Effect of strategy implementation on organizational performance of Kenya Railway Corporation

Abstract

The railway industry in Kenya plays a critical role in facilitating trade, enhancing connectivity, and driving economic development. However, the industry's performance has faced challenges related to strategy implementation, including inefficiencies and underutilized resources. This study sought to establish the effects of strategy implementation on organizational performance in the railway industry in Kenya. The specific objectives of the study included: examining the level of employee involvement in strategy implementation and its impact on organizational performance; investigating the relationship between strategy implementation and organizational performance; and determining which dimensions of strategy implementation significantly contribute to performance in the railway industry in Kenya. This study adopted positivism philosophy. The research was guided by the behavioral theory, which depicted the classical strategic models that assume fully rational actors optimizing for profit or efficiency in the Kenya railway corporation. In addition, a cross-sectional survey research design was adopted. The target population comprised of 540 employees working at Kenya Railways Corporation across various departments critical to strategy implementation. To determine the sample size, Yamane's formula was adopted, resulting in a sample size of 230 respondents. This study used both descriptive and inferential statistics to analyze the collected data, with SPSS as the primary tool for data analysis. This study concludes that there is a significant positive relationship between leadership commitment and organizational performance. This study concluded that there is a significant positive relationship between resource allocation and organizational performance. This study concluded that there is a significant positive relationship between organizational structure and organizational performance. This was due to the fact that a well-defined structure. The study also concluded that employee involvement was a very important component in strategy implementation and organizational performance. The study recommended that organizations enhance leadership accountability by implementing structured performance evaluation mechanisms, leadership training programs, and transparent feedback systems to improve decision-making and trust. It also advised optimizing resource allocation through data-driven audits, ERP systems, and sustainability-aligned investments to enhance operational efficiency and long-term sustainability. Additionally, the study considered it paramount for organizations to refine their structures by adopting hybrid models, fostering cross-functional collaboration, and leveraging digital tools to enhance agility and responsiveness to market changes. Lastly, the study recommends strengthening employee involvement in strategic decision-making through structured consultation forums, digital feedback platforms, and leadership programs that encourage inclusivity, ultimately improving motivation, commitment, and alignment with organizational goals.