The Influence of Strategy Implementation, Firm Resources and Operating Environment on Performance of State Corporations in Kenya.

Robert Kennedy Gichuhi Ndegwa


This study seeks to contribute to the debate on why firms in the same industry perform differently. This is by establishing the influence of strategy implementation, firm resources and operating environment on performance of Kenyan State corporations. The study extensively reviews the literature on the relationship between strategy implementation and firm performance and how firm resources and operating environment influence this relationship. The study is anchored in various theories. Resources are underpinned by the Resource Based Theory (RBT) and the Dynamics Capabilities Theory (DCT). The key postulation of the RBT is that the unique configuration and bundling of resources in competitive markets leads to Competitive Advantage (CA) and improved firm performance. The DCT postulates that organizational capability is the main source of firms’ CA. The operating environment is anchored in the environment dependent framework. The key proposition is that organizations are environmental dependent and environmental serving. Accordingly, firms must adapt to the external environment in order to survive. This framework is premised on the Open Systems Theory (OST), and the Industrial Organization economics theory whose key paradigm is the Structure, Conduct, and Performance (SCP). The SCP postulates that the market environment has a direct, short term impact on the market structure which in turn affects firm performance. The study will adopt a descriptive cross sectional survey design. Information about the subjects that will be gathered represents a snap shot of what is going on at that point in time. The context of this study shall be all Kenyan State Corporations spread across all 18 ministries as at 31st December 2015. Both primary and secondary data will be used in the study. Primary data will be collected on operating environment, firm resources, strategy implementation and performance of State Corporations in Kenya. Secondary data will be obtained on corporate financial performance. Sources of secondary data will be annual financial reports and annual performance evaluation reports from each State Corporation. The respondents will be the Chief Executive Officers of the corporations who may delegate to the head of the relevant department, if need arises.

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