Effects of Strategic Decision Making on Firm`s Performance: A Case Study of Safaricom Limited, Nairobi, Kenya

Abstract

The present study considers potential performance effects associated with strategic decision making. Enhancement of an organization`s communication capabilities may influence performance through improved strategic decision making, better coordination of strategic actions and by facilitating learning from strategic initiatives. Accordingly, the purpose of this paper is to investigate effects of strategic decision making on firm’s performance: A Case study of Safaricom Limited, Nairobi, Kenya. These relationships are tested in four mobile phone money service providers to assess effects of strategic decisions on performance. These firms are Safaricom M-PESA, Airtel Money, Orange Money, and Essaryucash. Safaricom was found to be the global leader in mobile money service providing. The study finds evidence that liquidity relates to profitability, and firm size relates to market share, and that asset tangibility relates to innovation.