Influence of Organizational Structure on Strategy Implementation among SACCOs in Kakamega County, Kenya

Abstract

Successful implementation of strong and robust strategies gives any organization a significant competitive edge. However, the extant literature reviewed indicates that the formulated strategic plans are not well implemented in the Savings and Credit Co-operatives in Kenya. The study sought to examine the influence of organizational structure on strategy implementation among SACCOs in Kakamega County, Kenya. The study used a descriptive survey research design while the total target population of 123 SACCOs. The respondents were composed of the SACCOs' Chief Executive Officers, the Board of Directors and the supervisory committee members who were sampled through stratified sampling. The primary information was gathered through the use of a questionnaire and was subjected to validity and reliability tests with the Cronbach Alpha Coefficient being above 0.70 indicating that the instrument was adequate. The study captured data from 35 SACCOs and 264 respondents representing about 55.42% response rate. The correlation analysis indicated that strategy implementation positively correlated organizational structure (r = 0.3395, p < 0.05). Organizational structure explained 15.60% variance (F_{(1, 264)} = 29.37, p < 0.05) in strategy implementation process.Based on the findings, the study rejected all the null hypotheses and concluded that these organizational determinants have a statistically significant effect on strategy implementation. The study recommends the following; a leaner organizational structure for effective leadership and decision-making process, management commitment towards the strategic postures and resource deployment.