Influence of a Lack of Clear Approach to Strategy Implementation on Performance of Commercial State Corporations in Kenya

Abstract

Strategy implementation is one of the most fundamental steps in driving a company’s direction without which no decisions can be executed. To make this happen, it is crucial that the company develops an approach to guide through the implementation process. This study sought to determine how lack of a clear approach to strategy implementation influenced the performance of commercial state corporations in Kenya. The study employed a positivism research philosophy and a descriptive research design objectively with multistage sampling method (homogenous purposive sampling, stratified random sampling, and simple random sampling). The study targeted middle level managers in selected state corporations from which a sample of 327 middle-level managers was drawn. Using linear regression analysis, this study established that lack of a clear approach to strategy implementation significantly influenced the performance of commercial state corporations in Kenya. The findings of this study indicated that having no preferences to strategy implementation had a significantly negative influence on the financial performance of commercial state corporations in Kenya (β = -0.233; p < 0.05) but having no routine and having no control system had no statistically significant influence on the financial performance (β -0.149; p > 0.05) and (β -0.035; p > 0.05) respectively. The findings of this study also indicated that having no preferences had a negative and significant influence on the customer satisfaction of commercial state corporations in Kenya (β = -0.258; p < 0.05), but no routine and no control systems had no statistically significant influence on the customer satisfaction (β = -0.137; p > 0.05) and (β = -0.038; p > 0.05) respectively. This research study concludes that lack of a clear approach to the implementation of strategy erodes the performance of commercial state corporations in Kenya, and therefore recommends that in order to enhance performance, the top management of commercial state corporations should ensure budget provisions for strategy implementation activities, develop a strategy implementation roadmap, ensure the engagement of all stakeholders in the development process, and identify the specific tasks required to realize strategic goals.