International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VIII, August 2020 | ISSN 2454–6186

Influence of Organizational Resource Allocation and Strategy Communication on Organizational Performance of Selected Supermarkets in Nairobi County

Priscillah Wanjiru Gitau¹, Robert Abayo², Mary Kibuine³

¹Master of Business Administration (Strategic Management), St. Paul’s University, Kenya
^2,3 Lecturer, Faculty of Business, Computer Science and Communication Studies, St. Paul’s University, Kenya

Abstract: In Kenya, supermarkets have witnessed challenging times due to unpredictable business environment. In recent times, the industry has seen some of the largest players like Uchumi and Nakumatt close most of their outlets. Therefore, this study assessed strategy implementation on organizational performance of the supermarkets in Nairobi County. Specifically, the study looked at organizational resource allocation, strategy communication, senior management support, monitoring and control of strategies and how they affect organizational performance of selected supermarkets in Nairobi County. The resource based view theory, agency theory and institutional theory were used. The study adopted a descriptive research design and it targeted 27 supermarkets operating in Nairobi County and its management staff who included the operations and human resource managers. The target respondents were 54, two from each of the supermarkets. A census was used thus all of the 54 respondents were included in the study . Hence, the unit of analysis were the 27 supermarkets in Nairobi County while the accessible population were the operations and human resource managers. The researcher collected information using structured questionnaires. A description of patterns in the collected data was done using mean, standard deviation, frequencies and percentages. Regression analysis was used to establish the relationship between strategy implementation and its effect on performance of the selected supermarkerts in Nairobi county so that relevant conclusions could be made. The findings were presented in the form of tables, figures, charts and discussions. The study established that monitoring and control of strategies had the largest effect on organizational performance followed by strategy communication, organizational resource allocation and lastly senior management support. This study concluded that strategy implementation had a postive and significant effect on organizational performance. The study recommended that the management of the supermarkets in Nairobi County should ensure that controls in strategy seek to optimize performance of their supermarkets while monitoring strategy implementation activities should seek to enable supermarkets in Nairobi County to minimize wastage of available resources.

Key Words: organizational resource allocation, strategy communication, organizational performance, supermarkets, Nairobi County