Influence of strategy implementation on performance of Kenya owned state corporations

Abstract

Globally, State Corporations are legal entities that undertake commercial activities in addition to other public policy objectives on behalf of an owner. In Kenya, State Corporations (SCs) were established to accelerate economic growth. However, their performance and sustainability has been a concern especially due to over reliance on government funding. Previous studies have shown that approach to strategy implementation in an organization may have a bearing on its performance. Though scholars have attempted to explain variation in organizational performance by carrying out empirical studies, those linking strategy implementation to performance are quite few. The main focus of this study was to assess the influence of strategy implementation on performance of Kenya owned State Corporations. The study was anchored in the institutional theory. The population of this study comprised 249 Kenya owned State Corporations. Data, collected using structured questionnaires, was coded, and analyzed using descriptive statistics and regression analysis. The results showed that strategy implementation accounted for 36.2% of variation in performance of State Corporations. The regression model indicated that a unit increment in strategy implementation would enhance performance of the Corporations by a factor of 0.569. The study has made important contributions to policy design and management of Kenya owned State Corporations. Most importantly, managers ought to recognize the need for the entire organization to be aware of the overall strategy and its implications so as to realize better performance. The finding also implies that managers need to ensure reconfiguration of the structure and culture of the organization in a manner that promotes successful outcomes. The study recommends that further researcher could explore the influence of other factors on performance in addition to replicating the study in organizations within the private sector.