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Research Article Open access CC BY 4.0

Strategic Risk Agility on the Performance of Edible Oil Manufacturing Company at Pwani Oil Products Limited, Kenya

Fredrick Okoth Odhiambo, Lucy Wairimu Kibe

Asian Journal of Economics, Business and Accounting · pp. 117–128 · Published 18 Jun 2024

10.9734/ajeba/2024/v24i71396

Abstract

An organization’s capacity to foresee and address strategic risks pro-actively and flexibly is strategic risk agility. It entails seeing possible dangers and opportunities, evaluating how they could affect the organization, and swiftly adjusting and reacting to shifting conditions. Disruptive technologies, economic downturns, supply chain disruptions, and regulatory changes are a few examples of strategic risks that demand agility and flexibility to manage. This study primarily focused on the impact of strategic risk agility on the performance of edible oil manufacturing enterprises in Kenya. The study sought to establish the effect of strategic risk adaptability on the performance of edible oil manufacturing companies in Kenya, at Pwani Oil Products Limited. The research was guided by the Theory of Dynamic Capability. A descriptive research design was adopted for this study. The primary instrument for data collection in this study was a Questionnaire. The target population was 380 employees from the edible oil manufacturing company, Pwani Oil Products Limited for the period between August to November 2023. The sample consisted of 30% of the target population (70 men, 45 women and work experience of 0-11 years). The reliability of the questionnaire was assessed by measuring its internal consistency using Cronbach's Alpha. Conclusion are that the ability to swiftly adjust production processes, adapt to changing market demands, and respond to unexpected disruptions can translate into improved financial performance. The study's outcomes underscore the importance of strategic risk innovation and collaboration in enhancing financial performance. It is evident that these factors are pivotal for success. The recommendations are that Pwani Oil Products Limited should invest in improving its strategic risk adaptability. This can be achieved through regular risk assessments, scenario planning, and flexible business strategies. The company should develop a culture that encourages employees to quickly adapt to changing market conditions and mitigate risks effectively.

Strategic risk adaptability strategic risk agility strategic risk innovation strategic risk collaboration organizational performance the dynamic capability theory

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