Strategy implementation imperatives as determinants of organizational performance in Local Authorities in the Western Region of Kenya

Abstract

Organizations have adopted strategic management as the approach of enhancing their competitiveness and ensuring superior organizational performance. Although an organization may formulate a comprehensive strategic plan, the extent to which it is successfully implemented will influence organizational performance. This study sought to establish the extent to which strategy implementation imperatives determined organizational performance in Local Authorities in the Western region of Kenya. In order to achieve this purpose, it was hypothesized that Organizational performance in local authorities is determined by employee training, leadership style, organizational rewards, organization structure and organizational culture. It was also hypothesized that this relationship was moderated by organizational size and age. The study was guided by the Theory of planned behavior as postulated by Ajzen and the Planning School model of strategy as advanced by Mintzberg, Ahlstrand and Lampel . Descriptive survey design was used to elicit data from 322 Local Authorities’ employees and 216 small scale entrepreneurs, selected Town clerks and the Regional Local Government Officer who had been selected to form the study sample through stratified, simple random and purposive sampling techniques. Structured questionnaires, interview schedules and document analysis were the main data collection tools. Validity and reliability of these instruments was established through conducting a pilot study, exploratory factor analysis, Cronbach alpha tests and getting expert opinions. The questionnaires for Local Authorities’ employees and that of small scale entrepreneurs gave Cronbach alpha coefficients of α=0.898 and α=0.808 respectively, an indication of a high level of reliability. The collected data was then coded and analyzed using the SPSS version 16 computer program. Data was analyzed using descriptive statistics such as frequencies, percentages, means and standard deviations and Inferential statistics such as Pearson’s Product Moment Correlation Coefficient test, Analysis of Variance (ANOVA), Chi square, Exploratory Factor Analysis and Multiple Regression Analysis (MRA). Multiple Regression Analysis results showed that strategy implementation imperatives significantly determined organizational performance. Leadership style (ß=0.357; p=0.000) had the greatest determining effect followed by organizational rewards (ß=0.195; p=0.000) and organizational culture (ß=0.136; p=0.007). Local Authorities’ age and size did not significantly moderate the relationship between strategy implementation imperatives and organizational performance in Local authorities). The study concluded that strategy implementation imperatives determined organizational performance in local authorities in the Western region of Kenya. Leadership style and organizational rewards were the major determinants of organizational performance. Employee training however did not significantly affect organizational performance. The study also empirically established that organization age did not moderate the relationship between strategy implementation imperatives and organizational performance. Organization size did not also moderate the relationship between organization culture, rewards, employee training and leadership style and organizational performance in local authorities. However, organization size moderated the relationship between organization rewards and organizational performance. The study recommends that Local authorities should enhance utilization of strategy implementation imperatives for better organizational performance.