Strategy implementation practices and performance of Geothermal Development Company, Kenya

dc.contributor.authorMibei, Geoffrey
dc.date.accessioned2025-08-05T11:40:02Z
dc.date.available2025-08-05T11:40:02Z
dc.date.issued2025-05
dc.descriptionA Research project submitted to the School of Business, Economics & Tourism in partial fulfilment of the Requirement for the award of the degree in master of Business Administration (Strategic Management Option) at Kenyatta University May 2025 Dr. Anne W. Muchemi
dc.description.abstractOrganizational performance; the dependent variable in this study refers to the dynamic and continuous efforts by an organization to achieve its goals efficiently and effectively using available resources. In the context of the geothermal energy sector, performance is measured through key indicators such as the number of wells drilled annually, cost savings per well, steam output, Megawatt electric (MWe) generation, revenue from steam sales, the number of geothermal fields explored and successfully drilled, and the number of experts trained in geothermal technologies. The Geothermal Development Company (GDC) has set an ambitious target to contribute 1,065 MWe of geothermal power to Kenya’s national grid by 2030. However, this goal is threatened by underperformance in critical areas including a slow drilling rate, limited geothermal exploration, poor revenue from steam sales, and inadequate internal capacity development. These challenges point to potential gaps in strategy implementation. To explore and address what is ailing GDC’s performance, this study investigates the influence of four independent variables: organizational culture, employee empowerment, organizational leadership, and organizational resources. These elements are examined within the framework of established theoretical models including the Resource-Based View (RBV), Human Capital Theory, the McKinsey 7S Model, and the Balanced Scorecard. A descriptive research design was applied to assess the impact of strategy implementation practices on GDC’s performance. The study targeted employees from five key departments across GDC locations in Nairobi, Nakuru, and Baringo, including a sample of three top management staff, twenty middle-level employees, and seventy-two supervisory and technical staff. Data was collected using a semistructured questionnaire, validated through a pilot test with 10% of the target population. The regression model showed statistical significance at a 95% confidence level (p ≤ 0.05), with an R-squared value indicating that 38.0% of the variability in organizational performance could be explained by the four independent variables. Descriptive statistics revealed average scores for organizational leadership (3.3435), organizational resources (3.5706), organizational culture (3.0656), and employee empowerment (2.4996). Inferential analysis identified organizational resources and employee empowerment as significant contributors to performance, while leadership and culture did not show a statistically significant effect. Ethical standards were upheld in accordance with Kenyatta University guidelines. Necessary approvals were obtained from NACOSTI and GDC, informed consent was sought from participants, and anonymity and confidentiality were strictly maintained throughout the data collection process. The study recommends strategic improvements in resource allocation—particularly in ICT and laboratory infrastructure—and enhanced employee empowerment through transparent, meritbased promotion and incentive systems. These insights are crucial for GDC’s management to refine their strategy implementation efforts and realize their geothermal development goals.
dc.description.sponsorshipKenyatta University
dc.identifier.urihttps://ir-library.ku.ac.ke/handle/123456789/31119
dc.language.isoen
dc.publisherKenyatta University
dc.titleStrategy implementation practices and performance of Geothermal Development Company, Kenya
dc.typeThesis
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