Effects of Strategic Decisions on Performance of Kenyan Universities

The university education sector is becoming very competitive due to changes in the business environment. In order to be successful strategic decisions are a key to improving performance of universities. The purpose of this study is to establish the effects of strategic decisions on performance of universities in Kenya. Systems theory provided a theoretical basis for the study. The study adopted explanatory – cross sectional survey research design. Respondents were selected using stratified and simple random sampling techniques. A questionnaire was used to collect primary data. Data was analyzed using descriptive and inferential statistical techniques. Descriptive statistics such as means and standard deviations were used, while in inferential statistics, structural equation modeling was used for model specification and hypothesis testing. The study unveiled that strategic decisions have a significant effect on performance of universities. The study concluded strategic decisions positively influence performance of universities. Top management in universities should make strategic decisions that have a positive long term effect on performance of universities. The study recommended that top management should evaluate all strategic decisions before implementation and also a further research to be conducted in other sectors to test the conceptualized model.