The Strategy Implementation Capabilities and Performance of Nairobi Securities Exchange (NSE) in Kenya

Abstract

Firm’s strategy implementation capabilities such as resource allocation, technological, marketing and management enable an organisation gain competitive advantage. The various studies done are inconclusive on how strategy implementation capabilities’ affect firm performance. The overall objective of the research, therefore, was to determine the effect of the strategy implementation capabilities on the performance of NSE. The specific objectives are to determine how resources allocation capabilities of affect NSE performance, to assess how technological capabilities affect NSE performance, to ascertain the effect of the marketing capabilities on NSE performance and to find out how management capabilities influence the NSE performance. The theories that underpin this study are the dynamic capabilities (DC) theory, the resource-based view (RBV) theory and the McKinsey 7-s model. The target population was the 62 NSE staff. The analysis used a descriptive survey design and data collected using semi-structured questionnaire. Descriptive statistics such as standard deviations, frequency and mean and the inferential statistics were used and the final analysed data presented in tables, charts, graphs. Based on these results, all the null hypotheses were rejected, since they had a lower p-value (p<0.05) as the findings were statistically significant. The study concluded that the NSE commits the available resources fully as indicated by resource distribution, optimal resource commitment, responsible deployment, and budget-strategy alignment. It was further concluded that the company enhanced technological capabilities through proper management of ICT infrastructure, having right systems and cyber security posture. The study concluded that, the firm had sound marketing capabilities as portrayed by enhanced communication with stakeholders, having products that are customer centred and having an effective go to market strategy. The study finally concluded that NSE has enhanced management capabilities among its staff through trainings and coaching programs. The recommendation was that further research be done about variables which affect performance significantly.