Strategic Orientation and Stock Level Distribution at Totalenergies Service Stations in Nairobi, Kenya: The Moderating Role of Environmental Conditions

Abstract

Reliable stock level distribution is critical in petroleum retail because product availability must be maintained despite demand variability, supply interruptions, price movements, regulatory requirements, and infrastructure constraints. This study examined the influence of strategic intent, strategic innovation, market orientation, and customer orientation on stock level distribution at TotalEnergies service stations in Nairobi, Kenya, and assessed whether environmental conditions moderate those relationships. An explanatory survey design was adopted. The target population comprised 178 directors, managers, and supervisors drawn from 53 service stations, and a census approach was used. A total of 158 usable questionnaires were analyzed, equivalent to 88.8% of the census target. Data were collected using a structured five-point Likert questionnaire and analyzed using descriptive statistics, Pearson correlations, multiple regression, and hierarchical regression. The direct-effects model was statistically significant, F(4, 153) = 70.382, p < .001, and explained 64.8% of the variance in stock level distribution (R² = .648; adjusted R² = .639). Customer orientation was the strongest direct predictor (β = .433, p < .001), followed by market orientation (β = .359, p < .001), while strategic intent (β = .084, p = .023) and strategic innovation (β = .033, p = .004) were also significant. Hierarchical analysis showed progressive gains in explanatory power when environmental conditions and interaction terms were incorporated, with the final model reporting R² = .239 and significant incremental changes. The results further reported significant moderation for strategic intent, strategic innovation, market orientation, and customer orientation. The study concludes that petroleum stock distribution is shaped not only by internal strategic posture but also by the environmental conditions under which strategic choices are implemented. Managers should therefore combine customer- and market-responsive stock planning with strategic innovation, long-term direction, environmental scanning, and contingency planning