Strategic alignment, operating environment and performance of state corporations in Kenya

Abstract

The Kenya Broadcasting Corporation has been in the spotlight for poor performance as evidenced by the weak financial base hence it has perennially depended on the exchequer to fund its operations. The weak performance may be attributed to several variables. The purpose of the study was to establish the effect of strategic alignment on performance of state corporations in Kenya, A case of Kenya Broadcasting Corporation. The objectives of the study were to determine the influence of organization structure alignment, resources alignment, culture alignment and marketing orientation alignment on performance of state corporations in Kenya. The study was anchored on strategic alignment model. The study used a descriptive research methodology. The unit of analysis was KBC, and the unit of observations was its 51 employees. The study used a census due to the small target population. The primary data for this research was gathered via a questionnaire. The quantitative data was analysed using descriptive and inferential statistics. Data was presented in tables and figures. The findings from correlation analysis showed that r values and p- values ranged from 0.5 to 0.9 an indication that strategic alignment significantly affected performance in the commercial banks. Marketing orientation alignment had the highest r values and thus the strongest effect to performance. The results also showed that 87.6% of the variations in the state corporation’s performance can be traced to strategic alignment. The hypothesis testing results indicated that organization structure alignment has a statistically significant effect on the performance of state corporations in Kenya, with a regression coefficient of β = 1.659 and a p-value of 0.000. Similarly, resource alignment significantly impacts performance, as evidenced by a regression coefficient of β = 1.776 and a p-value of 0.001. Culture alignment also shows a significant effect on performance, with a regression coefficient of β = 0.807 and a p-value of 0.001. Additionally, marketing orientation alignment significantly influences performance, with a regression coefficient of β = 0.702 and a p-value of 0.000. Finally, the operating environment has a statistically significant moderating effect on the relationship between strategic alignment and performance, with a regression coefficient of β = 0.023 and a p-value of 0.000. The study recommends that other organizations seeking to improve performance in profitability, market share and customer and employee satisfaction to adopt the use of elements of strategic alignment.