Structure and strategy relationship in the Kenyan enterprises

Abstract

Business environment is subject to changes. Fundamental changes in business environment often lead to cha~es in company strategies and structures. Fundamental changes have taken. place in Kenyan business environment over the last ten years. This study sought to establish whether changes in the business environment in Kenya led to changes in company strategies and structures, and if that is the case what is the relationship between changes in strategy and changes in structure. This study had one main objective: To identify the nature of the relationship between changes in strategy and changes in structure in the Kenyan enterprises. Data was collected through a questionnaire personally administered. Both closed and open ended questions were used. The data was collected from 33 large manufacturing firms located in Nairobi. . The data was analysed using descriptive statistic an! correlation analysis. The chi-square test was carried out as a further test of association. To facilitate the chi-square test, one set ofhypothesis was formulated, namely; the null hypothesis was that strategy and structure are independent of one another. The alternative hypothesis was that strategy and structure are interdependent. The results indicate that significant changes have taken place both in strategy and structure among the companies studied over the last ten years. There is a positive relationship between strategy and structure among the companies studied. Changes in strategy and changes in structure are interdependent in these companies.