Strategy Formulation and Organizational Performance in Dynamic Real Estate Markets: Evidence from Kenya

This paper empirically examines how strategy formulation influences organizational performance among real estate developers operating in Kenya’s turbulent and institutionally evolving markets. Grounded in the resource-based view, contingency, and dynamic-capabilities perspectives, the study tests a multidimensional framework incorporating environmental dynamics, strategic awareness and institutional support, and engagement. A census of 88 corporate members of the Kenya Property Developers Association (KPDA) was undertaken using a structured questionnaire analysed through multiple regression, moderated and mediated regression (PROCESS v 4.3), and multivariate analysis of covariance (MANCOVA). Results demonstrate that strategy formulation exerts a significant positive effect on organizational performance (β = 0.412, p < 0.001). Environmental dynamics significantly moderate this relationship (β = –0.203, p = 0.017), indicating that the strength of strategic influence diminishes under high turbulence. Strategic awareness and institutional support mediate the link between formulation and performance (indirect effect = 0.186, 95 % CI [0.072, 0.314]), while institutional engagement shows a direct positive effect (β = 0.337, p < 0.010). The overall model explains 68.9 % of variance in performance (R² = 0.689, F (5, 82) = 36.32, p < 0.001). MANCOVA tests confirm significant multivariate effects for role, organization type, and development focus (Wilks’ Λ = 0.558, F (1, 78) = 98.38, p < 0.001). Findings validate the complementarity of deliberate strategic planning, adaptive learning, and institutional connectivity. They extend strategic-management theory to emerging-market property sectors and provide a replicable, statistically robust blueprint for evaluating strategy–performance relationships under environmental turbulence.