Determinants of Strategy Execution in Shipping Companies in Kenya Eric Lewa

Abstract

The concept of strategic management in business industry has attracted great attention in the past two decades, and the component of successful strategy execution of it is key for any organizations survival. Many organizations find it difficult to sustain their competitive advantages, despite having a robust strategy formulation process. The study reviewed relevant literature and theoretical underpinnings to address the research objective. The study was guided by four specific objectives: to establish the influence of organizational structure on strategy execution in shipping companies in Kenya, to determine the influence of organizational resources on strategy execution in shipping companies in Kenya, to examine the influence of strategic leadership on strategy execution of shipping companies in Kenya, to determine the influence of organizational culture on strategy execution in shipping companies in Kenya. The study adopted a cross-sectional survey research design. The population of the research consists of the 38 shipping companies in Kenya as at 2015. The unit of analysis were the employees in charge of strategic management matters in the shipping companies in Kenya. The study adopted purposive sampling. The study used primary data collected using structured questionnaires which were pre-tested before being administered. The respondents comprised of the Chief Executive Officer (CEO), Chief Operations Officer (COO), Chief Finance Officer (CFO), Chief Information Officer (CIO) and the Business Development Officer. These officers were purposely selected due to their level of involvement in strategy execution matters in their respective shipping companies. Therefore the target population was 190 officers from the shipping companies in Kenya. Statistical Package for Social Sciences (SPSS) was used in data analysis where both descriptive and inferential statistics were applied. Further the collected data was sorted, coded and entered into SPSS for production of graphs and tables. A pilot study of 10% of the sample was done to check on validity and reliability. The research hypotheses adopted two approaches; one was testing the significance of the relationship and two, the goodness of fit of the relationship, i.e correlation and regression analysis respectively. The hypotheses were tested within the 95% level of confidence interval or 5% level of significance. Strategy execution was regressed against four predictor (independent) variables that capture key elements. The study used regression analysis to test the effect among the study variables. Regression results indicated that the strategic management determinants of strategic leadership, organization resources and organization culture were statistically significant in explaining strategy execution in shipping companies in Kenya while organization structure was statistically insignificant. From the study, it is possible to conclude that the shipping companies in Kenya are not fully embracing the strategy execution initiatives within them. Therefore in order to survive and prosper in a rapidly changing business environment, the companies should strive to maximize on the determinants that influence strategy execution in their companies. Further the Kenyan maritime regulators should assist the shipping companies in identifying leaders with the right expertise and experience in leading the shipping companies in Kenya to execute their strategies effectively. The regulators should also ensure that the policies and guidelines are put in place that can clearly guide who is to lead these companies. The xxi shipping companies should collaborate with government agencies and other privately owned companies to learn on the best practices of strategy execution.