Effect of strategic responses on Kenya Revenue Authority operational performance

Abstract

Certain strategic responses argue that a firm‟s superior performance mostly results from its strategic choice that provides the firm a better positioning in the industry structure. The purpose of this study was to establish the effect of strategic responses such as ICT development, staff training, customer relationship management and strategic alliances on operational performance of Kenya Revenue Authority. The research design used for this study was descriptive survey design. The population of this study was top management, middle management and supervisory employees of Kenya Revenue Authority and who have been with the institution for a minimum period of one year. Data was collected by use questionnaires. The questionnaire consisted of structured closed ended statements. Data was analyzed mainly by use of descriptive and inferential statistics. Descriptive statistics included mode, mean, median, standard deviation. Inferential statistical techniques like correlation and regression coefficients were used to draw a causal relationship between the various strategic responses and performance. Data was presented by use of graphs, pie charts and tables. Correlation results indicated that ICT, staff training, customer relationship management and strategic partnership practices in KRA positively affects performance. Further regression results indicated that customer relationship management and strategic alliance were significant with positive correlations. The latter implied that an increase in effectiveness of ICT, staff training, customer relationship management and strategic partnership practices will lead to an increase in KRA‟s performance. The study provided recommendations to the management of Kenya Revenue Authority to put more emphasis on staff training and continuously carry out training to employers through seminars or other professional interaction programs to facilitate employees to maintain high competency in their field of specialization. KRA needs to align its strategic alliance in accordance to the objective it needs to. In addition, that clear reporting lines should be put in place to avoid miscommunication. Further recommendation for KRA and other public institution have to emphasize on the need to develop their technology and customer relationship management with the objective of increasing their revenues.