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Empirical Review on decision making and strategic plan implementation
In his study of “aspects of formulation and implementation of strategic plans in Kenya”,
Aosa (1992) surveyed 51 large private manufacturing firms through a survey. Using
questionnaires and a drop and pick method, Aosa (1992) concluded that management was
the key factors that influenced strategic plans formulation and implementation. The
scholar also noted that an effective implementation process required a collective
approach to culture and communication while keeping clear communication channels and
realigning firm resources so that strategic plans are not halted by lack or inadequate
implementation resources. This study only focused on strategic plans formulation and
implementation but did not address the determinants of strategy implementation hence a
gap exists for this study to explore.
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Awino (2007) studied the effect of selected variables on corporate performance using 49
large private insurance firms in Kenya through a survey that applied both interviews and
structured questionnaire. In his findings, management and culture were found to be very
critical variables in the performance of firms. Awino concluded that both financial and
non-financial performance were affected but to varying degrees by selected variables.
The focus of this study was corporate performance variables and not determinants of
strategy implementation hence a gap exists.
In a study by Cater and Pucko (2010) on the activities for and obstacles to strategy
execution on a sample of 172 Slovenian Companies, their findings were that managers
mostly rely on planning and organizing activities when implementing strategies, while
the biggest obstacle to strategy execution is poor leadership. Moreover, the results
revealed that greater obstacles to strategy execution in the forms of inadequate
management skills and employee’s reluctance to share their knowledge have a negative
influence on performance. The study only looked at strategy execution activities and
obstacles. The research gap is that it did not address the determinants of strategy
execution as well as being a study in Slovenia. This study will be based in Kenya hence
findings may differ.
Kalali, (2011) did a survey titled; Why does strategic plans implementation fail? This was
a case study of the health service sector in Iran. The research aimed at identifying
effective factors on the failure of strategic decisions implementation in the Iranian Health
Service Sector. The failure of strategic decisions is usually costly for organizations.
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Hence, identification of effective factors on success/failure of strategy implementation is
highly important. The survey results show that the most important reason for strategic
decisions failure in Iranian health service sector is content dimension. Content aspect
points out how to develop strategies in organization. This includes unclear strategies,
conflicting goals and priorities, lack of support by senior managers. The study also found
that structural dimension also played a big part strategic plan decisions. These are factors
such as incapable human resource and divergent organizational structure. Since this study
focused on why strategy implementation fails there exists a research gap in that
determinants of strategy implementation were not addressed.
Eisenstat, (2003) conducted a study among 3,044 white-collar employees of the Western
Australian Public Service to study the correlation of employee attitudes towards
functional flexibility. It was hypothesized that employees would favor functional
flexibility if they have lower levels of perceived job characteristics, perceived reward
equity, organizational commitment and affective wellbeing as well as a higher degree of
educational attainment. The focus was employee attitudes and not determinants of
strategy implementation hence a gap exists for this study to explore.
Igecha (2014) did a study on the determinants of implementation of strategies at the Institute
of Quantity Surveyors of Kenya. The study established that strategy implementation at the
Institute of Quantity Surveyors of Kenya is mainly influenced by commitment of the top
management, communication process, coordination of activities and organizational culture.
The study focused on the institute of quantity surveyors but this study will look at the
healthcare sector hence filling in the research gap.
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2.5 Summary of Literature Review and Knowledge Gap
Previous studies did not examine the determinants of strategy implementation in the
health care sector. Wambui (2006) focused on managerial involvement related to Strategy
Implementation. This represented one aspect of factors that influence implementation
leaving a gap to be pursued by other scholars. Korten (1990) studied the environment
under which NGOs fail to implement their strategic plans but did not directly scan the
other factors that affect NGO strategic plan implementation.
Cater and Pucko (2010) studied poor leadership as the biggest obstacle to strategy
execution in Eastern Europe, and not Africa. The implementation gaps illuminated by
previous studies such as poor leadership, poor communication and lack of stakeholder
involvement, will be brought into account. There exists a research gap in that no known
study has looked at the determinants of strategy implementation in the health care sector
in Kenya and specifically in Mombasa County. This study sought to analyse the
determinants of strategy implementation in the health care sector in Mombasa County,
Kenya.
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