Organizational culture and strategy implementation at Airtel Kenya
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Date
2015-08Author
Mutai, Preston K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Strategy implementation has attracted much less attention in strategic and
organizational research than strategy formulation or strategic planning. Strategy
implementation is an enigma in many companies. The problem is illustrated by the
unsatisfying low success rate (only 10% to 30%) of intended strategies. The
telecommunications industry in Kenya has been rated as the fasted growing sectors in
the last 5 years. With the rapid growth, the industry has shifted from having one mobile
operator to having other players join in such as Airtel, Telkom. This has caused stiff
competition to be stiff among the mobile operators hence causing them to have innovative
solutions that will set them apart from the rest. One area where industry players can
differentiate themselves is on creating sustainable internal environment that differentiates
them from the competition. One of these advantages is the organizational culture. An
organizational culture can become a unique market differentiator or a strategic
advantage for an organization if deliberately designed to do so. Many organizations
failures occur due to lack of implementation and not formulation of strategies and as a
result studies have shown that implementation of strategy is critical. There is fierce
completion within telecommunications industry in Kenya and Airtel Kenya finds itself
in a place where its execution of its strategies is a top most priority to win over the
market share. Airtel Kenya has evolved over time in terms of change of ownership that
brings about different management styles and cultures. It has foreign investments which
play a big role in defining the value system, structures and how work is done. The
company also being foreign owned means it has differing cultures, norms and beliefs
of the owners (founders) and those of the native Kenyans. It is important to understand
the influence these cultural differences has on strategy implementation. Organizational
culture is the shared values, beliefs and norms within an organization, and is the foundation
from which strategy emerges. In order for strategy to receive sustained support, it must be
aligned with organizational culture. Organization’s strategy requires a culture that is
supportive of change. Company performances are greatly influence by how it executes its
strategies. The study therefore was identifying the nature of organizational culture at
Airtel Kenya and establishes the extent of influence of organizational culture at Airtel
Kenya in the strategy implementation. The study was based on the Resource-Based
View (RBV) Theory, Organizational Culture Model and Culture Dimension Theory.
The study employed a case study research design which involved an in-depth
investigation of a phenomenon – Airtel Kenya. Primary data was obtained through
interviews from senior managers of different departments in the company. Data
collected was analyzed using content analysis technique. The findings of the study
established that Airtel Kenya has two dominant cultures, that is the Market Culture and
the clan culture. Characteristics of Adhocracy and Hierarchy culture were also
observed. The study established that organization culture has greatly influenced
strategy implementation in a positive way at Airtel Kenya. It concluded that the
multidimensional nature of culture, making smart managers aware of the reality that
they should account all aspects of culture elegantly so that to apply its productive
functions. Finally, the findings supply support for the logic idea of highly significant
relation between strategic emphases in culture of an organization and its strategy
implementation. The study recommended that communication policy to be improved
and all the Airtel Kenya departments to be connected through intranet. It also found
that culture cannot be ignored in strategy implementation. It recommended that Airtel
Kenya should create higher levels of participation and involvement of members in the
organization.
Publisher
University of Nairobi