Understanding Technological Orientation as a Predictor of Organization Performance: Evidence from State Corporations in the Energy Sector in Kenya

Abstract

Kenya's energy sector plays an important facilitative role to other sectors of the economy and thus drives economic productivity and industrial growth. Statistical evidence shows that the key objectives of the energy sector, such as increasing electricity generation capacity, fostering access to services and information, promoting stakeholder satisfaction, and upgrading requisite technology, have not been accomplished in the recent couple of years. For this reason, this study examined the effect of technology orientation on the organization performance of government entities in Kenya's energy sector. The research was based on a resource-based view and a balanced scorecard. The research design was cross-sectional, including inferential and descriptive analysis. The study's target group included 11 Kenyan state corporations with 887 managers. A sample size of 285 respondents was chosen using a stratified random selection procedure. The respondents were managers in the fields of human resources, accounting, marketing, operations, corporate affairs, procurement, and supply chain management, as well as information and communication technology, administration, finance, and business strategy development. A structured questionnaire was used to acquire primary data. Quantitative data were analyzed and presented using figures and tables, as well as descriptive and inferential statistics. Tables and pie charts were used to convey quantitative data. The findings of the research revealed that technological orientation has a positive effect on the performance of state corporations in Kenya's energy sector. The findings of the study contribute to the body of knowledge, thereby validating the propositions of the resource-based view and dynamic capabilities theory. Further, the conclusion of this study forms an important basis for anchoring policy guidelines on strategic orientation practices that foster technological orientation and corresponding resource commitment for promoting communication, automation, technological change, and research and development with the object of optimizing organizational outcomes. Future researchers should execute replicative research in other sectors and industries to validate the findings of this study.