THE EFFECT OF CORPORATE INFORMATION TECHNOLOGY STRATEGY ON SERVICE DELIVERY OF STATE CORPORATIONS IN KENYA

Abstract

This study endeavored to establish how corporate IT strategy influence service delivery of state
corporations in Kenya. State owned entities are formed to meet regulatory objectives and exploit political
and social objectives, correct market and economic failures, provide health and education advisory
services. There are a number of state corporations existing for various economic reasons however this
study focused 178 state corporations that are operationally vibrant. This study was anchored on the
Fourth Industrial Revolution Theory which explains how the advent of technological and economic
developments is key factors to organizational efficiency and effectiveness. Independent Factual
knowledge was obtained using positivism approach through administering of self-designed structured
questionnaires to acquire first hand data as well as secondary data on service delivery was collected
from annual performance contract reports. Response was rated at 67.4% since out of the 178
questionnaires distributed only 120 were positively filled and returned. Analysis outcome revealed that
the effect of corporate IT strategy on service delivery of state corporations in Kenya is a statistically
significant. That is 58.7% variations in the service delivery are accounted for by the changes in corporate
IT strategy. The findings contributes in the study of corporate IT strategy and service delivery by
decomposing corporate IT strategy into indexes of Implementation of Service Delivery Charter, Service
Delivery Innovations, Resolution of customer Complaints and Customer satisfaction index which were
found to have statistically significant effects. Based on the results of this study, the government through
relevant ministries and other stakeholders in the state corporations sector should develop appropriate
policies in an attempt to organize the IT applications to enable investors and regulatory bodies get access
to information pertaining how to improve their ability to perform as well as give quality services. The
study concurred with the fourth industrial revolution theory that firms need to embrace technological
advancements by strategically investing on superior IT strategies, resources and competencies to enable
them add value to service delivery processes.The study shall guide managerial practitioners in the state
firms to appreciate the integration of corporate IT strategy into to the various service delivery
improvements in the face of a challenging economic environment and management of core processes for
valued added customer needs.
Key words: Corporate Information Technology Strategy, Service Delivery, State Corporations, Kenya.