Influence of Technological Factors on Organizational Performance of Airlines: A Case Study Kenya Airways Ltd

Abstract

The airline businesses depends on the wellbeing of international trade and the stability of the environment in which they operate. Kenya Airways should take great interest in the macro-environmental forces of its markets both locally and internationally. Statistics indicate that Kenya Airways posted kes 25.7bn loss in the 2014/2015 financial year and this was largely attributed to change in the macro-environmental forces. The effect of macro-environmental forces on the organizational performance of the airline industry especially in Kenya has received little attention in academic research. This study sought to establish the influence of economic factors on organizational performance of Kenya Airways. This study adopted descriptive research design and was limited to two financial years, 2013/2014 and 2014/2015, due to resource constraints. The target population of this study was 245 staff working in Kenya Airways Finance department. Stratified random sampling was used to select 74 respondents. The researcher used a questionnaire as primary data collection instrument. Secondary data was collected from published materials and annual reports of Kenya Airways. Content analysis and descriptive analysis was employed. In addition, a multiple regression was used. The study established that economic factors influence the organizational performance of Kenya Airways Limited. The study also recommends that there is need for government and various policy makers to put in place policies that will improve the economic condition surrounding the airline industry.