MODERATING EFFECT OF STRATEGIC PLAN IMPLEMENTATION ON THE RELATIONSHIP BETWEEN CORPORATE STRATEGIES AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA
Abstract
According the Government of Kenya, Commercial State Corporations have been
associated with various challenges, including a lack of profitability and substandard
goods and services. Such dismal performance may be occasioned by weak corporate
strategies and poor strategic plan implementation. This study investigated the challenges
faced by Commercial State Corporations in Kenya, particularly their profitability and
quality of goods and services, which may stem from ineffective corporate strategies. The
primary objective was to analyze how the implementation of strategic plans influences
the relationship between corporate strategies and the performance of these corporations.
Specifically, the research evaluated the effects of concentric, horizontal integration,
vertical integration, and collaboration strategies on performance metrics. Additionally, it
examined the moderating role of strategic plan implementation in enhancing this
relationship. Grounded in Contingency Theory, Resource-Based Theory, and Transaction
Cost Theory, the study employed a positivist research philosophy and adopted a crosssectional correlational design. The target population comprised of 1,026 senior managers
from Commercial State Corporations, with a sample size of 99 managers surveyed using
a structured questionnaire. Data analysis involved descriptive statistics and regression
analysis, with results presented in tables and figures. Key findings reveal significant
positive effects of concentric strategy on financial, customer, and internal business
process performance (β = 0.829, p < 0.05; β = 0.648, p < 0.05), while its impact on
learning and growth was negligible. Horizontal integration also showed significant
effects across all performance metrics (β = 0.536, p < 0.05; β = 0.548, p < 0.05; β =
0.359, p < 0.05; β = 0.201, p < 0.05). Vertical integration similarly influenced all
performance aspects (β = 0.474, p < 0.05; β = 0.382, p < 0.05; β = 0.490, p < 0.05).
Collaboration strategies produced significant effects as well (β = 0.505, p < 0.05; β =
0.561, p < 0.05; β = 0.420, p < 0.05; β = 0.382, p < 0.05).Moreover, the study identifies
the moderating impact of strategic plan implementation, indicated by changes in R²
across performance metrics (0.215 for financial, 0.010 for customers, 0.142 for internal
processes, and 0.145 for learning and growth). These insights aim to guide Commercial
State Corporations in developing and executing effective corporate strategies for
enhanced value creation. The study concluded that Strategic plan implementation has a
statistically significant moderating effect on the relationship between corporate strategies
and performance of commercial state corporations on Kenya. Based on this conclusion, it
was recommended that commercial state corporations should develop detailed roadmaps
that outlines specific actions, initiatives and milestones needed to achieve the strategic
objectives. They should identify and address any barriers, obstacles or resistance to
change that may impede the successful implementation of Strategic plans.
Collections
Related items
Showing items related by title, author, creator and subject.
-
A SURVEY REPORT ON THE EFFECTIVENESS OF ADVANCE ORGANIZERS RESEARCH AS A TEACHING STRATEGY
Kariru Kigo, Josephat; Okere, Prof. Mark; Maghanga, Dr. Christopher (Kabarak University, 2016)Effect of advance organizers on students’ achievement and retention of subjects concepts at various learning levels has been a vibrant area of research in education. Use of advance organizers has been attributed to ... -
AN INVESTIGATION INTO THE ROLE OF CORPORATE GOVERNANCE IN STRATEGY IMPLEMENTATION IN KENYAN CORPORATIONS: A CASE STUDY OF INDUSTRIAL AND COMMERCIAL DEVELOPMENT CORPORATION (I.C.D.C.)
NDUNG’U WAMBUGU, WILSON (Kabarak University, 2016)CORPORATE GOVERNANCE – is the relationship among the board of directors, top management, and the shareholders in determining the direction and performance of the corporation. A case study of INDUSTRIAL AND COMMERCIAL ... -
AN INVESTIGATION INTO THE ROLE OF CORPORATE GOVERNANCE IN STRATEGY IMPLEMENTATION IN KENYAN CORPORATIONS: A CASE STUDY OF INDUSTRIAL AND COMMERCIAL DEVELOPMENT CORPORATION (I.C.D.C.)
WAMBUGU, WILSON (Kabarak University, 2016)ABSTRACT CORPORATE GOVERNANCE – is the relationship among the board of directors, top management, and the shareholders in determining the direction and performance of the corporation. A case study of INDUSTRIAL AND ...