Influence of Strategic Management Practices on Organisational Performance: A Survey of Commercial Based Parastatals in Kenya
Nyagaki, Bertha Kariuki
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A key role of strategic management theory as well as research continues to be the consistent improvement of institutional results. The idea and practices of strategic management is therefore significant to privately-owned, public as well as community- based organizations as all of them are formed to fulfill a certain need in the environment. Government and its agencies the world continue to implement strategic management practices with the ultimate intention of improving the success of service performance in the delivery of public goods and services. The major intention for the Study was to determine influence of strategic management practices on organizational performance, a case study of commercial based parastatals in Kenya. More importantly the analysis deals with the degree to which strategy evaluation impact organization performance; the level to which environmental scanning influence organization performance; the level to which strategy formulation influence organization performance; and analyzed the degree strategy implementation influence organization performance in commercially based parastatals in Kenya. The study may greatly contribute towards the running of commercially based parastatals in Kenya. Terminations from the analysis aid them towards the formulation as well as designing of effective plans for the identification and tackling of concerns surrounding strategic management practices in order to realize established desires and ensure relevancy in a dynamic and place commercially based parastatals well towards better results going forward. The study was guided by a descriptive research design. The target population was and targets 129 employees of commercial based parastatals. Purposive sampling was adopted in this study; data was collected using a closed ended questionnaire. Statistical Package for Social Sciences (SPSS version 23.0) was used to run descriptive and inferential statistics. The result indicated that, collectively environmental scanning has influences on organization performance most, followed by strategy evaluation, strategy formulation and strategy implementation. The study concludes that, predictors collectively influence organization performance. The findings are to guide policy makers and managers in strategy implementation. The study recommends that during strategy formulation the commercial based parastatals should involve all stakeholders in the industry so as to create sense of ownership. Commercial based parastatals should ensure involvement and participation of all the levels of management in formulating strategies. Furthermore, the study proposes future analyses on other external aspects such as the organizational setting and type of industry to give a better aspect of these factors. This is because organization operations are influenced by both internal and external environments.