INFLUENCE OF STRATEGY FORMULATION PRACTICES ON ORGANIZATION SUCCESS AT AIRTEL LIMITED, KENYA

SAMSON REX MABUKA, DR. VERONICAH KALUYU (PhD)

Abstract


This study determined the influence of strategy formulation on the organizational success at Airtel Company Limited. The target population was 184 respondents, who were permanent employees working at their head offices in Parkside Towers, Nairobi County.  A consensus survey was used to determine the target population. The response rate was 139 questionnaires representing 76%. The study collected the primary data using structured questionnaires. Data were analyzed using inferential statistics including correlation, ANOVA, and multiple regressions. Basically, it was found out that Environmental analysis practices influence organizational success, specifically that the organization periodically gather and analyses data about market and other external factors which affect the business as supported by a mean of 2.178 and a standard deviation of 0.820. By and large Stakeholders' involvement practices improve the strategy formulation process and therefore it facilitates the smooth running of the process hence organizational success. It was found out that the organization has improved its decision-making process through stakeholder’s involvement as supported by a mean of 2.123 and standard deviation of 0.638. On the whole strategy formulation process strategic choice practices were found to be possible through generating alternatives through Employee’s suggestions as supported by a mean of 4.012 and a standard deviation of 0.869. Results from the study showed that the Environmental analysis practices and organizational success (β =0.253), Stakeholders’ involvement practices and organizational success showed a statistically significant influence on organization success at Airtel in Kenya, (β=0.053), And Strategic choice practice and organizational success (β=0.363) showed that a significant influence existed between the variables. The research concluded that strategy formulation practices can influence organizational success. Airtel Kenya Limited just like other Telecommunication industries develop a scheme of service that ensures Environmental analysis practices, Stakeholder involvement practices, and Strategic choice practices are based on merit. The study recommended that Airtel Kenya limited should invest in relevant training schedules and programs that are accorded to all staff fairly that would enhance mastering strategy formulation process.

Key Words: Environmental Analysis, Stakeholder Involvement, Strategic Choice

CITATION:  Mabuka, S. R., & Kaluyu, V. (2022). Influence of strategy formulation practices on organization success at Airtel Limited, Kenya. The Strategic Journal of Business & Change Management, 9 (1), 346 – 369.


Full Text:

PDF

References


Abdirizack, H. F. (2017). Influence of stakeholder’s involvement on strategic planning process of money remittances company in Kenya. Retrieved from http://htl.handle.net/11295/102690.

Abdi, M., & Sang, P. (2020). Project Planning and Implementation of Projects at Safaricom Limited in Mombasa County, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 2(3), 114-127. https://doi.org/10.35942/jbmed.v2i3.142

Agwu, E. (2019). The impact of the stakeholder analysis of the organization's performance in Nigeria financial institution. International Journal of Strategic Decision Sciences.10.64 80.10.4018/IJSDSC.2019100104.

Alkhlaifat, B., & Magassouba, S. (2019). Influence of involving stakeholders in the development performance of projects in Guinea.9.1111-1120.10607/IJARBSS/v9-i1/5513.

Antono, S. (2016). Stakeholders mapping in the provision of youth- friendly reproductive health services in Indonesia. Journal of Health research, 30,377.

Asser, J., Waiganjo, E., & Njeru, A. (2018). Influence of environmental scan on the performance of commercial based state parastatals in Kenya. The strategic business and change journal of management Vol 5, Iss. 3, pp 555-581

Ayuba, B., Aina, O., & Kazeem, (2015). The role of marketing research on the performance of business organizations.

Ayuya, A., & Ombaka, B. (2016). Strategic Choice, Top Management Team process and Firm Performance. A critical Literature Review. 4.32-39.

Bae, H. S. (2019). The effect of strategic information systems on the performance of the organization. An analysis of Gaps in performance. The Asian Journal of Shipping and Logistics, 35(2), 108-117.

Buertey, J., Amofa, D., & Atsrim, F. (2016). Stakeholders’ management on the construction projects: A key indicator for projects success, American journal of civil engineering, 1(3) 9-12

Butali, P., & Njoroge, D. (2018). The impact of employee engagement on organizational performance. International Journal of Research in Management, is Extracted from https://doi.org/10.18535//ijsrm//v6i6.ei015.

Carvalho, D. M., Guaridofilho, E., & Almeida, V. A. (2018). The organizational effectiveness and strategic inertia. 25(1), 25-46.

Chijioke, N., & Olatunji, F. (2018). The impact of the strategy-formulation factors on the strategic business drivers of an organization, 12(2), 15-25.: dx.doi.org/10.26552/ems.2018.2.15-25.

Christensen, C. M., Raynor, M., & McDonald, R. (2015). What is a strategic choice? Published by the Harvard business school. Boston, Ma.

Creswell, J. W., & Hirose, M. (2019). Mixed-methods research and studies in the field of family medicine and public health. Family Medicine and Public Health, 7(2).

Crow, P., & Lockhart, J. (2016). The control of the board of Directors on the organization's performance. Proceedings of the International Conference of Management, Leadership and Governance, Vol. 37, no. 8, pp. 1022-1037. (HTTP;//DOI.IF/10.1118/LODJ-08-20140168

Emmanuel et.al (2016) The Effect of Strategic Choices and Management Control Systems on Organizational Performance, Proceedings of the ANPAD conference Blo Horizonte, Brazil.

Galaz, W. (2015). The social-ecological Constraints and Social Conflicts, Settings, and adaptation strategies in the Swedish Water Resources Management, Ambio 34(7): 567-572. http://dx.doi.org/10.1579/0044-7447-34.7.567

George, B., Desmidt, S., Cools, E., & Prinzie, A. (2018). Cognitive styles, the setting, and the engagement of strategic planning in public institutions. An empirical analysis. Public Administration Review, 20(3): 340-59). DOI: 1080/1419037. 2017. 1285112.

Gituma, M. M. (2017). Effect of Marketing Mix on Sales Performance: Case of Unga Feed Limited. Research Project Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA), 1-77

Grewal, R., Gupta, S., Hamilton, R., (2020).: Spanning the domains of marketing scholarship. Journal of Marketing Research.;57(6):985-998. doi:10.1177/0022243720965237.

Hax, A.C., & Majluf, N.S (2016). The strategy concept and process: A pragmatic Approach, 2nd ed., Prentice-Hall, Englewood Cliff, NJ.

Ibrahim, A. W., Akyoo, A. M., & Kanuya, N. L. (2018). The Analysis of the performance of the marketing of the dairy value chain in Tanga city, Tanzania. Tanzania Journal of Agricultural sciences, 17(2).

Ighoro, A., Alfred, S. D., & Fasina, O. O. (2017). Implication of skill gap analysis among cassava farmers in the Niger Delta Region of Nigeria. Journal of Agricultural extension, 21(2), 54-66.

Johnson, B. T. (2020). Generating Alternative Solutions when Depression is the Problem.

Josabeth, H., & Carl, E (2017). The impact of patient participation in the decision-making process at the heart of preventive Medicine, Scandinavian Journal of Primary Health Care, 35:3231 239.

Kalu, D., & Rugami, J. (2021). Impact of stakeholders ' participation in the implementation of the project. International Journal of Enterprise Management, Entrepreneurship and Innovation, 3(1), 78-90. https://doi.org/10.35942/jbmed.v3i1.166

Kamau, Martha, and Kavale. (2015). Factors that influence the choice of the airline industry in Kenya is a social study Kenya Airways. 3.38-98.

Kamau, G., Aosa, E., Machuki, V., & Pokhariyal, Ganesh, (2018). The impact of corporate governance on the strategic performance of a financial institution in Kenya. International Journal of Business and Management. 13.169.20105539/ijbm. v13n7p169

Kanyeria, R., & Karugu, J. (2020). The influence of the external environment on the success of the projects in Kenya. International Journal of Enterprise Management, Entrepreneurship and Innovation, 2(1), 1-16. https://journals.ijcab.org/journals/index.php/jbmed/article/view/96

Kazeem., & Olalekan. (2018). The role of marketing research on the performance of business organizations. European Journal of Business and Management. ISSN 2222-1905

Kim, Sora & Ji, Yingru. (2018). Gap Analysis. 1-6. 10.1002/9781119010722.iesc0079. The International Encyclopedia of Strategic Communication. DOI: 10.1002/9781119010722.iesc0079

Kothari, C. R., & Gang, W. (2014). Research methodology: Methods and techniques. New Delhi: New Age International (P0 publishers Ltd.

Kowo, S., Olalekan S., & Popoola, M. (2018). The influence of the external environment on the organization's performance. International Journal of Advance Research and Innovative Ideas in Education, 4, 498-505.

Kuznetsova, N. V., Alekseeva, E. A. (2016). The influence of the external environment on the growth of the business. International Scientific and Practical Conference, 417-423.

Leon, J., Martina, D., & Charles, R. (2017). Impact on the environment, and the testing of the effectiveness of the measures taken in the fight against HIV / AIDS, in the Nyanza region. International Journal of Business and Social Science Research, vol. 7 (2), pp. 126-144, Feb.

Lewis, S. (2015). The quality of Research and Research Design: Choosing one of the Five Approaches to Health Promotion Practice, 16(4), 473-475.

Mang’ana, R. O., Rotich, D. G., Hassan, D. G., & Orwa, P. G. (2017). Influence of strategic position analysis on performance of matatu savings and credit cooperatives in Kenya. European Journal of Business and Strategic Management, 2(7), 21–43. Retrieved from https://www.iprjb.org/journals/index.php/EJBSM/article/view/475

Mayaka & Oloko, (2018). The cognitive strategies adopted by Airtel Ltd., Kenya, in order to retain customers. International Journal of the Social Sciences, and Information Technologies IN the 2412-0294 volume 4, number 4.

Mbithe, E. & Kilika, J. (2017). External environment and the implementation of

customer focus strategy in Equity Bank Kenya Limited. International Academic Journal of Human Resource and Business Administration, 2(4), 282-305

Mohd, Z. A. (2017). The influence of marketing orientation on organizational performance: a case study in Terengganu. Journal of Applied and Fundamental Sciences. 9.

Migwi, C. M. (2018). The impact of teacher participation in decision-making in the public secondary schools in Nyeri, Nairobi, Kajiado counties, Kenya.

Muchemi, R. N. (2016). An alternative strategy adopted by Kenya Airways. The International University of the United States of America-Africa.

Mung’atu, J., & Mulyungi, P., (2017), The impact of the participation of the interested parties on the expected revenue. A case of a water project in Rwanda. European Register of Enterprises and the Social Sciences. 6.195-206.

Muraguri, C. W. (2016). The measurement of the implementation of the strategic plan and the performance of the university in the country.

Mukonambi, D. W. (2016). To participate in the goal-setting has an effect on the performance of the employees of the Kenya seed company in Kitale. Retrieved from http://ir.mu.ac.ke:8080/xmlui/handle/123456789/1089

Mwangi, W., & Gakobo, I. (2019). The determinants of organizational strategic plan implementation a case of the cooperative bank of Kenya. European Journal of Business and Management. ISSN 2222-1905 ISSN 2222-2839

Vol.11, No.32, 2019

Njoroge, J, K, Ongeti, W. J., Kinuu, D., and Kasomi, F. M. (2016). Does External Environment Influence Organizational Performance? Journal of Management and Organization Research, 3(3), 41-51.

Nnamani, E., & Ozobu, A. (2015). Effect of Strategy Formulation on Organizational Performance: A Study of Innoson Manufacturing Company Ltd Emene, Enugu. World Journal of Management and Behavioural Studies 3 (1): 09-20

Nyabinda, R. B. (2016). the challenges of the development of the strategy at Simba Corporation Ltd., Kenya (doctoral dissertation, University of Nairobi). http://hdl.handle.net/11295/100360

Nwachukwu, C. & Fadeyi, O. (2018). The impact of the development of the strategy and the process of innovation performance on the nexus. International Journal of Quality of Research 12. 10.18421/IJQR12.01-09.

Ochieng, P. (2018). External environmental factors influencing financial performance of Kenya airways.

Okoth, J. D. (2016). The Impact of the involvement of the relevant stakeholders in the development of an organization's strategy, in Mombasa, Kenya (doctoral dissertation, University of Nairobi).

Oloo, P. A., & Bula, H. (2016). The Impact of a lower-level employee participation in the decision-making process in Kenya's retail market. An empirical study of Uchumi supermarket in Nairobi.

Omar, S., & Moi, A. (2020). The functions of the public participation in the implementation of development projects in Kenya: a sociological study of the water projects in the Wajir District of general Government. International Journal of Law and Society, 1(2), 68-84.

Omondi, J. K., Kinoti, J. K. (2020). The participation of stakeholders in the implementation of the road the construction of the projects in the Kilifi region, Tanzania. International academic Journal of Information Sciences and Project Management, 3(6), 274-292.

Ouma, O. W., & Mburu, D. (2017). Role of stakeholders’ involvement in sustainability of constituency development fund projects in Kenya case of Nakuru town east constituency. international journal of entrepreneurship and project management, 2(3), 1–13. retrieved from https://www.iprjb.org/journals/index.php/ijepm/article/view/506

Oyoolo, J. D., & Bett, S. (2017). Competitive strategies and the efficiency of the pharmaceutical industry-organizations: the example of the Pharmaceutical Group Limited, Nairobi, Kenya. The International Journal of Human Resource and Enterprise Management, 2(4), 156-173

Pius, N. (2018). The relationship between strategic choice and to increase the effectiveness of a Cooperative, Contributing, in Kenya, International Journal of Arts and Commerce. SSN 1929-7106. a www.ijac.org.uk 64.

Pourmohammadi, K., Bastani, P., Shojaei, P., Hatam, N., & Salehi, A. (2020). comprehensive environmental scanning and strategic analysis of Iranian Public Hospitals: a prospective approach. BMC Research Notes. 13. 10.1186/s13104-020-05002-8.

Purity В., Ndegwa, M., Kilika, Stephen M., (2019). The Moderating Role of External Environment on the Relationship Between Resource Isolating Mechanism and Sustainable Competitive Advantage International Journal of Management, 10 (3), 2019, pp. 50-59. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=10&IType=3

Rüzgar & Nilüfer. (2018). The effects of decision-making styles of leadership on employee’s knowledge sharing within the organization. 17-30.

Staicu, D., & Pop, O. (2018). Mapping the interactions between the stakeholders of the circular economy ecosystem applied to the textile and apparel sector in Romania. Management & Marketing. 13. 1190-1209. 10.2478/mmcks-2018-0031.

Täks, V., & Vadi, M. (2019). Who and how do participate strategic planning?," Discourses in Social Market Economy 2019-03, Ordnungs Politische Portal (OPO).

Tavakol, Mohsen & Dennick, Reg. (2011). Making Sense of Cronbach's Alpha. International Journal of Medical Education. 53-55. 10.5116/ijme.4dfb.8dfd.

Van der Hoek, M., Groeneveld, S., & Kuipers, B. (2018). the effect of goal-setting, and efficiency in the public sector. Review of human resource management 38 (4), 493 472. https://doi.org/10.1177/0734371X16682815

Wamugu, J., & Ogollah, K. (2017) The Role of stakeholder participation in the performance. a case of the financing of the development projects in Mathira East constituency in Kenya, the International Academic Journal of Information Sciences and Project Management, 2(1),

Wernerfelt, B. (1984), A Resource-Based View of the Organization. Journal of global Strategic Management, Vol. 5, pp. 171-180.

Yin, R. K. (2017). Example of a research, and applications of a Project and its methods. Sage publications.

Zainuddin, Z., Suhada, B. N., Suffian, M. A., Adila, H & Adlin, M. H. (2017). The effect of marketing orientation on the organizational effectiveness in Terengganu. Journal of Basic and Applied Sciences. 9 (5S), 932-944.




DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2188

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.