Analysis of the Factors Affecting Strategy Implementation in Microfinance Institutions in Kenya A Study of KWFT

A Research Project Report Submitted to the School of Business in Partial Fulfilment of the Requirements for the Award of the Degree of Master in Strategic Management (MBA)The study sought to analyze the factors affecting strategy implementation in Microfinance Institutions.The study is carried out in order to achieve the following objectives:to investigate the effect of commitment of the top level management on strategy implementation in MFIs in Kenya, to investigate the effect of communication on strategy implementation in MFIs in Kenya, to establish the effect of coordination of activities on strategy implementation in MFIs in Kenya, and to determine the effect of organizational culture on strategy implementation in MFIs in Kenya. This research adopted a descriptive approach on the factors affecting strategy implementation in MFIs registered with the Association of Microfinance Institutions (AMFI) in Nairobi, Kenya. The target population of this study composed of the management staff of the Microfinance institutions. Simple random sampling technique wasused to get a sample size andprimary data wascollected directly from the management staff. A questionnaire was used to gather answers from the staff which included ‘yes’ and ‘no’ questions and also questions that required sentence long answers. To search for the relationship between strategy implementation and variable of the study, the researcher used a multiple regression analysis. The intended total population for this study was300 staff management. Stratified random sampling was utilized to select a sample size of 90respondents.By the use of questionnaires the researcher was able to collect quantitative data which was analyzed using descriptive statistics using SPSS and presentation of the findings was done using tables, pie charts and bar graphs. The study showed that commitment of top management correlate well with strategy management. Some of the major findings included: 74.9% of the total respondents believed that commitment of top level management contribute heavily on strategy implementation. 45.8% of the respondents agreed that top managers usually demonstrate their willingness to give energy and loyalty to the implementation process for it to succeed. 51.8% of the respondents believed that top management’s commitment to the strategic direction is important. Majority of the respondents agreed that departmental heads do give support to their subordinates. The study also found out that communication is a great factor in strategy implementation in micro finance institutions which is shown by 78% of the respondents agreeing to the statement. 62.4% of the respondents agreed that coordination of activities is a factor that contributes to strategy implementation in microfinance institutions. In conclusion, it is clear that commitment of the top level management, communication, coordination of activities, and organizational culture effect on strategy implementation in MFIs. The study recommends that MFIs management should ensure there are mechanisms which enhance the commitment of the top management in the organizations operations, also the level of communication should be upgraded to ensure efficiency and effectiveness. The management should ensure that all operations of the organization are well coordinated and there should be no activity that conflicts with another, there should be harmony always, also the organizational culture should be observed and it should be for the benefit of achieving organizational goals and objectives