THE RELATIONSHIP BETWEEN STRATEGIC PLANNING EFFECTIVENESS AND PERFORMANCE OF AGRICULTURAL SECTOR STATE CORPORATIONS IN KENYA
MUHSIN HAJI HASSAN
A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL FULFILMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (STRATEGIC MANAGEMENT) DEGREE OF JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
This proposal is my original work and has not been presented for a degree in any other University.
Muhsin Haji Hassan
This project has been submitted for examination with my approval as University
Jomo Kenyatta University of Agriculture and Technology
To my Late Dad, Hassan Haji Shibwabo
Your love for Education was extraordinary!
To the rest of my family
Your care, patience and love has opened up the world for me.
We Will Write a Custom Essay Specifically
For You For Only $13.90/page!
ACKNOWLEDGEMENTTABLE OF CONTENT
TOC o “1-3” h z u DECLARATION PAGEREF _Toc521581969 h iiDEDICATION PAGEREF _Toc521581970 h iiiACKNOWLEDGEMENT PAGEREF _Toc521581971 h ivLIST OF TABLES PAGEREF _Toc521581972 h viiLIST OF FIGURES PAGEREF _Toc521581973 h viiiLIST OF ABBREVIATIONS AND ACRONYMS PAGEREF _Toc521581974 h ixLIST OF APPENDICES PAGEREF _Toc521581975 h xOPERATIONAL DEFINITIONS OF TERMS PAGEREF _Toc521581976 h xiABSTRACT PAGEREF _Toc521581977 h xiiCHAPTER ONE: INTRODUCTION PAGEREF _Toc521581978 h 11.1 Background of the Study PAGEREF _Toc521581980 h 11.2 Statement of the Problem PAGEREF _Toc521581981 h 51.3 Objectives of the Study PAGEREF _Toc521581982 h 61.4 Justification of the Study PAGEREF _Toc521581984 h 71.5 Scope of the Study PAGEREF _Toc521581985 h 8CHAPTER TWO: LITERATURE REVIEW PAGEREF _Toc521581986 h 92.1 Introduction PAGEREF _Toc521581988 h 92.2 Theoretical Framework PAGEREF _Toc521581989 h 92.3 Empirical Review PAGEREF _Toc521581990 h 132.4 Conceptual Framework PAGEREF _Toc521581991 h 222.5 Critique of the Reviewed Literature PAGEREF _Toc521581992 h 242.6 Summary of the Reviewed Literature PAGEREF _Toc521581993 h 252.7 Research Gaps PAGEREF _Toc521581994 h 27CHAPTER THREE: RESEARCH METHODOLOGY PAGEREF _Toc521581995 h 283.1 Introduction PAGEREF _Toc521581997 h 283.2 Research Design PAGEREF _Toc521581998 h 283.3 Target Population PAGEREF _Toc521581999 h 293.4 Sample Size and Sampling Technique PAGEREF _Toc521582000 h 293.5 Research Instrument PAGEREF _Toc521582052 h 323.6 Pilot Testing PAGEREF _Toc521582053 h 333.7 Data Collection Procedure PAGEREF _Toc521582056 h 343.8 Data Analysis PAGEREF _Toc521582057 h 34REFERENCES PAGEREF _Toc521582058 h 36LIST OF TABLES TOC h z “Heading 5” c Table 2.1: Components of Balanced Scorecard PAGEREF _Toc521582954 h 12Table 3.1: Sampling Frame PAGEREF _Toc521582955 h 30Table 3.2: Sample Distribution PAGEREF _Toc521582956 h 32
LIST OF FIGURES TOC h z “Heading 4” c Figure 2.1: Conceptual Framework PAGEREF _Toc515873172 h 23
LIST OF ABBREVIATIONS AND ACRONYMSADC: Agricultural Development Corporation
AFFA: Agriculture Food & Fisheries Authority
ASE:Athens Stock Exchange
DFI: Development Finance Institution
ICV:Internal Corporate Venture
KALRO: Kenya Agricultural &Livestock Research Organization
KDB: Kenya Dairy Board
KEPHIS: Kenya Plant Health Inspectorate Service
KPA:Kenya Port Authority
KPI:Key Performance Indicators
KPLC:Kenya Power and Lighting Company
KRA:Key Result Areas
NACOSTI:National Council of Science, Technology and Innovation
OECD:Organization for Economic Cooperation and Development
RDT:Resource Dependency Theory
SPSS:Statistical Package for Social Sciences
LIST OF APPENDICES TOC h z “Heading 3” c Appendix I: Letter of Introduction PAGEREF _Toc515872682 h 40Appendix II: NACOSTI’s Research Permit and Authorization Letter PAGEREF _Toc515872684 h 41Appendix III: Research Questionnaire PAGEREF _Toc515872686 h 42Appendix IV: Proposed Budget PAGEREF _Toc515872688 h 47Appendix V: Work Plan PAGEREF _Toc515872690 h 48
OPERATIONAL DEFINITIONS OF TERMSOrganization’s environment: This refers to the surroundings within which an entity operates and encompasses factors that enhance or impede the entity’s operations (Mendes, 2017). They include: legal, political, technological, socio-economic as well as ecological environments.
Resource imbalance level: This is the variation in the resources available to managers of a given entity which are crucial in strategic planning (Suklev ; Debarliev, 2012). In regard to the present study, capital adequacy describes the availability of funds to run the operations of State Corporations.
Stakeholder involvement: This refers to the aspect of including or engaging various persons with similar interests in a given endeavour (Wanyama, 2013) such as the process of strategic planning. In tandem with this study stakeholder involvement is characterized by informative, consultative and decisional engagements.
Strategic planning effectiveness: This refers to the characterization of the strategic plan that bears achievable goals and objectives, realizable vision, KRA and KPA with the view of ensuring the survival and/or sustainability of an organization (Lassner, 2008). In regard to the present study, it is operationalized by efficiency, outcome, quality and also project measures.
Top management support: This refers to satisfactory availability of finances to run the operations of an entity (Hafez ; El-Ansary, 2016). In regard to the present study, capital adequacy describes the availability of funds to run the operations of State Corporations.ABSTRACTAgriculture is regarded as the backbone of the Kenyan economy and Food Security and Nutrition has been identified as one of the Big Four Agenda fronted by His Excellency President Uhuru Kenyatta. In light of this the study seeks to investigate the relationship between strategic planning effectiveness on the performance of agriculture state corporations in Kenya. The specific objectives of the study are to establish the relationship between stakeholder involvement and performance of agriculture sector state corporations in Kenya, to determine the relationship between top management support and performance of agriculture sector state corporations in Kenya, to establish the relationship between organization’s environment and performance of agriculture state corporations in Kenya and to determine the relationship between resource imbalance levels and performance of agriculture state corporations in Kenya. The study will be guided by the stakeholder theory, resource-dependency theory and, the balanced scorecard theory. A descriptive research design and quantitative approach will be adopted. The management staff working with the agriculture state corporations will constitute the target population with a total of 385 such staff working at the corporations, head offices will comprise the study population. Stratified random sampling technique will be adopted to draw a sample of 80 respondents from the sampling frame. A structured questionnaire will be used to facilitate collection of primary data. The questionnaire will be pilot tested in order to test for both its validity and reliability. Data will be collected after obtaining relevant approval, permit, authorization and/or consent. The Statistical Package for Social Sciences Version 24.0 software will facilitate data analysis. The collected data will be analyzed using both descriptive and inferential statistics. The study results will be presented in tables. The null hypotheses will be tested at 95% confidence level. The study is expected, in addition to adding to the body of knowledge in respect of strategic management, to be informative to policy makers and practitioners particularly in state corporations who are involved in both planning and implementation of strategic plans.
CHAPTER ONEINTRODUCTION1.1 Background of the StudyStrategic planning is described as a process that involves an organization developing a strategy for fulfilling its responsibility and also achieving its goals more effectively. It is referred to as a formal but flexible process used to determine where an organization is currently and where it should ideally be in the future (Young, 2003). Therefore, a sound strategic planning process enables a firm to clarify its mission, articulate a vision of success, and prioritize specific goals.
According to Lassner (2008), there exists three types of planning, which include operational, tactical, and strategic planning. While operational and tactical planning are short-term and narrow in direction respectively, strategic planning is a long-term planning which involves all management areas of an organization. Moreover, its contents are relatively general. Strategic planning is characterized by vision and mission statements, core values, key result areas (KRA), KRA drivers, key objectives, strategic priorities, and key performance indicators (KPI). It centres on both broad and long-lasting issues that facilitates long-term effectiveness and survival of the organization.
According to Bryson, Crosby and Bryson (2009) strategic planning is popular due to the fact that in many circumstances it seems to work, whereby it helps decision makers find out what their organizations are supposed to be doing, how, and also why. In the same perspective, Giradeau (2008) asserts that strategic planning may work; however, the issue of whether and how it works, in what ways, for whom, when, and why is an open question. Though, there exists critics who argue that strategic planning does not work effectively, it is asserted that their arguments may be premised on how they define strategic planning, the methodology employed to study its effectiveness, typical lack of attention to the reasons behind undertaking the process, how the strategic management process was managed, among other critical factors (Bryson et al., 2009).
Internal Factors Affecting Strategic Planning Effectiveness
It is acknowledged that over the past few decades, the Danish agricultural research and consultancy has witnessed both development and implementation of strategic planning. A survey of Danish projects focused on implementation of strategic planning on farm businesses (Lumd & Christensen, 2003). Of particular interest were experiences drawn in respect of the aim of strategic management in agriculture, development of the vision and long-term strategy on business farms, and implementation of the formulated business strategy. Other crucial areas of interest include among others, identifying how research facilitates development and implementation of strategic planning, delivery of strategic consultancy to farm managers, and also understanding the function of learning in strategic management.
Agribusinesses in the United States, over the past 20 years, have been subject to several substantive structural changes. In the same breadth, data from a comparative analysis of strategic planning practices in Michigan Agribusiness firms in 1992 and 2012 indicate that the agribusinesses in the region have become larger, more diverse, and have also increased their adoption of strategic planning activities (Lopes & Ross, 2013). It is further pointed out that increased levels of uncertainty and complexity have most probably strained strategic planning activities in the agribusiness sector.
According to the European Commission (EC) both public and private sectors have a lot in common in sustaining the state, striving for excellence, fulfilling the European Union (EU) 2020 Strategy, and also for the best results. Yet, the two sectors are also significantly different (EC, 2010). In respect of strategic planning, it is advisable for the public sector entities to borrow the entrepreneurial strategies of the private sector. Nartisan, Putans and Muravska (2012) assert that the aforementioned differences are basis for applying benchmarking method with the aim of identifying possibilities for improvement.
A joint initiative of the Organization for Economic Cooperation and Development (OECD) and the EU noted that the system of strategic planning at the central public administration level is presently composed of two key components. These are management and budget components. The first component constitutes of mission statement, vision, core values, environmental analysis (both internal and external), medium term priorities, directions of activities, monitoring and evaluation (M&E), and reporting. On the other hand, the budgeting component encompasses the present situation analysis, objectives, both results and performance indicators of the budget programmes, and also funding programmes. It is important to reckon that in reference to state institutions or corporations, a strategic plan supports the shift from resources-oriented management to results-based management (Dinu, 2007).
A review of strategic planning practices applicable by the South African National Planning Committee identified several characteristics that could contribute to effectiveness of the strategic planning process (Paterson, 2009). The first is the process providing an opportunity for participants to understand more clearly what they want to achieve, and how and when they can do it. The planning as a discovery process since it brings to the fore concealed opportunities and unseen solutions. Openness of the process to different views and understandings fundamental to findings solutions to problems constitute another characteristic. Centering on matters of strategic importance where there is clear separation of strategic issues from others could also enhance effectiveness of strategic planning. In addition, involving decision making, adopting a realistic view of expectations, and factoring in contingencies are part of factors that contribute towards effectiveness of strategic planning.
In the Egyptian context, Elbanna (2008) noted that in order to enhance the success of an organization, it is imperative to put to use various strategic planning tools. Both strategic management practice and management participation (management support) are pointed out to jointly enhance effectiveness of strategic planning amongst organizations in Egypt. In the relation to institutions of higher education in the country, it is held that the balanced scorecard (BSC) is an important tool in analyzing the effectiveness of strategic planning (Abdrabou, 2015). In order for excellence to be realized in the aforementioned institutions, they are required to have a clear mission statement and realistic goals which can be interpreted within a strategic planning framework.
In Kenya, it is stated that state corporations adopt strategic planning practices in order to remain competitive and also improve their performance (Kathama, 2012). Many such local entities are actively engaged in strategic planning with clearly documented vision and mission statements. In addition to boosting the performance of state corporations, strategic planning practices facilitate service delivery. In respect of state corporations in Kenya, Ogutu (2017) notes that firm characteristics moderate how strategic planning impacts on the performance of the state corporations.
Agriculture Sector State Corporations in Kenya
State corporations in Kenya are corporate bodies which are established under Section 3 of the State Corporations Act, Cap 446, or by an Act of Parliament, or under the Companies Act, Cap 446 as long as the Government controls at least majority of the shares. There are a total of 220 operational state corporations. The corporations fall under eight broad categories founded on their mandate and core functions. These include financial, commercial or manufacturing, regulatory, public universities, training and research, service, regional development authorities, and tertiary education and training categories (Inspectorate of State Corporations, 2018). Agricultural State Corporations which falls within the purview of this study include Agriculture Food & Fisheries Authority (AFFA), Agricultural Development Corporation (ADC), Kenya Dairy Board (KDB), Kenya Agricultural &Livestock Research Organization (KALRO), and Kenya Plant Health Inspectorate Service (KEPHIS).
1.2 Statement of the ProblemStrategic planning has been underscored to be a very important component in boosting both the performance and service delivery amongst state corporations (Kathama, 2012). The mission of agricultural state corporations is to extend various services to Kenyan farmers and consumers of agricultural produce and products in conformity to their mandate as stipulated in various Acts. Effective strategic planning is one of the key aspects in ensuring successful execution of the aforementioned mission and accompanying goals and objectives. The ideal situation in regard to strategic planning in state corporations is ensuring that the process is effective by involving all pertinent stakeholders. This is premised on the fact that an ideal strategic plan should address the needs of all stakeholders both fairly and equitably.
However, it is stated that state corporations are significantly slow in dispensation of requisite services. This is in spite of massive funds they obtain from the taxpayers through the National Treasury every financial year. Moreover, there is failure to involve employees, who are strategy implementers, in strategy planning. In light of this, it is evident that the firm has been facing challenges in strategic planning, which has subsequently impacted negatively on strategic implementation and service delivery respectively. The present manner of strategic planning falls short of the desired situation mainly due to lack of involving interested stakeholders, failure to consider prevailing and projected environmental factors and resources, and also inadequate management support of the strategic planning process.
In order to address the stated problem, this study will seek to investigate internal factors that potentially influence strategic planning effectiveness in state corporations in Kenya where it will narrow down to selected corporations under the purview of the Ministry of Agriculture. The study will particularly evaluate the extent to which each of the selected internal factors (stakeholder involvement, top management support, organization’s environment, and resource imbalance level) influences effectiveness of strategic planning in AFFA, ADC, KDB, KALRO, and KEPHIS.
1.3 Objectives of the StudyThe study will address both the general and specific objectives as stated below.
1.3.1 General Objective
The general objective of the study will be to investigate the relationship between strategic planning effectiveness and performance of agriculture sector state corporations in Kenya.
1.3.2 Specific Objectives
To determine the relationship between stakeholder involvement and performance of agriculture sector state corporations in Kenya.
To establish the relationship between top management support and performance of agriculture sector state corporations in Kenya.
To determine the relationship between organization’s environment and performance of agriculture sector state corporations in Kenya.
To establish the relationship between resource imbalance level and performance of agriculture sector state corporations in Kenya.
1.4 Justification of the StudyThe study is expected to bring forth immense benefits to policy makers in state corporations particularly the ones falling under the purview of the Ministry of Agriculture. The top leadership of these entities encompassing the directorship and senior management are likely to benefit from the findings of this study and recommendations thereof. These are hoped to be informative enough to enable the top leadership to come up with policies and/or formulate policies that will enhance strategic planning. Moreover, the study findings and recommendations are expected to inform practitioners working with state corporations on the best ways of taking part in strategic planning. The study is further expected to add to the body of knowledge in strategic management particularly in respect of strategic planning in state corporations and related organizations. To this end, scholars and other entities in the field of academia are anticipated to find the study resourceful in their literary and/or scholarly pursuits.
1.5 Scope of the StudyThe study will be carried out amongst selected State Corporations under the Ministry of Agriculture. These will include AFFA, ADC, KDB, KALRO, and KEPHIS. The study will primarily focus on the management staff working with the aforestated state corporations at the organizations’ head offices. The choice of the management staff is premised on the assertion that they are the ones who spearhead strategic planning of the organization. Moreover, the study will be delimited to a set of predictor variables that shall include stakeholder involvement, top management support, organization’s environment, and also level of resource imbalance. On the same breadth, effectiveness of strategic planning will constitute the dependent variable. The study is projected to be conducted over a period not exceeding three calendar months and the budgetary estimates will be Ksh. 100,000.
CHAPTER TWOLITERATURE REVIEW2.1 IntroductionIn this chapter theories and/or models relative to strategic planning are reviewed. This is followed by a thorough review of past empirical studies in relation to internal factors influencing effectiveness of strategic planning. The chapter also illustrates the conceptual framework which outlines study variables and their hypothesized relationships. In addition, a critique and summary of the reviewed studies is covered followed by an outline of the identified research gaps.
2.2 Theoretical FrameworkThe theories reviewed and discussed in the contest of various internal factors and strategic planning include the stakeholder theory, resource-dependency theory and, the balanced scorecard theory.
2.2.1 Stakeholder Theory
Stakeholder theory was proposed by Freeman (1984). The theory states that the aim of an organization is to create as much value as possible for stakeholders. The theory further stipulates that for any entity to succeed and/or be sustainable, the senior management ought to align the interests of various stakeholders including employees, customers, suppliers, shareholders, and communities in the same direction as the firm. In addition, it is as asserted that being innovative in keeping the foregoing interests aligned is more crucial when compared to the easy strategy of trading off stakeholders’ interests against each other.
Freeman (1984) states that the conventional definition of a stakeholder is any group of individual who can affect or is bound to be affected by the achievement of the objectives of an organization. On the other hand, it is postulated that an organization should be conceptualized as a grouping of stakeholders and the purpose of the organization is supposed to manage stakeholders’ interests, needs and also their viewpoints (Friedman, 2006). The management of stakeholders is thought to be the responsibility of the organization’s managers. It is further stated that the managers should manage the corporation for the benefit of its stakeholders. This is in order to make sure the stakeholders’ rights and their participation in decision making are upheld (Fontaine, Haarman & Schmid, 2006). Freeman (2004) adds that stakeholders have a right to hold to account directors or managers of a firm for their failure to execute their responsibilities.
In relation to the strategic planning in state corporations, the stakeholder theory can be employed to explain the aspect of stakeholder involvement. The stakeholders of the corporations include its employees, customers (who are mainly farmers), shareholders and the government. As aforesaid, the theory underscores the role of the management in ensuring that stakeholders take part in decision making since the managers are their agents (Fontaine et al., 2006), and as such should run the organization in the interest of all the stakeholders.
2.2.2 Resource-Dependency Theory
The resource dependency theory (RDT) was proposed by Pfefer and Salancik (1978). The theory states that actors who lack essential resources are bound to strive to establish relationships with or be dependent upon other actors or entities in order to obtain the requisite resources. The rationale underscored by the RDT is the object of organizations to maximize their power. The intra-organizational and inter-organizational relationships are grounded on this theory. As such, RDT is a manifestation of relationships among organizations as a set of power relations premised on exchange of resources.
According to Pfefer (1981) the RDT states that organizations will strive to alter their dependence relationships whereby they reduce their own dependence, or optionally, increase the dependence of other organizations on them. It is imperative to assert that the competitiveness and/or sustainability of an entity is subject to how it manipulates the stipulations of the RDT. It is important to reckon that the theory holds some assumptions. For instance, the feasibility of the theory is subject to the assumption that organizations constitute both internal and external coalitions which result from social exchanges. The theory also assumes that the environment contains scarce and valued resources which are imperative to the sustainability of the organization. Thirdly, it is assumed that organizations strive to achieve two related objectives. That is, to acquire control over resources that reduces their dependence on other entities and also control over resources which maximize the dependence of other organizations on them.
In relation to strategic planning in the agricultural State Corporations, it is imperative for the entity to consider the availability of resources especially how to address the ever-increasing demand with the limited resources. In tandem with the RDT theory as explained by Pfefer and Salancik (1978), it is important for the corporations to strive to strike a balance of their present and projected resources when drafting their strategic plans. They should also form strategic partnerships and alliances with other entities in order to address scarcity of resources. Granted that, resources are requisite for success of planned activities of State Corporations, and that there is a limit of funds disbursed to them by the National Treasury, it is imperative to address the aspect of resource-imbalance level by engaging other organizations which can inject more capital to their operations.
2.2.3 Balanced Scorecard
The balanced scorecard (BSC) was developed by Kaplan and Norton (1992). The BSC which is a strategic planning and management system, is employed by organizations to communicate what they are intending to accomplish; and align what all stakeholders do on a day-to-day basis in relation to the strategy. The scorecard also enables organizations to prioritize projects, products and services, in addition to facilitating them with means of measuring and monitoring progress towards strategic targets. Essentially, the BSC is used to manage strategy.
The basic components of the balanced scorecard include the mission, vision and strategy. Others are objectives, key performance indicators (KPIs), actions, organizational capacity, internal process, customers, and financial components. The following is a simplified model of BSC.
Table 2.1: Components of Balanced ScorecardMission / Vision / Values / Strategic Themes / Results
Strategy Map/Objectives Measures Targets Initiatives
Financial Customer Process Organizational Capacity In relation to BSC illustrated in Table 2.1, strategic objectives constitute continuous improvement activities which an organization is required to implement in order to realize its vision. On the other hand, strategy maps enable a firm to visualize its strategy. In order to track the performance of an organization, specific measures are outlined by the BSC. In tandem, the firm has specific targets which essentially define the desired level of performance of each of the foregoing measures. Moreover, strategic initiatives refer to those projects and/or activities which facilitate an organization to realize its targets. In relation to the agricultural State Corporations, the balanced scorecard can be used to explain how monitoring and evaluation of the strategic plan will be carried out. This is due to the fact that as outlined by the BSC (Kaplan & Norton, 1996), strategic plan has various metrics in line with key performance areas (KPAs) and KPIs.
2.3 Empirical ReviewIn this section past empirical studies in respect of various determinants of strategic planning effectiveness are reviewed. The studies are specifically in reference to stakeholder involvement, top management support, organization’s environment, resource imbalance level, and effectiveness of strategic planning.
2.3.1 Stakeholder Involvement and Effectiveness of Strategic Planning
In Norway, a study conducted by Johnsen (2016) analyzed strategic planning and management in local government. The study closely examined the status of the foregoing after three decades. This is in line with the assertion that strategic planning and management was introduced in the public sector more than 30 years ago. The study was delimited to municipalities in Norway. According to the results of the study it was indicated that by 2012, most of Norwegian municipalities were using strategic planning and management. Of interest, is the revelation that municipalities which had a high level of stakeholder involvement had better perceived impacts of strategic planning that other municipalities whose stakeholder involvement was low.
A study by Bijlsma, Bots, Wolters and Hoekstra (2011) empirically analyzed the influence of stakeholders on policy development. The study employs an analytical framework. The study acknowledged that participation of stakeholders is advocated widely; however, there has been little empirical research regarding how it influences policy development. The study established that the wider frame that was adopted in the participatory approach resulted from active handling of process uncertainty.
In Nigeria, Yaro, Arshad and Salleh (2017) conducted a study on relevance of stakeholders in policy implementation. The study adopted a qualitative research approach where a total of 15 respondents were purposively interviewed. The analysis was facilitated by Nvivo software. According to the results of the study, it was established that stakeholders played a significant role in implementation of policy. In this respect, the study recommended that stakeholders should be fully engaged in provision of education.
A study conducted by Wanyama (2013) at Kenya Port Authority (KPA) sought to determine the extent of stakeholder involvement in change management at the aforesaid state corporation. The investigation was a case study where interviews and semi-structured questionnaires were used in data collection. The KPA management and staff comprised the sample for the study. It was determined that the corporation involved its stakeholders in its affairs, however, the involvement was not done at all stages of change management. It was therefore deduced that the corporation ought to engage stakeholders more in the change management planning in order to win their contribution in the entire change management process.
Another local study conducted by Ng’ong’a and Alang’o (2015) examined stakeholder involvement in respect of change management. The study particularly looked into the extent to which stakeholders were engaged in change management process at Kenya Power and Lighting Company (KPLC), presently, the Kenya Power (KP) company. The study used a cross sectional research design and conducted interviews to managing director, chief executive officer, chief manager of finance, supplier chain logistics, head of commercial services, human resource managers among others to obtain first hand data. Secondary data were also used. It was noted that stakeholders were engaged or involved in giving feedback to the company management on the change process and also in the drafting of procedures of ensuring that the changes are effective. Stakeholders were also engaged in the piloting phase of change management. The stakeholders were not involved in in the design stage of change process. It was recommended that the company should involve stakeholders in the whole process of change management.
2.3.2 Top Management Support and Effectiveness of Strategic Planning
A study carried out by Koufopoulos, Zoumbos, Argyropoulou and Motwani (2008) analyzed the top management team and corporate performance. The study zeroed in on Greek firms listed on the Athens Stock Exchange (ASE). In particular, the study explored the role of boards of management in relation to performance of organizations. More so, the study empirically examined the relationship between the board’s chairperson, key board composition variables and organizational performance. The results of the study indicated that the competitive positioning of the firm was proportionate to the age of the top managers. However, the age factor was found to be negatively correlated with performance.
A study by Garrett Jr and Nuebaum (2013) centered on top management support and initial strategic assets. The study adopted a dependency model for internal corporate venture performance. Both the resource dependency theory and resource-based view guided the study. The study involved 72 firms from which primary data were collected. According to the study findings, it was revealed that as the level of top management support increased, there was a possibility of raising the levels of initial strategic assets endowed in the corporate venture. It was further found that top management’s support of the corporate venture enhances the subsequent performance of the internal corporate venture (ICV).
In Ghana, a qualitative study conducted by Asamoah, Osei-Kojo and Yeboah-Assiamah (2013) investigated how productivity in the country’s public sector was enhanced. The study used content analysis to analyze secondary data with the view of understanding the low productivity in the Ghanaian public sector. The study admitted that both productivity and performance could be conceptualized differently. To this end, the study argued that the two concepts are the function of many factors including the top management support. It was further revealed that in order to enhance productivity and organizational performance, it was necessary to overhaul the employees’ character starting with that of the top management.
A study conducted by Mutunga (2017) evaluated challenges facing strategy implementation in state corporations in Kenya. In particular, the study focused on the case of Agricultural Finance Corporation. The study adopted a face-to-face interview where selected management staff took part in the study. In the study, it was observed that for strategic management to be successful the participation and support of all stakeholders including the top management is very necessary. The foregoing is founded on the argument that both the management and the employees play a crucial role in implementation of strategies.
2.3.3 Organization’s Environment and Effectiveness of Strategic Planning
A study carried out by Falshaw, Glaister and Tatoglu (2006) centered on evidence on formal strategic planning and firm performance. The study empirically analyzed a total of 113 companies in the United Kingdom particularly in regard to the relationship between formal strategic planning and financial performance. The study employed a set of questionnaires to collect primary data. Multivariate analysis was used to test pertinent research hypotheses. The study factored in environmental turbulence in respect of the aforementioned relationship. It is further acknowledged that indeed both internal and external environments are factors that need consideration in the strategic planning process. Moreover, in the study, it is noted that strategic planning which has hitherto been adopted by many organizations is one of the instruments that is employed to management environmental turbulence.
A study by Mendes (2017) empirically examined the Portuguese business environment in relation to strategic tools. The objective of the study was to analyze the strategic planning processes and tools employed by firms in Portugal. The study underscored the rationale of companies understanding both their internal and external environment. The foregoing is aimed at enabling such firms to formulate strategies that ensure growth and long-term profits. It was further observed that the prevailing dynamic business environment obliges companies to accustom to the new trends for them to remain afloat and/or sustainable.
A study conducted in Ghana by Agyapong and Muntaka (2012) evaluated strategic planning and business performance. The study was a comparative analysis of micro, small and large firms in the country. According to the results of the study which indicated that the relationship between strategic planning and performance was positive and moderately significant, there emerged a new dimension on the strategic planning-performance debate. In this respect, the study suggested that the aforementioned relationship varied on the premise of economic environment among other factors such as firm level and size.
An empirical study conducted by Odundo (2012) analyzed the environmental context, implementation of strategic plans and performance of state corporations in Kenya. The main objective of the study was to examine the moderating effect of environmental context on the nexus between level of implementation of strategic plans, its effectiveness and performance of state corporations. The political goodwill and support and policy framework were the parameters of the environmental context. Eighty three state corporations from sectors of the economy were evaluated. Cross sectional survey and relational research design were adopted by the study. The study revealed that the political goodwill and support influenced the relationship between the extent of the implementation of strategic plans and financial performance. Organizational policy framework was noted to have an effect on the relationship between the extent of strategic plans implementation and effectiveness of state corporations.
A local study carried out by Mathenge (2013) focused on the challenges facing effective corporate management in State-owned enterprises. The study specifically looked into the effect of corporate environment on the effectiveness of corporate governance and management in State owned enterprises in Kenya. The study adopted descriptive survey research design. The board members and executive management of selected state owned enterprises were targeted. Questionnaires were used to gather data from study respondents. The study noted that the environment to which the selected state owned enterprises tended to be a hindrance to effective governance of state owned enterprises in Kenya. It was recommended that there ought to be a boundary between business and politics in order to separate corporations from government agencies that patronize them. The foregoing if enforced would prevent conflict of interests that result to unethical decision making.
2.3.4 Resource Imbalance Level and Effectiveness of Strategic Planning
In Macedonian context, Suklev and Debarliev (2012) conducted a comparative study on strategic planning effectiveness. The major objective of the study was to examine the relationship between strategic planning and organizational effectiveness. The results of the empirical analysis revealed that strategic planning generally influences organizational effectiveness. In the study it was indicated that strategic planning involves resource allocation among other factors in order for an organization to realize its strategic goals. In the same perspective, the study noted that strategic planners have the ability to retain current human resource while attracting quality labour force. The study acknowledges the tenets of strategic planning which strives to find the best fit between the resources possessed by an organization and opportunities presented by the environment.
A study conducted in Nigeria by Monday, Akinola, Ologbenla and Aladeraji (2015) examined strategic management and firm performance. The study focused on a sample of manufacturing firms in the country. The study used structured questionnaires to collect done from 50 purposively sampled respondents from five large-scale listed manufacturing companies in Nigeria. In the study it was found that top managers are required to allocate requisite resources in order to facilitate strategic planning implementation. The study further revealed that most of the respondents held the view that strategic management facilitated the utilization of both human and material resources.
A local study by Juma (2014) investigated organizational resources and corporate governance structures in relation to performance level of state corporations in Kenya. The study sought to establish the influence of organizational resources on performance of Kenyan state corporations. Cross sectional descriptive survey was used. Data were obtained by use of questionnaires which were administered to 95 state corporations. The results indicated that organizational resources are fundamental for enhancing performance of state corporations. The study, however, recommended that state corporations ought to better integrate, renew and recombine their resources for better performance.
A survey study conducted by Were (2007) evaluated the factors that influence strategic responses by state corporations following changes in the operating environment. The object of the study was to determine the significant factors that cause strategic responses by different state corporations in the event of changes in environment. A total of 40 state corporations were investigated where structured questionnaires were used to collect raw data. The study noted that availability of resource largely influenced strategic responses by corporations in changing environment.
2.3.5 Effectiveness of Strategic Planning in State Corporations
A study by Ugboro, Obeng and Spann (2010) investigated strategic planning effectiveness in public sector organizations in the United States. The main objective of the study was to determine the effectiveness of strategic planning as a tool for strategic management in public sector organizations in the country. The study found that effective strategic planning calls for top managers’ active roles in defining the strategic direction of the organization and more so create an environment that creates room for strategic planning in strategic management. Furthermore, it was noted that effective strategic planning requires sound working relationships among units of an organization, top management crew, integration of units into organization wide strategic plan and a flexible planning process.
In Zimbabwe, a study conducted by Majaha (2015) determined strategic planning practices and performance of state corporations. The objective of the study was to determine the influence of strategic planning practices on performance of state corporations in Zimbabwe. The research design used by the study was cross sectional survey. The line, general managers and senior executives were the target population for the study. Questionnaires were used to collect data from the respondents. It was found out that most corporations in the country adopted a participatory approach in the strategic planning process, established and communicated clear mission and goals to stakeholders and more so engaged stakeholders in strategy formulation. It was also noted that there was an evaluation of strategies against the set performance in order to unearth gaps and take corrective measures. It was concluded that state corporations in Zimbabwe embraced strategic planning practices which enhanced performance.
Locally, Kitoto (2012) conducted a study on strategic planning practices adopted by the Kenya Pipeline Company (KPC). The researcher determined to achieve the foregoing by evaluating the factors that influence planning practices and the efficiency of strategic planning at KPC. Managers of KPC were targeted by the study. Interviews and questionnaires were used to obtain data. The findings of the study revealed that strategic planning practices used at the company were comprised of strategies that clearly outlined the objectives and action plans for such strategies. It was further noted that internal and external factors influenced strategic planning practices at the company. The study however failed to determine the effectiveness of strategic planning at KPC.
A study conducted by Mwangi (2013) focused on state corporations in Kenya. The study purposed to determine the strategic planning practices applied by state corporations and their influence on performance of state corporations. A total of 40 different corporations in the financial, regulatory, public universities, regional development authorities, training and research, service and tertiary education sectors were considered. Cross sectional survey design was used by the study. The findings showed that the management of the surveyed corporations had the mandate of strategic planning. More so, it was established that all departments in studied corporations were involved in planning of strategy. Notably, the efficiency of planning for strategy and performance of a corporation was enhanced when corporation mandate is linked to strategies and goals prioritized are set.
2.4 Conceptual FrameworkA conceptual framework is defined as a diagrammatic representation of study variables or constructs and how they are hypothesized to interact. In respect to the present study, the conceptual framework is as illustrated in Figure 2.1.
Top Management Support
Availability during planning
Resource Imbalance Level
Strategic Planning Effectiveness
Figure 2.1: Conceptual Framework
According to the conceptual framework (Figure 2.1), the study will have two distinct sets of variables. These are independent and dependent variables. Independent variables will include stakeholder involvement, top management support, organization’s environment, and resource imbalance level. Strategic planning effectiveness will constitute the dependent variable. Each of the aforementioned study constructs is operationalized using measurable parameters. In addition, it is presumed that there exists a relationship between each of the mentioned independent variables and the dependent variable. The study will seek to address this hypothesis going forward.
2.5 Critique of the Reviewed LiteratureHitherto empirical studies are critiqued with the view of acknowledging what they have addressed and what they have failed to look into in respect of determinants of strategic planning effectiveness in state corporations in Kenya. In respect of stakeholder involvement, a study conducted by Wanyama (2013) at KPA noted that involvement was not done at all stages of change management. Another study carried out by Ng’ong’a and Alang’o (2015) focused on the Kenya Power. The study noted that stakeholders were not involved in in the design stage of change process. Though the foregoing studies addressed the aspect of stakeholder involvement, it was in the context of change management, as such, they fell short of relating stakeholder involvement to strategic implementation.
In respect of top management support, a study conducted by Mutunga (2017) examined various challenges facing strategy implementation in state corporations in Kenya. The study found that for strategic management to be successful the participation and support of all stakeholders including the top management is very necessary. However, the study though focusing on the Agricultural Finance Corporation, did not closely examine the subject of top management support and how such influences effective strategic planning.
Regarding the environment of an organization, Odundo’s (2012) study examined the environmental context, implementation of strategic plans and performance of state corporations in Kenya. The study established that the political goodwill and support influenced the relationship between the extent of the implementation of strategic plans and financial performance. Nevertheless, the study did not adequately examine organization’s environment in relation to effectiveness of strategic planning. Another study conducted by Mathenge (2013) noted that the environment to which the selected state owned enterprises tended to be a hindrance to effective governance of state owned enterprises in Kenya. These two studies, nonetheless, did not examine the influence of organization’s environment on effective strategic planning.
Relative to resource imbalance level, a survey study by Were (2007) found that that availability of resource largely influenced strategic responses by corporations in changing environment. Yet, this study did not focus on the level of resource imbalance in relation to effective strategic planning. Another study conducted by Juma (2014) indicated that organizational resources are fundamental for enhancing performance of state corporations. The foregoing study, however, fell short of relating imbalance resources to strategic planning.
2.6 Summary of the Reviewed LiteraturePast studies indicated that most of Norwegian municipalities were using strategic planning and management. It is acknowledged that participation of stakeholders is advocated widely. It is established that stakeholders played a significant role in implementation of policy. A reviewed local study has found that the stakeholder involvement was not done at all stages of change management in KPA. In respect of the KP, past studies have indicated that stakeholders were engaged or involved in giving feedback to the company management on the change process and also in the drafting of procedures of ensuring that the changes are effective.
It has been indicated that the competitive positioning of the firm was proportionate to the age of the top managers. Another study revealed that as the level of top management support increased, there was a possibility of raising the levels of initial strategic assets endowed in the corporate venture. Another study argued that productivity and performance are the function of many factors including the top management support. A local study observed that for strategic management to be successful the participation and support of all stakeholders including the top management is very necessary.
A study conducted in the UK noted that strategic planning which has hitherto been adopted by many organizations is one of the instruments that is employed to management environmental turbulence. Another study underscored the rationale of companies understanding both their internal and external environment. The reviewed studies further indicated that the relationship between strategic planning and performance is partly influenced by economic factors. It is further revealed that external environment as characterized by political goodwill influence effectiveness of strategic plan implementation in local state corporations. Moreover, it is noted that operating environment determines effectiveness of governance in state corporations in Kenya.
It is indicated that strategic planning involves resource allocation among other factors. A study conducted in Nigeria observed that top managers are required to allocate requisite resources in order to facilitate strategic planning implementation. In Kenya, hitherto empirical studies indicate that organizational resources are fundamental for enhancing performance of state corporations. Moreover, it is noted that availability of resource largely influenced strategic responses by corporations in changing environment.
A study conducted in the US found that effective strategic planning calls for top managers’ active roles in defining the strategic direction of the organization in addition to creating an environment that creates room for strategic planning in strategic management. A regional study conducted in Zimbabwe concluded that state corporations in Zimbabwe embraced strategic planning practices which enhanced performance. A local study revealed that strategic planning practices used at the KPC comprised of strategies that clearly outlined the objectives and action plans for such strategies. Moreover, it is observed that the management of the local state corporations had the mandate of strategic planning.
2.7 Research GapsAfter critiquing the local reviewed studies, crucial research gaps pertinent to effectiveness of strategic planning were identified. The reviewed studies conducted by both Wanyama (2013), and Ng’ong’a and Alang’o (2015) did not link stakeholder involvement to strategic implementation. Another study carried out in Kenya by Mutunga (2017) focused on the Agricultural Finance Corporation without examining the subject of top management support and how it influences effective strategic planning.
Other local studies revealed that political goodwill and support are crucial in strategic planning (Odundo, 2012); and also that the environment in which state corporations operate may be a hindrance to the organizations’ governance (Mathenge, 2013). However, the foregoing studies did not examine the influence of organization’s environment on effective strategic planning. A study conducted by Were (2007) did not analyze the level of resource imbalance in relation to effective strategic planning. A study by Juma (2014) also fell short of relating imbalance resources to strategic planning. The identified research gaps in respect of determinants of strategic planning effectiveness in Kenya’s state corporations are purposed to be addressed by the present study.
CHAPTER THREERESEARCH METHODOLOGY3.1 IntroductionThis chapter comprises of the research design, the target population, sample size and sampling technique, research instrument, pilot testing, data collection procedure, and also the procedure and methods of analyzing data. The chapter also states how the null hypotheses will be tested and also how the results emanating from analysis presented.
3.2 Research DesignResearch design refers to the overall strategy that you choose to integrate the different components of the study in a coherent and logical way, thereby, ensuring that the researcher effectively address the research problem. According to Kothari (2004), research design is the roadmap that guides how the entire study is supposed to be conducted. A descriptive research design will be adopted. The preference of this design is premised on the argument that it does not alter the phenomena being studied. In the context of the present study, there will be no attempt to interfere with the management staff working with the selected state corporations. Rather, the study will seek to report on the internal factors influencing effectiveness of strategic planning in the aforementioned state corporations it will be by the time of conducting the study. The study will be delimited to quantitative approach. The choice of the foregoing approach is premised on the fact that, the study will strive to examine the influence of various determinants (stakeholder involvement, top management support, organization’s environment, and also level of resource imbalance) on strategic planning effectiveness as asserted by Mertens (2009). Moreover, quantitative approach is deemed necessary in testing null hypotheses.
3.3 Target PopulationAn aggregate of people, entities, objects or subjects sharing common characteristics describe the target population (Kothari, 2004). The management staff working with the all agricultural state corporations in Kenya will constitute the target population. These staff will constitute all levels of managers from supervisors to the top managers. The aforesaid staff working with the selected state corporation’s head offices based in Nairobi will comprise the study population. According to the corporations’ human resource department the management staff attached to the organizations’ head offices totaled 385.
3.4 Sample Size and Sampling TechniqueSampling is necessitated when the size of the study population is significantly large, that is, more than 100 (Kothari, 2004). In this regard, therefore, the study population (385) will be sampled.3.4.1 Sampling FrameA sampling frame is defined as an exhaustive list consisting subjects or entities or persons from which a sample is drawn (Cooper ; Schindler, 2011). Therefore, all members comprising the study population constitute the sampling frame as illustrated in Table 3.1.
Table 3.1: Sampling FrameState CorporationsNo. of Management StaffAFFA48ADC67KDB57KALRO98KEPHIS115Total 3853.4.2 Sample Size DeterminationA sample is defined as a subset of the study population. It constitutes the unit of analysis and the results emanating from it are generalized to both the study and target populations. The sample size will be determined by employing the formula by Nassiuma (2008) as illustrated below.
n = Sample size;
N = Population size;
C = Coefficient of variation (21% – 30%)
e = Error margin (0.02 – 0.05)
Substituting the values in the above equation, estimated sample size (n) will be:
n = 79.55
n = 80 respondents
Therefore, the sample size will be 80 management staff.
3.4.3 Sampling TechniqueA stratified random sampling technique will be adopted to draw the sampled respondents from the sampling frame. The choice of this method is premised on the fact there is varied distributed in the number of the management staff working with the 5 surveyed state corporations as shown in Table 3.1. Moreover, stratified random sampling technique ensures both fair and equitable distribution of respondents across the strata (Kothari, 2008). Therefore, each of the state corporation will have a proportionate representation of the management in the study as illustrated in Table 3.2.
Table 3.2: Sample Distribution
State CorporationsAccessible Population (N)Sampling RatioSample Size (n)AFFA480.1210ADC670.1714KDB570.1512KALRO980.2520KEPHIS1150.3024Total 3851.00803.5 Research InstrumentA research instrument is a tool that is employed to aid in collection of data pertinent to a given study. In the present study a structured questionnaire will be used to facilitate collection of primary data. The questionnaire will be self-designed will be structured in such a way that it will effectively address the study objectives. The items contained therein in respect of all the study variables (stakeholder involvement, top management support, organization’s environment, level of resource imbalance, and strategic planning effectiveness) will be on a Likert scale of 5-points. The rationale of adopting a structured questionnaire (consisting of close-ended questions/items) is in order facilitate collection of quantitative data from the sampled management staff.
3.6 Pilot TestingA pilot study is a minor study that is conducted as a preliminary to the main study with the view of determining the suitability of the research instrument in facilitating collection of data for the ultimate study. The suitability is on the aspect of the instrument’s validity and reliability. According to Polit and Beck (2006) a pilot study is a small-scale of a complete survey or a pretest for a given research instrument like a questionnaire. Pilot studies are applicable in quantitative, qualitative and mixed methods research. In relation to the present study, the research questionnaire will be pilot tested amongst randomly selected management staff working at the Kakamega Branches of the selected state corporations. The participants in the pilot study will be approximately 10% of the unit of analysis, that is, 8 respondents (Kothari, 2004).
3.6.1 Validity of the Research InstrumentValidity refers to the accuracy and meaningfulness of inferences which are based on the research results (Mugenda ; Mugenda, 2003). If such data is a true reflection of the variables, then inferences based on such data is accurate and meaningful. To ascertain the validity, the researcher will seek expert opinion of the assigned University supervisor whose opinion will be deemed sufficient in determining the instrument’s content validity.
3.6.2 Reliability of the Research InstrumentReliability measures the degree of accuracy in the measurements an instrument provides (Grinnell, 2015). According to Kimberlin and Winterstein (2008), a reliable instrument is able to facilitate collection of consistent data when administered on different study populations within the same target population. Granted that the study will seek to establish the internal consistency of the research questionnaire, the Cronbach’s alpha coefficient (?) will be employed. In order for the questionnaire to be considered reliable for use in collecting data for the main study, all its constituent variables must return alpha coefficients equal to or greater than the reliability threshold of 0.7 (? ? 0.7).
3.7 Data Collection ProcedureAfter determining both the validity and reliability of the data collection instruments, the next phase will encapsulate collecting requisite data. The researcher will seek formal letter of introduction from the University in order to be allowed to continue with data collection. This will be followed by applying for a research permit and accompanying authorization letter from the National Council of Science, Technology and Innovation (NACOSTI). Having obtained the foregoing permit and letter, the researcher will seek the consent of the senior management of the five participating state corporations. The questionnaires will be issued to the respondents by the researcher in person or through emails. The questionnaires are anticipated to be filled and collected after a period not exceeding five working days.
3.8 Data AnalysisThe filled questionnaires will be screened to ensure that the ones to be considered will have been filled completely and as per instructions. The Statistical Package for Social Sciences (SPSS) Version 24.0 software will facilitate data analysis. The data will be analyzed 1using both descriptive and inferential statistics. The descriptive statistics will include measures of distribution, measures of central tendencies, and measures of dispersion. Inferential statistics will encompass Pearson’s correlation and multiple regression analyses. The null hypotheses will be tested at 95% confidence level (p-value = 0.05), using the results of the t-statistics. The following regression model will guide the inferential analysis.
Y= ?0 + ?1X1 + ?2X2 + ?3X3+ ?4X4 + ?
Y=Strategic planning effectiveness
X1= Stakeholder involvement
X2= Top management support
X3= Organization’s environment
X4=Level of resource imbalance
?= Error margin
?1, ?2, ?3, ?4= Regression coefficients of predictor variables
The study findings will be presented in form of tables and will be accompanied by relevant interpretations and discussions.
REFERENCESAbdrabou, O.A.E.M. (2015). Strategic planning in Egyptian higher education from TOWS to balanced scorecard: The case of ITLI. Journal of Psychology and Social Studies, 4(5), 14-22. Accessed on May 22, 2018 from https://www.researchgate.net/publication/281782474_STRATEGIC_PLANNING_IN_EGYPTIAN_HIGHER_EDUCATION_FROM_TOWS_TO_BALANCED_SCORECARD_THE_CASE_OF_ITLI
Abuya, D. (2008). Strategic Risk Management Practices among State Corporations in
Kenya. Unpublished Management Research Project, University of Nairobi, Kenya.
Agyapong, A., ; Muntaka, A.S. (2012). Strategic planning and performance of businesses in Ghana: A comparative study of micro, small, and large firms. International Business ; Economics Research Journal, 11(11), 1261-1267.
Asamoah, K., Osei-Kojo, A., ; Yeboah-Assiamah, E. (2013). Enhancing public sector productivity in Ghana: A qualitative study. Journal of Public Administration and Governance, 3(3), 22-34.
Bijlsma, R.M., Bots, P.W.G., Wolters, H.A., ; Hoekstra, A.Y. (2011). An empirical analysis of stakeholders’ influence on policy development: The role of uncertainty handling. Ecology and Society, 16(1), 51.
Bryson, J.M., Crosby, B.C., & Bryson, J.K. (2009). Understanding strategic planning and the formulation and implementation of strategic plans as a way of knowing: The contributions of actor-network theory. International Public Management Journal, 12(2), 172-207.
Cooper, D.R., & Schindler, P.S. (2011). Business Research Methods. 11th Ed.
Dinu, D. ( 2007). General Secretariat of the Government of Romania. A paper presented at the Conference on Good Governance and Public Administrative Reform, Bucharest, Romania.
Elbanna, S. (2008). Planning and participation as determinants of strategic planning effectiveness: Evidence from the Arabic context. Management Decision, 46(5), 779-796. Accessed on May 21, 2018 from https://doi.org/10.1108/00251740810873761European Commission. (2010). Europe 2020. Strategy for smart, sustainable and inclusive growth. Communication from the commission. Brussels: EC. Accessed on May 10, 2018 from http://eur-lex.europa.eu/LexUriServ/LexUriServ. do?uri=COM:2010:2020:FIN:EN:PDF
Falshaw, J.R., Glaister, K.W., &Tatoglu, E. (2006). Evidence on formal strategic planning and company performance. Management Decision, 44(1), 9-30.
Fontaine, C., Haarman, A., &Schmid, S. (2006). The Stakeholder Theory. Accessed on May 22, 2018 from file:///E:/JKUAT/MUHSIN%20HAJI/PROPOSAL/STAKEHOLDER%20THEORY.pdf
Freeman, R.E. (1984). Strategic Management: A stakeholder Approach. Boston, MA: Pitman.
Freeman, R.E. (2004). A Stakeholder Theory of Modern Corporations, Ethical Theory and Business. (7th Ed).Boston, MA: Pitman.
Friedman, A.L., & Miles, S. (2006). Stakeholders: Theory and Practice. New York: Oxford University Press.
Garrett Jr, R.P., & Nuebaum, D.O. (2013). Top management support and initial strategic assets: A dependency model for internal corporate venture performance. Journal of Product Innovation Management, 30(5), 896-915.
Giraudeau, M. (2008). The drafts of strategy: Opening up plans and their uses. Long Range Planning, 41(3), 291 – 308.
Johnsen, A. (2016). Strategic planning and management in local government in Norway: Status after three decades. Scandinavian Political Studies, 1-33.
Juma, O.W. (2014). Organizational resources, corporate governance structures and performance of Kenyan State Corporation. Unpublished PhD Thesis, University of Nairobi, Nairobi, Kenya.
Kaplan, R.S., & Norton, D.P. (1996b). Using the balanced scorecard as a strategic management system. Harvard Business Review, 75-85.
Kaplan, R.S., & Norton, D.P. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 71-79.
Kathama, L.K. (2012). Strategic Planning Practices and Performance of State Corporations in Kenya. Unpublished Master of Business Administration project, University of Nairobi, Kenya.
Kimberlin, L. & Winterstein, A. G. (2008). Validity and reliability of measurement
instruments used in research. Am J Health-Syst Pharm, 65
Kitoto, M.A. (2012). Strategic planning practices in Kenya Pipeline Company. Unpublished MBA project, Unpublished MBA project, University of Nairobi, Nairobi, Kenya.
Kothari, C. R. (2004). Research methodology: methods and techniques. New Age International
Kothari, C. R. (2009). Research methodology: Methods and techniques New Delhi: New Age International Publishers
Koufopoulos, D., Zoumbois, V., Argyropoulou, M., & Motwani, J. (2008). Top management team and corporate performance: A study of Greek firms. Team Performance Management: An International Journal, 14(7/8), 340-363.
Lassner, K.J. (May 5-9, 2008). Management Sciences for Health Virtual Strategic Planning Program, Module 2. Paper presented at the AAAH Training Workshop on Regional Guidelines for Country Strategic Planning of Human Resources for Health, Mandaluyong, Philippines.
Lopes, M.V., & Ross, R.B. (2013). A comparative analysis of strategic planning practices in Michigan agribusiness firms: 1992 vs. 2012. International Food and Agribusiness Management Review, 16(3), 123-152.
Lumd, M., & Christensen, J. (2003). Implementation of Strategic Planning on Farm Businesses: Lessons from Danish Projects. Retrieved on May 6, 2018 from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.499.853&rep=rep1&type=pdf
Majaha, C. (2015). Strategic planning practices and performance of Zimbabwe state corporations. Unpublished MBA project, University of Nairobi, Nairobi, Kenya.
Mathenge, G.D. (2013). Corporate governance and organizational management. An ethical perspective of the challenges facing effective corporate management in Kenyan Owned Enterprises. Global Journal of Management and Business Research Administration and Management
Mendes, M.M.F.C. (2017). Strategic Tools: An Empirical Study in the Portuguese Business environment. Master of Business Administration dissertation, InstitutoUniversitario de Lisboa, Lisbon, Portugal.
Monday, M.J., Akinola, G.O., Ologbenla, P., & Aladeraji, O.K. (2015). Strategic management and firm performance: A case of selected manufacturing companies in Nigeria. European Journal of Business and Management, 7(2), 161-171.
Mugenda, M., & Mugenda, G. (2003). Research Methods: Quantitative & Qualitative
Approaches. Acts Press. Nairobi. Kenya.
Mutunga, S.N. (2017). Strategy implementation challenges in state corporations: a case of Agricultural Finance Corporation. Unpublished MBA project,University of Nairobi, Nairobi Kenya.
Mwangi, M.M. (2013). Strategic planning and performance of the state corporations of the government of Kenya. Unpublished MBA project, University of Nairobi, Nairobi Kenya.
Nartisan, I., Putans, R., & Muravska, T. (2012). Strategic planning and management in public and private sector organizations in Europe: Comparative analysis and opportunities for improvement. European Integration Studies, 6, 240-248.
Nassiuma, K. (2008). Survey sampling: Theory and methods. Nairobi, Kenya: Nairobi University Press.
Ng’ong’a, A.E., & Alang’o, G. (2015). Stakeholder involvement in change management at Kenya Power and Lighting Company Limited. International Journal of Small Business and Entrepreneurship vol 4 no 1 pg 1-20
Odundo, E.O. (2012). Environment context, implementation of strategic plans and performance of state corporations in Kenya.
Ogutu, M. (2017). Strategic planning and performance of state corporations in Kenya: The moderating effects of firm characteristics. DBA Africa Management Review, 7(1), 17-39.
Peterson, A. (2009). A review of strategic planning practices that may be applied by the South African National Planning Commission. Development Planning Division Working Paper Series No. 6. Midrand: Development Bank of Southern Africa. Accessed on May 15, 2018 from https://www.dbsa.org/EN/About-Us/Publications/Documents/DPD%20No%206.%20A%20review%20of%20strategic%20planning%20practices%20that%20may%20be%20applied%20by%20the%20South%20African%20National%20Planning%20Commission.pdf
Pfeffer, J. (1981). Power in Organizations. Boston, MA: Pitman.
Pfeffer, J., ; Salancik, G. (1978). The External Control of Organizations: A Resource Dependence Perspective. New York: Harper ; Row.
Polit, D. F. ; Beck, C. T. (2006). Nursing research: Principles and methods. (7th Ed.), Philadelphia: Lippincott Wasiams Wilkins.
Republic of Kenya. (2015). Agriculture and Food Authority (AFA) Strategic Plan 2016-2021. Accessed on May 20, 2018 from http://www.agricultureauthority.go.ke/wp-content/uploads/2016/10/Final-Strategic-Plan-AFA.pdf
Suklev, B., ; Debarliev, S. (2012). Strategic planning effectiveness analysis of the Macedonian context. Economic and Business Review, 14(1), 63-03.
Wanyama, N.M. (2013). Stakeholder involvement in change management at Kenya Ports Authority. Unpublished MBA project, University of Nairobi, Nairobi Kenya
Were, J. (2007). A survey of factors influencing strategic responses by state corporations to changes in the environment. Unpublished MBA project, University of Nairobi, Nairobi, Kenya.
Yaro, I., Arshad, R., ; Salleh, D. (2017). Relevance of stakeholders in policy implementation. Journal of Public Management Research, 3(1), 1-16.
APPENDIX ILETTER OF INTRODUCTIONDear respondent,
I am a student at Jomo Kenyatta University of Agriculture and Technology undertaking a postgraduate degree in Master of Business Administration (Strategic Management Option). Presently, I am carrying out a research study on Internal Factors Influencing Strategic Planning Effectiveness in Selected Agricultural Corporation in Kenya. In view of this, I am collecting data that relate to the study.
You are hereby kindly and humbly requested to participate in the study by providing the requisite. In the event that your institution will be interested in the study findings, the same will be shared with you. Utmost confidentiality of both the respondents and the firm concerned will duly be upheld.
Thank you in advance.
Student University Supervisor
APPENDIX IINACOSTI’S RESEARCH PERMIT AND AUTHORIZATION LETTERAPPENDIX IIIRESEARCH QUESTIONNAIREThe following questionnaire is integral to a study titled: Internal Factors Influencing Strategic Planning Effectiveness in Selected Agricultural Corporation in Kenya. It is divided into two major parts. The first part is on background information while the second is on study variables. In the second section, the responses sought are on a five point Likert scale where:
1: Strongly Disagree,2: Disagree, 3: Not Sure, 4. Agree, 5: Strongly Agree
PART A: Demographic Information
Kindly indicate your highest academic qualifications?
How long you served in the state corporation?
Less than 1 years
1 – 5 years
6 – 10 years
More than 10 years
How long have you worked in the management position?
Less than 1 year
1 – 5 years
6 – 10 years
Above 10 years
Kindly use the following Likert scale to indicate your level of agreement or disagreement regarding the stated proposition son stakeholder involvement where:
1: Strongly Disagree,2: Disagree, 3: Not Sure, 4. Agree, 5: Strongly Agree
It is true to state that,
5 4 3 2 1
All stakeholders are adequately involved in strategic planning by being furnished with requisite information. All stakeholders are rarely consulted during strategic planning. Only a few stakeholders participate in making decisions regarding strategic planning. It is not mandatory to involve all categories of stakeholders during strategic planning. In relation to previous strategic plans drafted by the state corporation, the present strategic plan has roped in more stakeholders. Top Management Support
Kindly use the following Likert scale to indicate your level of agreement or disagreement regarding the stated propositions on top management support where:
1: Strongly Disagree,2: Disagree, 3: Not Sure, 4. Agree, 5: Strongly Agree
It is true to state that,
5 4 3 2 1
The corporation’s CEO/Managing Director is always committed to strategic planning. The staying power of the CEO/MD is felt throughout the strategic planning. The top management spearheads the drafting and/or initiation of the corporation’s service charter. During strategic planning, the top management avails sufficient resources to the team tasked with drafting the plan. The top management hardly takes part in strategic planning. The top management outsources qualified consultants to spearhead the corporation’s strategic planning. Organization’s Environment
Kindly use the following Likert scale to indicate your level of agreement or disagreement regarding the stated propositions on organization’s environment where:
1: Strongly Disagree,2: Disagree, 3: Not Sure, 4. Agree, 5: Strongly Agree
It is true to state that over the past one year,
5 4 3 2 1
The physical environment of our corporation is an impediment during strategic planning. The corporation’s operating environment is crucial when drafting the strategic plan. The organization’s workforce play a leading role during strategic planning. There are no technologies or tools required during strategic planning. Legal issues encompassing pertinent laws and regulations are considered during strategic planning. The prevailing political situation in the country influences strategic planning. The socio-economic consequences of implementing the strategic plan are considered when drafting the strategic plan. The ecological implications of the plan are factored in when it is being drafted. Resource Imbalance Level
Kindly use the following Likert scale to indicate your level of agreement or disagreement regarding the stated propositions on resource imbalance level where:
1: Strongly Disagree,2: Disagree, 3: Neutral, 4. Agree, 5: Strongly Agree
It is true to state that in the past one year,
5 4 3 2 1
During strategic planning, budgetary allocation is ensured to be proportionate to the needs of all vote heads. Some vote heads are given greater latitude than others during strategic planning. The strategic planning phase allows prioritized allocation of funds to given vote heads. The strategic plan ensures that budgetary allocation is justifiable. There is small imbalance in existing resources among key managers. There is relatively small degree of resource reallocation when strategic planning. Strategic Planning Effectiveness
Kindly use the following Likert scale to indicate your level of agreement or disagreement regarding the stated propositions on strategic planning effectiveness where:
1: Strongly Disagree,2: Disagree, 3: Not Sure, 4. Agree, 5: Strongly Agree
It is true to state that over the past one year,
5 4 3 2 1
The strategic plan clearly outlines the efficiency measures which are metrics for both productivity and cost effectiveness. The outcome measures of strategic planning in terms of proposed targets and standards are clearly spelt out in the plan. The quality measures in terms of reliability, responsiveness, and compliance among other key aspects are factored in strategic planning. The project measures which shows the plan’s progress are clearly outlined as part of M&E. The percentage increment in loans to farmers is a clearly outlined measure of the strategic planning effectiveness in the state corporation. Thank you for your time and cooperation.
APPENDIX IVPROPOSED BUDGETActivity Cost (Ksh.)
Typesetting and printing 10,000
Internet services 5,000
Library services 5,000
Data collection and analysis 50,000
Publication expenses 20,000
GRAND TOTAL 154,000
APPENDIX VWORK PLANActivity 2018
Feb Mar May Jun Jul Aug Sep Oct
Concept development Literature Review Proposal development Proposal presentation Amendments Data collection Data analysis and interpretation Thesis writing Thesis presentation Thesis amendments Publication