Effects of Strategic Decisions on Performance of Kenyan Universities

The university education sector is becoming very co mpetitive due to changes in the business environmen t. I order to be successful strategic decisions are a ke y to improving performance of universities. The pur pose 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 desig n. Respondents were selected using stratified and simple random sam pling 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 s tatistics, structural equation modeling was used for model specification and hypothesis testing. The study unv eiled that strategic decisions have a significant e ffect on performance of universities. The study concluded strategic decisions positively influence performan ce of universities. Top management in universities should make strategic de cisions that have a positive long term effect on pe rformance of universities. The study recommended that top management should ev aluate all strategic decisions before implementatio n and also a further research to be conducted in othe r s ctors to test the conceptualized model.