Effect of Operations Strategy on the Performance of State Corporations in Kenya

Abstract

In the competitive market both public and private organizations are required to perform excellently in their operations so as to increase their output. The research sought to establish the operations strategy adopted by state corporations and to determine the effect of operations strategy on performance of Kenyan State corporations. The predictor variables that represented operations strategy include service quality, delivery performance, operational flexibility and cost containment. The research employed a crosssectional research design on a population size of 168. Primary data collection was done through structured questionnaires. Outcomes with regard to the service quality dimension showed that the firms had documented service charter and agreements that guide their relationship with external partners. To increase organization flexibility, the firms had adopted technology in their operations to cope with the changing needs. In service delivery, the findings showed that firms document time lines of service delivery. In cost containment the findings indicated budget provision in a particular period with regard to expenditure was being observed. The findings also suggest existence of a positive relationship amongst operations strategy and performance of an organization. (r=0.525) and that 27.6% variations in performance of the organization is accounted for through variation in the operations strategy. The regression values show that operational flexibility and delivery performance had significant results on the performance of an organization. The p-values were 0.032 and 0.000 respectively. This research concludes that operational strategy affects organizational performance and therefore firms should pursue this strategy because out of these operational activities the firm is able to deliver services.