INFLUENCE OF CORPORATE CULTURE ON STRATEGY IMPLEMENTATION: A SURVEY OF COMMERCIAL BANKS IN KENYA
INFLUENCE OF CORPORATE CULTURE ON STRATEGY IMPLEMENTATION: A SURVEY OF COMMERCIAL BANKS IN KENYA
Davin Moraa Ombachi - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Jared Deya - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The question of successful implementation of strategies remains an unaddressed challenge in many organizations. Organizations unsuccessfully implement about 70 per cent of their unique strategies owing to poor organizational culture. Commercial banks create operating principles that typically define the way they interact with their customers, employees and operations. While these things are important to put in writing, it is the more intangible aspect of culture that sets one business apart from another and perhaps determines success or failure of strategy implementation. This study therefore sought to assess the influence of corporate culture on strategy implementation; a survey of commercial banks in Kenya. Specifically, the study sought to establish the influence of adhocracy culture on Strategy implementation in commercial banks in Kenya, to assess the influence of clan culture on Strategy Implementation in commercial banks in Kenya, to determine the influence of market culture on Strategy Implementation in commercial banks in Kenya, to assess the influence of hierarchical culture on Strategy Implementation in commercial banks in Kenya. The study adopted a descriptive survey design. The unit of analysis was the 42 commercial banks while the unit of observation was all the management level employees (Top level managers, middle level managers and lower level managers). The total target population therefore was 246 respondents. The study adopted stratified sampling approach and then proportionate random sampling technique. Primary data was collected through use of questionnaires. The data collected was edited, coded, entered into Statistical Package for Social Sciences (SPSS) Version 21 which also aided in the data analysis. Both descriptive and inferential statistics were adopted for the study. The research study found that there was a very strong and significant relationship between adhocracy culture, clan culture, market culture, hierarchical culture and Strategy Implementation. Research findings concluded that adhocracy culture has a positive and significant effect on the Strategy Implementation; Clan Culture has a positive and significant effect on the strategy implementation; Market Culture has a positive and significant effect on the Strategy Implementation and Hierarchical Culture also has a positive and significant effect on the Strategy Implementation of the Commercial banks in Kenya.
