Influence of Organizational Structure on the Performance of Financial Services Associations in Makueni and Kitui Counties of Kenya.

Abstract

On the surface, the concept of strategy implementation may sound relatively simple, whereby a strategy is developed and put into practice. However, putting strategies into practice is far more challenging and complicated. The present study sought to determine the influence of organizational structure on the performance of FSA in Kitui and Makueni counties. The study adopted a cross-sectional survey research design, the sample for the study was 280 obtained through a stratified random sampling technique from a population of 938 possible participants. The study applied a questionnaire to gather data for the study using both physical and electronic procedures. Data was analyzed through descriptive and inferential analysis, where a simple binary logistic regression analysis was applied to test a null hypothesis. The study revealed a β of 0.973, a Wald statistic of 21.285, df= 1, and an Exp(B) = 4.812 which was associated with a p-value of 0.001. Firms that adopted flat structures instead of tall structures increased the odds of high performance by a factor of 4.812. The study concluded that organizational structure had a positive and significant influence on the performance of the FSA in Kitui and Makueni counties. The study also recommends for adoption of a flat organizational structure to promote a structure that is a flexible and responsive organizational structure to enhance performance.