Abstract: Firm decisions are majorly affected by the operating environment (OE) in which they exist. Environmental context represents an exterior ecosystem. Effect of external environment context on strategic management is a discussion that is ever ongoing. within which the organizational decisions and strategy are integrated. Organizations mustblend with their environment in order to remain relevant, thus the necessity to clearly identify and define the components and dimensions of the environment. Operating environment either pose a threat or offer opportunities necessary to steer organization performance. The key result suggest that operating environment affect the relationship between corporate governance and firm successes amongst companies listed at Nairobi Securities Exchange (NSE).
Keywords: Operating Environment, Corporate Governance, Firm Performance, Nairobi Securities Exchange
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