Effects of Strategic Change Management Practices on Performance in the Telecommunication Industry in Kenya: Case of Telkom Kenya Limited
Hussein, Kamau Eptisam
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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.