The Influence Of Strategy On organizational Performance Of State Corporations In Kenya
Strategic management has been widely embraced by organizations all over the world in pursuit of achieving efficiency and effectiveness that ultimately lead to competitive advantage over competitors. Organisations employ strategies that will catapult them into better organisational performance. A well implemented strategy leads to improved efficiency and effectiveness in an organisation. The purpose of this study was to determine the strategies employed by State Corporations in Kenya and the extent to which they influence organizational performance.There are diverse strategies that an organisation can adopt. The choice of strategy is dependent on a myriad of factors including organisational culture, resources, capabilities and external forces and factors. Organisation must therefore carry out analysis of all these factors to determine the best strategies to adopt. The goal of implementing the strategies is to achieve better organisational performance. In carrying out this study, the target population was 184State Corporations in Kenya out of which 100 responded giving a response rate of 54.3%. The data collection instrument was a questionnaire which was delivered to the respondents. Quantitative data collected was analysed by descriptive statistics and presented through percentages, means, standard deviations and charts. From the study it was found out that State Corporations in Kenya have vision and mission statements that are written down and communicated to all employees.The study further found out that the strategies employed by State Corporations are mainly based on cost leadership and diversification of products/services. In addition, the research concludes that measurement of organizational performance was important in the organizations and that most of the organizations balance use of both financial and non-financial performance measures. There was found to be a weak to moderate positive correlation between strategy and resulting performance with majority of the organizations concurring that their performance had improved as a result of their approaches to business. This weak correlation implies that strategy is not the only determinant of an organization’s performance. Other factors internal and external to the organization affect the overall organizational performance. The study recommends thatall members of the organization be involved in the running of the business thus enhancing idea sharing and consultations thus fast decision making.In conclusion, the study determined that the strategies empoyed by State Corporations in Kenya influence performance positively.