Strategy Implementation and Financial Performance of Finance Institutions in Kenya: A Case of Shelter Afrique
Keywords:
Leadership, Resources, Culture, Financial PerformanceAbstract
Firms operate in a turbulent and dynamic business environment characterized by fast-paced and constant changes that calls for new strategies. Organizational financial performance defines the competitiveness, economic interests of the company's management, potentials of the business and reliability of the present or future contractors. Financial performance analysis identifies an organization's weaknesses and strengths, and this contributes to the management, shareholders and the public. This study was guided by three main objectives; to determine how organizational culture affects financial performance, to assess the role leadership plays in enhancing financial performance and to establish the effect of resources on financial performance in Shelter Afrique, the Pan-African Housing Finance Institution headquartered in Nairobi, Kenya. A theoretical review, empirical review, critical review of literature, knowledge and the conceptual framework was also provided. A census was conducted on 55 employees of Shelter Afrique based at the Head Office. The findings indicated that strategy implementation had a significant positive effect on the financial performance of Shelter Afrique. Aspects on resources, leadership and organizational culture enhance an organization's competitive advantage thus improving its financial performance. The study also recommended that management needs to set high performance systems to enable employees to achieve their strategic goals thus enhancing the overall performance of the organization.
Keywords: Leadership, Resources, Culture, Financial Performance
References
Ahearne, M., Kraus, F., & Lam, S. K. (2013). Performance impact of middle managers' adaptive strategy implementation: The role of social capital. Strategic Management, 3-4.
Allio, M. K. (2005). Journal of Business Strategy, 26. A Short, Practical Guide to Implementing Strategy, 12-21.
Al-Shammari, H., & Hussein, R. (2008). Strategic planning in emergent market organizations: Empirical investigation. International Journal of Commerce and Management, New York. 18(1) , 47-59.
Alvesson, M. (2012). Understanding Organizational Culture Second Edition. California: Sage Publications Ltd; Second edition.
Aosa, E. (2012). An Empirical Investigation of Aspects of Strategy Formulation and Implementation within Large Private Manufacturing Companies in Kenya. University of Strathclyde, Glasgow.
Brinkschröder, N. (2014). Strategy Implementation: Key Factors, Challenges and Solutions. Strategy Implementation, 5.
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework 3rd Edition. New York: Jossey-Bass; 3 edition.
Candy, G. V. (2011). The Historical Development of Strategic Planning Theories. International Journal of Management & Information Systems, 4th Quarterly Vol. 15 (4).
Cole, G. A. (2006). Strategic Management . Singapore: Seng Lee Press.
Crook, T., Ketchen, J., Comba, J., & Todd, S. (2008). Strategic Resources and Performance: A meta-analysis. Strategic Management Journal, 1141-1154.
Dierickx, I., & Cool, K. (1989). Asset Stock Accumulation and Sustainability of Competitive Advantage. Management Science, 1504-1511.
Drees, J., & Heugens, P. (2013). Synthesizing and Extending Resource Dependence Theory: A Meta-Analysis. Journal of Management , 3-4.
Edmondson, A. C. (2011). Strategies for learning from failure. Harvard Business Review, 48-55. Elbanna, S. (2008). Planning and participation as determinants of strategic planning effectiveness. Management Decision, 46(5) 779-96.
Gohen, G., & Higgins, N. (2007). Employee Engagement: The secret of highly performing organizations. Journal of Applied Human Capital Management, Vol. 1 Number 2007.
Hrebiniak, L. (2006). Obstacles to effective strategy imlementation. Organizational dynamics, 12- 31.
Jurevicius, O. (2013). Resource Based View. Strategic Management, 2.
Kantola, J. (2015). Organizational Resource Management. New York: Taylor & Francis. Kaplan, R. (2005). How the Balanced Scorecard Complements the McKinsey 7s Framework. Strategy & Leadership; Volume 33, 41-46.
Kenya Economic Update - Matters Housing. (2016, October 20). Retrieved from The World Bank: http://www.worldbank.org/en/country/kenya/publication/kenya-needs-2-million-more- low-income-homes-building-them-would-boost-its-economic-growth
Kraaijenbrink, J., Spender, J., & Groen, A. J. (2009). The Resource-Based View: A Review and Assessment of Its Critiques. Journal of Management, 7-10.
Lihalo, M. A. (2013). Barriers to Strategy Implementation by Mid Sized Companies in Kenya. Global Journal of Management and Business Research: Administration and Management, 4.
Lunenburg, F. C. (2011). Expectancy Theory of Motivation: Motivating by Altering Expectations. INTERNATIONAL JOURNAL OF MANAGEMENT, BUSINESS, AND ADMINISTRATION: VOLUME 15, NUMBER 1, 2011, 4.
McGuiness, T., & Morgan, R. (2005). The effect of market and learning orientation on strategy dynamics: The contributing effect of organisational change capability. European Journal of Marketing, 1303 - 1326.
Nanda, A. (1993). Leveraging Organizational Resources - Organizational Effectiveness. Massachusetts: Havard University Press.
Nilsen, P. (2015). Making sense of implementation theories, models and frameworks. Implementation Science, 9-10.
Norton, D. P., & Kaplan, R. S. (1996). The Balanced Scorecard: Translating Strategy into Action. Massachusetts: Harvard Business Review Press.
Peace, J. A., & Robinson, R. B. (2000). Strategic Management: Formulation, Implementation and Control. New York : McGraw Hill.
Pearce, J. A., & Robinson, R. B. (2007). Strategic Management: Formulation, Implementation, and Control. New York: McGraw-Hill/Irwin.
Pina , V., Torres, L., & Yetano, A. (2011). The Implementation of Strategic Management in Local Governments. An International Delphi Study, 9-13.
Rajasekar, J. (2014). Factors affecting Effective Strategy Implementation in a Service Industry: A Study of Electricity Distribution Companies in the Sultanate of Oman. International Journal of Business and Social Science, 2.
Ravanfar, M. M. (2015). Analyzing Organizational Structure Based on 7s Model of Mckinsey. Global Journal of Management and Business Research: Administration and Management, 3.
Scroggins, R. (2015). Global Journal of Computer Science and Technology: Information and Technology. Strategic Management Theories, 6.
Shaheen, A. (2015). Employees Training and Organizational Performance: Mediation by Employees Performance Employees Performance. Interdisciplinary Journal of Contemporary Research in Business, 5.
Shelter Afrique. (2018, March 6). Retrieved from http://www.shelterafrique.org/ Steiner, C. (2004). Business Horizons. Building the Strategy Implementation Network.
Tracey, J. (2012, January 4). A Case Study of the application of McKinsey 7-S Framework. Strategy Implementation.
