Abstract:
This study assessed the influence of external environmental factors on the
management of private security firms in Nairobi County in Kenya. The specific
objectives were to establish how competition in the private security industry
influence the Management of Private Security Firms in Nairobi County Kenya. The
study also sought to establish the moderating influence of Legal and Regulatory
Framework on the management of Private Security Firms in Nairobi County. The
study was guided by PESTEL Framework. This study used descriptive design with
structured questionnaires as the instrument for data collection. The study
conducted a multiple regression analysis to determine the relationship between
competition in the private security industry and the management of private
security firms. Results revealed that competition in the private security industry
has a statistically significant and positive influence on the management of private
security firms. The findings revealed that competition in the security industry has
a positive and significant association with the Management of Private Security
Firms in Nairobi County. Further, moderation findings revealed that Legal and
Regulatory Framework moderates the relationship between the external
environmental factors and management of Private Security Firms. The study
concluded increased competition in the security industry such as due to entry of
new players in the industry affect the strategy of the firms’ operations. The study
recommends the management of Private Security Firms in Kenya adopt innovative
strategies in order to remain competitive against entry of new players. The findings
of this study may inform Government and other relevant security players such as
KSIA, PSIA and PSRA in formulating policy frameworks for guiding their operations
in the security industry.