INFLUENCE OF STRATEGIC DIRECTION ON THE PERFORMANCE OF FINTECH FIRMS IN NAIROBI CITY COUNTY, KENYA

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Date
2024-11Author
Naburuki, Sophie Jeruto
Kiplagat, Nehemiah
Kipchumba, Simon
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This study investigated the influence of strategic direction on the performance of
financial technology (FINTECH) firms in Nairobi City County, Kenya. The research was
grounded in strategic leadership theory and employed a predictive research design. The
target population consisted of 154 senior and middle-level managers from 22 FINTECH
firms, with a sample size of 111 respondents determined using the Taro Yamane formula.
Data was collected using structured questionnaires, achieving a response rate of 82.88%.
Descriptive statistics revealed that firms excel in adapting strategic direction to changing
circumstances (M = 4.80, SD = 0.399) and establishing clear strategic direction (M = 4.43,
SD = 0.731), but face challenges in setting clear and measurable goals (M = 1.18, SD =
0.390). In the inferential analysis, multiple linear regression revealed that strategic
direction has a statistically significant positive influence on FINTECH firm performance
(β = 0.890, t = 11.797, p < .05). The coefficient of determination (R² = 0.685) indicated that
68.5% of the variance in organizational performance could be explained by the strategic
factors studied. The study concludes that effective strategic direction is fundamental to
FINTECH firm success in Kenya's dynamic financial technology sector, validating the
theoretical frameworks that emphasize strategic leadership's role in organizational
performance. The research recommends that FINTECH firms implement comprehensive
i Correspondence: email s_naburuki@kabarak.ac.ke
Sophie Jeruto Naburuki, Nehemiah Kiplagat, Simon Kipchumba
INFLUENCE OF STRATEGIC DIRECTION ON THE PERFORMANCE
OF FINTECH FIRMS IN NAIROBI CITY COUNTY, KENYA
European Journal of Management and Marketing Studies - Volume 9 │ Issue 2 │ 2024 155
strategic management frameworks that balance structured goal-setting processes with
adaptive capabilities, while regulatory bodies develop supportive policies that encourage
strategic innovation while maintaining industry stability. This research contributes to
both the theoretical understanding of strategic management in the FINTECH sector and
provides practical insights for industry leaders navigating complex market conditions.
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