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 ( = 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.