INFLUENCE OF STRATEGY IMPLEMENTATION ON PERFORMANCE OF KENYA OWNED STATE CORPORATIONS

Abstract

Globally, State Corporations are legal entities that undertake commercial activities in
addition to other public policy objectives on behalf of an owner. In Kenya, State
Corporations (SCs) were established to accelerate economic growth. However, their
performance and sustainability has been a concern especially due to over reliance on
government funding. Previous studies have shown that approach to strategy
implementation in an organization may have a bearing on its performance. Though
scholars have attempted to explain variation in organizational performance by carrying
out empirical studies, those linking strategy implementation to performance are quite
few. The main focus of this study was to assess the influence of strategy implementation
on performance of Kenya owned State Corporations. The study was anchored in the
institutional theory. The population of this study comprised 249 Kenya owned State
Corporations. Data, collected using structured questionnaires, was coded, and analyzed
using descriptive statistics and regression analysis. The results showed that strategy
implementation accounted for 36.2% of variation in performance of State Corporations.
The regression model indicated that a unit increment in strategy implementation would
enhance performance of the Corporations by a factor of 0.569. The study has made
important contributions to policy design and management of Kenya owned State
Corporations. Most importantly, managers ought to recognize the need for the entire
organization to be aware of the overall strategy and its implications so as to realize
better performance. The finding also implies that managers need to ensure
reconfiguration of the structure and culture of the organization in a manner that
promotes successful outcomes. The study recommends that further researcher could
explore the influence of other factors on performance in addition to replicating the study
in organizations within the private sector.
Key Words: Strategy Implementation; Organization Performance; Kenya Owned State
Corporations