RESPONSE STRATEGIES ON PERFORMANCE OF OIL MARKETING FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

The oil industry in Kenya has faced numerous challenges in the past two decades, including a hostile business environment and strict tax regulations. As Kenya still imports all petroleum products, profits in the energy sector depend on identifying relevant factors that influence returns, such as financial structure, capital structure, and working capital. The main objective of this study was to examine the influence of response strategies on the organizational performance of oil marketing firms in Kenya. Specifically, the study sought to determine the influence of innovation strategy, risk management strategy on organizational performance. The target population was oil marketing firms in Kenya, with marketing managers, strategy managers, and finance managers as the unit of analysis. A census technique was used, and data was collected using a self-administered semi-structured questionnaire. Descriptive statistics, including frequency, percentages, mean, and standard deviation, were used to analyze quantitative data, while content analysis was used for qualitative data. The Statistical Package for Social Sciences (SPSS) version 25 was used for analysis, and inferential statistical analysis, including multiple regression and correlation analysis, was used to test the relationship between study variables. The study found that innovation strategy and risk management strategy have a significant influence on the organizational performance of oil marketing firms in Nairobi County, Kenya. Based on these findings, the study recommends that oil marketing firms in Nairobi County should embrace innovation strategies, including product innovation, technology innovation, and pricing innovation, to enhance firm performance. Additionally, the management of oil marketing firms should formulate and implement an effective framework for risk assessment and risk management in the oil industry.

Key Words: response strategies, innovation strategy, risk management strategy, organization performance