Determinants of Strategy Implementation in State Corporations in Kenya: A Case Study of Kenya Revenue Authority

Abstract

The purpose of this research was to establish the determinants of strategy implementation of state corporations in Kenya with a case study of the Kenya Revenue Authority. Specifically, the research focused on four objectives: To determine the effect of strategic planning on strategy implementation in state corporations of Kenya including, to determine the effect of strategic planning on strategy implementation in state corporations of Kenya, to examine the effect of employee training on strategy implementation in state corporations of Kenya, to assess  the effect  of adequate resource allocation on strategy implementation in state corporations of Kenya, and finally to establish the effect of quality management on strategy implementation in state corporations of Kenya. The specific objective was to examine strategic planning; to examine training; to examine resource allocation, quality management and stakeholder involvement.  Stratified random sampling method was used. The study targeted 340 employees of KRA. The sample size for the study was 102 which represented 30% of targeted employees working at KRA. A modified Likert scale questionnaire was developed divided into five parts. A pilot study was carried out to refine the instrument. The quality and consistency of the survey was assessed using Cronbach's alpha. Data analysis was performed using Statistical Package for Social Science (SPSS Version 22) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated was presented in form of graphs, charts and tables. From the study, the male were the majority respondents with majority having worked for between 6 – 9 years. Majority of respondents were in management level and had bachelor's degree and post-graduate degree. Respondents agreed that there was a strategic plan and there were experiencing some challenges in implementation of the strategic plan. To establish the relationship between the independent variables and the dependent variable the study conducted correlation analysis which involved coefficient of correlation and coefficient of determination. According to the findings, it was clear that there was a positive correlation between strategic planning and determinants of effective strategy implementation shown by a correlation figure of 0.402; employee training and determinants of effective strategy implementation shown by a correlation figure of 0.237; resource allocation and determinants of effective strategy implementation shown by a correlation figure of 0.203; quality management and determinants of effective strategy implementation shown by a correlation figure of 0.011 and stakeholder involvement and determinants of effective strategy implementation shown by a correlation figure of 0.753. This showed that there was a strong positive correlation between the dependent variable and independent variable. Coefficient of determination explains the extent to which changes in the dependent variable can be explained by the change in the independent variables or the percentage of variation in the dependent variable that is explained by all independent variables. From the findings this meant that 62.7% of determinants of effective strategy implementation was attributed to combination of the five independent factors investigated in this study. The overall effect of the analyzed factors was very high as indicated by the coefficient of determination. The overall P-value of 0.00 which is less than 0.05 (5%) is an indication of relevance of the studied variables, significant at the calculated 95% level of significance. This implied that the studied independent variables namely strategic planning, employee training, resource allocation, quality management and stakeholder's involvement have significant influence on effective strategic implementation on KRA.