The effect of strategy structure alignment on the performance of transport firms in Mombasa county

Abstract

The relationship between strategy and structure is key and crucial to organizations and their strategic competitiveness. Dynamic environments characterized by technological, economic, and political change increasingly requires organizational agility among Kenya’s organizations. Perhaps a primary indicator of this need is the growing customer demands and increased use of management tools like strategic planning, total quality management, and reengineering that assist administrators in creating strategic, long-term, and outcome-oriented approaches to problem solving. While these management tools are useful, and in most circumstances appropriate to effectively manage an agency, management literature points to the importance of organizational structure as a powerful force influencing agency behaviors. The objective of the study was to establish the effect of strategy structure-alignment on the performance of the transport firms in Mombasa. The study was informed by theoretical and literature reviews. A census cross-sectional survey was adopted in this study so as to include all the transport firms in Mombasa, with a target population of 125 firms. As a result, a survey was deemed as the best design to fulfill the objective of the study. The study made use of primary data which was collected through a semi-structured questionnaire and the data obtained was analyzed using descriptive and inferential statistical analysis. This method of analysis was adopted because of the quantitative nature of the response acquired. The study had a response rate of 84.0%. The study found out cost reduction in service delivery, improving on existing products, and aspiration for new opportunities as main strategic alignment factors affecting the alignment in the surveyed firms. Most of the firms operated on a decentralized organization structure. The performance indicators relating to strategy structure alignment were profit before tax, increase in cargo volumes and return on total assets. In light of the findings the study recommends there is need to focus on employee involvement and participation in organizational structure issues, constant communication, change management training, and adequate strategic planning, as these seem to be hampering factors in the strategy and structure relationships and implication. This will enable these firms to attain the full benefit of strategy-structure alignment in their respective organizations