Top Management Team Characteristics, Strategy Implementation and Performance of Tea Factory Companies in Kenya

Abstract

The study was designed to examine the indirect influence of top management team characteristics on performance of tea factory companies in Kenya. This study was guided by the upper echelons theory and the institutional theory. The objective of the study was to examine the influence of strategy implementation on the relationship between top management team characteristics and performance. A descriptive cross-sectional survey design was adopted. The population of the study comprised tea factory companies in Kenya managed by the Kenya Tea Development Agency Limited. Primary data were collected using structured questionnaire targeting factory unit manager, production manager, finance manager and field services manager. Rigour was tested by examining reliability scores and factor analysis. The reliability scores were high and within acceptable range for purposes of analysis. Results of factor analysis demonstrate high presence of construct and convergent validity. Data were analyzed through regression analysis. Our results support the supposition of indirect influence of top management team characteristics on performance. We empirically demonstrate that strategy implementation fully mediates the relationship between top management team characteristics and performance. The study contributes to the stock of knowledge by challenging the previously held belief that top management team characteristics directly influences performance. We conclude that organizational performance is the result of effective deployment of top management skills and experiences in the execution of strategy rather than the mere constellation of characteristics held by top managers.