Influence of Strategic management practices on performance of parastatals in Mombasa County

Abstract

Many governments around the world face a formidable challenge in ensuring satisfactory performance in public-sector organizations. In recent years, Kenya has experienced a surge in reforms aimed at parastatals, with the intention of improving the public sector's overall effectiveness. This shift has highlighted the importance of implementing strategic management practices within public sector organizations, as these practices are crucial for enhancing performance. This study aimed to analyze the influence of strategic management practices on the performance of parastatals in Mombasa County. In recent years, Kenya has experienced a surge in reforms aimed at parastatals, with the intention of improving the public sector's overall effectiveness. This shift has highlighted the importance of implementing strategic management practices within public sector organizations, as these practices are crucial for enhancing performance. This study aimed to analyze the influence of strategic management practices on the performance of parastatals in Mombasa County. The specific objectives of this study included an exploration of the effects of environmental scanning on the performance of parastatals in Mombasa County, an investigation into the influence of strategy formulation on v their performance, an examination of the impact of strategy implementation, and a determination of how monitoring and evaluation contribute to the performance of parastatals in the region. The investigation utilized Resource Based Theory and Contingency Theory to analyze how strategic management practices affect the performance of parastatals. A descriptive research design was adopted, involving a sample of 60 participants selected from 15 parastatals headquartered in Mombasa County, Kenya. Data collection was primarily conducted through a questionnaire, which underwent pretesting for validity and reliability with respondents during a pilot study, yielding a Cronbach Alpha index of 0.620, indicative of sufficient internal consistency. Data collected for this study were analyzed using the Statistical Package for the Social Sciences (SPSS), employing regression analysis to investigate the hypothesized relationships among the variables. The regression analysis revealed an R-squared value of 0.810, indicating that 81% of the variation in the performance of parastatals can be attributed to the independent variables. Additionally, the finding shows that environmental scanning significantly impacts performance (p = 0.002), while strategy formulation (p = 0.700) does not; strategy implementation (p = 0.060) and strategy monitoring & evaluation (p = 0.052) show positive but marginally non-significant effects. The study recommends that parastatals conduct continuous evaluations of the competitive landscape, optimize interdepartmental communication, establish standardised key performance indicators, and align the strategy development process with the resources and capabilities at their disposal to promote achieving attainable and practical objectives.