Mediating Effect of Strategy Implementation on the Relationship Between TMT Characteristics and Performance of Ugandan State Agencies
Keywords:
TMT characteristics, strategy implementation, Ugandan State Agencies, Performance of Ugandan State Agencies
Abstract
The aim of this study is to determine the mediating effect of strategy implementation of the relationship between TMT characteristics and performance of Ugandan state agencies. The study was anchored on the upper echelons’ theory and dynamic capabilities theory. The study adopted a descriptive cross-sectional research design. The target population of the study was the 201 state agencies in Uganda. The study adopted at least three members of the TMT depending on the number of TMT members of the 160 selected state agencies in Uganda to gather the required information. Primary data was gathered using a structured questionnaire that was administered online. Inferential statistics employed regression analysis to test the hypothesis and draw conclusions. Haye’s (2022) PROCESS 4 (model 4) was utilised to test the hypothesis of this study. Furthermore, strategy implementation partially mediates the relationship between TMT characteristics and performance (Indirect effect of strategy implementation, b=.385, p<0.05 and the direct effect, b = .267, p<0.05). From the findings of this study, the research concludes that that strategy implementation has a significant partial mediating effect on the relationship between TMT characteristics and the performance of Ugandan state agencies. In addition, the results imply that the specific mechanism by which the connection between TMT characteristics and the performance of Ugandan state agencies occurs is direct, strategy implementation contributes a part to the relationship. This study recommends that individuals that make the TMT should have significant expert capabilities that give relevance while formulating and executing strategies. The study also recommends that strategy implementation should have a framework that is not affected by politics and corruption. This study also recommends that state agencies in Uganda need to create a prize and acknowledgement framework for TMTs and personnel who succeed in strategy implementation so they can be persuaded. This is on the grounds that it is through strategy implementation that the state agencies in Uganda can follow through on their directives and further improve service delivery. Rewards give a chance to the TMTs and staff to contend among themselves and this would bring quality, efficiency, proficiency and adequacy in delivering services.
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References
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29. Mkalama, R. N., & Machuki, V. N. (2019). Top Management Demographics and Performance: An empirical investigation of Kenyan State Corporations. International Journal of Business Administration, 10(1), 1–19.
30. Muchemi, A. W. (2013). Diversity in the top management teams and effects on corporate performance. Unpublished Independent Study Paper, University of Nairobi, University of Nairobi.
31. Njoroge, J. K. (2015). Strategy implementation, performance contracting, external environment and performance of Kenyan state corporations (Thesis, University of Nairobi). University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke/handle/11295/94752
32. Nyamwanza, T., & Mavhiki, S. (2014). Strategy implementation of framework used by SMEs in Zimbabwe. Journal of Business and Management, 3(2), 1–16.
33. Obiero, O. J., & Genga, P. (2018). Strategy implementation and performance of Kenya revenue authority. International Academic Journal of Human Resource and Business Administration, 3(3), 15–30.
34. Oketch, Joseph O., Kilika, J. M., & Kinyua, G. M. (2020). The Moderating Role of the Legal Environment on the Relationship between TMT Characteristics and Organizational Performance in a Regulatory Setting in Kenya. Journal of Economics and Business, 3(1).
35. Oketch, Joseph O., Kilika, J. M., & Kinyua, G. M. (2021). TMT characteristics and organizational performance in a regulatory setting in Kenya. Retrieved from https://papers.ssrn.com/abstract=3779639
36. Oketch, Joseph Odongo, Kilika, J. M., & Kinyua, G. M. (2021). The mediating role of strategy execution on the relationship between tmt characteristics and organizational performance in a regulatory setting in Kenya. Journal of Business and Economic Development, 6(1), 12.
37. Okumus, F. (2003). A framework to implement strategies in organizations. Management Decision, 41(9), 871–882.
38. Okungu, W. J. (2017). Top Management Team Characteristics and Strategy Implementation in Nairobi County, Kenya (Thesis, University of Nairobi). University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke/handle/11295/102778
39. Ouche, O. M., Oima, D. O., & Oginda, M. (2016). Moderating Effect of Strategic Planning Intensity on Strategic Planning and Financial Performance of National Sport Federations in Kenya. International Journal of Academic Research in Business and Social Sciences, 6(4), 242–260.
40. Penrose, E. (2009). The theory of the growth of the firm. Oxford University Press.
41. Pierre, J. R., Timothy, M. D., George, S., & Gerry, J. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35, 718–804.
42. Pride, W., & Ferrell, O. (2003). Marketing concepts and strategies. Boston: Houghton Mifflin Company.
43. Public Service. (2021). Rationalization of government agencies, commissions authorities and public expenditure. Kampala: Public Service.
44. Radix Management Consulting. (2017). Rapid assessment (ra) of public sector organisations in Uganda. Kampala: Radix Management Consulting.
45. Ricardo, R., & Wade, D. (2001). Corporate performance management: How to build a better organization through measurement driven strategies alignment. Butterworth: Heinemann.
46. Rupiny, D. (2018). Muhakanizi: We shall advise gov’t on agency mergers. Retrieved from https://ugandaradionetwork.net/story/muhakanizi-we-shall-advise-govt-on-agency-mergers
47. Saunders, M., Lewis, P., & Thornhill, A. (2012). Research methods for business students. Harlow: Pearson Education Limited.
48. Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
49. Seotlela, R. P., & Miruka, O. (2014). Implementation challenges of performance management system in the South African mining industry”. Mediterranean Journal of Social Sciences, 5(7), 177–187.
50. Shadrack, W. M., & Owino, J. O. (2016). Top management team characteristics, strategy implementation and performance of tea factory companies in Kenya. International Journal of Research in Business & Technology, 7(3), 948–958.
51. Shah, A. M. (2005). The foundations of successful strategy implementation: Overcoming the obstacles. Global Business Review, 6, 293–302.
52. Slater, S. F., Olsen, E. M., & Hult, G. T. (2010). Worried about strategy implementation: Don’t overlook marketing role. Business Horizons, 53, 469–479.
53. Sorooshian, S., Norzima, Z., Yusof, I., & Rosnah, Y. (2010). Effect analysis on strategy implementation drivers. World Applied Sciences Journal, 11(10), 1255–1261.
54. Speculand, R. (2009). Six necessary mind shifts for implementing strategy. Business Strategy Series, 10(3), 167–172.
55. Springer, C. (2005). Keys to strategy implementation. PA Times, 28(9), 9–9.
56. Stewart, S. A., & Amason, A. C. (2017). Assessing the state of top management teams research. In Oxford Research Encyclopaedia of Business and Management (pp. 1–21). Oxford: Oxford Press.
57. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
58. Triana, M. del C., Richard, O. C., & Su, W. (2019). Gender diversity in senior management, strategic change, and firm performance: Examining the mediating nature of strategic change in high tech firms. Research Policy, 48(7), 1681–1693.
59. Wang, Y., & Wang, K. Y. (2017). How do firms tackle strategic change? A theoretical model of the choice between dynamic capability-based and ad hoc problem-solving approaches. Journal of Organizational Change Management, 30(5), 725–743. https://doi.org/10.1108/JOCM-03-2016-0045
60. Wasike, S, Ambula, R., & Kariuki, A. (2016). Top management team characteristics, strategy implementation, competitive environment and organizational performance: A critical review of literature. International Journal of Economics, Commerce and Management, 4(6), 601–618.
61. Wasike, SM, Vincent, M., Evans, A., & Ganesh, P. (2015). Top management team characteristics and performance of tea factory companies in Kenya. Journal of Business Management and Economics, 3(10), 21–27.
62. Yongvanich, K., & Guthrie, J. (2006). An extended performance reporting framework for social and environmental accounting. Business Strategy and the Environment, 15(5), 309–321.
2. Barreto, I. (2010). Dynamic capabilities: A review of past research and an agenda for the future. Journal of Management, 36(1), 256–280.
3. Basheka, B. C., Lubega, J. T., Byamugisha, A., Rathinam, F., & Lubanga, T. (2017). Policy brief: Performance of public sector organisations in Uganda. Kampala: Radix Management Consulting (U) LTD.
4. Boyne, G. A. (2003). Sources of Public Service Improvement: A Critical Review and Research Agenda. Journal of Public Administration Research and Theory, 13(3), 367–394.
5. Chathoth, P., K. (2002). Co-alignment between Environment risk, corporate strategy, capital structure, and firm performance: An empirical investigation of restaurant firms (PhD Thesis). Virginia Tech.
6. Clulow, V., Gerstman, J., & Barry, C. (2003). The resource‐based view and sustainable competitive advantage: The case of a financial services firm. Journal of European Industrial Training, 27(5), 220–232.
7. Cooper, D., R., & Schindler, P., S. (2013). Business research methods (12th ed.). New York: McGraw-Hill Education.
8. Dominic, T., & Theuvsen, L. (2015). Agribusiness firm resources and performance: The mediating role of strategic management practices (Working Paper No. 64). GlobalFood Discussion Papers. Retrieved from GlobalFood Discussion Papers website: https://www.econstor.eu/handle/10419/110455
9. Edelman, L. F., Brush, C. G., & Manolova, T. (2005). Co-alignment in the resource–performance relationship: Strategy as mediator. Journal of Business Venturing, 20(3), 359–383.
10. Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121.
11. Genc, E. (2017). Strategy implementation, organizational culture and performance in Turkish local government (PhD Thesis, Cardiff University). Cardiff University. Retrieved from http://orca.cf.ac.uk/112237/
12. Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data analysis (7th ed.). New Jersey: Prentice-Hall Inc.
13. Håkonsson, D. D., Burton, R. M., Obel, B., & Lauridsen, J. T. (2012). Strategy implementation requires the right executive style: Evidence from Danish SMEs. Long Range Planning, 45(2), 182–208.
14. Hambrick, D. C. (2007). Upper Echelons Theory: An update. Academy of Management Review, 32(2), 334–343.
15. Hu, L., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55.
16. Irungu, S. (2007). The effect of top management teams on the performance of publicly quoted companies in Kenya. Unpublished PhD Thesis, University of Nairobi, Kenya.
17. Kagaari, J. R., Munene, J. C., & Ntayi, J. M. (2013). Agency relations and managed performance in public universities in Uganda. SA Journal of Industrial Psychology, 39(1), 1–10.
18. Kandie, K. H., & Koech, K. (2015). Factors influencing strategy implementation at the National Treasurt Ministry in Kenya. European Journal of Business Management, 7(10), 1–10.
19. Kaplan, R. S., & Norton, D. P. (2005). Creating the office of strategy management (p. 22). Boston: Harvard Business School.
20. Kasomi, F. M. (2015). Diversity in top management teams, strategic choice, top manager’s compensation schemes and performance of Kenyan state corporations (Unpublished PhD Thesis,). University of Nairobi.
21. Kinuu, D. (2014). Top management team psychological characteristics, institutional environment, team processes and performance of companies listed in Nairobi securities Exchange (Thesis). University of Nairobi.
22. Kirui, C. C. (2016). Strategy institutionalisation and performance of state owned corporations in the electricity sub—Sector in Kenya (Unpublished PhD Thesis,). Kenyatta University.
23. Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610.
24. Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological capital: Developing the human competitive edge. Oxford: Oxford University Press.
25. Machuki, V., Aosa, O. E., & Letting, N. K. (2012). Firm-level institutions and performance of publicly quoted companies in Kenya. International Journal of Humanities and Social Science, 298, 312.
26. Mankins, M. C., & Steele, R. (2005). Turning great strategy into great performance. Harvard Business Review, 2607.
27. Milana, E., & Maldaon, I. (2015). Managerial characteristics and its impact on organizational performance: Evidence from Syria. Business: Theory and Practice, 16(2), 212–221.
28. Mkalama, R. N. (2014). Top management demographics, strategic decision making, macro-environment and performance of Kenyan state corporations (Thesis). University of Nairobi.
29. Mkalama, R. N., & Machuki, V. N. (2019). Top Management Demographics and Performance: An empirical investigation of Kenyan State Corporations. International Journal of Business Administration, 10(1), 1–19.
30. Muchemi, A. W. (2013). Diversity in the top management teams and effects on corporate performance. Unpublished Independent Study Paper, University of Nairobi, University of Nairobi.
31. Njoroge, J. K. (2015). Strategy implementation, performance contracting, external environment and performance of Kenyan state corporations (Thesis, University of Nairobi). University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke/handle/11295/94752
32. Nyamwanza, T., & Mavhiki, S. (2014). Strategy implementation of framework used by SMEs in Zimbabwe. Journal of Business and Management, 3(2), 1–16.
33. Obiero, O. J., & Genga, P. (2018). Strategy implementation and performance of Kenya revenue authority. International Academic Journal of Human Resource and Business Administration, 3(3), 15–30.
34. Oketch, Joseph O., Kilika, J. M., & Kinyua, G. M. (2020). The Moderating Role of the Legal Environment on the Relationship between TMT Characteristics and Organizational Performance in a Regulatory Setting in Kenya. Journal of Economics and Business, 3(1).
35. Oketch, Joseph O., Kilika, J. M., & Kinyua, G. M. (2021). TMT characteristics and organizational performance in a regulatory setting in Kenya. Retrieved from https://papers.ssrn.com/abstract=3779639
36. Oketch, Joseph Odongo, Kilika, J. M., & Kinyua, G. M. (2021). The mediating role of strategy execution on the relationship between tmt characteristics and organizational performance in a regulatory setting in Kenya. Journal of Business and Economic Development, 6(1), 12.
37. Okumus, F. (2003). A framework to implement strategies in organizations. Management Decision, 41(9), 871–882.
38. Okungu, W. J. (2017). Top Management Team Characteristics and Strategy Implementation in Nairobi County, Kenya (Thesis, University of Nairobi). University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke/handle/11295/102778
39. Ouche, O. M., Oima, D. O., & Oginda, M. (2016). Moderating Effect of Strategic Planning Intensity on Strategic Planning and Financial Performance of National Sport Federations in Kenya. International Journal of Academic Research in Business and Social Sciences, 6(4), 242–260.
40. Penrose, E. (2009). The theory of the growth of the firm. Oxford University Press.
41. Pierre, J. R., Timothy, M. D., George, S., & Gerry, J. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35, 718–804.
42. Pride, W., & Ferrell, O. (2003). Marketing concepts and strategies. Boston: Houghton Mifflin Company.
43. Public Service. (2021). Rationalization of government agencies, commissions authorities and public expenditure. Kampala: Public Service.
44. Radix Management Consulting. (2017). Rapid assessment (ra) of public sector organisations in Uganda. Kampala: Radix Management Consulting.
45. Ricardo, R., & Wade, D. (2001). Corporate performance management: How to build a better organization through measurement driven strategies alignment. Butterworth: Heinemann.
46. Rupiny, D. (2018). Muhakanizi: We shall advise gov’t on agency mergers. Retrieved from https://ugandaradionetwork.net/story/muhakanizi-we-shall-advise-govt-on-agency-mergers
47. Saunders, M., Lewis, P., & Thornhill, A. (2012). Research methods for business students. Harlow: Pearson Education Limited.
48. Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
49. Seotlela, R. P., & Miruka, O. (2014). Implementation challenges of performance management system in the South African mining industry”. Mediterranean Journal of Social Sciences, 5(7), 177–187.
50. Shadrack, W. M., & Owino, J. O. (2016). Top management team characteristics, strategy implementation and performance of tea factory companies in Kenya. International Journal of Research in Business & Technology, 7(3), 948–958.
51. Shah, A. M. (2005). The foundations of successful strategy implementation: Overcoming the obstacles. Global Business Review, 6, 293–302.
52. Slater, S. F., Olsen, E. M., & Hult, G. T. (2010). Worried about strategy implementation: Don’t overlook marketing role. Business Horizons, 53, 469–479.
53. Sorooshian, S., Norzima, Z., Yusof, I., & Rosnah, Y. (2010). Effect analysis on strategy implementation drivers. World Applied Sciences Journal, 11(10), 1255–1261.
54. Speculand, R. (2009). Six necessary mind shifts for implementing strategy. Business Strategy Series, 10(3), 167–172.
55. Springer, C. (2005). Keys to strategy implementation. PA Times, 28(9), 9–9.
56. Stewart, S. A., & Amason, A. C. (2017). Assessing the state of top management teams research. In Oxford Research Encyclopaedia of Business and Management (pp. 1–21). Oxford: Oxford Press.
57. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
58. Triana, M. del C., Richard, O. C., & Su, W. (2019). Gender diversity in senior management, strategic change, and firm performance: Examining the mediating nature of strategic change in high tech firms. Research Policy, 48(7), 1681–1693.
59. Wang, Y., & Wang, K. Y. (2017). How do firms tackle strategic change? A theoretical model of the choice between dynamic capability-based and ad hoc problem-solving approaches. Journal of Organizational Change Management, 30(5), 725–743. https://doi.org/10.1108/JOCM-03-2016-0045
60. Wasike, S, Ambula, R., & Kariuki, A. (2016). Top management team characteristics, strategy implementation, competitive environment and organizational performance: A critical review of literature. International Journal of Economics, Commerce and Management, 4(6), 601–618.
61. Wasike, SM, Vincent, M., Evans, A., & Ganesh, P. (2015). Top management team characteristics and performance of tea factory companies in Kenya. Journal of Business Management and Economics, 3(10), 21–27.
62. Yongvanich, K., & Guthrie, J. (2006). An extended performance reporting framework for social and environmental accounting. Business Strategy and the Environment, 15(5), 309–321.
Published
2022-10-10
How to Cite
Nuwagaba, A., Joseph, O., Angima, C., & Machuki, V. (2022). Mediating Effect of Strategy Implementation on the Relationship Between TMT Characteristics and Performance of Ugandan State Agencies. European Scientific Journal, ESJ, 9, 892. Retrieved from https://eujournal.org/index.php/esj/article/view/15953
Section
ESI Preprints
Copyright (c) 2022 Arthur Nuwagaba, Owino Joseph, Caren Angima, Vincent Machuki
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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