Influence of Strategy Implementation on Performance of Kenya Owned State Corporations
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Date
2022Author
Ndegwa, Robert K G
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Strategic management research has demonstrated that strategic planning coupled with
implementation is instrumental for superior performance. However, strategy formulation
on its own may not achieve any results against the turbulent and dynamic nature of the
environment, unless backed by a clear and well aligned implementation process. The
impact of strategy implementation on organizational achievement could be dependent on
other variables such as available resources and operating environment. The main focus of
this study was to assess the influence of strategy implementation, organizational
resources and operating environment on performance of Kenya owned State
Corporations. The study was rooted in the Institutional Theory and supported by
Resource Based View (RBV), Dynamic Capabilities Theory (DCT), and the New Public
Management (NPM) Theory. The population of this study comprised all the 249 Kenya
owned State Corporationss. Out of these, 181 managed to respond, representing a 72.7
per cent response rate. Data, collected through a structured questionnaire, was processed
for reporting of descriptive and inferential statistics both of which were tied to the
specific objectives of the inquiry. The study established that State Corporations formulate
strategies and implement them effectively. The regression analysis results revealed that
strategy implementation had a positive and significant effect on organizational
performance. This finding was well grounded in the DCT, Institutional Theory, NPM
theory and was corroborated by numerous other studies. Both organizational resources
and operating environment were found to have no moderating effect on the relationship
between strategy implementation and performance. However, the complexity dimension
of operating environment was found to significantly influence the relationship between
strategy implementation and organizational performance. The results also showed that the
joint effect of strategy implementation, organizational resources and operating
environment was less than the sum effect of the independent variables in isolation. The
study has made important contributions to policy design and management of Kenya
owned SCs. Managers need to ensure reconfiguration of the structure and culture of the
organization in a manner that promotes successful outcomes. They also ought to have a
grasp of organizational changes so as to design the necessary structural changes for
supporting the strategy implementation process. This may advice on the need for policy
thrust to shift more to strategy implementation over and above strategic planning by
putting in place measures to monitor and evaluate implementation. The study has also
contributed to the existing body of knowledge by interlinking the NPM Theory, DCT
Theory, Institutional Theory and the RBV. The study has several limitations, among them
the fact that the variables applied only accounted for 51.7 per cent variation in
organizational performance. The rest of the performance could be explained by other
factors outside this study. The study also focused solely on public organizations which
may face different challenges from those faced by State Corporations. The study
recommends that future researchers could consider exploring the influence of other
factors on organizational performance in addition to replicating the study in organizations
within the private sector.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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