Internal Factors Influencing the Implementation of Strategic Plans: A Case Study of Kenya Electricity Generating Company Limited

Abstract

The purpose of this study is to determine the influence of internal factors on the Implementation of Strategic Plans in organizations for the case of Kenya Electricity Generating Company (KenGen). The research was guided by the following research questions: How does organizational structure influence implementation of strategic plans in organizations? How does human resource influence implementation of strategic plans in organizations? How does leadership influence implementation of strategic plans in organizations? These three questions formed the research context. The descriptive research design was appropriate in this study since its purpose was to examine the impact of leadership style and organization structure on strategy implementation in the hospitality industry in Kenya through a case study. The population of study comprised of all KenGen employees; top-level managers, middle-level managers, and lower-level managers. Stratified random sampling was used in the study where employees were stratified based on their departments. The sample size was one hundred and thirty and the response rate was one hundred giving seventy seven percent as adequate for the study. Self-administered questionnaire was the main data collection tool used in the study. As for the analysis, both descriptive and inferential analysis was conducted. On objective one, the EFA and CFA was positive with developed factors on OS. However, on SEM, the path coefficient for the relationship between OS and SI patterns in KenGen was not developed since OS did not fit on the SEM model. The research concluded OS does not influence SI at KenGen. For objective two the EFA and CFA was positive with model fit. Further, the SEM analysis shows the path coefficient for the relationship between HR and SI in KenGen was positive and significant at the 0.05 level (βeta=0.215, T-value =2.783, p<0.05). The positive relationship indicates that one unit increase in access to HR will result in 0.215 increase in SI at KenGen. The last objective, the EFA and CFA was positive with model fit. Further, the SEM analysis shows the path coefficient for the relationship between LF and SI in KenGen was negative but significant at the 0.05 level (βeta=-.454, T-value =7.426, p<0.05). The negative relationship indicates that one unit increase in access to LF will result in 0.454 decrease in SI at KenGen. On OS, research output recommends high level re-structure and re-evaluation of the organization structure to ensure it supports the strategy implementation at KenGen. On HR, the research recommends different players to build the HR structure to fully support the strategy implementation. The HR manager and high level management needs to review the employment structure to ensure it is in line with the strategy for ease of strategy implementation. The last objective on LF, the research recommends further review and evaluation of the leadership role and their operations. This should lead to capacity building and implementation of other strategy to ensure leaders play positive role and enhance SI positively and not negatively. Further, there is need for employees to be involved in communication; bottom up and up to bottom freely to ensure SI is influenced positively across different sectors of leadership.