Reassessing the Link between Strategic Planning Practices and Operational Performance in Kenya’s Commercial State Corporations

Abstract

This study sought to examine the effect of strategic planning practice on the operational performance of commercial State Corporations in Kenya. The study was grounded on four key theories: Resource-Based View Theory, Dynamic Capabilities Theory, Stewardship Theory, and Resource Dependency Theory. The target population consisted of 317 respondents in top and middle-level management within the five key departments. The study sampled 177 respondents using the Yamane sampling technique and distributed them to various management strata using the Neyman allocation formula to ensure proportionality. Quantitative data were collected using a five-point Likert-scale structured questionnaire. Both descriptive and inferential statistical tools were applied for data analysis. Under Inferential statistics, the regression coefficients of variables showed statistically significant positive effects on operational performance, including strategic planning (?1 = 0.513, p=0.000 < 0.05). The unstandardised beta coefficient (?1 = 0.513) indicates that a one-unit increase in strategic planning implementation is associated with a 0.513-unit increase in operational performance, holding other factors constant. This positive coefficient suggests that enhancing strategic planning practices leads to improved operational performance in the sampled SCs. These findings provide new insights into why organisations with similar strategic initiatives may realise varied performance results, revealing that this could be due to the quality of their governance structures and reaffirming the importance of an integrated approach to strategic management and corporate governance. It has also provided invaluable insights expected to inform the revitalisation of public strategy, realignment of corporate governance, and enhancement of performance. Future research work should investigate the moderation of corporate governance across different categories of State Corporations and varied dimensions of performance.