic decision process on organization performance. The study was a case study of large private hospitals in Nairobi County. The study sought to achieve four objectives: To investigate how scrutiny of strategic issues influences organization performance, to establish the influence of firm goals on organization performance, to determine influence of analysis of business environment on organization performance, and determine how the choice of strategy influences organization performance. The study took the form of a survey of private hospitals in Nairobi County. The target population for the study was the 25 private hospitals in Nairobi City County. Since the number of hospitals were few, the researcher conducted a census of the 25 private hospitals in Nairobi City County. Primary data was collected using questionnaires that contained both closed and open ended questions. The study targeted two respondents from each of the hospitals i.e. the Finance and Strategic Planning Managers. The data collected was sorted to ensure it was complete and met the purpose for which it was collected. Descriptive statistics and regression analysis were used in analyzing the data. The results were presented in Tables and figures. The findings established that the hospitals had clear vision and direction. The study also found that the firm goals are achievable though this was least agreed on. It was found that firm purpose and goals translated are into financial targets. The findings revealed that hospitals were frequently reviewing their external as well as their internal environments. The internal environment reviews consisted of reviewing of the capital resources, human resources, and the structure, while the external environment involves the completion from other businesses, social, legal and technological changes, and the economic and political environment. The findings indicated that the organization uses financial capital to formulate and implement strategies and the firms allocates resources for technology advancement. The study found that the firm internal capacity to execute strategy was considered. The study concludes that firm goals, business environment, resource allocation and strategic choices have a significant effect on performance. The study concludes that the business environment in which the hospitals operates has the highest significant on performance of the hospitals.

Full Length Research (PDF Format)