Challenges of Strategy Implementation for Firms in the Petroleum Industry in Kenya

Abstract

The purpose of this study was to establish the challenges of Strategy implementation in oil industry in Kenya. The study was guided by the following objectives namely; to establish strategic Management practices and to identify strategy implementation challenges in the petroleum industry in Kenya. The study adopted :cross-sectional survey (census) design where the primary data was collected using an interview guide as key instrument. The research targeted thirty six (36) registered oil firms involved in importation and marketing of oil products in Kenya (as per PlEA list).

The respondents in the respective firms were senior managers who are knowledgeable in petroleum industry business. The guiding Secondary data used was Acts of Parliament related to the petroleum sector and currently in operation. The survey response rate was 61 % percent comprising of eighteen positive and four negative responses. The survey found out that Strategy implementation challenges in the petroleum Industry in Kenya has a relationship to global oil industry factors and government legal statutes put in place to regulate the sector.

The survey further revealed that strategic management practices exist in most the firms in the oil industry although in some cases strategy formulation process does not involve all the stakeholders. Lack of buying-in the stakeholders during strategy formulation could explains why there are challenges in strategy implementation. The study further indicated that challenges of strategy implementation can be addressed appropriately through use of appropriate technology, resource allocation and prioritization, involvement of stakeholders and adopting reward system that fit an organization.