Firm Level Strategy, Organization Culture and Performance of Food and Beverage Manufacturing Firms in Kenya

Zachary B Awino,Dominic C Muteshi,Reginah K Kitiabi,Ganesh P Pokhariyal

doi:10.5539/ijbm.v13n8p224

Zachary B Awino, Dominic C Muteshi + Show 2 more

Open Access

https://doi.org/10.5539/ijbm.v13n8p224

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Abstract

The study tested the impact of organization culture on the on the relationship between firm-level strategy and performance of food and beverage manufacturing firms in Kenya. The opinion of the CEO/MDs from 125 firms in this sector was sought by application of a structured questionnaire; the collected data was analysed using hierarchical regression analysis. The paper stated hypothesis that organizational culture has a significant effect on the relationship between firm-level strategy and performance. The results supported the hypothesis. Therefore, firm development of strong organization culture to support firm-level strategy for higher performance is paramount. These findings will contribute to government policy formulation for sector’s expansion and competitiveness and management drives in building a positive organization culture to support firm-level strategy for improved performance.

Highlights

Literature on strategic management extensively concedes that organizational culture is a factor which is critical in explaining how firms work and develop construct strategies for making them more productive (Prajogo & Sohal, 2001)
The results indicate that firm-level strategy and organizational culture have a significant influence on performance (t=-1.37, p=
The results imply that when firms develop healthy organizational culture, firm-level strategy seizes to guide firm performance

Summary

Introduction

Literature on strategic management extensively concedes that organizational culture is a factor which is critical in explaining how firms work and develop construct strategies for making them more productive (Prajogo & Sohal, 2001). Studies on the direct and indirect connections between firm-level strategy and performance have overlooked the impact of organizational culture and yet a strong culture could be the only separating difference between two fierce competitors (Denison, 2000; Navdeep, 2010). Empirical evidence demonstrates existence of considerable investigations on the linkages among strong culture and high level performance and poor culture and low performance. This study postulates that there is a significant relationship between firm-level strategy, organizational culture and performance

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Conclusion