ORGANIZATION’S STRUCTURAL ALIGNMENT AND PERFORMANCE OF SUGAR COMPANIES IN WESTERN KENYA
Main Article Content
Abstract
Organizations rely on strategic adaptation and structural alignment to have a competitive advantage over others. Firms in sugar industry in western Kenya have been performing poorly irrespective of support from the government of Kenya supporting them with resources. The management of any current organizations strives to involve process innovation practices with an essence of improving on performance. Most of the studies have been done on strategic adaptation with little on structural alignment and performance of sugar industry. Since structural alignment is a vital element of strategic adaptation, it is necessary for the variable to be regressed with the performance of an organization. The study's objective was to examine structural alignment’s effect on the performance of sugar companies in Western Kenya. The study applied dynamic capabilities theory, resource-based theory and capability-based theory. This study employed descriptive survey design. The targeted population was based on six sugar companies in Western Kenya. The study applied purposive sampling Technique. The Questionnaire was used as an instrument of primary data collection. The study applied Descriptive statistics to determine the mean, standard deviations and frequencies of the data under study. Inferential statistics was applied to determine the correlation within the variables. The descriptive and inferential statistics were analyzed by use of Statistical Package for Social Sciences (SPSS) software. The regression model was determined and analyzed by use of similar software (SPSS). The overall results provided statistical evidence of a positive correlation of structural alignment practices and performance of the sugar companies in Western Kenya. In terms of impact, structural alignment had significant effect on performance of sugar companies. It was recommended that Sugar companies in Western Kenya need to enhance, foster and vary their dynamic capabilities with respect to structural alignment since it leads to the improvement of performance. The study recommended for further research on the variables using other methods and companies of other sectors.
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References
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Umer, M., & Salman, S. (2019).The Role of Price and Promotion in Creating Brand Equity Lahore. Journal of Business, 7(2), 121-123.
Motoc, A. (2019). Family Business Image and Reputation. A Model of the Influencing Factors, Actions, and Effects. Management Dynamics in the Knowledge Economy, 7(4), 503-519
Musumal, B. (2019). An Analysis why customers are so important and how marketers go about Understanding the customer decision-making process and the various individual and sociocultural influences on decision making process. Business and Marketing research Journal, 23(23), 230-231
Ng’ang’a, W. L. Waiganjo, W. E., & Njeru, W. A. (2017). Influence of Organizational Resource mobilization on Organizational Performance in Tourism. International Journal of Business and Commerce, Government Agencies in Kenya. 6(4), 1 – 17
Kim, W. C., & Mauborgne, R. (2019). How strategy shapes structure. Harvard business review, 87(9), 72-80.
Koskei, I. J. (2016). Strategic alignment and information technology on the performance of East African Portland cement company ltd in Kenya (Doctoral dissertation, University of Nairobi
Kennerley, M., & Neely, A. (2018). Measuring performance in a changing business Environment. International journal of operations & production management, 5(1), 63 – 77
Lumineau, F., & Malhotra, D. (2020). Shadow of the contract: How contract structure shapes Inter-firm dispute resolution. Strategic Management Journal, 32(5), 532-555.
Ilmudeen, A., Bao, Y., & Alharbi, I. M. (2019). How does business-IT strategic alignment Dimension impact on organizational performance measures. Journal of Enterprise Information Management, 3(1), 92-101.
Chiva, D. (2006). A measurement scale for product innovation performance. European Journal of Innovation Management, 9, 333-346.
Creswell,M. (2014). Research Design: Qualitative, Quantitative and Mixed Methods Approaches (4th ed.). Thousand Oaks, CA: Sage
Greenberg, H. (2007). Beverage Industry, A Cup half entire: Gulping the U.S. profits, Deutsche Bank.
Haarla, F.(2003). Product differentiation: Does it provide a competitive advantage for a printing company. Oxford: Oxford University Press.
Hartmann, A. (2006). The role of organizational culture in motivating innovative behaviour in construction firms. Construction Innovation, 6(3), pp. 159-172.
Hass, K. (2006). A graphic tour of success and failure in corporate renewal, Journal of Private Equity.
Hayes,B. & Schmenner, H. (2008). How should you organize manufacturing? Harvard Business Review, 56(1), 105-118.
Helfat,H. & Peteraf, M. (2003). The Dynamic Resource-based View: Capability Lifecycles, Strategic Management Journal, 24, 997-1010.
Hansen, Y. &Vickers,K. (1995). Product Innovation on Organizational Performance
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Imbambi, H. (2017). Influence of Strategic Capabilities on Competitive Advantage of Sugar Companies in Western Kenya. Doctor of Philosophy project in Business Administration submitted to Jomo Kenyatta University of Agriculture and Technology, Kenya.
Frankel,K. & Rose, F. (2002). Regional trading bloc and common currency union and Geographic Proximity, UN journal pg-23-40
Jacobsen,H. & Johnsen, B. (2020). Alignment of strategy and structure in local government, Public Money & Management. Pages 276-284 | published online: 22 Jan 2020.
Jeff,F. (2016). Staying Competitive requires adaptability. Forbes Magazine article.
Jouirou,H.& Kalika, W. (2004). Strategic alignment: a performance tool (An empirical study of SMEs). Proceedings of the Tenth Americas Conference on Information Systems.
Johnston, C. (2007). Knowledge management and involvement in innovations in MNC subsidiaries - Journal of International Business Studies
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Blackburn, R., Smallbone, D. & Dixon, S. (2009). Business Strategies and Performance during Difficult Economic Conditions. Research paper, Kingston University
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Kothari, C. (2013). Research methodology: Methods and techniques. New Age International publication. ISSN 2277 3630 Vol.2 (2),
Kotler, P. (2002). A framework for marketing management. New Jersey: Prentice-Hall Pearson Education International.
Kowo,T. Akinbola, N. & Akinrinola, R. (2019). The Impact of Process Innovation on Organizational Performance. Acta Universitatis Danubius publication 15 (2); 115 – 132
Lopez,A. & Lee, G. (2005). Managing Knowledge: The Link between Culture and Organizational Learning. Journal of Knowledge Management, 8, 93 -104.
Lutta, H. Leedy, M. & Ormrod, J. (2005). Challenges of strategy implementation at Chemelili Sugar, Journal of Hunger & Environmental Nutrition
Mohsenzadeh,G. &Madian, B. (2016). The Mediating Role of Competitive Strategies. Procedia Economics and Finance 36 (2016) 456 – 466
Mwanyota,M. (2004). Effect of Firm Competencies and Export Performance.
Mugenda,M. (2008) Social science Research. Nairobi, ACTS Press.
Naidoo,V. (2011) Strategic alignment maturity of business and information technology at Volkswagen South Africa. Journal of African Motor Industry10 (4): 17-21.
Narver, J. & Slater, S.F. (1990) 'the effect of a market orientation on business profitability, Journal of Marketing 54(4): 20–35.
Ndlangamandla, K. (2016). Determinants of Competitiveness of the Swaziland Sugar Industry. Master of Science Thesis, University of Swaziland.
Neslihan,Y.& Zoubi, I. (2012). Defining and Measuring Competitiveness: A Comparative Analysis of Turkey. International Journal of Basic and Applied Sciences Vol. 12, pp. 2.
Nyangi, A. & Masinde, L. (2015). Organizational capabilities and performance of sugar companies in Kenya.’ International Journal of Management Research & Review 5 (10): 845-863
Olanipekun, B. Abioro, M. Akanni ,G. Arulogun, L. & Rabiu, A. (2015). Impact of strategic management on competitive advantage and organizational performance. Journal of Policy and Development Studies, 9(2)
Oluwatoyin,Y. Olufunke, W. &Salome ,B. (2018). The impact of market orientation on performance of selected industry. Open Journal of Business and Management, 6, 616-631.
Onikoyi,I. (2017). Impact of Product Innovation on Organizational Performance (A Survey of Nestle Nigeria Plc). Journal of Marketing and Consumer Research, Volume 37
Ota, M. Hazama, Y. & Samson, D. (2013). Japanese Innovation Processes. International Journal of Operations & Production Management, 33(3), pp. 275 - 295.
Ongori, F. (2007). A review of the literature on employee turnover. African Journal of Business Management, 049 - 054.
Porta, M (2008). A dictionary of epidemiology (5th Ed.). Oxford: Oxford University Press.
Pavlou, K. (2011). Firm Performance. Mathematical Problems in Engineering; Volume 2017, Article ID 3807912, 14 pages
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing Sustainable
Business (323-346). Springer, Dordrecht Publications
Shafiwu, A. & Mohammed, A. (2013). The Effect of Product Differentiation on Profitability in the Petroleum Industry of Ghana. European Journal of Business and Innovation Research, 1(4), 49-65.
Scully, M. & Rowe. M. (2009). Bystander training within organizations. Journal of the International Ombudsman Association, 2(1), 1-9.
Seng, L. Damanpur, M. &Sirmon L, (2011). Innovation and organizational performance- Kuwait Chapter of Arabian Journal platform.almanhal.com
Shou, B. Shiyuan, K. Shoemaker, E. &Boya L, (2017). Strategic Adjustment Capacity, Sustained Competitive Advantage,
Saffold, G. S. (2019). Culture traits, strength, and organizational performance: Moving beyond “strong” culture. Academy of management review, 13(4), 546-558
Nekoumanesh,H.& Yang, O. (2013). Process Innovation: Impacts on Organization's Performance, a Qualitative Study of Four Swedish Municipalities. Linnaeus University
Tsinopoulos, C. & Yan, K. (2018). Open Innovation and the Moderating Role of the Motivation to Achieve Legitimacy.
Winter, G. (2003). Open and Process Innovation, Journal of Product Innovation Management, 35(1):27–48
Walamart, M. (2019), Walmart Central America Overview: Walmart Corporate website, World of Sugar, (2010). Agribusiness & Applied Economics 661 March 2010. 2010 Outlook of the U.S. and World Sugar Markets, 2009-2019
Walsh, E. J. (2017). Resource mobilization and citizen protest in communities around Three Mile Island. Social Problems, 29(1), 1 - 21.
Zack, G. (1999). Innovation Management Practices, Strategic Adaptation, and Business Results: Evidence from the Electronics Industry. Journal of Technology Management and Innovation
Agriculture and Food Authority [AFA] (2018) Sugar Directorate. Sugar Market Newsletter.
Bryson, J. M. (2018). Strategic planning for public and non-profit organizations: A guide to Strengthening and sustaining organizational achievement. John Wiley & Sons. Business, 110.Butterworth Heinemann, 8th edition
Mati, B. & Thomas, M. (2019) Overview of Sugar Industry in Kenya and Prospects for Production at the Coast. Agricultural Sciences, 10, 1477-1485.
Umer, M., & Salman, S. (2019).The Role of Price and Promotion in Creating Brand Equity Lahore. Journal of Business, 7(2), 121-123.
Motoc, A. (2019). Family Business Image and Reputation. A Model of the Influencing Factors, Actions, and Effects. Management Dynamics in the Knowledge Economy, 7(4), 503-519
Musumal, B. (2019). An Analysis why customers are so important and how marketers go about Understanding the customer decision-making process and the various individual and sociocultural influences on decision making process. Business and Marketing research Journal, 23(23), 230-231
Ng’ang’a, W. L. Waiganjo, W. E., & Njeru, W. A. (2017). Influence of Organizational Resource mobilization on Organizational Performance in Tourism. International Journal of Business and Commerce, Government Agencies in Kenya. 6(4), 1 – 17
Kim, W. C., & Mauborgne, R. (2019). How strategy shapes structure. Harvard business review, 87(9), 72-80.
Koskei, I. J. (2016). Strategic alignment and information technology on the performance of East African Portland cement company ltd in Kenya (Doctoral dissertation, University of Nairobi
Kennerley, M., & Neely, A. (2018). Measuring performance in a changing business Environment. International journal of operations & production management, 5(1), 63 – 77
Lumineau, F., & Malhotra, D. (2020). Shadow of the contract: How contract structure shapes Inter-firm dispute resolution. Strategic Management Journal, 32(5), 532-555.
Ilmudeen, A., Bao, Y., & Alharbi, I. M. (2019). How does business-IT strategic alignment Dimension impact on organizational performance measures. Journal of Enterprise Information Management, 3(1), 92-101.
Chiva, D. (2006). A measurement scale for product innovation performance. European Journal of Innovation Management, 9, 333-346.
Creswell,M. (2014). Research Design: Qualitative, Quantitative and Mixed Methods Approaches (4th ed.). Thousand Oaks, CA: Sage
Greenberg, H. (2007). Beverage Industry, A Cup half entire: Gulping the U.S. profits, Deutsche Bank.
Haarla, F.(2003). Product differentiation: Does it provide a competitive advantage for a printing company. Oxford: Oxford University Press.
Hartmann, A. (2006). The role of organizational culture in motivating innovative behaviour in construction firms. Construction Innovation, 6(3), pp. 159-172.
Hass, K. (2006). A graphic tour of success and failure in corporate renewal, Journal of Private Equity.
Hayes,B. & Schmenner, H. (2008). How should you organize manufacturing? Harvard Business Review, 56(1), 105-118.
Helfat,H. & Peteraf, M. (2003). The Dynamic Resource-based View: Capability Lifecycles, Strategic Management Journal, 24, 997-1010.
Hansen, Y. &Vickers,K. (1995). Product Innovation on Organizational Performance
Hong,T. (2007). Comparison and Contrast of General Motors and Toyota, General Motor and Toyota; 1: 1-17.
Imbambi, H. (2017). Influence of Strategic Capabilities on Competitive Advantage of Sugar Companies in Western Kenya. Doctor of Philosophy project in Business Administration submitted to Jomo Kenyatta University of Agriculture and Technology, Kenya.
Frankel,K. & Rose, F. (2002). Regional trading bloc and common currency union and Geographic Proximity, UN journal pg-23-40
Jacobsen,H. & Johnsen, B. (2020). Alignment of strategy and structure in local government, Public Money & Management. Pages 276-284 | published online: 22 Jan 2020.
Jeff,F. (2016). Staying Competitive requires adaptability. Forbes Magazine article.
Jouirou,H.& Kalika, W. (2004). Strategic alignment: a performance tool (An empirical study of SMEs). Proceedings of the Tenth Americas Conference on Information Systems.
Johnston, C. (2007). Knowledge management and involvement in innovations in MNC subsidiaries - Journal of International Business Studies
Jowi,L. (2010). Factors affecting the performance of mummia’s. Strategic Alignment of Cost Leadership Journal.
Blackburn, R., Smallbone, D. & Dixon, S. (2009). Business Strategies and Performance during Difficult Economic Conditions. Research paper, Kingston University
Koskei,M. (2016). Strategic Alignment and Information Technology on the Performance of East African Portland Cement Company Ltd in Kenya. Unpublished MBA, University of Nairobi-+
Kothari, C. (2013). Research methodology: Methods and techniques. New Age International publication. ISSN 2277 3630 Vol.2 (2),
Kotler, P. (2002). A framework for marketing management. New Jersey: Prentice-Hall Pearson Education International.
Kowo,T. Akinbola, N. & Akinrinola, R. (2019). The Impact of Process Innovation on Organizational Performance. Acta Universitatis Danubius publication 15 (2); 115 – 132
Lopez,A. & Lee, G. (2005). Managing Knowledge: The Link between Culture and Organizational Learning. Journal of Knowledge Management, 8, 93 -104.
Lutta, H. Leedy, M. & Ormrod, J. (2005). Challenges of strategy implementation at Chemelili Sugar, Journal of Hunger & Environmental Nutrition
Mohsenzadeh,G. &Madian, B. (2016). The Mediating Role of Competitive Strategies. Procedia Economics and Finance 36 (2016) 456 – 466
Mwanyota,M. (2004). Effect of Firm Competencies and Export Performance.
Mugenda,M. (2008) Social science Research. Nairobi, ACTS Press.
Naidoo,V. (2011) Strategic alignment maturity of business and information technology at Volkswagen South Africa. Journal of African Motor Industry10 (4): 17-21.
Narver, J. & Slater, S.F. (1990) 'the effect of a market orientation on business profitability, Journal of Marketing 54(4): 20–35.
Ndlangamandla, K. (2016). Determinants of Competitiveness of the Swaziland Sugar Industry. Master of Science Thesis, University of Swaziland.
Neslihan,Y.& Zoubi, I. (2012). Defining and Measuring Competitiveness: A Comparative Analysis of Turkey. International Journal of Basic and Applied Sciences Vol. 12, pp. 2.
Nyangi, A. & Masinde, L. (2015). Organizational capabilities and performance of sugar companies in Kenya.’ International Journal of Management Research & Review 5 (10): 845-863
Olanipekun, B. Abioro, M. Akanni ,G. Arulogun, L. & Rabiu, A. (2015). Impact of strategic management on competitive advantage and organizational performance. Journal of Policy and Development Studies, 9(2)
Oluwatoyin,Y. Olufunke, W. &Salome ,B. (2018). The impact of market orientation on performance of selected industry. Open Journal of Business and Management, 6, 616-631.
Onikoyi,I. (2017). Impact of Product Innovation on Organizational Performance (A Survey of Nestle Nigeria Plc). Journal of Marketing and Consumer Research, Volume 37
Ota, M. Hazama, Y. & Samson, D. (2013). Japanese Innovation Processes. International Journal of Operations & Production Management, 33(3), pp. 275 - 295.
Ongori, F. (2007). A review of the literature on employee turnover. African Journal of Business Management, 049 - 054.
Porta, M (2008). A dictionary of epidemiology (5th Ed.). Oxford: Oxford University Press.
Pavlou, K. (2011). Firm Performance. Mathematical Problems in Engineering; Volume 2017, Article ID 3807912, 14 pages
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing Sustainable
Business (323-346). Springer, Dordrecht Publications
Shafiwu, A. & Mohammed, A. (2013). The Effect of Product Differentiation on Profitability in the Petroleum Industry of Ghana. European Journal of Business and Innovation Research, 1(4), 49-65.
Scully, M. & Rowe. M. (2009). Bystander training within organizations. Journal of the International Ombudsman Association, 2(1), 1-9.
Seng, L. Damanpur, M. &Sirmon L, (2011). Innovation and organizational performance- Kuwait Chapter of Arabian Journal platform.almanhal.com
Shou, B. Shiyuan, K. Shoemaker, E. &Boya L, (2017). Strategic Adjustment Capacity, Sustained Competitive Advantage,
Saffold, G. S. (2019). Culture traits, strength, and organizational performance: Moving beyond “strong” culture. Academy of management review, 13(4), 546-558
Nekoumanesh,H.& Yang, O. (2013). Process Innovation: Impacts on Organization's Performance, a Qualitative Study of Four Swedish Municipalities. Linnaeus University
Tsinopoulos, C. & Yan, K. (2018). Open Innovation and the Moderating Role of the Motivation to Achieve Legitimacy.
Winter, G. (2003). Open and Process Innovation, Journal of Product Innovation Management, 35(1):27–48
Walamart, M. (2019), Walmart Central America Overview: Walmart Corporate website, World of Sugar, (2010). Agribusiness & Applied Economics 661 March 2010. 2010 Outlook of the U.S. and World Sugar Markets, 2009-2019
Walsh, E. J. (2017). Resource mobilization and citizen protest in communities around Three Mile Island. Social Problems, 29(1), 1 - 21.
Zack, G. (1999). Innovation Management Practices, Strategic Adaptation, and Business Results: Evidence from the Electronics Industry. Journal of Technology Management and Innovation