Influence of selected determinants of strategy implementation on performance of parastatals in the energy sector in Kenya

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 used included means, standard deviation, and percentages and presented in tables and graphs. Inferential statistics included both Pearsons correlation analysis and multiple regression analysis. The hypotheses were tested using the Pearson’s Correlation Coefficient to establish the significance of the relationships between the dependent and independent variables used in the study. The results of the hypotheses revealed that there is a significant positive correlation between the selected determinants of strategy implementation and organizational performance. The regression analysis further showed that all the independent variables accounted for 74.7% of the variance in organizational performance. The study therefore, concluded that strategy implementation is key in enabling an organization achieve set goals and recommends that top management should increase their commitment and effective communication of formulated strategies and also ensure adequate provision of resources. 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