Influence of strategy implementation factors on performance of Kenya rural roads authority

Abstract

Kenya Rural Roads Authority (KeRRA) is a road agency vested with the responsibility of management, development, rehabilitation, and maintenance of rural roads. However, the Authority has not adequately accomplished its objectives due to challenges such as inadequate funding, cost and time overruns, poor and inadequate road network, political interference, delayed payments, and inadequate supervision as per World Bank Report of 2017. The Authority has attempted to overcome these challenges through adopting Public Private Partnership (PPP) and Performance Based Contracting (PBC) models, Provision of Supervision Consultants, Infrastructure Bonds, restructuring, and capacity building but with little success. Theoretical literature suggest that strategy implementation factors have a potential to increase organizational performance. There is currently no study that has investigated the relationship between strategy implementation factors and the Authority’s performance. Furthermore, research on the dynamics of strategy implementation in the public sector is still in its infancy as most studies conducted either focused on the problems in implementing strategies or on the key attributes of successful strategy implementation. Consequently, studies on strategy implementation and organizational performance in a public sector context has not been fully explored. Therefore, the purpose of this study is to establish the influence of organizational structure, resource allocation and environmental uncertainty as facets of strategy implementation on performance of Kenya Rural Roads Authority. The study was guided by Resource Based, Survival Based and Contingency Theories in a correlation research design. The study population constituted 47 respondents comprising of Engineers (KeRRA’s Regional Directors). A total sample of 37 respondents was selected using saturated sampling techniques. Pilot results with N=10, showed reliability test of a Cronbach’s Alpha coefficient between 0.701 and 0.948. Validity was established through expert review. The findings revealed that strategic implementation factors such as organization structure, resource allocation and environmental uncertainty collectively accounted for 77% (R2 =0.770, p=0.000) variation in performance at KeRRA. It was further revealed that dimensions of Organization structure (B = 0.279, p= 0.024), Resource Allocation (B=.234, P=0.007) and environmental uncertainty (B = 0.439, p= 0.000) all had significant positive influence on performance. This implies that all the three dimensions of strategy implementation factors can directly influence the performance at KeRRA. The study concludes that organization structure, resource allocation and environmental uncertainty are all critical antecedents of organizational performance. Therefore, the study recommends to the management of KeRRA to give more prominence to strategy implementation factors such as: organization structure, resource allocation and environmental uncertainty as they are positively associated with organizational Performance. The results of the study can be useful for the policy makers at KeRRA on the best approach of strategy implementation along its three dimensions of structure, resource allocation and environmental uncertainty. To the Academia, the study added new knowledge on strategy implementation practices.