Effect of Organizational Factors On Strategic Plan Implementation: A Study of Safaricom Company Limited
Abstract/ Overview
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. R
2
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.