Sector policy on organizational performance of private information technology companies in Kenya

The information technology sector in Kenya is a key enabler of economic growth and development. Despite the presence of an ICT sector policy, many private ICT firms continue to experience poor performance. This study analyzed the moderating effect of government ICT sector policy on the organizational performance of private ICT companies in Kenya. The study was guided by the Balanced Scorecard Theory and adopted a positivism research philosophy. A descriptive research design was employed to structure the investigation. The target population comprised 433 private ICT firms accredited by the ICT Authority. A purposive sample of 208 firms was selected based on inclusion criteria, and 175 valid responses were obtained. Data was collected using a structured questionnaire and analyzed through descriptive and inferential statistics using SPSS. The findings showed no statistically significant moderating effect of the government ICT sector policy on the relationship between diversification strategy and firm performance. This implies that the current policy does not significantly enhance the performance of private ICT firms. The study recommended a comprehensive review of the ICT policy. It also suggested the inclusion of stakeholder input to ensure the policy reflects current sector realities and emerging technologies.