Influence of strategic agility on competitiveness of petroleum companies in Nairobi County, Kenya

Abstract

The petroleum sector plays a critical function in driving global economic transformation, influencing key policy objectives such as decarbonization, inflation control, and improvements in living standards. However, the sector faces mounting challenges due to rapid technological advancements, globalization, shifting customer preferences to other sources of energy, and heightened sustainability expectations. These dynamics necessitate greater innovation and strategic agility among firms to sustain competitiveness. This study investigated the influence strategic agility on the competitiveness of petroleum companies in Kenya. There are many other forms of strategic agility like IT agility, awareness/sensing, decision and implementation, resilience, versatility and transformation. However the study narrowed down to leadership capability, resource configuration, strategic sensitivity and marketing orientation. Specifically, it examined the effect of leadership capability, resource configuration, strategic sensitivity, and market orientation on firm competitiveness. The investigation was based on the dynamic capabilities’ theory and evolutionary theory. A positivism research paradigm and descriptive survey design were employed. The target population comprised 60 registered petroleum companies in Kenya targeting one operations manager, sales manager and one of the pump attendants from each of the petroleum firm hence a census population of 180 employees. A structured questionnaire was adapted in collecting primary data and analysed by use of SPSS version 29 and the result presentation done using tables and charts. Both descriptive and inferential findings were explored. The findings indicated that leadership capability, resource configuration, strategic sensitivity, and market orientation positively and significantly influence competitiveness in the petroleum sector. It was concluded that strategic agility play a fundamental role in influencing competitiveness within the petroleum sector. The investigation recommends for investing in visionary and adaptive leadership, embrace technological advancements and automation, establish robust mechanisms for monitoring industry trends and regulatory changes, and enhance responsiveness to evolving customer needs and sustainability imperatives. These strategies are essential for maintaining competitiveness and ensuring resilience in a rapidly evolving energy landscape.