INFLUENCE OF STRATEGIC PLANNING ON PERFORMANCE OF STATE CORPORATIONS IN KENYA

Abstract

Despite the fact that State Corporations have been established internationally to support Governments efforts, their performance continue to be a major concern in most countries. Research has shown that strategic planning is one of the tools that organizations can employ to enhance their performance. The need to link strategic planning with performance has become crucial for organizations seeking superior performance. However, there has been no rich literature linking the two. To better understand this relationship, this study was underpinned on resource based view theory and was guided by cross sectional research design. The theoretical models and hypothesis in the study were tested based on data gathered from 102 respondents that were randomly selected from a population of 200 State Corporations in Kenya. The results of correlation indicated that for any improvement in strategic plan, there was a corresponding improvement in the performance composite score and vice versa. Regression analysis results revealed that the predictor variable explained 20% of the variance in dependent variable. From these findings, the study recommended that State Corporations should develop strategic plans and implement them to realize better performance.