Influence of Strategy Implementation on Performance of Sugar Milling Firms in Western Kenya

Abstract

Implementing a strategy entails carrying out the steps outlined in a plan with the end goal(s) in mind. These ideas are developed further during the brainstorming phase, and then put into action through the execution process. Despite good strategic planning, in the last five years, the performance of the sugar companies in the country especially in the western region of Kenya remains under crisis and is not showing signs of improvement. The research aim was to establishing the Influence of Strategy Implementation on Organizational Performance of Sugar Milling Firms in Western Kenya. Precisely, the research was directed by the following research objectives: to determine the effect of external environment on the output of sugar milling firms in the western region of Kenya, to examine the influence of strategic leadership on the performance of sugar milling firms in the western region of Kenya, to determine the effect of organizational structure on the performance of sugar milling firms in the western region of Kenya and to determine the influence of strategic resource management on the performance of sugar milling firms in the western region of Kenya. The research used the theories of open systems theory to ground the independent variable of the study's environment, the theory of strategic leadership to justify the study's strategic management of leadership, the theory of chaos to justify the study's organizational structure, and the theory of resource orchestration to justify the study's strategic management of resources. Descriptive research methods were used by the investigator. The researcher decided to use a descriptive method. Three hundred executives, supervisors, and department heads at the 10 sugar mills will be surveyed for this study. This study used stratified sampling, in which 90 participants were selected at random. A copy of questionnaire was administered to the participants to gather the data. Quantitative data was coded for input and analyzed using both descriptive and inferential statistics with the use of the Statistical Package for the Social Sciences (SPSS version 25). The study findings were analyzed, summarized and presented in various descriptive statistics tools like frequencies distribution tables, percentages, custom tables, pie-charts and bar graphs to arrive at conclusions. To assess how Sugar Milling Firms in Western Kenya use strategy implementation to improve their organizations' performance, a multiple regression analysis was conducted. T-tests, F-tests, and Analysis of Variance were used to analyze the models' significance (ANOVA). Researchers discovered that the external environment significantly explained the success of sugar milling businesses in western Kenya (P=0.11<0.05). Strategic leadership was also found to be statistically important (P=0.021, <0.05) in describing the success of Kenya's sugar mills. In addition, the study discovered that organizational structure significantly (P=0.034, <0.05) influenced the success of Kenya's sugar mills. Finally, the research demonstrated that strategic resource management accurately describes the success of sugar mills in western Kenya (P=0.039, <0.05). The study concluded that the Kenyan government, specifically the Ministry of Agriculture, should control sugar imports. It was also concluded from the research that sugar mills should operate at full capacity in order to satisfy consumer demand. The research also suggests sugar corporations needs to collaborate closely with County Governments to enhance rural roads that aid in the transport of sugar-cane and agricultural inputs. According to the findings, the organization's departments should gain from having their strategies and structures more aligned, as well as having their performance contracts better aligned with their strategic goals and objectives.