Impact of Strategic Choices on the Implementation of Mergers and Acquisitions in the Telecommunication Sector in Kenya

Abstract

Mergers and acquisitions in business and corporate world are becoming inevitable with the increased globalization of trade. The objective of this project study was to examine the impact of strategic choices on the mergers and acquisitions in the telecommunication sector in Kenya with special reference to Telkom (K) Ltd. The study was guided by the following research questions:  What are the organizational systems affecting strategic choices on the implementation of mergers and acquisitions in the telecommunication sector in Kenya? To what extent do the governmental regulations affect strategic choices on the implementation of mergers and acquisitions in the telecommunication sector in Kenya? What is the motivation of creation of mergers and acquisitions in the telecommunication sector in Kenya?  Both quantitative and qualitative research approaches were used for this study. Descriptive survey method was adopted. The study population included employees working at Telkom (K) Ltd.  Stratified sampling technique was used to select the right sample size. There were approximately 1140 employees working at Telkom (k) Ltd in Nairobi County. A sample size of 125 employees were selected to participate in the study. and 32 senior and branches managers were the key informants interviewed for this study.  Primary data was collected using self-administered questionnaires while structured interviews were conducted with senior managers and branch managers. Quantitative data was coded and analyzed by use of the Statistical Package for Social Sciences (SPSS) which helped to generate descriptive statistics as well as inferential statistics. While qualitative data generated from the interviews and open ended questions was presented in narratives and was organized according to various subtopics. The major research finding was that, organization factors that contribute to strategy choices play a vital role in the success of any organization. The study recommends the need to have organizations align their organization structure with the administrative systems in a way that will not make it challenging for the organizations in the telecommunication industry to implement their strategies. The study further recommends that the government has a role to play in ensuring that proper legislation is carried out so that the policies put in place do not act as a barrier to effective strategy choices and implementation of mergers and acquisitions when it comes to the operations of the firms in the telecommunication industry.