Haya: The Saudi Journal of Life Sciences (SJLS)
Volume-2 | Issue-05 | 197-209
Research Article
Macro environment moderating Effects on Strategy and Performance
Dr. Benson Mbithi, Willy Muturi, Charles Rambo
Published : Sept. 30, 2017
Abstract
Competitive business environment organizations are facing today has prompted them to develop business
strategies geared to improve performance in order to sustain competitive advantage. However choice of strategy alone
cannot guarantee performance without considering the role of macro environment in that relationship. The study
therefore sought to establish the moderating effect of macro environment factors on relationship between combined
strategy choices and performance. Over and above the direct effect that moderating factors (macro environment factors)
may have on company performance their moderating effects on the relationship between strategic choice and
performance were tested. Overall, it can be concluded that the four components of company’s macro environment
manifest and affect strategy-performance relationship in varying degrees. The findings imply that companies are
environment dependent and to manage this company-environment interface, an appropriate strategy choice is necessary.
The study also presents a clear link between environment-strategy-performance such that managers of such companies
should consider in enhancing company survival and growth.