Influence of Organizational Culture as Key Strategy Implementation Dimension on Organizational Performance of Commercial State Corporations in Kenya

Abstract

The significance of strategy implementation dimensions in improving organizational performance cannot be overstated. Yet, organizations do not necessarily succeed in implementing the strategies set due to failure to pay close attention to strategy implementation components. Effective management of organizations calls for execution of strategy implementation dimensions, to make strategies work, organizations must get things done and do it in the right manner. Strategy implementation cannot be effective unless the strategy itself is designed to be executable. The implementation will not yield to exceptional organizational performance unless the strategies are designed around the achievement of overall organizational goals. Therefore, the purpose of the study was to investigate the influence of organizational culture as key strategy implementation dimension to the organizational performance of commercial state corporations in Kenya. This was a census study comprising of 34 commercial state corporations targeting 295 Senior Management Team (SMT) members. This study employed structural equation modelling to analyse relationships between variables and constructs. The results provided statistical evidence that a positive and significant influence exists between organizational culture as key strategy implementation dimension and organizational performance of the commercial state corporations. The relationship between organizational culture and organizational performance was significant at 0.05 level of significance. Therefore, the study concluded that organizational culture significantly influences organizational performance of commercial state corporations in Kenya. In practice, this study recommends that commercial state corporations need to pay attention to organizational culture as a key driver of well-articulated strategic plans thereby translating the intended strategies into improved organizational performance.