Effects of Strategic Change Management Practices on Performance in the Telecommunication Industry in Kenya: Case of Telkom Kenya Limited
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Date
2018-01
Authors
Hussein, Kamau Eptisam
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The benefit of managing strategic change is to harness people, process and technology to
achieve a competitive edge. Management of strategic change is based on the understanding
of the processes so that the system design reflects real work practices and delivers userfocused
outcomes. It also ensure that people understand and accept changes more readily
since they understand where changes may take place in current practice, and the benefits
from the change being implemented. Similarly managing strategic change enables an
organization to develop an innovative vision for where the company needs to be, and in
coming up with an innovative path for achieving excellence in their operations. Telkom
Kenya Limited has been implementing various strategic changes in order to increase
efficiency and remain competitive in the telecommunication sector. The changes are being
managed by instituting technological adoption, strategic alliances, learning culture, and
product reengineering. It was therefore important to find out the effect strategic change
management practices have on performance at Telkom Kenya Limited. The study sought to
find out; the effects of technological adoption, strategic alliances, learning culture and
product reengineering on the performance of Telkom Kenya Ltd. The study was guided by
The Balanced Score Card Model, Change Theory and Resource Based View (RBV) Theory.
The study used a descriptive research design. The target population was 207 employees of
the company based at the headquarters out of which the researcher will sample 3 top
management employees, 9 middle level employees and 30 lower level employees using 20%
representativeness. The study used stratified sampling to group the employees into three
categories; top management, middle level and lower level management employees. Simple
random sampling was then applied in each stratum to select the participants. Primary data
was collected using questionnaires and analysed using Statistical Package for Social Sciences
(SPSS). Both descriptive and inferential analysis was used to analyse the data. Inferential
statistics in form of multiple linear regression model was used to establish the relationship
that exists between the strategic change management practices and performance at Telkom
Kenya Limited. The study findings indicated that technological adoption is a significant
predictor organizational performance (B=0.52, P-value=0.01<0.05). The study also found out
that strategic alliances significantly affects organizational performance (B=0.29, Pvalue=
0.01<0.05).This indicated that adoption of strategic alliances is a significant predictor
of organizational performance. The study further found that product/service reengineering
had significant effect on organizational performance (B=0.17, P-value=0.03<0.05). This
indicated that product/service re-engineering is a significant predictor of organizational
performance of the company. The findings finally found that learning culture had significant
effect on organizational performance (B=0.12, P-value=0.04<0.05). This indicated that
learning culture is a significant predictor of organizational performance of the company. The
R-squared for the regression model was 0.726. This implies 72.6% of the change in
organizational performance of the company is explained by Technological adoption,
Strategic alliances, Learning Culture, and Product/service reengineering. The study
recommends the management of Telkom Kenya Limited and other sectors of the economy to
enhance strategic change management to enhance performance.
Description
Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration of
Kenyatta University