Influence of Strategic Planning on the Performance of Telecommunication Industry in Somalia

Abstract

Despite notable growth, Somalia’s telecommunication industry faces persistent performance challenges due to inadequate strategic planning, leading to inefficiencies, poor resource allocation, and limited adaptability in a highly competitive and dynamic environment. This study investigated the influence of strategic planning on the performance of the telecommunication industry in Somalia. The research adopted a mixed-methods approach, combining quantitative and qualitative data collection techniques to provide comprehensive insights into the relationship between strategic planning practices and industry performance. The study targeted 220 participants across 22 registered telecommunication firms in major urban centers including Mogadishu, Hargeisa, and Kismayo. Respondents included telecommunication managers, strategic planning staff, innovation strategy personnel, and customer relationship managers. Using census sampling, the research achieved an exceptional response rate of 90.5%, with 199 completed questionnaires. Data collection employed structured questionnaires with quantitative analysis conducted using SPSS version 28. The findings revealed strong positive perceptions regarding strategic planning practices in Somalia’s telecommunications industry. The analysis revealed a strong correlation coefficient (R = 0.742) and explanatory power (R2 = 0.551), indicating that strategic planning accounts for 55.1% of variance in industry performance. The regression model proved statistically significant (F = 242.358, p < 0.001), with standardized coefficient (ff = 0.742) confirming the positive relationship. For every unit increase in strategic planning implementation, performance increased by 0.684 units. The study concluded that strategic planning serves as a critical predictor of organizational performance in Somalia’s telecommunications sector, supporting the rejection of the null hypothesis. The study recommended that telecommunication companies in Somalia should prioritize strategy evaluation and control systems, establish performance monitoring frameworks, invest in data analytics, and build institutional capacity to adapt strategies in response to changing market conditions and evaluation findings.