THE MODERATING EFFECT OF ORGANIZATIONAL ENVIRONMENT ON STRATEGY IMPLEMENTATION AND PERFORMANCE OF KENYA OWNED STATE CORPORATIONS RELATIONSHIP

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 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. Majority of
the empirical studies reviewed have not explored the moderating influence of organizational
resources on the relationship between strategy implementation and performance. This study aimed at
filling this gap. The study was based on the institutional theory, Resource based View and the
Dynamic capabilities theory. The population of this study comprised 249 Kenya owned State
Corporations out of which data was collected from 181 organizations. Data, collected using
structured questionnaires, was cleaned, sorted, coded, and analyzed using descriptive statistics and
regression analysis. The study showed that neither tangible nor intangible resources had a
moderating effect on the relationship between strategy implementation and performance. Similarly,
organizational resources were found to exhibit no moderating effect. It is apparent from the results
that managers should focus more on strategy implementation so as to enhance performance.
However, for this to be realized, the available resources ought to be optimally and prudently utilized.
The policy thrust should therefore be on value for money and self-sustenance through strategy
implementation. The study recommends that further researcher could explore the influence of other
factors on performance.
Key Words: Strategy Implementation; Organizational Resources; Organization Performance; Kenya
Owned State Corporations