INFLUENCE OF SELECTED DETERMINANTS OF STRATEGY IMPLEMENTATION ON PERFORMANCE OF PARASTATALS IN THE ENERGY SECTOR IN KENYA

MWAMUYE SHADRACK CHANDO (shadrackchando770@gmail.com)
Business Administration, Egerton University
September, 2017
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Abstract

Strategy implementation is an on-going, never-ending, integrated process requiring continuous reassessment and reformation. Strategic management is dynamic. It involves a complex pattern of actions and reactions. It is partially planned and partially unplanned. Particularly, strategy implementation includes designing the organization's structure, allocating resources, developing information and decision process, and managing human resources, including such areas as the reward system, approaches to leadership, and staffing. The purpose of this study was to investigate the influence of the selected determinants of strategy implementation on organisational performance in parastatals in the energy sector in Kenya. Specifically, this study sought to establish the influence of top management commitment, strategy communication process, resource availability and coordination of activities on organization performance. This study adopted a descriptive research design: the target population comprised of the 105 management staff from various departments in seven (7) organizations in the energy sector. A questionnaire was used to collect primary data. Descriptive statistics included means, standard deviation, and percentages and presented in tables and graphs. Inferential statistics included both Pearsons correlation analysis and multiple regression analysis. The correlation analysis determined the strength and direction of the relationships between the dependent and independent variables. The study showed that top management commitment, strategy communication, coordination of activities and resource availability had a positive correlation with organizational performance. The Model summary of the regression analysis showed that all the independent variables accounted for 70.3% of the variance in organizational performance. The study recommended that organizations should offer back up (support) to the top management to increase their commitment and effective communication of formulated strategies that should be properly resourced. Further, the study recommended that parastatals should ensure that key tasks are well defined in enough detail and information systems for them to successfully implement strategies and improve organizational performance.