STRATEGY IMPLEMENTATION AND PERFORMANCE OF KENYA PIPELINE COMPANY EDITH M. CHILUYI A RESEARCH PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI DECEMBER 2018 DECLARATION This research project is my original work and has not been presented for a degree in any other university. Signature............................................................... Date................................ EDITH M. CHILUYI D61/82172/2015 This research project has been submitted for examinations with my approval as the university supervisor. Signature............................................................... Date................................ DR. KENNEDY OGOLLAH DEPARTMENT OF BUSINESS ADMINISTRATION, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI. ii ACKNOWLEDGEMENT I take this to opportunity to thank my Supervisor Dr. Kennedy Ogollah for his guidance and constant supervision as well as informative support regarding this project completion. I express my kindest regards to him. Further, to the Management of Kenya Pipeline Corporation for making available data that was of importance to this study. I deeply say thank you. My appreciation to mother Dorcas Nyakoa and Mr. and Mrs. Atsyaya, I express my sincere thanks and appreciation for supporting me emotionally and financially through my study for the MBA program and undertaking this project. My siblings, Georgina and Byron, I am grateful for your encouraging words, all night company and emotional support during my entire study period. You are who have always been there to support me, congratulate me and show me always the best path to follow. To you all, May God Shower His Blessings on You. iii DEDICATION This project is dedicated to My Mum Dorcas Nyakoa and Sister Caroline Magina. iv TABLE OF CONTENTS DECLARATION ..................................................................................................... ii ACKNOWLEDGEMENT ...................................................................................... iii DEDICATION ........................................................................................................ iv ABBREVIATION AND ACRONYMS ................................................................ viii ABSTRACT ............................................................................................................ ix CHAPTER ONE:INTRODUCTION ...................................................................... 1 1.1 Background of the Study ...................................................................................... 1 1.1.1 Strategy Implementation ............................................................................. 2 1.1.2 Organizational Performance ........................................................................ 5 1.1.3 Industry Analysis ........................................................................................ 6 1.1.4 Kenya Pipeline Corporation ........................................................................ 7 1.2 Research Problem ................................................................................................ 8 1.3 Objective of the study .......................................................................................... 9 1.4 Value of the Study ............................................................................................... 9 CHAPTER TWO:LITERATURE REVIEW ....................................................... 11 2.1 Introduction ....................................................................................................... 11 2.2 Theoretical Foundation ...................................................................................... 11 2.2.1 Institutional Theory ................................................................................... 11 2.2.2 Resource Based View Theory ................................................................... 12 2.2.3 Upper Echelon Theory .............................................................................. 14 2.3 Strategy Implementation in Organizations ......................................................... 15 2.4 Influence of Strategy Implementation on Organizational Performance ............... 17 v 2.5 Empirical Studies and Research Gaps ................................................................ 18 CHAPTER THREE:RESEARCH METHODOLOGY ....................................... 21 3.1 Introduction ....................................................................................................... 21 3.2 Research Design ................................................................................................ 21 3.3 Data Collection .................................................................................................. 22 3.4 Data Analysis .................................................................................................... 22 CHAPTER FOUR:DATA ANALYSIS, FINDINGS AND DISCUSSIONS ........ 24 4.1 Introduction ....................................................................................................... 24 4.2 Demographic Information .................................................................................. 24 4.3 Implementation Practices and Challenges .......................................................... 27 4.3.1 Strategies Formulated to Achieve Strategic Objectives ............................... 27 4.3.2 Successful Implemented Strategies ............................................................. 30 4.3.3 Strategies Underway or Successfully Implemented ..................................... 31 4.3.4 Measures Put in Place by Management to Ensure Successful Strategy ........ 32 4.3.5 Role of Senior Management in The Optimization of Strategy ..................... 32 4.3.6 Recognizing the role of shareholders in ensuring survival ........................... 33 4.3.7 Factors Attributing to Successful Strategy at KPC ...................................... 34 4.3.8 Hindrances of Successful Strategy Implementation at KPC ......................... 35 4.3.9 Structure and Culture of KPC Towards Strategy Implementation ................ 36 4.4 Organizational Performance ............................................................................... 37 4.4.1 Company Targets ....................................................................................... 37 4.4.2 Recent Performance Target ......................................................................... 38 4.4.3 Target Achievement ................................................................................... 38 vi 4.4.4 Measures Put in Place to Ensure Continuous Monitoring of Strategy .......... 39 4.4.5 Key Performance Indicators in KPC that Affects Performance.................... 39 4.4.6 Determination of Key Performance Indicators by Departments. .................. 40 4.4.7 CSR Activities in KPC ............................................................................... 41 4.8 Discussion of the Findings ................................................................................. 42 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND ..................................... 45 5.1 Introduction ....................................................................................................... 45 5.2 Summary of Findings ......................................................................................... 45 5.3 Conclusion ......................................................................................................... 48 5.4 Recommendation of the Study ........................................................................... 48 5.5 Limitations of the Study ..................................................................................... 49 5.6 Suggestions for Further Study ............................................................................ 49 REFERENCES ...................................................................................................... 51 APPENDICES ....................................................................................................... 55 APPENDIX I: Introduction Letter .......................................................................... 55 APPENDIX II: Interview Guide ............................................................................. 56 vii ABBREVIATION AND ACRONYMS CEOs Chief Executive Officer ERC Energy Regulatory Commission ICT Information Communication Technology KPC Kenya Pipeline Corporation KPI’s Key Performance Indicators KRA Kenya Revenue Authority RBV Resource Based View SCA Sustained Competitive Advantage USA United States of America VRIN Valuable Rare Inimitable, and Non-substitutable viii ABSTRACT The objective of this study was to determine the impact of strategy implementation on performance of Kenya Pipeline Corporation (KPC). The research design was a case study. Primary data was collected through the use of an interview guide with open and closed ended questions. Content analysis was used to analyze the data where emphasis was on the qualitative features of the data. The findings indicated that strategic implementation has direct impact on the performance of company. KPC, has adopted different strategies for the attainment of effective performance; The relevance of understanding employees’ involvement in work is also displayed by the findings. The employees at KPC, should also be involved in the strategy implementation process so that, they can attain to what improves their performances