Influence of Environmental Scanning on Performance of Parastatals in Mombasa County

This study investigates the influence of environmental scanning on the performance of parastatals in Mombasa County, Kenya. Environmental scanning entails the organized collection and strategic use of information concerning the occurrences, trends, and interrelations that manifest in the external environment of an organization. This collated information is instrumental in defining potential business risks or opportunities that the organization can capitalize on. An explanatory research design was employed, utilizing surveys and questionnaires to collect quantitative and qualitative data from 60 employees across various management levels within 15 parastatals. The findings reveal that 45.2% of respondents believe that environmental scanning significantly impacts performance. The study concludes that parastatals can enhance their performance by strengthening their environmental scanning techniques. The analysis further underscores that the practice is a key strategic management tool that contributes significantly to performance enhancement. It is recommended that parastatals prioritize the establishment of comprehensive frameworks dedicated to the persistent monitoring and assessment of both external and internal factors in order to maintain adaptability in the face of changes in the business environment. This is essential for aligning organizational strategies with market demands and improving overall effectiveness, enabling parastatals to fulfil their mandates and contribute meaningfully to economic development in Kenya.