Influence of Strategic Feedback and Responsiveness on the Organizational Performance of Supermarkets in Kenya

Influence of Strategic Feedback and Responsiveness on the Organizational Performance of Supermarkets in Kenya

Abdifatah Galgallo Godana¹, Nancy Gacheri Rintari², Paul Maku Gichohi³, Moses Gachoka Wainaina⁴

^1,2,3Department of Strategic Management, Kenya Methodist University, P.O. Box 267 – 60200, Meru, Kenya

⁴Department of Agricultural Economics, Agribusiness Management and Agricultural Education and Extension, Chuka University, P. O Box 109-60400, Chuka, Kenya

DOI : https://dx.doi.org/10.47772/IJRISS.2024.8120063

Received: 27 November 2024; Accepted: 03 December 2024; Published: 01 January 2025

ABSTRACT

Globally, supermarkets continually formulate and implement various strategies to enhance their organizational performance. The choice of strategy a supermarket adopts can have differing feedback and responsiveness on its performance. Some strategies may increase performance, while others deter organizational performance. In Kenya, Supermarkets are not left out in the process of strategic management. Still, some supermarkets like Nakumatt and Tuskys are seen closing down their operations while others like Naivas and Quickmart are expanding operations. This study sought to find out the influence of strategic feedback and responsiveness on the organizational performance of Supermarkets in Kenya. The study took place in 14 Counties, including Meru, Embu, Laikipia, Kirinyaga, Nyeri, Tharaka Nithi, Muranga, Nyandarwa, Kiambu, Nakuru, Nairobi, Marsabit, Isiolo and Wajir Counties of Kenya. The study employed a descriptive cross-sectional survey research design. The target population was 1800 managers running supermarkets in the 14 Counties from where a sample of 204 managers was selected through cluster random sampling. Primary data was collected from the managers using a semi-structured questionnaire. The data gathered was subjected to descriptive and inferential analysis using SPSS version 28. Correlational and multiple linear regression were performed at a 0.05 significance level. Correlational analysis revealed that there existed a positive and significant association between Strategy feedback (r=0.836, p=0.000) and strategy responsiveness (r=0.789, p=0.000) with the organizational performance of supermarkets. Regression analysis established that strategic feedback had the greatest effect on the organizational performance of supermarkets since a unit change caused a change in organizational performance by a multiple of 1.92 units. Strategy responsiveness significantly influenced the organizational performance of supermarkets with a unit change, causing a change in organizational performance by a factor of 0.91 units. The study concluded that both strategic feedback and responsiveness significantly and positively influence the performance of supermarkets. Supermarkets need to initiate robust feedback mechanisms as well as develop strategies that ensure quick adaptation to market dynamics.

Keywords: strategy, strategic feedback, strategic responsiveness, organizational performance, supermarket.

INTRODUCTION

The competition in today’s business arena, where supermarkets are no exception, is fierce, and the extent to which an organization can thrive is primarily determined by its laid-out strategies. As retail elements, supermarkets face numerous complicated challenges, such as changing consumer preferences, market saturation, and technological advances. Therefore, a supermarket has to develop a strategy to ensure continued performance, progress, and competitiveness [1]. A strategy is a thorough action plan to meet particular organizational goals or objectives. It includes making decisions regarding the distribution of resources, the organization’s place in the market, and how to handle opportunities and difficulties [2]. Precisely, the strategies’ feedback and responsiveness may differ depending on the market niche the firm’s strategy is intended. Examples of strategies include initiating promotions and discounts every week for various products, developing a unified payment system across the supermarkets’ stores, introducing customer loyalty cards, introducing shift work, and increasing the hours of operation [3]. According to [4], many organizations spend a lot of finances formulating and implementing strategies but their feedback and responsiveness to supermarket performance is only sometimes ascertained. Some supermarkets like Nakumatt, Tuskys, and Uchumi are closing their businesses, others like Quickmatt opened four branches in 2023, and Naivas made to open six branches in 2023 probably due to a better choice of strategy that had positive feedback on the organizational performance [5]. In the competitive landscape of the retail industry, supermarkets stand as pivotal players, constantly evolving to meet the demands of consumers while maintaining operational efficiency. Amidst this dynamic environment, strategy feedback and responsiveness concepts emerge as critical determinants of organizational success. Strategy feedback entails systematically collecting and analyzing data about market trends, consumer preferences, and competitor actions [6]. In supermarkets, feedback serves as a compass, guiding decision-making processes and facilitating strategic adjustments [7]. Supermarkets gain valuable insights into shifting consumer behaviors and preferences by actively soliciting customer feedback through surveys, reviews, and sales data analysis.

Customer feedback stands as a cornerstone of strategy feedback for supermarkets. Through surveys, reviews, and transactional data analysis, supermarkets glean invaluable insights into consumer preferences, purchasing patterns, and satisfaction levels [8]. This intimate understanding of customer sentiment empowers supermarkets to tailor their product assortments, promotional strategies, and service offerings to meet evolving needs effectively. Employee feedback constitutes another vital dimension of strategy feedback [6]. By soliciting input from frontline staff, management gains valuable perspectives on operational challenges, customer interactions, and process inefficiencies. Periodic reviews and performance evaluations further facilitate the identification of strengths, weaknesses, and opportunities for improvement within the organizational framework market analysis and environmental scanning round out the arsenal of strategy feedback tools for supermarkets [8]. By monitoring industry trends, competitor actions, and macroeconomic indicators, supermarkets gain a comprehensive view of the external landscape [7]. This proactive stance enables supermarkets to anticipate market shifts, capitalize on new opportunities, as well as mitigate potential risks effectively.

Strategy responsiveness epitomizes the agility and adaptability of supermarkets in navigating a dynamic marketplace. Strategy responsiveness encompasses a spectrum of organizational capabilities geared towards swift and effective action in response to feedback and environmental stimuli [9]. Decision-making speed stands as a hallmark of strategy responsiveness for supermarkets. In an era of rapid technological advancements and shifting consumer preferences, making informed decisions swiftly confers a distinct competitive advantage. Supermarkets that streamline decision-making processes can capitalize on fleeting market opportunities and stay ahead of the curve. Innovation capability serves as another linchpin of strategy responsiveness. Supermarkets that foster a culture of innovation can continually reinvent themselves, introducing novel products, services, and customer experiences. By harnessing creativity and embracing change, supermarkets can differentiate themselves in a crowded marketplace and carve out a niche for sustained success.

Risk management preparedness constitutes a critical aspect of strategy responsiveness for supermarkets [10]. In an environment fraught with uncertainty and volatility, supermarkets must anticipate and mitigate risks proactively. Whether it be supplying chain disruptions, regulatory changes, or economic downturns, supermarkets that adopt a comprehensive risk management framework can weather storms and emerge more vital in the aftermath. Organizational structure and technological advancements underpin the foundation of strategy responsiveness for supermarkets. Agile organizational structures, characterized by flat hierarchies and cross-functional collaboration, enable supermarkets to adapt swiftly to changing market conditions [11]’ Furthermore, investments in technology, such as data analytics, automation, and digital platforms, enhance operational efficiency and customer engagement, thereby bolstering responsiveness. It is behind these constructs that this study intended to find out the impact of strategy responsiveness on the organizational performance of supermarkets in selected Counties of Kenya.

RESEARCH OBJECTIVES

1. To assess the influence of strategy feedback on the organizational performance of Supermarkets in selected Counties of Kenya.
2. To evaluate the influence of strategy responsiveness on the organizational performance of Supermarkets in selected Counties of Kenya.

RESEARCH METHODOLOGY

Description of the Study Area

The study took place in 30% of the counties in Kenya. The 30% threshold includes 14 counties, which are Meru, Embu, Laikipia, Kirinyaga, Nyeri, Tharaka Nithi, Muranga, Nyandarwa, Kiambu, Nakuru, Nairobi, Marsabit, Isiolo and Wajir County. The counties are geographically distributed and lie within the eastern, central, and northeastern regions of Kenya. The counties are highly populated, which has led to several supermarkets being opened in these regions to meet the demands of the growing population. The study aimed to achieve results that could be generalized to the whole Country; therefore, the diversity of the study area allowed for the findings to be representative.

Research Design and Sampling

A descriptive cross-sectional design was utilized in this research. It is a scientific process that entails monitoring and describing a subject’s behavior without affecting it [12]. The design helped answer the questions of how strategic feedback and responsiveness influence the organizational performance of supermarkets. A cross-sectional survey was appropriate to cover the selected counties of Kenya. The target population was 1800 supermarket stores distributed within the 14 Counties [13]. Whose managers were involved as respondents. Kothari sampling formula [14] was employed to compute the desired sample size as follows:

were,

n= desired sample size

N=population size

e = acceptable error.

A sample of 204 supermarkets, whose managers were the respondents, was used. The sample size allowed an acceptance error of 7%.

Sampling Procedure

The sample size was distributed proportionately to the selected Counties based on the estimated number of supermarkets per County, as shown in Table I. A cluster random sampling technique was used during the study. First, choosing the 14 Counties that met the 30% threshold was done. The Counties included Meru, Embu, Laikipia, Kirinyaga, Nyeri, Tharaka Nithi, Muranga, Nyandarwa, Kiambu, Nakuru, Nairobi, Marsabit, Isiolo and Wajir. Secondly, the 1800 supermarkets were clustered heterogeneously as per the Counties to know the definite number of supermarket managers in every County who were the respondents. Thirdly, the supermarkets included in the study were selected randomly from each County through a simple random sampling technique. The sample size distribution formula was as follows:

Data Collection and Analysis

Data was gathered from the sampled participants for four weeks using the drop-and-pick method. The completed and accurate questionnaires were reviewed and revised after gathering them. Coding and entering of the questionnaire data was done on SPSS version 28. Descriptive as well as inferential statistics were used in the research. Descriptive statistics involved finding frequencies and percentages of the variable constructs considered in strategic feedback and responsiveness.

Table 1. Distribution of the Sample Size among the 14 Counties

The key aspects considered under strategic feedback included whether the supermarket often gets customer and employee feedback, has a suggestion box that frequently receives requests from customers and employees, often conducts periodic reviews of its performance, often does market analysis of the products it’s offering or often conducts scanning of the external environment to determine possible threats and opportunities. The key aspects considered under responsiveness included whether the supermarket moves with speed to develop and implement a decision, frequently innovates new ideas, embra

ces them and implements the change, has put up key measures in efforts to prepare for unforeseen events and disruptions, has high organization’s willingness to learn from its successes and failures and make adjustments accordingly or whether the organizational structure of the supermarket has an impact on its performance. Others included whether the supermarket consistently integrates upcoming technologies that affect performance. Inferential statistics used regression and correlation analysis to establish the relationship between strategic feedback and responsiveness (explanatory variables) as well as organizational performance (explained variable). The regression model used in this study is given as follows:

Y = βo + β₁X₁ + β₂ X₂ + ε

Where:  Y = organizational performance of supermarkets

βo = Constant

X₁ =strategy feedback

X₂ = strategy responsiveness

ε = Error Term

β1 and β2 are Regression Coefficients for the two explanatory variables

RESULTS AND DISCUSSIONS

Descriptive findings on strategic feedback and organizational performance

Table 2 gives the study results, which established that 41.2% of respondents, which accounted for 84 managers, agreed that their supermarkets often receive customer feedback. In contrast, 41 managers, accounting for 20.1%, disagreed, and 38.7% were neutral (79 supermarket managers). The relatively low agreement suggests that many supermarkets might need to be actively seeking or effectively utilizing customer feedback. This could limit their ability to understand and respond to customer needs, potentially impacting customer satisfaction and loyalty. Studies like those by [7] support the current study findings as they highlight the importance of customer feedback in improving service quality and customer satisfaction in retail settings. Secondly, 60.3% of respondents (123 managers) agreed that their supermarkets often receive employee feedback, while 33.8%, amounting to 69 managers of supermarkets, were neutral, and 5.9% disagreed (!2 respondents). The high level of agreement indicates that many supermarkets recognize the value of employee input in shaping strategies and operations. Engaging employees in feedback processes can enhance job satisfaction and organizational performance. Contrastingly, the significant neutrality suggests that some supermarkets might need to be fully capitalizing on this valuable resource. Research by [6] supports the current study, finding that employee feedback has a positive influence on organizational performance.

Thirdly, 50.5% of respondents, including 103 managers, disagreed that their supermarkets have a suggestion box frequently receiving requests from customers and employees, while 73 managers (35.8%) were neutral, and 28 managers (13.7%) agreed. The high level of disagreement implies that suggestion boxes, a traditional feedback tool, need to be more utilized or more effective in these supermarkets. This could be due to a need for more promotion or trust in the anonymity and efficacy of such feedback mechanisms. The findings are in line with [8], who emphasizes the need for diverse and effective feedback tools to capture valuable insights from both customers and employees. Furthermore, 67.2% of respondents agreed that their supermarkets often conduct periodic reviews of their performance, while 26% were neutral and 6.9% disagreed. Regular performance reviews are crucial for identifying strengths, weaknesses, and areas for improvement. The strong agreement suggests that most supermarkets are committed to continuous improvement

Table 2. Strategic Feedback on Supermarket Performance

However, the neutral and disagreeing responses indicate that some supermarkets might lack a structured approach to performance evaluation. The findings concur with [7] that underlined the importance of periodic reviews in achieving strategic objectives. Moreover, 71.5% of respondents, including 146 supermarket managers, agreed that their supermarkets often conduct market analysis of the products they offer, while 23% were neutral, and 5.4% disagreed. Conducting market analysis helps supermarkets understand market trends, customer preferences, and competitive dynamics. The high agreement reflects a proactive approach to staying competitive and meeting customer demands. Studies like that of [7] support the positive impact of market analysis on strategic decision-making and performance. Further, 81.9% of respondents, accounting for 167 supermarket managers, agreed that their supermarkets often conduct scanning of the external environment to identify potential threats and opportunities. In comparison, 13.2% (27 managers) were neutral, and 4.9% that, included ten managers, disagreed. Environmental scanning is vital for strategic planning and risk management. The overwhelming agreement indicates that most supermarkets are vigilant in monitoring their external environment, which can enhance their adaptability and resilience. The findings concur with [8], who corroborates the benefits of environmental scanning in enhancing organizational agility and performance. In their study, [15] noted that effective communication with employees gives them a sense of belonging and increases their commitment to work, which ultimately leads to increased organizational performance. This implies supermarkets that engage in effective strategic feedback record higher performance since they are able to note areas that need to be improved and make the necessary adjustments and modifications.

Descriptive Findings on Strategic Responsiveness and Organizational Performance

Table 3 gives the study results. The study found that 90 of the supermarket managers (44.1%) were neutral on the opinion that their supermarket moves with speed to develop and implement a decision. In comparison, 29.4% agreed (60 managers) and 26.5% disagreed (54 managers disagreed). Research by [16] supports the current study finding as it reveals the importance of rapid decision-making in enhancing organizational agility and performance. Secondly, 67.1% of respondents (137 supermarket managers) agreed that the supermarket frequently innovates new ideas, embraces them, and implements change, while 25% were neutral (51 managers), and 16 managers, accounting for 7.9%, disagreed. The strong agreement suggests that many supermarkets recognize the value of innovation in staying competitive and meeting customer needs. However, the neutrality and disagreement indicate that some supermarkets may need to be more proactive in innovation, which could limit their ability to adapt to changing market conditions. Thirdly, 60.7% of respondents (124 managers) agreed that the supermarket has put up key measures to prepare for unforeseen events and disruptions, with 25%, including 51 supermarket managers, neutral, and 14.3%, which amounted to 29 supermarket managers disagreeing. The majority agreement indicates that many supermarkets are taking steps to enhance their resilience and ability to handle disruptions. This proactive approach can help supermarkets maintain stability and continuity in operations. However, the neutral and disagreeing responses suggest that some supermarkets may need to be adequately prepared for unexpected challenges. According to [9], resilience planning is crucial for sustaining performance in the face of disruptions.

Moreover, an overwhelming 90.2% of respondents, amounting to 184 supermarket managers, agreed that the supermarket has a high willingness to learn from its successes and failures and make adjustments accordingly, with 7.4% neutral (15 managers) and 2.5% (5 managers) disagreeing. The high level of agreement highlights a strong organizational culture of learning and continuous improvement, which is essential for long-term success. The few neutral and disagreeing responses suggest that some supermarkets might not fully leverage learning opportunities. Additionally, 72.1% of respondents, accounting for 147 managers, agreed that the organizational structure of the supermarket impacts its performance, while 22.5%, who included 46 supermarket managers, were neutral, and 5.4%, including 11 respondents, disagreed. The majority agreement indicates that the organizational structure is seen as a significant factor influencing performance, suggesting that well-designed structures can enhance efficiency and effectiveness. However, the neutrality and disagreement imply that some respondents might not perceive a direct link between structure and performance.

Table 3. Strategic Responsiveness on Supermarket Performance

Studies like that of [11] support the current study’s finding that organizational structure plays a critical role in shaping performance outcomes. Further, 48.5% of respondents agreed that the supermarket consistently integrates upcoming technologies that affect performance, 31.9% were neutral, and 19.6% disagreed. The agreement suggests that many supermarkets are aware of the importance of technological integration in improving performance. However, the significant neutrality and disagreement indicate that some supermarkets may lag in adopting new technologies, potentially affecting their competitiveness. Research by [11] support underscores the critical role of technology in driving organizational performance and competitiveness. The findings of the study concur with [1], who established that supermarkets with robust strategy responsiveness would move with speed to communicate new product offerings and ensure a good display of the products to the customers in certain strategic locations for their use. Such would expand the customer base, thereby improving the performance of the supermarket as a whole.

Correlation Analysis

The study employed Karl Pearson’s coefficient of correlation to find out the correlation between strategic feedback and responsiveness and the organizational performance of supermarkets. The Pearson Correlation test was done at a 99% confidence level, and the test results are presented in Table 4.

Table 4. Pearson Correlation Coefficients for the study variables

** Correlation is significant at the 0.01 level (2-tailed) N=204

The study results revealed a positive and significant association between Strategy feedback and the organizational performance of supermarkets (r=0.836, p=0.000). This implies that any positive Strategy feedback enhances the performance of supermarkets. Also, the study results revealed the existence of a positive and significant association between Strategy responsiveness and the performance of supermarkets (r=0.789, p=0.000). The results imply that increased strategy responsiveness leads to higher organizational performance of the supermarkets. These findings are in line with those of [17], who found that strategic management practices, including strategic feedback and responsiveness, had an approximate correlation coefficient of 0.8 and above that was significant at p-value =0.000. The robustness in correlation implied strategic feedback and responsiveness has a relationship with the achieved organizational performance by the supermarkets.

Regression Analysis

The regression model helped determine the extent to which strategic feedback and responsiveness impact supermarket performance in the selected Counties. The model Y = βo + β1X1 + β2 X2 + ε explained 72.9 % of the variations in supermarkets performance as shown in Table 5. This showed that strategic feedback and responsiveness explained 72.9% of the variation in the organizational performance of supermarkets. The analysis of variance results in Table 6 shows that the model fit is significant at p=0.000, F=270.483 with 203 degrees of freedom. This implied that strategic feedback and responsiveness had a significant and positive effect on the organizational performance of supermarkets. Using the unstandardized beta coefficients in Table 7, the overall equation for the multiple regression model is given as follows:

Y = -2.892 + 1.921X1 + 0.905X2 + ε

In the absence of strategic feedback and responsiveness, the regression model holds organizational performance constant at -2.892, as shown in Table 7. Strategic feedback had the greatest effect on the organizational performance of supermarkets since a unit change caused a change in organizational performance by a multiple of 1.92 units.

Table 5. Model Summary

Predictors: (Constant), strategic feedback, responsiveness.

Table 6. Analysis of Variance (ANOVA)

Dependent Variable: organizational performance

Table 7. Regression Analysis Results

Strategy responsiveness is the second in terms of significantly influencing the organizational performance of supermarkets, with a unit change causing a change in organizational performance by a factor of 0.91 units. The regression model revealed that a unit increase in strategic feedback practices leads to an improvement in supermarket performance by a factor of 1.92. This substantial impact highlights the critical role of feedback in organizational performance. Supermarkets that actively seek and utilize feedback from customers and employees can make informed decisions that better meet stakeholder needs, driving higher performance. This finding is corroborated by [18] who emphasized that effective feedback mechanisms lead to improved service quality and customer satisfaction, thereby boosting performance. The regression model revealed that a unit improvement in strategic responsiveness leads to a rise in organizational performance of supermarkets by a factor of 0.91. This indicates that the ability to respond swiftly and effectively to changes in the market and environment is crucial for enhancing performance. Supermarkets that are agile and responsive can better navigate disruptions and capitalize on opportunities, leading to superior performance. This result is consistent with the research by [19], who found that strategic responsiveness positively influences organizational agility and success.

CONCLUSIONS

The study concluded that strategic feedback has the largest positive and significant effect in increasing the performance of supermarkets. The majority of supermarkets that adhere to strategic feedback are likely to record improved organizational performance. Most supermarkets often get customer and employee feedback which they act upon to remain the focus of strategy. The supermarkets often do market analysis of the products it’s offering to ensure they are in line with the customer’s tastes and preferences. The supermarket often conducts scanning of the external environment to determine possible threats and opportunities and act upon them. Furthermore, the study concluded that strategic responsiveness had a positive and significant effect on the organizational performance of supermarkets in the selected Counties of Kenya. The majority of supermarkets frequently innovate new ideas, embrace them, and implement the change. The supermarkets have established key measures aimed to cater to any unforeseen activities and disruptions. The supermarkets have a high organization’s willingness to learn from their successes and failures and make necessary adjustments. The supermarket consistently integrates upcoming technologies that affect performance.

RECOMMENDATIONS

This study recommends that supermarkets should establish robust feedback mechanisms that gather input from a variety of stakeholders, including customers, employees, and suppliers. Supermarkets need to involve regular surveys and increase suggestion boxes and digital feedback platforms. They need to develop an integrated feedback collection and analysis platform as well as create a feedback loop where actions taken based on feedback are communicated back to the stakeholders. Supermarkets should also develop strategies that enable quick adaptation to changes in the market, customer preferences, and operational challenges. Supermarkets need to foster a flexible organizational culture and decentralized decision-making.  Flexibility and decentralization break the rigidity in management and helps accommodate upcoming trends and feedback from all stakeholders thereby ensuring customers’ needs are served thereby improving performance.

ACKNOWLEDGMENT

The authors express gratitude to all the supermarket managers in the Counties of study who generously gave their responses that aided in accomplishing the study objective.

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