Relationship Between Strategic Responses and Organizational Performance of Public Universities in Kenya

Abstract

The purpose of this study was to establish the relationship between strategic responses and organizational performance of public universities in Kenya. The background of the study was guided by the dynamic nature of the environment in which organizations operate. Since the turn of the millennium, the general business environment has become more volatile, unpredictable and very competitive. There is need for organizations to seek ways in which they can enhance their functions and be sustainable in their industry. Most worthwhile organizations have embraced strategic management and thereby adopted strategies to respond and counter the turbulent nature of their environments with the aim of improving on performance and meeting their stakeholder’s expectations. Adopted strategies are expected to lead to improved performance. However, this is not always the case, strategies that are not well thought out and those that are poorly executed may lead to little or no improvement. This study sought to find out whether there is any relationship between the strategies that are formulated and adopted by public universities and performance of these institutions in relation to meeting their stakeholder’s expectations. The preferred variables that were used in the study were strategic alliances, adoption of information technology, diversification and innovation. The study was anchored on the resource-based view, strategic choice and upper echelons theories. The study adopted descriptive research design. This design was applicable to the research since it explores the existing status of two or more variables at a given point in time. The study population comprised of all 31 public universities in Kenya. Since the population was relatively small with homogenous attributes, a census was undertaken. The study used structured questionnaire to collect data. The collected data was analysed using descriptive and inferential statistics. Part of the descriptive statistics included standard deviation, mean, frequency distribution and percentages. The study employed descriptive analysis of the data. Summary tables containing mean scores and standard deviations have been used in presenting findings of the study. The study found a coefficient of determination R squared of 0.877 which translates to 87.7%. This finding established that indeed there is a strong relationship between the four strategic responses adopted by universities and improved performance. Emerging strategic management knowledge was therefore making a major contribution to improved performance of public universities. This has a positive impact on the overall economic growth of the nation. The study is especially beneficial to managers of public universities and other learning institutions in Kenya. It should help these institutions get out of the old mindset of the traditional teaching and learning and guide them into the strengths and opportunities available outside the lecture theatres. It should be particularly useful to those whose responsibilities include formulating, implementing, monitoring and evaluating strategy.