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INTERNAL DETERMINANTS OF STRATEGY IMPLEMENTATION IN STATE CORPORATIONS IN KENYA

 

Anne Wanjiru Kiboi

School of Business

Nelson Mandela Metropolitan University

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Professor. S. Perks

School of Business

Nelson Mandela Metropolitan University

 

Professor. E.E Smith

School of Business

 

CITATION: Kiboi, A., W., Perks, S., Smith, E., E. (2018). Impact of Market Factors On Strategy Implementation in State Corporations in Kenya. International Journal of Strategic Management. Vol. 7 (5) pp 276 – 292.

 

ABSTRACT

 

Due to the rapid changing global environment and increasing demand for service delivery, continuous change is needed. Changes have been taking place in the Kenyan state corporations since 2003 and this has been as a result of corporate strategy implementation. However, it is not enough to develop a good strategy, good strategies can fail during implementation. The state corporations in Kenya, like in most countries in Sub-Saharan Africa, have been characterized by slow and bureaucratic processes that retard corporation’s performance. Employees and managers in these corporations have been perceived as not performing as they should. Kenyan state corporations are important to the economy of the country. They provide social and essential services to the Kenyan population. There was therefore a need to investigate ways to improve strategy implementation in state corporations, and the focus was on internal factors. The study sought to determine the internal determinants of strategy implementation among state corporations in Kenya. The study focused on organizational structure, financial resources and communication. A survey was conducted using a self-administered questionnaire distributed to 485 managers in state corporations in Kenya. Correlation and exploratory factor analysis, the KMO measure of sample adequacy, Bartlett’s test of sphericity, Kolmogorov-Smirnov test for normality, multi-Collinearity diagnostic and regressions were the main statistical procedures used to test the appropriateness of data, correlation and significance of the relationships hypothesized between the various independent and dependent variables. The study findings revealed that organisational structure provides sufficient evidence of statistically significant relationships between the organisational structure and strategy implementation. This shows that the managers of state corporations in Kenya believe that the existing organisational structure impacts positively on strategy implementation in the state corporations. This study also demonstrated that financial resources were statistically significant and therefore had a positive relationship with strategy implementation. This shows that managers of state corporations in Kenya agree that the corporations have a sound budgeting procedure for resource allocation.

Communication showed a fairly strong, statistically significant relationship with strategy implementation. The Kenyan state corporations’ managers agreed that strategies must be communicated to all staff, and that staff involved must be updated about progress made during strategy implementation.

 

Key Words: Organisational Structure, Financial Resources, Communication, Strategy Implementation, State Corporations in Kenya

 

 

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