EFFECT OF STRATEGIC GOVERNANCE PRACTICES ON STRATEGY IMPLEMENTATION IN STATE CORPORATIONS IN KENYA: A CASE OF THE LOCAL AUTHORITIES PROVIDENT FUND (LAPFUND)
EFFECT OF STRATEGIC GOVERNANCE PRACTICES ON STRATEGY IMPLEMENTATION IN STATE CORPORATIONS IN KENYA: A CASE OF THE LOCAL AUTHORITIES PROVIDENT FUND (LAPFUND)
Yunis Haji Omar Mohamed
ABSTRACT
Strategy implementation remains a major challenge for state corporations because the existence of formally developed strategic plans does not necessarily translate into achievement of intended organizational outcomes. Strategic governance provides mechanisms through which boards and management provide direction, exercise oversight, ensure accountability, manage strategic risks and monitor organizational performance. This study examined the effect of strategic governance practices on strategy implementation at the Local Authorities Provident Fund (LAPFUND) in Kenya, with 2023 serving as the study reference year. The study was anchored on agency theory, stewardship theory and stakeholder theory. An explanatory cross-sectional research design was adopted. The target population was 512 comprised LAPFUND board/board-secretariat personnel, senior managers, middle-level managers, supervisors and employees involved in strategy implementation. Stratified sampling was used to group the target population. From each category, representative samples were drawn through simple random methods to achieve 151 respondents. Data were analyzed using descriptive statistics, Pearson correlation and multiple regression. The findings indicate that board strategic oversight (M = 3.82, SD = 0.68), performance monitoring and evaluation (M = 3.78, SD = 0.70), accountability and transparency (M = 3.67, SD = 0.72), strategic risk governance (M = 3.64, SD = 0.74), and stakeholder participation (M = 3.51, SD = 0.79) were positively rated. The regression model explains 64.2% of the variation in strategy implementation. Board strategic oversight, accountability and transparency, stakeholder participation, strategic risk governance, and performance monitoring and evaluation all show positive and statistically significant relationships with strategy implementation. The study concludes that effective strategic governance provides an important institutional mechanism for translating strategic plans into organizational action. It recommends strengthening board strategic oversight, accountability systems, stakeholder engagement, strategic risk management and performance monitoring within state corporations.
