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.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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