DETERMINANTS OF STRATEGY IMPLEMENTATION IN STATE CORPORATIONS IN KENYA; A CASE OF LOCAL AUTHORITIES PROVIDENT FUND (LAPFUND) MOMBASA BRANCH
Abstract
This study examined the determinants of strategy implementation in public corporations in Kenya; A case of local authorities provident fund (LAPFUND) Mombasa Branch. This study adopted a descriptive case study research design. All the 95 employees from the various departments made the study population. The sample size in this study was obtained by use of the calculations in Krejcie and Morgan table of 1970. From the table, when N (target population) =95, sample sizes (s) was 76. The researcher used research questionnaires to gather primary data. In this study, the hypothesis was tested by exploring the multiple regression analysis that established the relationship between leadership, communication, organization culture as the independent variables, and organization structure; and strategy implementation as the dependent variable. Correlation coefficient was used to analyze the strength of the relations between variables. Results indicated that majority of the respondents came from the operational or lower level of management with 44.3%, followed by 31.4% who were middle level management while the top management constituted of 24.3% of the total respondents. In testing the hypothesis for the first objective that touched on leadership, leadership was found to have statistically significant influence on strategy implementation. In relation to the objective that touched on communication, in testing the hypothesis, communication was found to have statistically significant influence on strategy implementation. As per the third objective, in testing the hypothesis, organizational culture was found to have statistically significant influence on strategy implementation. Finally, in testing the hypothesis, organizational structure was found to have statistically significant influence strategy. The research recommended for all government agencies to consider leadership that has skills that are best suited for strategy success, adopt enabling communication channels and form of message, strengthen organizational culture and clearly outline the organizational structures.
Key Words: Leadership, Communication, Organisational Culture, Organizational Structure, Strategy Implementation
CITATION: Sunza, A., & Simba, F. (2021). Determinants of strategy implementation in state corporations in kenya; A case of Local Authorities Provident Fund (LAPFUND) Mombasa branch. The Strategic Journal of Business & Change Management, 8 (1), 326 – 346.
Full Text:
PDFReferences
Abdalla S. (2017). Factors Affecting Implementation of Strategy in the Kenyan Oil Marketing Industry: A Case of Libya Oil Kenya Ltd. United States University.
Aaltonen, P., & Ikavalko, H. (2016). Implementing strategies successfully.” Integrated Manufacturing Systems, 13(6), 415-418.
Abdulwahid S., Muhamad K. U, Sehar Z., Arshad M. S. and, Iftekhar K. (2017) why do public Sector organizations fail in Implementation of Strategic Plan In Pakistan, Journal of Public Policy and Administration Research, Vol.3, No. I, 2013
Ahmadi, S, A., Salamzadeh, Y., Daraei, M., & Akbari, J. (2017). Relationship between Organizational Culture and Strategy Implementation: Typologies and Dimensions. Global Business and Management Research: An International Journal, 4(3-4), 286- 299.
Alexander P. et al. (2018). Organizational culture types and their effects on organizational performance in Turkish hospitals. Emerging Market Journals, 3(3), 18-30.
Amrule A. (2016). Effect of Strategic Planning on the Performance of Small and Medium Enterprises in Kenya. Business Administration Department: Kenyatta University
Andrews R. (2016). Strategy Implementation and Public Service Performance. citeseerx.ist.psu.edu/ viewdoc/download?doi=10.1.1.870.2876&rep=rep1.
Andrews, R., Beynon, M., & Genc, E. (2017). Strategy implementation style and public service effectiveness, efficiency and equity. Administrative Sciences, 7(1), 4.
Aaltonen H. & Ikavalko, P (2016). Implementing strategies successfully. Article (PDF Available) in Integrated Manufacturing Systems 13(6):415-418 • September 2002with 2,249 Reads DOI: 10.1108/09576060210436669
Ansoff H. I. (2014). Empirical proof of a paradigmic theory of strategic success behaviors of environment serving organizations. International Review of Strategic Management. 4, 0074 JW. Chap. 9, 173-203.
Arayesh, M. B., Golmohammadi, E., Nekooeezadeh, M., & Mansouri, A. (2017). The effects of organizational culture on the development of strategic thinking at the organizational level. International Journal of Organizational Leadership, 6, 261- 275.
Baroto M. (2016). Effective Strategy Implementation.www.joams.com/uploadfile/2013/1225/ 20131225044203610.pdf
Berg, B. (2015). Qualitative Research Methods for the Social Sciences (3rd ed.). Boston: Allyn & Bacon.
Bertranou, A. (2017). Is Latin America retreating from individual retirement accounts? http://www.social-protection.org/gimi/gess/ShowTheme.do?tid=1789
Bourgeois L. and Brodwin R. (2017). Strategic implementation: Five approaches to an elusive phenomenon. https://doi.org/10.1002/smj.4250050305
Brenes, E.R., Mena., M. & Molina, G.E. (2017). Key success factors for strategy implementation in Latin America. Journal of Business Research, 1-9.
Brinkerhoff, D. W. & Brinkerhoff, J. M. (2015). Public Sector Management Reform in Developing Countries: Perspectives Beyond NPM Orthodoxy, Public Administration Development, 35, 222–237. 166
Cooper, D. R & Schindler, P.S (2013). Business research methods, (12th ed.). Irwin; Mc Graw-Hill
Chemutai P. (2018). Strategy Implementation at Standard Chartered Bank of Kenya. School Of Business. University of Nairobi.
Cherop, K. E. (2017). Factors influencing implementation of reforms in the water sector in Mombasa County, Kenya, University of Nairobi.
Cochran, W. G. (2012). Sampling Techniques, (3rd Ed), New York: John Wiley & Sons.
Cherop, K.E. (2018). Factors influencing implementation of reforms in the water sector in Mombasa County, Kenya, University of Nairobi.
Cooper D and Schindler P. (2014). Business Research Methods. 12th Edition. McGraw-Hill Education.
Creswell, J. (2015). Concise introduction to mixed methods research. Los Angeles, Ca: Sage.
Creswell, J.W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches, (4th Ed); Washington D.C; Sage Publication, Inc.
David, F. G., Patrick, W.S., Phillip, C.F., & Kent, D.S. (2017). Strategic Alliances and Inter-Firm Knowledge Transfer, Strategic Management Journal, 17(5), 77-91.
Demirkaya, Y. (2015). Strategic planning in the Turkish public sector. Transylvanian Review of Administrative Sciences, 15-29
Dooley, R.S., Fryxell, G.E., & Judge, W.Q. (2014). Belaboring the Not-So-Obvious: Consensus, Commitment, and Strategy Implementation Speed and Success. Journal of Management, 26, 1237–1257.
Government of Kenya. (2018). Factors Affecting Strategy Implementation: A Case Study of LAPFUND agency in the NSSF. Government Printers
Elbanna, S., Andrews, R., & Pollanen, R. (2016). Strategic planning and implementation success in public service organizations: Evidence from Canada, Public Management Review,18 (7), 1017-1042.
Ellah G. (2018). Factors Influencing Strategy Implementation In Community Based Organizations In Seme Sub - County, Kenya. School Of Business, University Of Nairobi.
Ferlie, E., & Ongaro, E. (2015). Strategic management in public services organizations: Concepts, schools, and contemporary issues. London: Routledge.
Freeman, R. E. (2017). Strategic management: a stakeholder approach. ed. Cambridge, Cambridge University Press.
Fuller, Simmering, Atinc and Babin (2015),. Definition of Empirical Literature Review. www.iiste.org ISSN 2222-1915 (Paper) ISSN 2222-2839 (Online) Vol.7,No.15, 2015
Floyd, S.W., & Wooldridge, B. (2015). Managing Strategic Consensus: The Foundation of Effective Implementation. Academy of Management Executive, 6, 27-39.
Gachua, M., & Mbugua, D. (2016). Factors Affecting Strategy Implementation in Private Universities in Kiambu County, Kenya; International Journal of Management and Commerce Innovations, 4, (2), 118-122.
Gebhardt, K. M., & Eagles, O.S. (2016). Factors leading to implementation of strategy plans for parks and recreation in province of Ontario, Canada: Chicago: American Library Association.
George, B., & S. Desmidt. (2017). A state of research on strategic management in the public sector: An analysis of the empirical evidence. In P. Joyce and A. Drumaux (Eds.), Strategic management in public organizations: European practices and perspectives, New York: Routledge.
George, B., Desmidt, S., Cools, E., & Prinzie, A. (2017). Cognitive styles, user acceptance and commitment to strategic plans in public organizations: an empirical analysis. Public Management Review, 1-20.
Genc, E. (2017). Strategy Implementation, Organizational Culture and Performance in Turkish Local Government, Unpublished PhD Thesis, Cardiff University.
Griffin, R. W. (2013). Management. USA: Cegage Learning.
Higgins, J.M. (2005). The Eight, S’s of Successful Strategy Execution. Journal of Change Management, 5, 3–13.
Hrebiniak, L.G., (2017). Obstacles to effective Strategy Implementation, Organizational Dynamics, 35, 12-31
Hrebiniak, G. L. (2017). Making strategy work: Leading effective execution and change. New York, FT Press.
Imbali, T. Muturi, W., & Abuga, M. V. (2016). Factors Influencing Strategy Implementation in The Tourism Industry: A Study of Maasai Mara National Park in Kenya, European Journal of Business and Management, 8 (7), 2016-2031.
Judge, W.Q., & Stahl, M.J. (2017). Middle-Manager Effort in Strategy Implementation: a Multinational Perspective. International Business Review, 4, 91-111.
Kalali S. Anvari M. Asghar A. and Karimany. (2017). Why does Strategic plans implementation fail? A study in the health sector of Iran, Vol. 5 (23), pp 9831-9837, 7 October, 2011
Kerlinger F & Lee N. (2000). Foundations of Behavioral Research. https://books.google.com › Psychology › Research & Methodology
Kihara M. (2016). Influence of Strategy Implementation on the Performance of Manufacturing Small and Medium Firms in Kenya. PhD Thesis. Jomo Kenyatta University of Agriculture and Technology.
Kipkogei A. (2016). Determinants Influencing the Likelihood of Risk Management Strategies Adoption by Pension Schemes in Kenya. http://ir.jkuat.ac.ke/bitstream/handle/ 123456789/1209/Aiyabei%20% 2c%20Jonah%20Kipkogei-PhD%20BUSINESS%20ADMINISTRATION 2013.pdf?sequence
Kipchirchir and Kipkorir. (2015). Factors Influencing Strategy Implementation at the National Treasury Ministry in Kenya. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.7, No.10, 2015
Kitutu, M. (2018). Challenges of strategy implementation at the ministry of roads and public works in Kenya, Unpublished MBA, University of Nairobi.
Koech, A. K & Were, S. (2016). Factors Influencing Strategy Implementation at the National Treasury-Kenya; The Strategic Journal of Business & Change Management, 4 (15), 269-288. 169
Kothari C. R. (2014). Research Methodology: Methods and Techniques. (3rd Ed). New Delhi: Vishwa Parakashan.
Kweri, F.N. (2017). Challenges of Strategy Implementation at Ritho Farmers’ Cooperative Society (Unpublished MBA Project). School of Business, University of Nairobi, Kenya.
Lares-Mankki, L. (2018). Strategy Implementation Bottlenecks: Identification, Analysis and Removal, Lappeenranta; Lappeenranta University of Technology.
Macharia, J.M. (2017). Strategy Implementation at Chase Bank Limited, Kenya (Unpublished MBA Project). School Of Business, University of Nairobi.
Madegwa S. (2016). Factors Affecting Strategy Implementation In Government Parastatals: Case Of National Cereals And Produce Board Of Kenya. http://ir.kabarak.ac.ke:8080/bitstream/handle/ 123456789/483/Grace%20Shivisa.pdf? sequence=1&isAllowed=y
Mumbua, N. J., & Mingaine, L. (2015). Factors Influencing Implementation of Strategic Plans in the Municipal Council of Machakos, Kenya; International Journal of Art & Humanity Science (IJAHS), 2 (3), 11-21.
Mwajuma A. (2016). Factors Affecting Effective Implementation of Strategic Plans in Non-Governmental Organizations in Kenya. http://ir.jkuat.ac.ke:8080
Mwangi K. (2015). Determinants of strategy implementation in the insurance industry in Kenya. http://ir.jkuat.ac.ke
Mugambi F.& Murugi M. (2014). Factors affecting successful strategy implementation in the Water Sector in Kenya. IOSR Journal of Business and Management (IOSR-JBM) e- ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 7. Ver. III (July. 2014), PP 61-68 www.iosrjournals.org
Mugenda, O.M., & Mugenda, A.G (2003).Research Methods, Quantitative & Qualitative Approaches, Acts Press, Nairobi
Mugenda, O.M., & Mugenda, A.G (2008).Research Methods, Quantitative & Qualitative Approaches, Acts Press, Nairobi
National Industrial Training Authority. (2017). National Industrial Attachment Training Scheme. Industrial Attachment Contract. The Industrial Training Act Cap 237 Laws of Kenya
Okwachi .(2016). Effect of Managerial Practices on the Implementation of Strategic Plans by SMEs in Nairobi, Kenya. https://www.iiste.org/Journals/index.php/EJBM/article/view/5641
Onyango, O.D. (2017). Factors influencing the implementation of strategies in the Kenya Sugar Industry (Unpublished MBA Project). School of Business, University of Nairobi, Kenya.
Oslon, E. M., Slatter, S. F., and Hult, G. T. (2015) „The importance of structure and process to Strategy Implementation, Business Horizons, 48, 47-54
Oyugi, P.L. (2016). Factors affecting Implementation of strategies in Government Community Units in Kenya. (Unpublished MBA Project). School of Business , University of Nairobi, Kenya.
Pearce, J.A. and Robinson, R.B. (2016). Strategic Management; Formulation, Implementation, and control, 11th Edition. London: Irwin Inc.
Pwc. (2016). 10 Principles of Strategy through Execution: How to link where your company is headed with what it does best. www.pwc.com/structure
Quangyen C. &Yezhuang. B. (2017). Organizational Structure: Influencing Factors and Impact on a Firm. American Journal of Industrial and Business Management, 2013, 3, 229-236 http://dx.doi.org/10.4236/ ajibm.2013.32028 Published Online April 2018 (http://www.scirp.org/journal/ajibm)
Riungu M. (2015). Factors Affecting Strategy Implementation Of Reforms At Water And Sewerage Companies In Kenya. School of Business, Kenya Methodist University.
Rotich G and Collins O. (2016). Factors Influencing Strategy Implementation on the Performance of Commercial Banks in Kenya, a Case of Co-Operative Bank of Kenya. Vol.3, Iss. 3 (4), pp 73 - 87, June 3, 2016, www.strategicjournals.com, ©Strategic Journals
Rotich K. & Osodo P. (2017). Influence of Employee Training on Strategy Implementation at Independent Electoral and Boundaries Commission North Rift and Western Regions, Kenya. IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 12. Ver. IV (December. 2017), PP 18-26. www.iosrjournals.org
Situma S. (2016). Effect of Strategic Management Practices on the Performance of Corporate Social Responsibility of State Parastatals in Kenya. PhD Thesis. Jomo Kenyatta University of Agriculture and Technology.
Chiuri. W. (2015). Challenges of Strategy Implementation in Higher Education Institutions in Kenya. Unpublished. JKUAT.
Wangui K. (2015). Determinants of strategy Implementation in the Ministry of Lands, Thika, Kiambu County Kenya. International Journal of Education and Research. http://www.ijern.com/journal/2015/December-2015/23.pdf
Wanja R. (2015). Factors Influencing Strategy Implementation in State Corporations in Kenya: A Case of Kenya Industrial Property Institute. https://www.ijsr.net/archive/v5i9/9091601.pdf
Waititu, J. W. (2016). Relationship between Strategy Implementation and Performance in Commercial Banks in Nairobi County Kenya. International Journal of Business and Management; 11 (9), 2016 – 2040.
Wilson, J. (2014). Essentials of Business Research: A Guide to Doing Your Research Project, London: SAGE Publication Ltd.
World Bank. (2015a). Strategic economic recovery of South Africa economy. World Bank South Africa agency.
World Bank. (2015b). Strategic management in the mining sector in South Africa. SA Government Printers
World Bank. (2017). World Bank Approach to Public Sector Management 2011-2020: Better Results from Public Sector Institutions. Washington DC: World Bank.
DOI: http://dx.doi.org/10.61426/sjbcm.v8i1.1918
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.