Organizational Resources and Performance of Kenyan State Corporations

Organizational resources have been posited to influence organizational performance. However, this position has been largely tautological with need for more empirical grounding. The postulations of resource based theory confer a significant effect of resources on organizational performance only when they possess some strategic characteristics. In spite of this postulation, comparative management advances an argument that management is sensitive to the context in which it is practiced; hence empirical testing of the postulation is inconclusive. This study tested the influence of organizational resources on the performance of Kenyan state corporations. Through a crosssectional descriptive survey, data on resources and performance were obtained from 63 Kenyan state corporations and analyzed using both descriptive and inferential statistics. The findings report a statistically significant relationship between aggregated organizational resources and performance. However, organizational resources could only explain 8.3 percent of performance of Kenyan state corporations. Results of the independent effect of disaggregated organizational resources indicated statistically significant effect of tangible, human and intangible resources on performance. Statistically not significant results were reported for the effect of organizational capabilities on performance. The findings provide partial empirical support for the Resource Based Theory by supporting the postulations that resources possessed by an organization influence performance by establishing the independent contributions of each resource to performance. It has offered direction for dayto- day managerial practice as well as policy direction at both organizational and government levels. At managerial level, practitioners may consider strengthening resource integration, renewal as well as recombination for stellar performance. Government policy should be focused towards encouraging resource acquisition, integration, configuration, and combination that would have a stronger influence on performance. From the limitations of the study, areas for further research have been pointed out

Strategic Leadership and Organizational Performance: A Critical Review of Literature

Effective strategic leadership is considered as a major ingredient for the successful performance of any organization operating in the ever dynamic and complex environment of the 21st century. In the context of information uncertainty and resource scarcity, strategic leadership is required to confront the reality of environmental turbulence and a continuous need for appropriate organizational change in order to achieve performance goals. Most of the conceptual and empirical studies have shown that strategic leadership actions significantly influence performance. Despite its importance, studies have demonstrated that the influence of strategic leadership on organizational performance is contingent upon situational constraints or random effects. To date, very little empirical research has analyzed the direct and indirect relationship between strategic leadership, external environment, organizational change and performance. This paper seeks to unearth this research gap by critically reviewing relevant conceptual and empirical literature to bring out the possibility that the external environment and organizational change could influence the relationship between strategic leadership and organizational performance. The paper advances the emerging postulations which anchor a conclusion that the direct effect of strategic leadership on performance is contested and hence inconclusive due to possible moderating and mediating influence of the external environment and organizational change respectively. It is hoped that the paper’s postulations would guide empirical research in various contexts to hasten addressing of the extant knowledge gaps

An Interrogation into Strategy-Technology Linkage at the Department of Immigration Services, Kenya

There exists a debate on the nature of strategy-technology linkage. Consensus is lacking on whether strategy informs technology, whether technology informs strategy, whether strategy and technology develop independently but match at a later stage, and whether there is no linkage between strategy and technology. This study aimed to find out the extant nature of strategy-technology linkage at the Department of Immigration Services, Kenya. Through a case study research design, primary data were obtained through personal interviews using a structured interview guide. The interviewees were top level managers comprising of the Director of Immigration Services and Assistant Directors of Immigration Services in charge of regions namely: Coast, Eastern, North Eastern, South Rift/Nairobi, North Rift/Western and Nyanza. The study also made use of secondary data from documents in the Department. The data gathered were then analyzed using thematic content analysis. The findings revealed presence of strategytechnology linkage at the Department of Immigration Services, Kenya. The nature cuts across the four thematic areas, but leans more towards strategy informing technology. Incidences supportive of the finding that technology informs strategy, strategy and technology develop independently but match at a later stage and no linkage between strategy and strategy were found but not as recurrent as those of strategy informing technology. The study findings largely support postulations of Configuration and Resource Based theories. The study concludes that strategy informs technology at the Department of Immigration Services, Kenya. For policy making, the study recommends the Department of Immigration Services expends more effort to develop a robust strategy that will inform appropriate technology with selective juxtapositions of technology informing strategy where necessary. For practice, the study recommends strategy-technology linkage that fits the environmental setting with a keen eye on the ever changing environment. The study acknowledged limitations on the contextual setting, design, data collection and analysis methods. The design was a case study which means findings might not be generalized. Data collection was through interviews and analysis was through content analysis, both viewed as largely subjective. Interviews were administered to only the top management within the department. Lower cadres were not represented. The study suggests for further research on the subject through different contextual settings, different designs and different instruments

Challenges of Implementing Consortium Strategy in Development Projects at ViAgroforestry, Kenya

Consortium strategy involves an arrangement in which organizations develop, utilize and amalgamate structures, cultures, and operational systems to support competitiveness in delivery of service in a dynamic environment. This study sought to investigate challenges of implementing consortium strategy and measures to mitigate the challenges at ViAgroforestry, Kenya. Through a case study design both primary and secondary data were gathered through personal interviews and analysis of relevant documents respectively. Content analysis was used to analyze data. The study established that, both internal and external factors affected effective consortium strategy implementation at ViAgroforestry. The external factors that affected strategy implementation included social-cultural, political, economic, and technological factors. The internal factor included leadership and management styles, competency of employees among the partner organizations, lack of employee commitment to consortium operation, lack of adequate financial resources, unclear implementation guidelines and inconsistency in deployment of employees to support consortium. The mitigation measures to deal with the challenges include building employee competencies and confidence, setting up and reinforcing clear guidelines for selecting, recruiting and exiting partners in the consortium, mobilization of adequate financial resources, enhanced integration of Information Communication Technology (ICT) within the operating systems, and democratic style of management among partners. It was recommended that ViAgroforestry, Kenya should align organizational structure, provide adequate resources, build employee competencies and set and reinforce clear guidelines for operations while integrating ICT in its operations for effective consortium strategy implementation. In view of the limitations of the study, further research has been suggested on evaluating performance of consortium strategy implementation at ViAgroforestry, Kenya

Response Strategies by Commercial Banks to Economic Changes in Kenya

Dynamic environment changes impact on organizations goals and objectives and this makes it difficult for organizations to remain viable. To be able therefore to stay ahead of competition, it’s imperative for the organizations to continually scan the environment so that the organizations adjust their strategic responses to accommodate the demands of the environment. The appropriate response strategies guarantee a competitive edge that ensures the organizations remain relevant. This study examined the strategies used by commercial banks in Kenya to respond to changes in the economic environment. A sample of thirty five banks was used and primary data collected using questionnaires administered to the managers of the banks who are responsible for developing response strategies. Secondary data was obtained from the banks’ existing bank publications and annual reports. The study established that the commercial banks have been able to respond to the changes in their environment through retrenchment strategies which involved cutting operating costs and divestment of non-core assets. They have also responded to the environment using various investment strategies which contrast with retrenchment and as such firms perceive these changes as opportunities to invest, innovate and expand into new markets in order to achieve or extend a competitive advantage. It was also established that ambidextrous strategies have been used where organizations combine incremental change with discontinuous change, or the exploitation of existing resources to improve efficiency. This occurs through exploration of new sources of competitive advantage and innovation. It is recommended that in order to stay ahead of competition, commercial banks should continuously scan the environment aggressively and speed up implementation of various strategies. Key words: Response strategies, commercial banks, economic changes

DOES INDUSTRY STRUCTURE AFFECT THE RELATIONSHIP BETWEEN FIRM CHARACTERISTICS AND PERFORMANCE OF LAW FIRMS IN KENYA?

Explaining and often predicting organizational performance is a primary researchobjective in the field of strategic management that need to be addressed becauseperformance improvement is at the heart of strategic management. The studyargues thatthe role of industry structure in the relationship between firmcharacteristics and performance has not received conclusive empirical backing.The study was contextualized in law firms in Kenya in which these variables havenot been empirically tested. The main objective of this study was to determine theinfluence of industry structure on the relationship between firm characteristicsand performance of law firms in Kenya. To achieve this objective, thecorresponding hypothesis was formulated and tested at 95 percent confidencelevel.The study was guided by resource based theory, the institutional theory andindustrial organizational theory. Through a cross-sectional descriptive survey,data was obtained using a semi-structured questionnaire. The questionnaire wasadministered to a sample of 379 law firms spread across the country out of which356 were filled and returned, representing a response rate of 93.93 percent. Thehypothesis was tested using the hierarchical analysis used to test moderatingeffects. The findings show that industry structure significantlymoderatetherelationship between firm characteristics and performance. Results of industrystructure independently on performancewere also statistically significant. Thestudy contributes to managerial practice and offerdirection for policy makers andthe owners of the law firms in Kenya since managers will use the findings of thisstudy to monitor the crucial performance drivers in their law firms with regard toindustry structure and strategy.The study therefore recommends that futurestudies should consider utilizing multiple methodologies such as applying mixedmethods of research to help identify the key factors of firm strategy andoperationalize their study in a different approach. The aim behind using differentstatistical techniques and /or plural methodologies is to validate and furtherstrengthen the existing research

Organizational Resources, Innovation and Performance of Insurance Companies in Kenya

In spite of a growing body of literature on firm performance, explaining why firms in the same industry and markets differ in their performance remains a fundamental question within strategic management field. While some researchers have attributed these differences to the resources owned and controlled by firms, others have argued that resources alone do not explain the differences in the firms’ performance. This debate still continues, hence providing room for further contributions. Underpinned by the postulations of resource based theory, dynamic capabilities theory and knowledge based theory; this study contributes to the debate. The study advances the proposition that resources influence performance through the intervening effect of innovation. The proposition is empirically tested using both primary and secondary data from 46 Insurance Companies in Kenya. The results reveal that both tangible and intangible resources have a statistically significant direct influence on non-financial performance despite mixed findings as regards to the independent effects of resources on various firm performance indicators. Innovation was found to have a statistically significant intervening influence on the relationship between resources and non-financial performance. The findings offer some support for the anchoring theories as well as partial support to previous similar studies. In spite of the inherent limitations, the study advances the frontiers of knowledge in confirming the anchoring theories while providing ground for policy direction and managerial practice.Key Words: Organizational Resources, Innovation, Firm Performance, InsuranceCompanie

Knowledge Sharing, Organizational Learning and Performance of Top 100 Medium Enterprises in Kenya

This study was grounded on the view that organizations have hidden reservoirs of knowledge in terms of tacit and explicit knowledge, which can be tapped to improve performance. This is according to the postulations of the knowledge and resource based theories. Whereas there is evidence of the direct influence of knowledge sharing and performance, this study advanced a proposition that organizational learning has effect on such influence. Using a structured questionnaire, data on the variables were obtained from a cross-section of 65 medium-sized companies to empirically test the proposition. The companies were among 100 medium sized companies categorized as top performing medium-sized companies in Kenya by KPMG and Nation Media Group in the year 2013. The study established that knowledge sharing had a positive and statistically significant effect on organizational performance. Conversely andcontrary to expectation, the study established that organizational learning had neither direct nor mediating effect on organizational performance. In spite of this finding, the study supports the anchoring theories that performance differences across firms can be attributed to thevariance in firms’ resources and capabilities. Policy makers can utilize the findings of this study to formulate sound support strategies for medium enterprises. Further, areas of inquiry have been put forth based on the limitations inherent in the study.Key Words: Knowledge Sharing, Organizational Learning, Firm Performance, Medium- Sized Enterprise

STRATEGIC PLANNING PROCESS AND PERFORMANCE OF ACCREDITED UNIVERSITIES IN KENYA: THE MODERATING EFFECT OF ORGANIZATIONAL CHARACTERISTICS

The extensiveness, intensity and formality of a strategic planning process in an organization may have an effect on the organization performance. The degree and direction of this effect still remains an unresolved management concern due to lack of consensus in research findings. This indicates that, there are other possible factors that may influence the relationship necessitating further empirical investigations. Every organization has unique characteristics like age, ownership and size, which define and differentiate it from other organizations in the same industry and these may have a bearing on the relationship between strategic planning process and organization performance. The population of interest was all accredited universities in Kenya as at November 2016. The findings indicate that age, size and ownership structure are statistically significant moderators for the relationship between strategic planning process and growth performance of accredited universities in Kenya while size and age are statistically significant moderators for the relationship between strategic planning process and ranking performance of accredited universities in Kenya. The study recommends that, as universities endeavor to use the strategic planning process as a management tool to enhance performance, they must consider their unique characteristics which will enhance or hinder their planning effort