Factors Affecting Effective Strategy Implementation in Organizations

Editors: 

Bwibo Adieri

ABSTRACT

Strategy is meant to be a road map and an aid to company management and leadership and also to future organizational success. Therefore, strategic management has become an important part of any modern organization. Strategy links the organization to its environment, both internal and external. Over the years, successfully formulated and implemented strategies have helped many organizations in greatly improving their financial performance. As such, strategy helps organizations to identify their competitive advantage for sustainable growth and survival. Strategy implementation is the topic of this paper, therefore the paper is concerned with composition of successful implementation and what needs to be considered. Despite this it shows challenges that can occur during the process.  The study proposed several factors that affect implementation strategy. The results demonstrate that leadership is far the most important factor influencing successful strategy implementation. Here literature from various researchers and practitioners gets connected to build a universal depiction of strategy implementation and to give managers useful implications regardless of their industry.

Frequency of Publication: 
Annually

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

Editors: 

Robert Kennedy Gichuhi Ndegwa

ABSTRACT

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.

Frequency of Publication: 
Annually

Achieving Upgrading in Agro-based Value Chains: How participation in different trade trajectories affects producers in the Kenya leather sector

Editors: 

Giovanni Pasquali

ABSTRACT

Globalisation has been characterised by a phenomenon of disintegration whereby increasing trade and capital mobility has been accompanied by a breaking-up of value chains across different countries. Within a logic of export-oriented development, developing nations have seen participation into GVCs as a unique opportunity to relocate productive activities inside their borders, supporting not only economic growth but also better working conditions and social standards. This notwithstanding, GVCs scholars have recently questioned the occurrence of this pattern, noticing how dependence on external buyers in developed countries locks developing countries’ suppliers into low-skilled, labour intensive activities, preventing them from developing the institutions and know how required to move into higher stages of value creation. In virtue of the its fundamental role in sustainable development and its buyer-driven and labour-intensive structure, this study focuses on agro-based manufacturing GVCs in order to understand how different trade trajectories and end-markets impact of suppliers’ economic and social upgrading. In light of the recent surge of South-South and regional trade, along with the preeminent role played by lead buyers in developing economies, this research posits three trade trajectories (i.e. South-North, South-South and local/regional) defined by different levels of (i) consumer preferences; (ii) product and process standards; and (iii) factor endowments. Drawing on this evidence, the study proposes a mixed methodology combining qualitative methods of data analysis with a set of descriptive statistics to assess different level of governance and chain integration across trade trajectories, along with their respective impact on suppliers’ capacity to upgrade products, processes and functions. The leading hypotheses derived by the literature are conflicting. On the one hand, suppliers in South-South value chains are likely to be locked into low stages of functional upgrading due to lower labour costs and a propensity towards unprocessed imports typical of Southern buyers; on the other hand, it is claimed that suppliers in South-South value chains experience increasing functional innovation due to the lower hierarchical integration of these chains compared to GVCs dominated by northern buyers. The current research tries to shed light on the dynamics underpinning this phenomenon by focusing on two of the most promising manufacturing sectors in Kenya, i.e. the leather and apparel value chains. The choice of the case study has been defined both as a consequence of its convenience in accessing data, as well as the presence of all three trade trajectories mentioned above, with an increasing role played by South-South and regional GVCs. The presentation will focus on the study preliminary results from a quantitative analysis of single transaction data on leather exports from 2006 to 2014 as well as a set of qualitative interviews with 25 tanners across Kenya and Uganda and a set of 10 other institutions and practitioners within the value chain.

Frequency of Publication: 
Annually

Quality of Service Encounter, Customer Expectations, Perceived Value and Loyalty of Hotel Guests in Kenya

Editors: 

Wanjiku Ng’ang’a

ABSTRACT

The quality of service encounter is the basis for a customer's evaluation of the service provider. When companies provide a service encounter that suits consumers, they generate a positive experiential value and lasting customer relationships which lead to customer satisfaction and loyalty. During a service encounter a customer will form a judgment of the quality of service provided based on expectations, perceptions, desires, feelings and values. (Phiri & Mcwabe, 2013). Consumers of services have expectations about what they will receive from the delivery system. Therefore, understanding customer expectations helps diagnose problems and leads to higher satisfaction, repeat customers, and customer referrals. Perceived value is critical to the success of a business especially when a firm’s marketing strategy is developed based on value creation for customers (Bilington & Nie, 2009). A major objective for delivering value to customers is to develop loyal customers who can increase purchase frequency, purchase quantity and avoid switching behavior. Hotels are part of the hospitality sector and are seen as a commercial establishment providing lodges, meals, and other services. This sub sector’s significant contribution is seen to be on an upward trend, as evidenced even here in Kenya where international hotel chains are opening branches to reap the market rewards from this competitive industry (Kangongo, Musiega & Manyasi, 2013). The sub-sector has been identified among the key productive sectors of the economy under Kenya Vision 2030 due to its potential. Further, it is a major source of government revenue in the form of taxes, duties, license fees and even entry fees. Due to tourism’s linkage with other sectors, it has a very high multiplier effect on the economy. The broad objective of this study is to establish the influence of the quality of service encounter, customer expectations and perceived value on loyalty of guests in hotels. In particular the study aims to determine the extent to which the quality of service encounter influences customer loyalty of hotel guests; assess the extent to which customer’s expectations influence the relationship between the quality of service encounter and loyalty; examine the effect of perceived value on the relationship between the quality of service encounter and customer loyalty; determine the joint effect of quality of service encounter, customer expectations and perceived value on loyalty of hotel guests in Kenya. This study is based on the consumer behavior theory. Three theories under this are the expectancy disconfirmation theory (EDT), balance theory and service encounter needs theory.  A conceptual model has been developed and from it four hypotheses have been formulated. The study has adopted a descriptive cross-sectional research design which will capture a population’s characteristics and test hypotheses quantitatively and qualitatively. The population for this study will be guests at star rated hotels in Nairobi and the unit of analysis in this study will be resident guests in the 5 and the 4 star rated hotels. Stratified sampling technique will be used to select the desired sample from each stratum. A total of 355 questionnaires will be distributed proportionately among the respondents. Primary data will be collected from the study population using structured self-administered questionnaire and observation. Reliability test will be undertaken using Cronbach’s alpha of 0.70 as the cut-off point. Pre-testing will be carried out to determine content validity and necessary corrections and adjustments made to the instrument. Analysis of data will be done using various measures and tests through descriptive and inferential statistics. Simple and multiple linear regression, and correlation analyses will be used to test the four hypotheses.

Frequency of Publication: 
Annually

Holistic Marketing Practices, Organizational Characteristics, External Environment and Performance of Non-Governmental Organizations in Nairobi City County

Editors: 

John N. Kamau

The study seeks to answer the research question: What is the effect of holistic marketing practices, organizational characteristics and external environment on performance of NGOs? The study objectives include: To Establish relationship between holistic marketing practices and performance of NGOs in Nairobi City County, to Determine the effect of organizational characteristics on relationship between holistic marketing practices and performance of NGOs in Nairobi City County, to Determine the influence of external environment on relationship between holistic marketing practices and performance of NGOs in Nairobi City County and to Establish the joint effect of holistic marketing practices, organizational characteristics and external environmental factors on performance of NGOs in Nairobi City County.

This study is founded on relationship marketing theory resource-based view and social marketing theory. This study will be guided by positivistic philosophy and has adopted a descriptive, cross-sectional survey design. The population of the study comprises 1241 NGOs operating within Nairobi City County and stratified random sampling technique will be used to select a sample size of 384. Data will be collected using semi-structured questionnaire and also interview guide will be used. Data analysis will involve descriptive statistics, factor analysis as well as correlation and multiple regression analysis.

Frequency of Publication: 
Annually

Antecedent Factors, Corporate Diversification and Firm Performance: A Critical Review of Literature.

Editors: 

Charles Mbugua Njoroge

ABSTRACT

The study on the linkage between corporate diversification and performance has attracted much scholarship within the fields of strategy and finance yet continues to yield with mixed results. Sources of the confusion in previous studies on diversification and performance are both methodological and theoretical. Among the theoretical issues identified are those that pertain to identification of independent variables, moderator variables and outcome variables. Most studies have relied on a single theoretical framework modelling diversification and performance through a single equation model ignoring the whole process before the diversification decision is reached. This has led to inadequate model specification with results losing validity and generalizability. Methodological issues raised pertain to heavy reliance on cross-sectional studies and models that suffer from difficulty of capturing contingencies such as in a theory of diversification. Other issues regard measurement of both diversification and performance constructs. Previous studies have largely ignored antecedents to diversification: this omission could possibly explain some of the contradiction in results. Availability of resources/capabilities, institutional issues, transaction costs and agent behaviour are some of the factors that affect a firm’s diversification decision.  Even when antecedents to diversification have been considered, empirical research efforts were largely based on the explanatory elements of resource-based view. The framework proposed in this study draws on literature from the resource-based view, transaction cost economics, institutional economies and agency theory so as to enhance our understanding of antecedents to diversification.  It is premised on the view that antecedent factors motivate a firm to undertake diversification. Excess resource endowments in the face of high transaction costs may induce a firm to diversify into related activities. Absence of well-developed institutions induce firms to undertake unrelated diversification to replicate the market structures that would have been provided by well-developed institutional environment.   The firm governance system while not a source of competitive advantage may lead to prevalence of agency costs which affect optimality condition when faced with choice of diversification strategy. This research study is an attempt to offer an alternative view by specifying additional elements in a model of diversification and performance comprising of antecedent factors (resources, transaction costs, institutional structure and firm governance) as the independent variable, diversification strategy that results is the intervening variable and firm performance the dependent variable. It is based on the proposition that antecedent factors affect the performance outcomes of diversification. This study will enhance understanding in corporate diversification and holds promise to provide some additional insight in resolving the unsettled issues in the debate on diversification-performance linkage.

Frequency of Publication: 
Annually

Strategic Choice, Organisational Learning, TMT Characteristics and Performance of Accredited Universities in Kenya.

Editors: 

Angeline Mukokho Ayuya

ABSTRACT

This study is a conceptualization of Strategic Choice, Organizational Learning (OL), Top Management Team (TMT) Characteristics and Performance of Accredited Universities in Kenya.   Some researchers argue that there is a positive influence of strategic choice on organizational performance.  Others argue that Top Management Team demographic characteristics have a positive influence on organizational performance while others contend that there is a negative influence of these observable variables of Top Management Teams on organizational performance.  Some studies imply that Organizational learning is the only source of dynamic capability that influences performance while others contend that there are very few studies in this area.  This study will be done in the context of accredited universities in Kenya with organizational learning intervening and TMT characteristics moderating on the relationship between strategic choice and performance.  The general objective is to establish the joint relationship of organizational learning and TMT characteristics and performance of accredited universities in Kenya.  From this broad objective  four specific objectives have been formulated to establish the influence of strategic choice on performance of accredited universities in Kenya; determine theinfluence of the TMT characteristics on the relationship between strategic choice and performance of accredited universities in Kenya; establish the influence of organizational learning on the relationship between strategic choice and performance of accredited universities in Kenya and to establish the joint effect of organizational learning and TMT characteristics on the relationship between strategic choice and performance of accredited universities in Kenya. An outline  indicating the value of the study to theory, policy and practice will be given.  Four hypotheses will be tested using simple and multivariate regression.  Resource dependency theory, Strategic choice theory, Strategic group theory,  Organizational learning theory and Upper echelons theory will provide the theoretical anchorage of this study. The study will use positivism research philosophy for objectivity, neutrality, measurement and validity of results. The study will be a cross sectional survey  and the population will be three respondents from each of the 52 accredited universities in Kenya.  Both primary and secondary data will be collected and analyzed using descriptive and inferential statistics. Questionnaires with semi-structured questions will be used to collect primary data and will be pre-tested for validity and reliability.  Simple linear regression analysis will be used to test the relationship between Strategic choice and performance of accredited universities in Kenya, while multiple regression analysis will be used to test the moderating influence of TMT characteristics on the relationship between Strategic choice and performance of accredited universities in Kenya.  Multiple regression analysis will also be used to test the intervening effect of organizational learning on the relationship between Strategic choice and performance of accredited universities in Kenya. Hierarchical regression analysis will be used to test for the intervening and moderating effect of organizational learning and TMT characteristics on the relationship between strategic choice and performance of accredited universities in Kenya.  Diagnostic tests for normality, multicollinearity and heteroscedasticity will be done for variance.

Key words:  Strategic Choice, Organizational Learning, Top Management Team Characteristics, Organizational Performance

Frequency of Publication: 
Annually

Floating Exchange Rates, their Influence on Financial Performance on Construction Sector: The Kenyan Experience

Editors: 

Martin Khoya Odipo

ABSTRACT

Kenya operates under a floating exchange rate system where the exchange rate of the country is determined through forces of demand and supply for the local currency. This means that the local currency keeps fluctuating against other world currencies and for this case, the currencies of the primary market. The objectives of this study were to determine the amount of contribution the Construction Sector makes to Gross Domestic Product, whether the level of contribution is influenced by fluctuation of domestic currency in foreign exchange market, and the effect of foreign exchange rates fluctuations on profitability on Construction firms listed in The Nairobi Securities Exchange (NSE). The study used secondary data from: the NSE comprising of financial statements from these firms and the Kenya National Bureau of Statistics. The study used descriptive statistics, regression analysis and analysis of variance for the data. The sector contributes on average 4% to the Gross Domestic Product. The level of profitability depends on the variability of foreign exchange rate to the national currency

Key words: Foreign Exchange Rate Fluctuation, firms’ Profitability  and Gross Domestic Product

Frequency of Publication: 
Annually

Bridging the Relevance Gap between Thematic Trends and Industry Relevance of Master of Business Administration Projects: The Double Helix of University – Industry Relation

Editors: 

Kennedy Ogollah, John Githii Kimani

ABSTRACT

Management research has been accused of a lack of relevance to managerial practice and of too narrow a discipline base. Its focus is the nature of knowledge created by research at the interface between business and academia in the context of major changes likely to affect the nature of demand for such knowledge. To this extend most business schools have developed research as a foundation of the MBA programmes that they offer. A significant aspect of an MBA which distinguishes it from its competitors is the content of its programme – the nature of its curriculum and how it meets the needs of business life. The main objective of this paper was to present the results of an empirical study which establishes the thematic trends and industry relevance of MBA projects in the school of business at the University of Nairobi. The study used secondary data which was collected from the report books at the University of Nairobi. Data was analyzed using content analysis and time series. Cohorts of 10 years were employed, with a total of 7,100 projects undertaken between 1974 and 2013.  The report examines the conditions giving rise to this criticism in Kenya and identifies an important strategic need to increase the stake holding of users in various aspects of the research, knowledge creation and dissemination process. Results from the study indicated that there was a positive trend in thematic research with social, economic and political aspects that impact on business management. This implies that a rise in the focus on a certain thematic trend was associated with a rise in another theme. This further implies an overall growth in the study of the various thematic areas. The report concludes with recommendations concerning new forms of research partnership and research training that will address the relevant gap. However, bridging this gap does not only require changes in the academic mind-set. Managers and firms too need to rethink their involvement in the research process.

Keywords: Management Research, MBA, Thematic trends, Industry relevance

Frequency of Publication: 
Annually

Risk Management Strategies, Innovation and Business Ethics on Firm Performance

Editors: 

Midikira, Churchill Kibisu

ABSTRACT

The success of any organization depends solely on how that organization manages its risks. This may be achieved through many avenues such as efficient management and adequate decisions in resource allocation, clearly defined risk management objectives both pre-loss and post-loss objectives. Whereas some organizations may not consider profitability as their main objective, yet they must generate sufficient resources from business operations in order to achieve their objective of service delivery and maximization of profits. They must, therefore continuously identify risks, mitigate them in order to achieve a competitive advantage over similar organizations. Strategic decisions are likely to be complex in nature and the complexity is a defining feature of strategy  and strategic decisions; Strategic decisions may have to be made in situations of uncertainty; Strategic decisions are likely to demand integrated approach in managing organizations; The organization may have to manage and perhaps change relationships and networks outside the organization; Strategic decisions will very often change in organizations which may prove difficult because of culture. It is in this light that business organizations take their strategic decisions. Porter has alluded to strategy being basically addressing competitiveness. In this regard, businesses are likely to compete for resources which will impact on their performances. These strategies will be supported by the organizations’ ability to be creative and innovate new approaches of doing business and exhibiting high standards of ethical behaviour.  Understanding of competencies and cultural underpinnings of business is expected to have a far reaching influence on the risk management and strategies to be adopted in order to effectively compete in the market place. The implication of this study on business is that appropriate risk management strategies, effective innovation and ethical behaviour may influence policy formulation that will guide business organizations to improved performance

Key words: Risk Management Strategies; Innovation; Ethics; profit maximization and Performance

Frequency of Publication: 
Annually
Syndicate content