This study examines the relationship between strategic direction and performance of small and medium manufacturing firms in Thika Sub-County, Kenya. A survey was conducted of 115 firms to understand the emphasis placed on strategic direction during strategy implementation and its impact on firm performance. The study found a positive but insignificant relationship between strategic direction and firm performance. While strategic direction on its own did not significantly impact performance, it is often embedded in other key factors like leadership, structure, human resources and technology that do influence performance. For manufacturing firms to enhance performance and competitiveness, their strategic direction in terms of vision, mission and objectives must be clearly understood and supported by all stakeholders involved in strategy implementation.