Effect of Strategy Implementation on Performance of Chemelil Sugar Company in Kisumu County, Kenya

Abstract

The performance at Chemelil Sugar Company in Kisumu County has been unsatisfactory and thus, the study sought to examine whether strategy implementation can affect the performance. The study was underpinned on resource-based view theory. The descriptive research design was deemed relevant to the study. The target population was 60 and the key respondents incorporated the heads of departments. The sample size was 60. The study adopted the purposive sampling technique and questionnaires were used to collected the data. The analysis of the data was done using descriptive and inferential statistics. The results of the study showed that strategy implementation affect performance positively. The strategy implementation can be determined by resource allocation, stakeholders, communication and structure. The correlation analysis showed there was a strong positive relationship between performance and strategy implementation. The coefficient of determination (r2=.424) indicated that 42.4% of the variation in organizational performance can be explained by strategy implementation. The regression results established that strategy implementation is positively and significantly related to performance (?= .883, t = 2.847, p = .016). Hence, unit increase in strategy implementation while holding all other factors constant, increases performance by 0.883 units. The study recommended the improvement of strategy implementation through enhanced resource allocation, stakeholders, communication and structure could improve the performance of the organization. The allocation of the resources need to be adequate to foster the strategy implementation. It is suggested that stakeholders' skills to be matched with their responsibilities. The managers to create maximum awareness to employees when implementing new policies and effective structure be developed to encourage information sharing between departments. Keywords: Strategy implementation, performance, Chemelil Sugar Company, Kisumu County, Kenya