EFFECT OF STRATEGIC PLANNING PRACTICES ON PERFORMANCE OF STATE CORPORATIONS IN KENYA: A CASE OF AGRICULTURAL FINANCE CORPORATION
Abstract
Strategic planning practices enables an organization to perform relatively well in regards to competition in the industry. Agricultural Finance Cooperation like any other state corporation is faced by numerous challenges in regards to strategic planning as well strategy implementation which adversely affect their service delivery. This study sought to analyze the effect of strategic planning practices on performance of state corporations a case of Agricultural Finance Corporation. The study focused on strategic planning practices such as stakeholders’ involvement, top management support and environmental scanning and how they affect the performance of Agricultural Finance Cooperation (AFC). The study adopted an explanatory research design and targeted 157 employees who were drawn from top and middle level management using census. Data was collected using structured questionnaires which were self-administered. The validity and reliability of the questionnaires were tested after piloting 16 questionnaires at Agricultural Development Corporation. Inferential and descriptive statistical data was analyzed using SPSS version 24 software. Result of multiple regressions revealed that strategic planning practices jointly and independently influenced performance of Agricultural Finance Corporation. Jointly the four constructs namely stakeholders’ involvement, top management support and environmental scanning contributed 65.1% of the variation in performance of Agricultural Finance Corporation. The study constructs were also positively and significantly related to performance of AFC and this led to the rejection of the null hypothesis. This implied that the management of AFC and as well as other state corporations should pay high premiums in strategically formulating and implementing strategic practices through policies which can enhance their performance. In this regard AFC as well as other private or public institutions should formulate policies which strengthen their strategic planning practices to achieve high performance.
Key words: Strategic Planning Practices, Organizational Performance
CITATION: Muhsin, H. H., Mandere, E. N., & Onyango, R. O. (2020). Effect of strategic planning practices on performance of state corporations in Kenya: A case of Agricultural Finance Corporation. The Strategic Journal of Business & Change Management, 7(3), 789 – 808.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1708
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