The Impact of Strategy Implementation on the Performance of Ugandan State Agencies: A Quantitative Study

  • Arthur Nuwagaba Mbarara University of Science and Technology
  • Caren Angima University of Nairobi
  • Lydia Kisekka Namateefu Makerere University Business School
  • Tom Mugizi International Business Makerere University Business School
Keywords: Strategy Implementation, Organisational Performance, Ugandan State Agencies, Public Sector Organisations

Abstract

This study examines how strategy implementation affects Ugandan state agencies’ performance. It conceptualizes strategy implementation as operationalization and institutionalization, and measures performance by efficiency and effectiveness. This study surveyed 160 state agencies using a cross-sectional design and a structured questionnaire. The top management team (TMT) members of each agency, including CEO/Managing Director, Deputy/Assistant CEO, Corporation Secretary, and Heads of Department, were the respondents. At least three TMT members from each agency participated in the online survey, which was chosen due to the COVID-19 restrictions. The data analysis methods were factor analysis, descriptive, and multilinear regression analysis. The study adhered to the ethical principles of informed consent, confidentiality, and anonymity. Ugandan state agencies perform better when they implement their strategies effectively. The statistical analysis reveals that institutionalization is a key driver of performance outcomes, with a positive and highly significant coefficient (p < 0.000). On the other hand, operationalization has a positive but insignificant coefficient (p = 0.140), indicating a weak link between operationalization and performance. These findings highlight the importance of aligning the strategy with the organization’s internal environment. The study provides invaluable contribution the realm of strategic management, particularly within the public sector, focusing primarily on the performance of state agencies in Uganda. It is groundbreaking research that explores this relationship in a developing country. It methodically examines the profound effect that the execution of various strategies has on these entities. This study contributes to the strategic management literature in the public domain. The insights and recommendations derived from this study are valuable for professionals and policymakers involved in creating and implementing strategic plans within the public sector. This study offers practical and theoretical contributions for strategy implementation and performance in public sector contexts. It suggests that state agency managers and policymakers should foster a supportive culture, enhance leadership skills, facilitate communication channels, allocate adequate resources, and adapt to environmental changes to improve strategy execution and outcomes. It also adds to the literature on strategic management in public sector contexts, especially in developing countries.

Downloads

Download data is not yet available.

References

Alshaher, A. A.-F. (2013). The McKinsey 7S model framework for e-learning system readiness assessment. International Journal of Advances in Engineering & Technology, 6(5), 1948-1966.

Amobi, M. (2022). Strategy implementation and organizational performance: A study of selected commercial banks in Abia state, Nigeria. Journal of Emerging Trends in Management Sciences and Entrepreneurship, 4(1), 385-401.

Awang, Z. (2012). Structural equation modeling using AMOS graphic. Penerbit Universiti Teknologi MARA.

Awiti, L., Imbambi, R. M., Ng’ong’a, E. A., & Okumu, M. (2019). Strategy Implementation and Performance of HIV and AIDS Interventions Managed by Non-Governmental Organisations in Nyanza Region, Kenya. International Journal of Academic Research in Business and Social Sciences, 9(3), 219 - 238. https://doi.org/10.6007/IJARBSS/v9-i3/5651 DOI: https://doi.org/10.6007/IJARBSS/v9-i3/5651

Azhar, A., Ikram, S., Rashid, S., & Saqib, S. (2013). The role of leadership in strategy formulation and implementation. International journal of management & organizational studies, 1(2), 32–38.

Barreto, I. (2010). Dynamic capabilities: a review of past research and an agenda for the future. Journal of Management, 36(1), 256–280. DOI: https://doi.org/10.1177/0149206309350776

Bartuševi?ien?, I., & Šakalyt?, E. (2013). Organizational assessment: effectiveness vs. efficiency. Social Transformations in Contemporary Society, 1(1), 45–53.

Basheka, B. C., Byamugisha, A., & Lubega, J. T. (2017). Towards a model for assessing the performance of public sector organizations (PSOs) in Uganda. Administratio Publica, 25(2), 135-156.

Bland, M. (2015). An introduction to medical statistics. Oxford University Press.

Bryson, J. M., Crosby, B. C., & Bloomberg, L. (2014). Public Value Governance: Moving Beyond Traditional Public Administration and the New Public Management. Public Administration Review, 74(4), 445-456. https://doi.org/10.1111/puar.12238 DOI: https://doi.org/10.1111/puar.12238

?erniauskien?, N. (2014). Strategic management of public sector institutions: student workbook.

Charas, S. (2014). The criticality of c-suite team intelligence (tq) in economic value creation. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2553328 DOI: https://doi.org/10.2139/ssrn.2553328

Chathoth, P. K. (2002). Co-alignment between Environment risk, corporate strategy, capital structure, and firm performance: an empirical investigation of restaurant firms [PhD Thesis, Virginia Tech].

Clulow, V., Gerstman, J., & Barry, C. (2003). The resource?based view and sustainable competitive advantage: the case of a financial services firm. Journal of European Industrial Training, 27(5), 220-232. DOI: https://doi.org/10.1108/03090590310469605

Cooper, D. R., & Schindler, P. S. (2013). Business research methods. McGraw-Hill Education.

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10-11), 1105-1121. DOI: https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E

Elbanna, S., Andrews, R., & Pollanen, R. (2015). Strategic Planning and Implementation Success in Public Service Organizations: Evidence from Canada. Public Management Review, 18(7), 1017-1042. https://doi.org/10.1080/14719037.2015.1051576 DOI: https://doi.org/10.1080/14719037.2015.1051576

Elif, G.-T. (2022). Strategy implementation, culture and performance in the public organizations: An empirical examination. ??????? ???????????????? ? ?????????????? ??????????, 6(2), 33-52. DOI: https://doi.org/10.17323/1999-5431-2022-0-6-33-52

Elkington, J. (1997). Cannibals with forks – the triple bottom line of 21st-century business. New Society Publishers. DOI: https://doi.org/10.1002/tqem.3310080106

Espirah, J. O., & Murigi, E. M. (2019). Effect of strategy execution on the performance of the Parliamentary Service Commission of Kenya. Journal of Public Policy & Governance, 3(2), 61-72.

Field, A. (2013). Discovering statistics using IBM SPSS statistics. Sage.

Gaskin, J., & Lim, J. (2016). Master validity tool.

Genc, E. (2017). Strategy implementation, organizational culture and performance in Turkish local government [PhD Thesis, Cardiff University].

Ghasemi, A., & Zahediasl, S. (2012). Normality tests for statistical analysis: a guide for non-statisticians. Int J Endocrinol Metab, 10(2), 486-489. https://doi.org/10.5812/ijem.3505 DOI: https://doi.org/10.5812/ijem.3505

Griffins, L. W. (2006). Strategic planning: concept and cases. Strategic Management Journal, 16(2), 71–83.

Hair, J. F., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data analysis. Prentice-Hall Inc.

Håkonsson, D. D., Burton, R. M., Obel, B., & Lauridsen, J. T. (2012). Strategy implementation requires the right executive style: evidence from Danish SMEs. Long Range Planning, 45(2), 182-208. DOI: https://doi.org/10.1016/j.lrp.2012.02.004

Hansen, M. H., Perry, L. T., & Reese, C. S. (2004). A Bayesian operationalization of the resource-based view. Strategic Management Journal, 25(13), 1279-1295. DOI: https://doi.org/10.1002/smj.432

Hantiro, S. B., & Maina, R. (2020). Strategy implementation and performance of Tana River County government, Kenya. Journal of Strategic Management, 4(1), 16-34.

Heilman, S. C., & Kennedy-Phillips, L. (2011). Making Assessment Easier with the Organizational Effectiveness Model. American College Personnel Association and Wiley Periodicals, Inc, 15(6), 29-32. DOI: https://doi.org/10.1002/abc.20046

Hoque, A., & Awang, Z. (2016). The exploratory factor analysis (EFA) of entrepreneurial marketing scale development and validation

Hu, L. t., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1-55. DOI: https://doi.org/10.1080/10705519909540118

Hubbard, G. (2009). Measuring organizational performance: beyond the triple bottom line. Business strategy and the environment, 18(3), 177–191. DOI: https://doi.org/10.1002/bse.564

Jalali, S. H. (2012). Appraising the role of strategy implementation in export performance: a case from the Middle East. Business Intelligence Journal, 5(2), 284 - 291.

Javier, D. (2002). A review paper on organizational culture and organizational performance. International Journal of Business and Social Science, 1(3), 52–76.

Kaiser, H. F. (2016). The Application of Electronic Computers to Factor Analysis. Educational and Psychological Measurement, 20(1), 141-151. https://doi.org/10.1177/001316446002000116 DOI: https://doi.org/10.1177/001316446002000116

Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard—measures that drive performance. 70, 71–79.

Kasomi, F. M. (2015). Diversity in top management teams, strategic choice, top manager’s compensation schemes and performance of Kenyan state corporations [Unpublished PhD Thesis, University of Nairobi].

Kennerley, M., & Neely, A. (2002). A framework of the factors affecting the evolution of performance measurement systems. International Journal of Operations & Production Management, 22(11), 1222-1245. DOI: https://doi.org/10.1108/01443570210450293

Kianda, J. M., & Kitur, B. (2021). Strategy implementation and performance of microfinance institutions in Kenya: A case of MFIs in Nairobi. International Journal of Research Publications, 87(1), 193-208. DOI: https://doi.org/10.47119/IJRP1008711020212390

Kinuu, D. (2014). Top management team psychological characteristics, institutional environment, team processes and performance of companies listed in the Nairobi Securities Exchange [Thesis, University of Nairobi].

Kiragu, P., Muhoho, J., & Gesimba, P. O. (2020). Influence of innovation in strategy implementation on organizational performance: A case of Unga Holdings Limited, Kenya. International Journal of Research in Business and Social Science, 9(5), 48-57. DOI: https://doi.org/10.20525/ijrbs.v9i5.837

Kirui, C. C. (2016). Strategy institutionalization and performance of state-owned corporations in the electricity sub-sector in Kenya [Unpublished Ph.D. Thesis, Kenyatta University].

Kothari, C. R. (2004). Research methodology: methods and techniques. New Age International (P) Limited.

Kumar, S., & Gulati, R. (2010). Measuring efficiency, effectiveness and performance of Indian public sector banks. International Journal of Productivity and Performance Management, 59(1), 51-74. DOI: https://doi.org/10.1108/17410401011006112

Lebans, M., & Euske, K. (2006). A conceptual and operational delineation of performance: business performance measurement. Cambridge University Press. DOI: https://doi.org/10.1017/CBO9780511488481.008

Low, J. (2000). The value creation index. Journal of Intellectual Capital, 1(3), 252-262. DOI: https://doi.org/10.1108/14691930010377919

Luhangala, H. M., & Anyieni, A. (2019). Strategy implementation on organization performance: A case of public secondary schools Nyamira County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(5), 394-410.

Lusthaus, C., Adrien, M., Anderson, G., Carden, F., & Montalvan, G. (2002). Organizational assessment: a framework for improving performance. International Development Research Centre/Inter-American Development Bank.

Machuki, V., Aosa, O. E., & Letting, N. K. (2012). Firm-level institutions and performance of publicly quoted companies in Kenya. International Journal of Humanities and Social Science, 2(21), 298 - 312.

Machuki, V. N., & Aosa, E. (2011). The influence of the external environment on the performance of publicly quoted companies in Kenya. Prime Journal of Business Administration and Management, 1(7), 205–218.

Mbogo, L. K. (2022). Strategy Implementation and Performance of Local Non-governmental Organizations in Tharaka Nithi County, Kenya University of Nairobi].

Ministry of Public Service. (2021). Rationalization of government agencies, commissions authorities and public expenditure.

Mintzberg, H., McCarthy, D. J., & Constantinos, M. (2000). View from the Top: Henry Mintzberg on Strategy and Management [and Commentary]. The Academy of Management Executive (1993-2005), 14(3), 31-42. http://www.jstor.org/stable/4165656 DOI: https://doi.org/10.5465/ame.2000.4468063

Mkalama, R. N. (2014). Top management demographics, strategic decision making, macro-environment and performance of Kenyan state corporations [Thesis, University of Nairobi].

Mkalama, R. N., & Machuki, V. N. (2019). Top Management Demographics and Performance: An Empirical Investigation of Kenyan State Corporations. International Journal of Business Administration, 10(1), 1–19. DOI: https://doi.org/10.5430/ijba.v10n1p1

Mohamed, F., Nusari, M., Ameen, A., Raju, V., & Bhaumik, A. (2019). Impact of strategy implementation (strategy, structure, and human resources) on organizational performance within Abu Dhabi Police, UAE. Test Eng. Manag, 81, 1914-1920.

Mouzas, S. (2006). Efficiency versus effectiveness in business networks. Journal of Business Research, 59(10), 1124–1132. DOI: https://doi.org/10.1016/j.jbusres.2006.09.018

Muendo, M. C., & Ogutu, M. (2020). Strategy Implementation and Organizational Performance: A Case Study of Kenya Medical Training College. European Journal of Business and Strategic Management, 5(1), 16-36.

Muraga, K. (2015). Strategic human resource management practices and performance of parastatals in Kenya [Unpublished PhD Thesis, University of Nairobi].

Murphy, K., & Davidshofer, C. (1994). Psychological testing: principles and applications. Prentice-Hall, Inc.

Mutuku, C., K’Obonyo, P., & Awino, Z. B. (2013). Top management team diversity, quality of decisions and performance of commercial banks in Kenya.

Nalwoga, M. M., & Dijk, M. P. V. (2016). Organizational performance measurement models, also for poverty alleviation. International Journal of Water, 10(2-3), 122-138. DOI: https://doi.org/10.1504/IJW.2016.075564

Ndegwa, R. K. (2022). Influence of Strategy Implementation on Performance of Kenya-Owned State Corporations University of Nairobi].

Newbert, S. L. (2007). Empirical research on the resource-based view of the firm: an assessment and suggestions for future research. Strategic Management Journal, 28(2), 121-146. DOI: https://doi.org/10.1002/smj.573

Njoroge, J. K. (2015). Strategy implementation, performance contracting, external environment and performance of Kenyan state corporations [Thesis, University of Nairobi].

Nyamwanza, T., & Mavhiki, S. (2014). Strategy implementation of framework used by SMEs in Zimbabwe. Journal of Business and Management, 3(2), 1–16. DOI: https://doi.org/10.12735/jbm.v3i2p01

O’Regan, N., & Ghobadian, A. (2004). The importance of capabilities for strategic direction and performance. Management Decision, 42(2), 292-313. https://doi.org/10.1108/00251740410518525 DOI: https://doi.org/10.1108/00251740410518525

Obiero, O. J., & Genga, P. (2018). Strategy implementation and performance of Kenya Revenue Authority. International Academic Journal of Human Resource and Business Administration, 3(3), 15–30.

Ogalo, Z. K. (2019). Relationship between strategy implementation and performance of faith-based organizations: A case of the catholic archdiocese of Kisumu, Kenya Maseno University].

Oketch, J. O., Kilika, J. M., & Kinyua, G. M. (2020). The Moderating Role of the Legal Environment on the Relationship between TMT Characteristics and Organizational Performance in a Regulatory Setting in Kenya. Journal of Economics and Business, 3(1), 211-222. https://doi.org/10.31014/aior.1992.03.01.190 DOI: https://doi.org/10.31014/aior.1992.03.01.190

Onyegbula, E. F., Nwoye, M. I., & Daniel, C. O. (2023). Impact of Strategy Implementation on the Performance of Regulatory and Supervisory Agencies in the Financial Services Sector in Nigeria. Journal of Human Resource and Sustainability Studies, 11(02), 298-315. https://doi.org/10.4236/jhrss.2023.112019 DOI: https://doi.org/10.4236/jhrss.2023.112019

Osborne, J. W., Christianson, W. R., & Gunter, J. S. (2001). Educational psychology from a statistician's perspective: a review of the quantitative quality of our field Seattle.

Osborne, J. W., & Waters, E. (2002). Four assumptions of multiple regression that researchers should always test. Practical Assessment, Research, and Evaluation, 8(2), 1-5. https://doi.org/10.7275/r222-hv23

Pollanen, R., Abdel-Maksoud, A., Elbanna, S., & Mahama, H. (2016). Relationships between strategic performance measures, strategic decision-making, and organizational performance: empirical evidence from Canadian public organizations. Public Management Review, 19(5), 725-746. https://doi.org/10.1080/14719037.2016.1203013 DOI: https://doi.org/10.1080/14719037.2016.1203013

Pride, W., & Ferrell, O. (2003). Marketing concepts and strategies. Houghton Mifflin Company.

Randeree, K. (2020). Strategic management of performance: an examination of public sector organizations in the United Arab Emirates. The International Journal of Knowledge, Culture, and Change Management: Annual Review, 9(4), 123-134. (10.18848/1447-9524/CGP/v09i04/49722) DOI: https://doi.org/10.18848/1447-9524/CGP/v09i04/49722

Ricardo, R., & Wade, D. (2001). Corporate performance management: how to build a better organization through measurement driven strategies alignment. Heinemann.

Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management, 35(3), 718-804. https://doi.org/10.1177/0149206308330560 DOI: https://doi.org/10.1177/0149206308330560

Sekaran, U., & Bougie, R. (2016). Research methods for business: a skill building approach. John Wiley & Sons.

Seotlela, R. P., & Miruka, O. (2014). Implementation challenges of performance management system in the South African mining industry”. Mediterranean Journal of Social Sciences, 5(7), 177–187. DOI: https://doi.org/10.5901/mjss.2014.v5n7p177

Shah, A. M. (2005). The foundations of successful strategy implementation: overcoming the obstacles. Global Business Review, 6(2), 293–302. https://doi.org/10.1177/0972150905006002 DOI: https://doi.org/10.1177/097215090500600208

Slater, S. F., Olsen, E. M., & Hult, G. T. (2010). Worried about strategy implementation: don’t overlook the marketing role. Business Horizons, 53(5), 469–479. https://doi.org/10.1016/j.bushor.2010.04.001 DOI: https://doi.org/10.1016/j.bushor.2010.04.001

Sorooshian, S., Norzima, Z., Yusof, I., & Rosnah, Y. (2010). Effect analysis on strategy implementation drivers. World Applied Sciences Journal, 11(10), 1255–1261.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

Teece, D. J., Pisano, G., & Shuen, A. (2008). Dynamic capabilities and strategic management. In Technological Know-How, Organizational Capabilities, and Strategic Management (pp. 27-51). World Scientific. DOI: https://doi.org/10.1142/9789812834478_0002

Tumusiime, L. (2015). Utilization of evaluation findings and performance of Uganda Public Sector Agencies: a case study of Uganda Bureau of Statistics Uganda Technology and Management University]. Kampala.

Wang, Y., & Wang, K. Y. (2017). How do firms tackle strategic change? A theoretical model of the choice between dynamic capability-based and ad hoc problem-solving approaches. Journal of Organizational Change Management, 30(5), 725-743. https://doi.org/10.1108/jocm-03-2016-0045 DOI: https://doi.org/10.1108/JOCM-03-2016-0045

Published
2023-12-27
How to Cite
Nuwagaba, A., Angima, C., Kisekka Namateefu , L., & Mugizi, T. (2023). The Impact of Strategy Implementation on the Performance of Ugandan State Agencies: A Quantitative Study. Journal of Economics and Behavioral Studies, 15(4(J), 69-86. https://doi.org/10.22610/jebs.v15i4(J).3653
Section
Research Paper