Influence Of Strategy Implementation On Performance Of Engineering Firms In Kenya

Abstract

The purpose of this study was to examine the influence of strategy implementation on the performance of engineering firms in Kenya. Strategy implementation was considered as a multidimensional construct comprising of; strategy formulation, organizational culture, organizational structure, resource allocation and monitoring and evaluation. Specifically, the study sought to identify the interrelations between these constructs and performance of the firms. Anchored on a descriptive research design, the study targeted a total of 124 engineering firms with operations in Kenya. Collection of data from these firms entailed the use of survey questionnaires. The collected data was input into Statistical Package for Social Scientists (SPSS) for descriptive and inferential statistical analyses. Through multiple regression analysis, the study found that: a unit increase in strategy formulation alternatives would improve the performance of engineering firms by 47.2%; a unit increase in incentives meant to promote positive organizational culture would increase the performance of engineering firms by 11.1%; an effective organizational structure would drive performance of the engineering firms by 18.3%; a unit increase in resource allocation would enhance performance of engineering firms by 21.2% and a unit increase in monitoring and evaluation would boost the performance of the firms by 14.4%. Based on these findings, it was concluded that engineering firms in Kenya recognize the important role of strategy implementation in driving business success and that they need to be agile in their approaches due to the fast-changing business environment. The study recommends that Kenyan engineering firms consider apportioning more funds to departments charged with the task of strategy implementation. Additionally, the firms should seek to have a tight strategy-culture co-alignment to facilitate implementation of organizational strategies.