INFLUENCE OF STRATEGIC PLAN IMPLEMENTATION DRIVERS ON THE PERFORMANCE OF AUTOMOBILE COMPANIES IN KENYA
Annrita Ireri - Masters Degree in Business Administration (Strategic Management), Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Jared Deya - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Strategic planning provides a framework for management’s vision of the future. The strategic planning process is used by management to establish objectives, set goals and schedule activities for achieving those goals. Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals. Implementing the strategic plan is as important, or even more important, than the strategy. In spite of the significance of the implementation procedure inside strategic management, this is an area of study frequently dominated by emphasis on the strategy formulation process. Numerous institutions confront critical challenges with respect to policy implementation as most strategies flop to deliver better performance for the firm due to poor implementation. The process determines how the organization will change to take advantage of new opportunities that help meet the needs of their clients. This study seeks to establish the influence of strategic plan implementation on the performance of automobile companies in Kenya. The specific objectives are influence of information technology, human resource management, organization structure and resource allocation. The design of this study was be descriptive research method. In addition, both qualitative and quantitative methods were applied in data collection and analysis. The descriptive design was used because it would address major objectives and research questions proposed in the study adequately. The study gathered primary data through questionnaires given to 85 randomly selected employees from the selected companies. The use of questionnaires is recommended since it guarantees confidentiality to the respondents thus they acted without any fear or embarrassment. Data was then summarized, coded and entered in a computer aided tool for analysis that is; Statistical Package for Social Sciences (SPSS) which generated descriptive statistics such as means, standard deviation and frequency distribution. ANOVA and multiple regression analysis was used to establish the relationship between variables on the dependent variable. The regression equation for the study is, Y = 5.056 + 0.422 X1 + 0.207 X2 +0.178 X3+ 0.161X4. Where X1, X2, X3 and X4 are communication, human resource management, organization structure and resource allocation respectively. The study established that taking all the factors at constant at zero, the organisational performance is 5.056. The findings presented also show that holding all other independent variables at zero, a unit increase in Communication, human resource, organization structure and resource allocation would lead to 0.422, 0.207, 0.178 and 1.161 growth in organization performance. All the four variables contribute to a positive growth in the organisation performance.
