Impact of Organizational Factors on Strategy Implementation within Savings and Credit Cooperatives in Kenya: A Case of Ushuru Sacco Society Limited

Abstract

The general objective of this study was to examine the impact of organizational factors on strategy implementation at Ushuru Savings and Credit Co-operative Society Limited in Kenya. Specifically, the study examined the extent to which communication style, leadership style and employee involvement influenced strategy implementation. The study targeted all the 44 employees of Ushuru Sacco Society Ltd. Thus, a census survey sampling technique was used. The data collection method used in this study heavily relied on primary data from questionnaires administered to the targeted respondents. Statistical Package for Social Sciences (SPSS) version 22 software was used to analyze the data collected. Data was presented using tables and charts. Simple linear regression analysis was used to establish the relationship between the study variables. As regards the first specific objective of the study, correlation analysis conducted on the study variables concluded that communication style had a significant positive relationship with strategy implementation. The study further revealed that the major communication style elements which had significant influence on strategy implementation include employee withholding of information concerning organizational problems, bottom-up form of communication, top management support, top-down communication and giving directions for implementing goals by responsible officers. Ushuru Sacco should put more effort maintaining high standards of these elements within its workforce. The second specific objective sought to determine the relationship between leadership style and strategy implementation. The study findings showed a significant positive relationship. Further, the study revealed that the major leadership style elements which had significant influence on strategy implementation include democratic, transactional and transformational leadership styles. Ushuru Sacco should encourage participatory leadership styles in its day-to-day operations. Autocratic and laissez-faire form of leadership should be discouraged because they were not popular with employees. The third specific objective sought to establish the link between employee involvement and strategy implementation. Correlation analysis on the variables showed a moderate positive relationship. The major employee involvement elements which had significant influence on strategy implementation include consultative employee participation, direct employee consultation, wide consultation and delegation of responsibilities. Based on this finding, it is recommended that Ushuru Sacco should embrace employee participation, direct employee consultation and delegation of responsibilities since they carry more weight in ensuring successful implementation of the firm’s strategies. Based on the three specific objectives of this study, it was concluded that communication style influenced strategy implementation more than leadership style and employee involvement. The Pearson correlation for the three independent variables was 0.831, 0.802 and 0.647 respectively. Since this was a case study involving just one savings and credit cooperative society, future studies should target more Saccos to get a more representative view of the sector. In research, larger sample size gives better results. Future research should also consider other elements of communication style, leadership style and employee involvement other than the ones captured in this study.