Assessment of the Level of Involvement of Indigenous Managers in Strategic Planning A Case of Selected Multinational Corporations in Kenya

Abstract

In the era of emerging global markets, it has been widely accepted that there is need to incorporate the perspectives of geographic and indigenous managers, who are the possessors of local knowledge that is unique to a given society. For a multinational that operates in different settings to remain competitive, it must be successful both internationally and in the local setting. While companies have been quick and keen to emphasize and use international knowledge such as international experience and managerial exposure, the importance of local knowledge is not emphasized. The purpose of this study was to assess the extent to which multinational companies (MNC) with subsidiaries in Kenya utilize local knowledge by involving indigenous managers in their strategic planning process. In order to fulfill this purpose, questionnaires and interviews were used to. collect quantitative and qualitative data from the target population. Information was obtained from thirty managers through questionnaires and twelve managers through interviews. The study dwelt on key aspects of strategic management requiring managerial knowledge including areas such as environmental scanning, multinationals and strategic planning, local managers' possession of knowledge and their perceived participation in strategic planning. The study found that though the sampled organizations use all processes of strategic management, the majority of the managers are only partially involved in the processes and 73 percent of them are not involved in strategy formulation. Overall the study concluded that local managers are partially involved in the strategic planning process of their MNC, and hence it can be assumed that the companies do not adequately tap into local knowledge to improve management of the subsidiaries. Abstracts 63 The study recommends that indigenous managers should actively be involved in the strategic planning process because they better understanc the local situation, and furthermore, this planning should be participative since the local managers also need to gain from international experience Abstracts