Factors affecting strategy implementation in state corparations in Kenya

The purpose of this study was to develop and empirically test a hypothetical model of factors impacting strategy implementation in state Corporations in Kenya in order to establish their statistical significance. To achieve effectiveness and efficiency in strategy implementation in state corporations, change is needed. 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 characterised 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 is therefore a need to investigate ways to improve strategy implementation in state corporations, collectively viewed in this study as factors affecting strategy implementation. The study investigated and analysed how the independent variables (internal-, market- and external) impact strategy implementation (dependent variable). The study reviewed literature in the areas of internal-, market- and external factors supported by Louw and Venter‟s (2006), the planning context environmental scan (2010), Zaribaf and Hamid‟s drivers for implementation outcomes (2010), and the Nortel network external environment (2010) models as presented in section 1.5 of chapter one. The hypothetical model developed was based on the models mentioned. The study sought to establish the perceptions of Kenyan state corporation‟s managers and utilised the quantitative research paradigm. A survey was conducted using a self-administered questionnaire distributed to managers in state corporations in Kenya. The final sample comprised 485 respondents. Data was collected between October, 2012 and February 2013, that is, a period of five months. The returned questionnaires were subjected to several statistical analyses. The validity of the measuring instrument was ascertained using exploratory factor analysis. The Cronbach‟s alpha values for reliability were calculated for each of the factors identified during the exploratory factor analysis. In this study, correlation and exploratory factor analysis, the KMO measure of sample adequacy, Bartlett‟s test of sphericity, Kolmogorov-Smirnov test for normality, multi-colinearity diagnostic and regressions were the main statistical procedures used to test the appropriateness of data, correlation and significance of the relationships hypothesised between the various independent and dependent variables. The study identified twelve independent variables as significantly impacting the strategy implementation (dependent variable) of state corporations in Kenya. Five statistical significant relationships were found between the internal factors: organisational structure, human resources, financial resources, leadership, communication and strategy implementation in state corporations in Kenya. Three statistical significant relationships were found between the market factors: customers, suppliers, labour market and strategy implementation in state corporations in Kenya. Four statistical significant relationships were found between the external factors: social-cultural, technology, ecological, global forces and strategy implementation in state corporations in Kenya. The study also found three statistically insignificant variables. It was found that managers in state corporations in Kenya should be encouraged to study and clearly understand the culture of their state corporations in order for them to believe that organisational culture could have a significant impact on strategy implementation and that the culture of their corporation needs to be compatible with the strategy being implemented, because where there is incompatibility between strategy and culture, it can lead to high organisational resistance to change. The managers should also be made to understand that organisational culture shapes employees behaviour, guides strategic decisions and accommodates proposed changes and that When culture influences the actions of employees to support current strategy, implementation is strengthened. Managers should strive to achieve competitive advantage by offering distinctive or unique products or services that clearly add value to the customers. They should be made aware that the strategies of competitors who offer unique service to the customers could derail their strategy implementation. State corporation managers should acknowledge that severe competition results in pressure on prices, margins and profitability for all state corporations. There is a need for managers to ensure that the state corporation strategies are supported and aligned with government policies, directives and programmes. They should actively lobby with government to enact good policies and directives that support strategy implementation. The study has provided general guidelines at internal environmental level on how to implement strategies effectively and efficiently in state corporations in Kenya. Furthermore, general operational guidelines at market level for improving strategy implementation have been given for such corporations to become and remain competitive in the global market place. The study has also highlighted general guidelines regarding managing external environmental factors to assist in improving strategy implementation in state corporations in Kenya