An Investigation of the Influence of Organizational Structure on Performance of Mobile Telephone Network Operators in Kenya

Abstract

The objective of the study was to investigate influence of organizational structure on performance of Mobile Telephone Network Operators in Kenya. Sub-variables used for the independent variable were teamwork organizational structure, learning organization structure and boundary-less structure. Performance of Mobile Telephone Operators in Kenya was analyzed in terms of profit margins and market share. Structural contingency theory was used to explain the relationship between organizational structures on performance. Mixed methodology was used in collecting and interpreting data. Primary data was gathered using self-guided semi-structured questionnaires and secondary data was obtained from published profit margins and percentages of market share obtained from the companies` reports. Study population was 6,167 which included all the employees in the Mobile Telephone Network Operators in Kenya and a total sample size of 361 employees was obtained but 258 questionnaires were filled and returned. Data analysis was done using descriptive statistics and inferential statistics. The study hypothesis was tested at 95% confidence interval and 0.05 α level of significance. Study H0 stated that: Organizational structure does not positively influence performance of MTNOs in Kenya. Goodness of fit model demonstrated that organizational structure had a positive influence on organizations’ performance of MTNOs accounting for 16.4% of the performance (R squared = 0.164). The study concluded that there was a statistically significant influence of organizational structure on organization`s performance therefore rejecting the null hypothesis H0 at β = 0.405 and P = 0.000.