The effect of strategy structure alignment on the performance of transport firms in Mombasa county
Abstract
The relationship between strategy and structure is key and crucial to organizations and
their strategic competitiveness. Dynamic environments characterized by
technological, economic, and political change increasingly requires organizational
agility among Kenya’s organizations. Perhaps a primary indicator of this need is the
growing customer demands and increased use of management tools like strategic
planning, total quality management, and reengineering that assist administrators in
creating strategic, long-term, and outcome-oriented approaches to problem solving.
While these management tools are useful, and in most circumstances appropriate to
effectively manage an agency, management literature points to the importance of
organizational structure as a powerful force influencing agency behaviors. The
objective of the study was to establish the effect of strategy structure-alignment on the
performance of the transport firms in Mombasa. The study was informed by
theoretical and literature reviews. A census cross-sectional survey was adopted in
this study so as to include all the transport firms in Mombasa, with a target population
of 125 firms. As a result, a survey was deemed as the best design to fulfill the
objective of the study. The study made use of primary data which was collected
through a semi-structured questionnaire and the data obtained was analyzed using
descriptive and inferential statistical analysis. This method of analysis was adopted
because of the quantitative nature of the response acquired. The study had a response
rate of 84.0%. The study found out cost reduction in service delivery, improving on
existing products, and aspiration for new opportunities as main strategic alignment
factors affecting the alignment in the surveyed firms. Most of the firms operated on a
decentralized organization structure. The performance indicators relating to strategy
structure alignment were profit before tax, increase in cargo volumes and return on
total assets. In light of the findings the study recommends there is need to focus on
employee involvement and participation in organizational structure issues, constant
communication, change management training, and adequate strategic planning, as
these seem to be hampering factors in the strategy and structure relationships and
implication. This will enable these firms to attain the full benefit of strategy-structure
alignment in their respective organizations
Publisher
University of Nairobi