Strategic Change Drivers and Firm Performance in Mobile Telecommunication Industry: A Case of Airtel Kenya Limited

Abstract

Transition is an ever-present feature of corporate life, and the pace and degree of transition in recent years has increased considerably. All the companies are hit by the hurdle of transition. Change is relentless, and those who try to resist are inevitably and easily swept away. Those who respond best to shifting economies, evolving cultures, changing industry and technology have already gone on and out wrought the avalanche. The general aim of this study was to investigate strategic change drivers and firm performance in the mobile telecommunication industry, case of Airtel Kenya Limited. The study sought to achieve four specific objectives, which were to establish effect organizational culture, find out effects of organizational structure, examine effects of organizational leadership, and to establish the effect of strategic alliances on performance of Airtel Kenya Limited. The study was guided by the Agency Theory, Institutional Theory, The Resource Based View, and Resource Dependency Theory. The study adapted the descriptive research design. The target population was 288 and it consistedof top management, middle level management and low level management staff of Airtel Kenya Limited. The sample size for the study was 167and was determined based onYamane's (1967) sampling formula. The study used a structured questionnaire to collect data for the research.  The validity of the instrument was established by constructing questionnaire items from the literature and seeking marketing professionals and experts' opinion. The study used the Statistical Package for the Social Sciences version 22 to analyze the data using descriptive statistics, Pearson's (r) correlation, and multiple regression analysis. The data was presented in tables, pie charts and histograms. The researcher upheld honesty and integrity while conducting the research. Confidentiality was also practiced, and strict care was taken to guard all information disclosed. The findings established a positive and significance association between organizational culture (r=0.875; p=0.00), structure (0.481; p=0.00), and leadership (r=0.20; p=0.027) with firm performance whilst there was no association between strategic alliances (r=0.13; p=0.153) with firm performances. Regression analysis confirmed that organisational culture (p=0.00; p<0.05) and organisational structure (p=0.00; p<0.05) significantly affect firm performance while organisational leadership (p=0.768; p>0.05) and strategic alliances (p=0.554; p>0.05) do significantly affect firm performance. The study recommends for more leadership training for managers at Airtel Kenya to increase the level of leadership given to subordinates to bring out the best in them to enhance the performance of the organization. There is a need for Airtel Kenya management should emphasize on the chain of command structure of the organization and provide clear job roles for employees for staff to understand and internalize their roles in the running of the firm.