Abstract: The successful execution of a strategy is the key survival asset of the organization. Many organizations find it difficult to maintain their competitive advantages, in spite of the existing process of drafting a strong strategy, due to the lack of achievement in the strategy implementation stage. Further, many organizations find strategy implementation as something difficult to understand or implement. This is evidenced by the unsatisfying low success rate (only 10 to 30 percent) of intended strategies. Thus, when the strategic plan is not implemented successfully, a gap is created which makes it difficult to achieve success. This study therefore aimed to determine the effect of internal factors on strategy implementation in parastatals in Kenya. It focused on four internal factors of leadership, organization structure, culture of the organization and policies & procedures. Leadership plays a key role in Implementing corporate strategy. It is important for the entire organization to understand the role of leadership in strategic implementation so as to make delegating responsibility more effective. Organizations structure is also another key factor in strategy implementation, as strategy follows structure and the structure supports strategy. There is need to have a sound and firm structure in place to support the implementation of strategies that have been formulated. Organizational culture incorporates the common convictions, values and qualities inside an organization. It sets the establishment for strategy. For a strategy inside an organization to be created and be actualized effectively, it should completely be in line with the organizational culture. Policy refers to specific measurements guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work towards stated goals. Most companies use these specific measurements to keep track of their goals and objectives. The study adopted a descriptive research design as it is more investigative and focuses on a particular variable factor. The target population of the study was 147 parastatals in Kenya with the case study of the Higher Education Loans Board. The study used primary data which was collected using a self-administered questionnaire. The reliability of the research instrument was estimated using Cochran’s Alpha sample size formula of at least 0.0025 at 95% significance level was accepted. The study data was analyzed through using both descriptive and inferential statistics using the statistical package for social sciences based on the questionnaires (SPSS V23). From the findings, there was a strong positive correlation between leadership style and strategy implementation at HELB as shown by a correlation coefficient of 0.812 and a p-value of 0.000. In addition, there is a strong positive and significant association between policies and procedures and strategy implementation as shown by a correlation coefficient of 0.621 and a p-value of 0.000. Further, there is a strong positive and significant correlation between organization culture and strategy implementation at HELB. This is shown by a correlation coefficient of 0.680 and a p-value of 0.000. Lastly, the findings infer that there is a strong positive association between organization structure and strategy implementation as shown by a correlation coefficient of 0.647 and a p-value of 0.000. The study recommends that organizations need to invest considerable amounts of resources in implementing measures that reflect all dimensions of their strategy implementation. They must be very vigilant on such internal organizational factors to be in tandem with successful strategy implementation.
Keywords: Corporate Strategy, Internal appraisal, Internal organizational factors, Strategic Fit, Strategy implementation, Strategic leadership, Strategic management practices.
Title: EFFECTS OF INTERNAL ORGANIZATIONAL FACTORS ON STRATEGY IMPLEMENTATION IN KENYAN PARASTATALS: A CASE STUDY OF HIGHER EDUCATION LOANS BOARD
Author: Naomi Mwangi Gathoni, Dr. Jared Deya
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
