Relationship between strategy implementation and performance of faith based organizations: a case of the catholic archdiocese of Kisumu, Kenya

Abstract

Faith Based Organizations (FBOs) are facing a dynamic changing environment impacting on their ability continue to offering services to the community. It therefore calls for these organizations to be managed more strategically and effectively to endure attracting the donor community who support their programs. Faith based Organizations, just like other public and private organizations have adopted strategic management. Despite the application of strategic management in organizations, there is evidence of a high rate of failure of strategy implementation. Specifically, the adoption of the strategic planning practices has not registered immediate positive indicators as expected at the Archdiocese as indicated by the drop in social and community livelihoods targeted programs, donor funding and unprecedented competition from secular organizations is evident. The objective of the study was to investigate the relationship between strategy implementation and the performance of Faith based Organizations in the Archdiocese of Kisumu. The study focused on the following specific research Objectives: investigate the relationship between Strategic Resources and Performance of Faith based organizations; analyze the relationship between organization structure and performance of faith-based organizations; and to assess the relationship between operating procedures and organizational performance of faith-based organizations. Corresponding null hypotheses were developed for each objective. The study was guided by Okumu’s key variables framework and the Higgin’s aligned 8Ss model of strategy implementation. The study adopted a descriptive case study research design. A census survey was conducted by administering questionnaires to the 86 administrators of the faith based institutions in the Archdiocese. The study targeted all the 86 (Parishes, Hospitals Health centers, and other institutions) owned by the Archdiocese of Kisumu. 71 of the respondents returned their questionnaires and were found fit for analysis. A reliability test found a Cronbach’s Alpha of between 0.793 and .825. A content validity was established through subject experts within the University. The data was analyzed using means and standard deviations for the descriptive statistics. A multiple regression was calculated to predict performance of faith-based organizations based on the strategy implementations dimensions: resource allocation; organization structure; and Operating procedures. A significant regression was found (F (3, 66) = 52.646, P ≤ .000), with R2 of .647. Strategic resources were the best predictor (β =.411), followed by operating procedures (β =.302) and the weakest was organization structure (β =.202). The null hypotheses were therefore not supported. The study concluded that there is a significant and positive relationship between strategy implementation and performance of faith-based organizations. The strategy implementations must provide the requisite strategic resources, design effective structures and develop operating procedure to guide implementation and realize performance of organizations. Besides, the study provided new knowledge on the areas of combination of different framework models of strategy implementation in predicting performance.