Abstract:
This study’s purpose was to examine how strategy implementation styles influence the performance of commercial state corporations in Kenya, and the moderating effect of environmental munificence. This study’s objectives were: to examine how the rational strategy implementation style influences the performance of commercial state corporations in Kenya; to determine how the incremental strategy implementation style influences the performance of commercial state corporations in Kenya; to determine how the logical-incremental strategy implementation style influences the performance of commercial state corporations in Kenya; to establish how the lack of clear approach to strategy implementation influences the performance of commercial state corporations in Kenya; and to examine the moderating effect of environmental munificence on the relationship between strategy implementation styles and the performance of commercial state corporations in Kenya.
This study used the positivism research philosophy and both the descriptive and explanatory research designs. The unit of analysis was 30 commercial state corporations in Kenya that participated in the 2019 Public Service Commission performance evaluation. The target population was 1813 staff working in middle-level management (job groups N-Q). This study used the homogenous purposive sampling technique to select the middle-level management and stratified random sampling to select 327 respondents from the target population. Primary data was collected by use of semi-structured questionnaires whereas secondary data was obtained from annual reports by various state corporations and the annual reports of the Public Service Commission. Qualitative data was analyzed using thematic analysis whereas quantitative data was analyzed using the SPSS statistical software to obtain both descriptive and inferential statistics. The findings of this study will be beneficial to the management of state corporations in Kenya, the government of Kenya, policy makers as well as academicians and researchers.
This study found that the performance of commercial state corporations in Kenya, as measured using financial performance and customer satisfaction, is significantly influenced by the rational strategy implementation style (p-value=0.000), the incremental strategy implementation style (p-value=0.000), and the logical-incremental strategy implementation style (p-value=0.000). However, lack of clear approach to strategy implementation has an inverse and statistically significant effect on the performance of commercial state corporations in Kenya, as measured using financial performance and customer satisfaction (p-value=0.000). Further, this study found that environmental munificence moderates the relationship between the lack of clear approach to strategy implementation and the financial performance and customer satisfaction of commercial state corporations in Kenya. However, environmental munificence has no statistically significant moderating effect on the relationship between the rational strategy implementation style, the incremental strategy implementation style, the logical-incremental strategy implementation, and the financial performance and customer satisfaction of commercial state corporations in Kenya.
This study concludes that performance of commercial state corporations in Kenya, measured in terms of financial performance and customer satisfaction, can be improved by the use of the rational strategy implementation style, the incremental strategy implementation style, or the logical-incremental strategy implementation style. This study further concludes that the adoption of lack of clear approach to strategy implementation erodes the performance of commercial state corporations in Kenya. Besides, this study concludes that the financial performance and customer satisfaction of commercial state corporations in Kenya deteriorates in the absence of a specific strategy implementation style. Further, this study concludes that it is crucial to consider environmental munificence where an organization lacks a clear approach to the implementation of strategy.
This study recommends that the management of commercial state corporations in Kenya has to ensure that control systems are in place, that strategic objectives are clear, and that the implementation of strategy follows pre-arranged activities. In addition, policymakers such as the State Corporations Advisory Committee (SCAC) should continually monitor commercial state corporations to ensure that they have effective control systems, and that these organizations adhere to the plans as indicated in their periodic strategic plans. This study further recommends that the management of commercial state corporations in Kenya should ensure the commitment of all stakeholders during the implementation of strategy. Further, this study recommends that the management of commercial state corporations in Kenya should ensure the commitment of employees towards the implementation of strategy.