Effect of organizational factors on strategic plan implementation: a study of Safaricom company limited

Abstract

Strategic Plan Implementation (SPI) refers to the process of developing an organization-wide strategy that can be executed over the course of a long period of time; usually between one and five years and uses factors such as leadership, structure and resource allocation alignment, to improve customer service quality, satisfaction and clientele growth. Whereas many studies look at single factor relationships with strategic implementation and performance these factors never exist singly in a functioning framework. Safaricom Company Limited faces a challenge of the continuous price war, which has greatly increased network traffic hence congestions on the line hence in a bid to influence its customer service quality, satisfaction and growth, strategic plan implementation processes is required. The purpose of this study was therefore to determine the effect of organizational factors on strategic plan implementation in Safaricom Limited. The specific objectives were to establish the effect of leadership on strategic plan implementation at Safaricom Ltd. and determine the effect of organizational structure on strategic plan implementation at Safaricom Ltd. and to examine the effect of resource allocation on strategic plan implementation at Safaricom Ltd. This study was anchored of Thomas and Strickler as well as Ricky Griffin’s model and adopted correlational research design. The study used 160 respondents comprising both the management team as well as the employees. A sample size of 82 was drawn using stratified random sampling technique. The study used primary data which was collected using structured questionnaire. Data validity was achieved through test-retest method on 10 respondents not included in the sample, while reliability was achieved through the Cronbach alpha test (coefficient =0.865). Inferential statistics namely regression and correlation analysis was used to analyze the data and the results presented in form of tables. The study revealed that a unit change in strategic leadership, organizational structure and resource allocation leads to a change in SPI by 0.222(p =0.029); 0.324(p = 0.001) and 0.152 (p =0.117) respectively. However, leadership and organization structure are the only key determinants of SPI. R2 is 0.372 implying that the three organizational factors account for up to 37.20% of SPI. The F- statistics was also significant at 0.000 implying that the sample reflected the overall goodness of fit. The study recommends that the company should adjust its leadership and relook at its organizational structure in order to advance/champion its strategic plan implementation. The benefits of the study may permeate the ever dynamics mobile telephony sector as well as advance the field of academia especially those involved in strategic plan implementation.