STRATEGIC ALIGNMENT AND ORGANISATIONAL PERFORMANCE: A CASE STUDY OF SAFARICOM PLC, KENYA​

This study examined the relationship between strategic alignment and organizational performance of Safaricom PLC in Kenya. The study sought to answer the question: What is the extent of influence of strategic alignment on the performance of Safaricom PLC? The convergent parallel mixed method design was used. The data collection methods adopted included semi-structured questionnaire for quantitative data and key informant interviews and document review for qualitative evidence, from the employees of Safaricom PLC in Nairobi City County. A total of 5,492 employees was the target population, and a sample of 359 employees was determined, of which 344 answered the questionnaires, corresponding to a 95.8% response rate. Twelve key informants comprising senior managers, departmental heads and project managers participated in interviews. The data were analysed quantitatively (descriptive statistics, Pearson correlation and multiple regression), and qualitatively (thematic analysis). The qualitative and quantitative data were then integrated with the quantitative results. The strategic project planning dimension with the highest mean was strategic alignment (M = 3.8802, SD = 0.3481). It, however, had a weak negative association with organizational performance (r = −.122, p = .023) and was statistically significantly negative predictor in the multiple regression model (B = −.123, β = −.123, t = −2.293, p = .022). The full regression model was statistically significant, F (4,339) = 2.564, p = .038, although it explained only 2.9% of the variance in organisational performance. Qualitative evidence showed that managers saw strategic alignment as important for efficiency in using resources, for servicing, for decision making and for achievement of strategic goals, but poor communication from the top to the bottom of the organization was an issue. The results indicate that strategic alignment might not be enough to account for differences in organizational performance in the experienced telecommunications organization. The study suggests that there is a need to improve the mechanisms of cascading the strategy and monitoring and evaluation (M&E) systems from strategic objectives to project activities, project outputs, project intermediate outcomes, and project organizational outcomes. The study also helps to monitor and evaluate because it proves the need to test the entire result chain and not take for granted that a plan-level alignment will automatically lead to an organization-level gain in performance.