Strategy implementation, performance contracting, external environment and performance of Kenyan state corporations
Strategy implementation has been established to influence organizational performance. However, its influence on organizational performance could be subject to a number of moderating variables including performance contracting and external environment. The main objective of the study was to establish the influence of performance contracting and external environment on the relationship between strategy implementation and performance of Kenyan State corporations. Four specific objectives and corresponding hypotheses were formulated and used to test this relationship. The study‘s population consisted of 108 Kenyan state corporations and data was collected from 98 organizations. Data, collected using structured questionnaires was collated, cleaned, sorted, edited, analyzed and interpreted based on descriptive statistics, simple, multivariate and hierarchical regression analysis. The results of research findings were established and compared to various theories anchoring the study as well as conceptual, contextual and empirical evidence. It was established that strategy implementation has a statistically significant influence on all the indicators of performance as used in the study. The introduction of either performance contracting or external environment as a moderator was equally found to have a statistically significant influence on the relationship between strategy implementation and performance. The study established that the joint influence of strategy implementation, performance contracting and external environment on performance was significant. From the findings of this study, it was concluded that performance of Kenyan state corporations remains multifaceted and multidimensional in nature and can be influenced by more than one variable. The study further concluded that some indicators of the external environment had positive impact on the relationship between strategy implementation and performance. For instance, complexity was found to have a positive impact when introduced to the relationship between strategy implementation and performance. This may imply that organizations prepare themselves adequately and surpass mitigation leading to positive output. This means that the more complex the external environment was, the better the Kenyan state corporations performed. The study has also made its unique contribution to policy formulation and managerial practice in Kenyan state corporations. Formulators of policy in Kenyan State Corporations regarding strategic process and strategic reforms can benefit from the findings of this study. The top managers of the state corporation could also benefit from the findings of this study with regard to how strategy implementation, performance contracting and external environment influence organizational performance. The study has also made its unique contribution to frontiers of knowledge arising from integration of institutional theory, contingency theory, open systems theory result based management theory and stakeholder theory. It would also be interesting to replicate this study in different contexts in order for researchers to draw different patterns showing the effect of strategy implementation on organizational outcomes. One of the main limitations of this study was that all the study‘s data were obtained through self-administered questionnaires which could have been biased. The reliance on primary data could have the potential associated with sources of systematic measurement error. The study employed a cross sectional research design. Future research could consider using both primary and secondary data to measure variables and as such use longitudinal research design.