STRATEGIC MANAGEMENT PRACTICES AND COMPETITIVENESS OF COMMERCIAL PARASTATALS IN KENYA

Hussein Wekesa Wasilwa, Dr. James Gichana, Dr. Dennis Juma

Abstract


The general objective of this study was to investigate the relationship between strategic management practices and competitiveness of commercial parastatals in Kenya. The specific objectives were as follows; to examine the relationship between strategy formulation and competitiveness of commercial parastatals in Kenya and to establish the relationship between strategy implementation and competitiveness of commercial parastatals in Kenya. The study was anchored on Resource-Based View and Dynamic Capabilities Theory. This study used a descriptive research design. This study only focused on Training and Research, Public Universities and Tertiary Education/Training parastatals in Kenya which are 21 in number. In every parastatal the study target 1 top manager, 3 middle level managers and 5 lower-level managers hence a total of 189 management employees. The total target population was therefore 189 respondents. Management employees were targeted since they were in a better position to provide information on the relationship between strategic management practices and competitiveness of commercial parastatals in Kenya. The study adopted stratified sampling technique in selecting participants. The sample size was 128 respondents. This study used а structured questionnaire as data collection tool to collect both qualitative and quantitative data. The research utilized an adopted questionnaire as the data collection tool to ensure that the questions were appropriate for the study. A pilot test was done in order to examine the requisite requirements that were necessary for the study. Data analysis was undertaken in two methods by use of SPSS. First, descriptive statistics were undertaken which involved computation of means and standard deviations for observations about variables. The study concluded that strategy formulation had a positive and significant relationship with the competitiveness of Kenya’s commercial parastatals. The study also concluded that strategy implementation had a positive and significant relationship with competitiveness of commercial parastatals in Kenya. Based on the findings, the study recommended that commercial parastatals in Kenya should; establish structured mechanisms such as regular consultative forums, digital feedback systems, and cross-departmental planning sessions to actively involve internal and external stakeholders in strategy formulation; ensure timely budget disbursement, allocate adequate human and financial resources at strategy implementation phase, and institute clear, organization-wide communication channels to align all staff with strategic goals.

Key Words: Strategic Management Practices, Competitiveness, Commercial Parastatals, Strategy Formulation, Strategy Implementation.


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References


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