Strategic Management Practices and Performance of Parastatals in Kenya

Abstract

Purpose: The purpose of the study is to help firms use strategy as an important tool helping both management and employees in control and evaluation of whether or not the institution’s objectives are met. Design / Method / Approach: The researcher used an exploratory study design, and the data was collected through organised interviews via telephone to gather everything that is relevant for the study.  Qualitative data collected was thereafter analysed by finding out similarities and differences among the responses collected from different institutions and conclusions made. Findings: The findings indicate that strategic management practices are useful predictor variables of performance. The composite R2 value of .714 which indicates that 71.4% variation of performance in parastatals in Kenya is as a result of strategic management practices. Of these practices, strategy implementation had the highest impact on performance. The least was strategy evaluation. Theoretical Implications: Strategic fit theory was used to analyse the performance of each parastatal. The researcher then presented the data using a descriptive approach by the use of illustrative quotes. Practical Implications: The performance of parastatals is good with both employees and consumers reporting high levels of satisfaction. Originality/Value: To achieve any organizational goals, a parastatal needs to plan, formulate and implement. The document is to encourage top management in parastatals to practice strategic management as it will have a positive impact on performance in parastatals in Kenya. Research Limitations / Future Research: Like many research studies, a small group of 14 parastatals was examined, and conclusions were made basing on the findings from this sample. This brought about a generalization that was applied to all other subjects in the field. This generalization appeared somewhat unfair judgement about other parastatals from where participants were not selected because different institutions may have different cultures and levels of professionalism, practice and performance when it comes to matters of strategic management. Paper type: Empirical