Influence of strategic planning and organizational resources on financial performance of state corporations: A case of Kenya Electricity Transmission Company Limited (KETRACO)

Abstract

Abstract Influence of strategic planning and organizational resources on the financial performance of state corporations. The study aimed to establish the influence of strategic planning and organizational resources on the financial performance of state corporations a case study of KETRACO with specific objectives being to examine how strategic planning and organization resources affect financial performance. The findings will be used as a reference point to other researchers in the same field. The study findings will be beneficial to the foundation of future studies and provided a critical examination and the knowledge generated by this study will enable scholars to improve and develop a better understanding of the subject. The study was anchored on adaptive leadership theory and reinforced by trait leadership theory. The study adopted a descriptive research design with a target population of 385 respondents. Stratified proportion sampling was used to select 121 respondents. Questionnaires were used for data collection, and a pilot study was conducted on the questionnaires. Data were analyzed using descriptive statistics and inferential statistics. The study established a strong positive relationship between strategic planning and financial performance (r= 0.548, p=0.000), and that strategic planning significantly influences financial performance. The regression analysis revealed a relationship R = 0.302 which showed a significant correlation and revealed that organization resources and financial performance are significantly connected, the study established a strong positive relationship between the organization resources and financial performance (r= 0.302, p=0.004). The study concludes that strategic planning statistically and significantly affects financial performance and that there is a positive relation between organization resources and the variations in financial performance can be explained by other study variables. The study recommends that KETRACO management should develop and formulate guidelines, governing structure, and strategic plans for effective implementation of organizational goals and objectives. Keywords: Financial Performance, Strategic Planning, Organization Resources, Kenya Electricity Transmission Company Limited, State Corporations in Kenya.