Strategic Orientation and Performance of State Corporations in the Energy Sector in Kenya
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Date
2024-06
Authors
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Journal ISSN
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Publisher
Kenyatta University
Abstract
Even though the energy sector is considered to facilitate the operations and performance of
the primary sectors of the economy, evidence from contextual literature has depicted a rather
unpleasant state of affairs regarding performance. The performance of these entities is
characterized by low level of budget absorption, an absence of growth in quantity power
generated to the national grid, concerns over stakeholder satisfaction, absence of
improvement of customer solutions and delivery mechanisms. Likewise, the escalating cost
of energy poses a significant barrier, as it contributes to a loss of foreign direct investment,
which has serious implications on socioeconomic development. This empirical inquiry
sought to explain the performance of entities in the Kenyan energy sectors on the basis of
strategic orientation. More precisely, the inquiry examined the effect of market orientation,
technology orientation and entrepreneurial orientation on the performance of state entities in
the Kenyan energy sector. The study further sought to analyze the moderating and mediating
effect of corporate culture and dynamic managerial capability on the effect of strategic
orientation on performance of state entities in the Kenyan energy sector. The theoretical
postulates of the resource-based view, dynamic capabilities theory, Denison organizational
culture model and balanced scorecard model were used to anchor the chosen research
constructs. The overarching methodology of research for this study drew from the principles
of positivism philosophy. Explanatory and descriptive research design was used to allow for
triangulation of observations. A sample of 285 was drawn from a population of 887
management staff using stratified proportionate as a probabilistic sampling technique. A
semi-structured questionnaire was used to gather observations from the research participants.
A preliminary study of 10 per cent of the sample was observed to facilitate verification of
the reliability of the research tool. The face, construct and content validity of the research
tool was also confirmed. Descriptive characteristics of the observed variables were analyzed
prior to performing inferential analysis. The study attained a response rate of eighty-eight
per cent. The primary assumptions of the linear regression model were assessed using
appropriate statistical tests. Inferential analysis revealed favourable cause-effect behaviour
between market orientation, technology orientation and entrepreneurial orientation as input
variables and organizational performance as the response variable. Further, dynamic
managerial capability was determined as a partial mediator of the link between strategic
orientation and performance. Equally, corporate culture was revealed to moderate the effect
of strategic orientation on performance. Quantitative findings were presented in the form of
tables and appropriate diagrams. Qualitative data was analyzed using the commonality of
themes or ideas and presented in prose form. Enactment of policy guidelines that would not
only enhance clarity on competitive posture, customer value, market learning and inter functional coordination activities but reinforce practice around these activities should be a
fundamental concern of the head of the marketing division. The head of the information
technology division ought to review the policy guidelines regarding corporate
communication, technological change, research and development and, automation of
operations, process and service delivery. Development of commensurate policy guidelines
for enterprise activities and practices regarding willingness to take risk, proactivity,
competitive aggressiveness and innovativeness should be prioritized by the heads of strategy
division and research and development division. Top management of state enterprises should
foster practices that encourage customization of responses to stakeholders needs however
withing deliberately defined ethical parameters. Management should promote a culture of
learning, experimenting and challenging conventional thinking amongst employees.
Description
A Thesis Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Doctor of Philosophy in Business Administration (Strategic Management) of Kenyatta University, June 2024.
Supervisors
1. Godfrey M. Kinyua
2. Patricia W. Kungu