Does Strategic Agility Manifest in the Performance of Real Estate Firms in Nairobi County? An Empirical Investigation
DOI:
https://doi.org/10.47604/ejbsm.3286Keywords:
Strategic Agility, Organizational Performance, Real Estate FirmsAbstract
Purpose: This study explores the challenges affecting the performance of real estate firms in Kenya, with a particular emphasis on the role of strategic agility in influencing organizational outcomes.
Methodology: The study was guided by positivism research philosophy. It employed a descriptive cross-sectional design and targeted a census of eighty-three (83) real estate firms operating in Nairobi County, Kenya. Data was collected using a 5-point Likert scale, and ordinary least squares (OLS) regression was utilized to estimate and analyze the data.
Findings: The findings revealed a significant positive relationship between strategic agility and organizational performance. The study demonstrated that the effective alignment of strategic agility enhances the performance of real estate firms by enabling them to navigate dynamic market conditions and operational challenges.
Unique Contribution to Theory, Practice and Policy: Based on these results, the study provides actionable recommendations for both policy formulation and management practices, emphasizing the importance of fostering a culture that promotes strategic agility. This approach is expected to contribute to improved organizational performance, ensuring that real estate firms can remain competitive and adaptable in an increasingly complex business environment.
Downloads
References
ADB (2024). African Development Bank Report on key drivers of economic revival in Africa.
Ahammad, M. F., Tarba, S. Y., Frynas, J. G., & Scola, A. (2021). Integration of strategic agility and absorptive capacity for enhanced innovation and performance. Journal of Business Research, 128, 212–222.
Anyiam-Osigwe, T., & Vreeland, J. R. (2024). Japan and the African Development Bank.
AlTaweel, A. A., & Al-Hawary, S. I. S. (2021). Innovation capability as a mediator between strategic agility and organizational performance: Evidence from Jordan. Journal of Innovation and Business Excellence, 12(1), 78-98.
AlTaweel, R., & Al-Hawary, S. I. S. (2021). The mediating role of innovation capability in the relationship between strategic agility and organizational performance. Journal of Innovation and Entrepreneurship, 10(1), 1–19.
Arokodare, M. A. (2021). Strategic agility and business performance: Evidence from the oil and gas sector in Nigeria. Journal of Business Strategies and Management, 5(3), 45-60.
Arokodare, M. A. (2021). Strategic agility and firm performance: Insights from the oil and gas sector in Nigeria. Journal of Business Management Studies, 5(2), 45–57.
Chen, L., & Zhang, H. (2022). Organizational culture and employee performance in remote work environments. Journal of Management Studies, 59(4), 788-812.
Chirchir, D., Mwangi, M., & Iraya, C. (2024). Property Supply, Economic Factors and House Prices in Nairobi Kenya. Journal of African Real Estate Research, 9(2), 55-86.
Clauss, T., Abebe, M., Tangpong, C., & Hock, M. (2019). Strategic agility, business model innovation, and firm performance: An empirical investigation. IEEE Transactions on Engineering.
Clauss, T., Abebe, M., Tangpong, C., & Hock, M. (2019). Strategic agility, business model innovation, and firm performance: An empirical investigation. Journal of Business Research, 102, 328–340.
Donaldson, L. (2001). The contingency theory of organizations. Sage Publications.
Doz, Y. L., & Kosonen, M. (2008). The dynamics of strategic agility: Nokia’s rollercoaster experience. California Management Review, 50(3), 95–118.
Doz, Y. L., & Kosonen, M. (2008). The dynamics of strategic agility: Nokia’s rollercoaster experience. California Management Review, 50(3), 95–118.
Doz, Y., & Kosonen, M. (2008). The dynamics of strategic agility: Nokia’s rollercoaster experience. Strategic Management Journal, 29(9), 1141–1161.
Elsbach, K. D., & Sutton, R. I. (2023). Organizational culture and employee motivation in high-tech industries. Journal of Organizational Behavior, 44(3), 233-254.
Estate Agents Registration Board. (2024). Annual report on real estate trends in Kenya. Estate Agents Registration Board.
Felipe, C., Roldan, J., & Lea-Rodriguez, A. (2017). Impact of organizational culture values on organizational agility. Sustainability, 9(12), 2354.
Gerald, O., Adebayo, I., & Olayemi, T. (2020). Examining the impact of strategic foresight on the competitive advantage of SMEs in Nigeria. Journal of Business Research, 15(3), 55-68.
Gerald, S. F., Chi, T., & Tangpong, C. (2020). Strategic foresight, dynamic capabilities, and firm performance: A moderating role of environmental dynamism. Strategic Management Journal, 41(4), 732–745.
Govuzela, S., & Mafini, C. (2019). Organizational agility, business best practices and the performance of small to medium enterprises in South Africa. South African Journal of Business Management, 50(1), 1-13.
Kale, S., Gupta, R., & Roy, A. (2019). Business model innovation and organizational agility: A new model for dynamic environments. Journal of Organizational Change Management, 32(6), 649–662.
Kenya Property Developers Association. (2024). Kenya real estate market outlook: Trends and opportunities. KPDA Publications.
Kiilu, J. M., Wachira, C. M., & Omoke, D. (2024). Strategic agility and competitive advantage: A conceptual perspective. African Journal of Business Research, 12(1), 20–35.
Kiilu, P.M., Machuki. N, & Aosa, E. (2023). Strategic agility and organizational performance: A critical review of literature. DBA Africa Management Review,13(1), 20-44.
Kuenzi, M., & Schminke, M. (2020). Aspects of organizational culture and performance: The moderating role of industry characteristics. Journal of Applied Behavioral Science, 56(2), 150-175.
Luu, T.D. (2024). Leveraging digital transformation and agile slack to integrate team-level 1-deals with strategic agility for enhancing international performance. Thunderbird International Business Review, 66(1), 101-122.
McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.
Muchoki, J. M. (2022). The impact of strategic agility on performance: A study of construction firms in Nairobi, Kenya. African Journal of Business Studies, 8(2), 123-138.
Muchoki, P. (2022). The role of real estate in economic development: A focus on Nairobi County. Journal of African Urban Studies, 14(3), 45–60.
Muchoki, S. N. (2022). Strategic agility and performance of construction firms in Nairobi, Kenya. Kenya Journal of Business and Economics, 9(2), 15–30.
Musyoka, J., & Obel, S. (2021). Strategic agility and its influence on organizational performance in the banking sector in Kenya. Journal of Strategic Management, 4(1), 22–40.
Muli, F., & Muchelule, Y. (2024). Agile Project Management Strategies and Performance of Projects in Real Estate Firms in Nairobi County, Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 8(1).
Ofoegbu, G. O., & Akanbi, M. O. (2012). The impact of organizational culture on the performance of firms: A study of selected companies in Nigeria. International Journal of Business and Management, 7(22), 32-42.
Ofoegbu, O. E., & Akanbi, P. A. (2012). The influence of strategic agility on business performance in a volatile market: A study of selected Nigeria banks. Journal of Business Administration and Management Sciences Research, 1(1), 1–8.
Ofoegbu, O. E., & Akanbi, P. A. (2017). Strategic agility: A critical review of literature and a proposed research framework. Nigerian Journal of Business and Social Studies, 10(1), 85–95.
Ojha, D. (2008). Impact of strategic agility on competitive capabilities and financial performance. Doctoral Dissertation, ProQuest Dissertations and Theses, Clemson University.
Otley, D. T. (2016). The contingency theory of management accounting and control: 1980–2014. Management Accounting Research, 31, 45-62.
Reed, P. L. (2022). Navigating disruption: The role of strategic agility during the COVID-19 pandemic. Global Business Review, 23(5), 789–810.
Reed, T. R. (2022). Strategic agility during the COVID-19 pandemic: A mixed-method study of global firms. International Journal of Business Resilience, 14(1), 50-72.
Schoonhoven, C. B. (1981). Problems with contingency theory: Testing assumptions hidden within the language of contingency "theory". Administrative Science Quarterly, 26(3), 349-377.
Shin, D., Lee, J., & Kim, Y. (2015). Strategic agility and SME performance in Korea. Small Business Economics, 45(4), 641–657.
Shin, N., Lee, J., & Kim, J. (2015). Strategic agility and SME performance: The mediating role of innovation and technology. Small Business Economics, 45(3), 547–560.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and micro foundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350.
Teece, D. J. (2014). A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. Journal of International Business Studies, 45(1), 8-37.
Teece, D. J. (2023). The evolution of the dynamic capabilities framework. Artificiality and sustainability in entrepreneurship, 113.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
Vrontis, D., Belas, J., Thrassou, A., Santoro, G., & Christofi, M. (2023). Strategic agility, openness and performance: a mixed method comparative analysis of firms operating in developed and emerging markets. Review of managerial science, 17(4), 1365-1398.
Weill, P., & Woerner, S. L. (2015). Thriving in an increasingly digital ecosystem. MIT Sloan Management Review, 56(4), 27–34.
Weru, E. W., & Otwoko, B. (2024). Macro-Economic factors and performance of real estate in Nairobi County, Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 8(4).
Winter, S. G. (2003). Understanding dynamic capabilities. Strategic Management Journal, 24(10), 991-995.
Woodward, J. (1958). Management and technology. HMSO.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Catherine Ndegwa, Dr. Peter Kiilu
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
