Strategy implementation practices and Performance of State Corporations: Case of National Health Insurance Fund, Nairobi City County, Kenya

Abstract

Many organizations in developed and developing countries and more specifically in Kenya are striving to perform, it is noted that issues of strategy implementation has continued to be uncertain in the Kenyan public sector. Many state-owned corporations are grappling with management problems which have led to their poor performance outcome. The National Health Insurance Fund is a state corporation through National Health Insurance Fund Act No. 9 of 1998. The Fund’s core mandate is to provide social medical insurance cover to all its members and their declared dependents (spouse and children). But according to National Health Insurance Fund Performance Report 2017- 2018, the National Health Insurance Fund has continued to implement social health strategies with a view to achieving Universal Health Coverage for the benefit of all Kenyans. The aim of the study was to examine the strategy implementation practices influencing the performance of state corporations in Kenya, specifically the National Hospital Insurance Fund. The study was grounded on Organizational Higgins’s Eight S Model, the Balanced Scorecard model, and Resource Based View theory. The study employed a descriptive research design. The study population consisted of 411 employees, managers, and patients from the National Health Insurance Fund headquarters. Questionnaires were used to collect primary data, and a pilot test was performed to assess the reliability and validity of the questionnaire. Cronbach’s Alpha coefficient was employed to determine the reliability of the research instrument. Data analysis involved the use of descriptive statistics, supported by the Statistical Package for Social Sciences (SPSS), to calculate frequencies, percentages, means, and standard deviations. A Multiple Linear Regression model was used to determine the influence of independent variables on the dependent variable. The study findings revealed that technological innovation, strategic resource planning, strategic leadership and strategy monitoring had positive and significant effects on the performance of the National Health Insurance Fund in Kenya. This study concluded that strategy implementation factors, including technological innovation, strategic resource planning, strategic leadership, and strategy monitoring, play a significant role in firm performance. The study recommends that the management of the organization should emphasize strategy implementation to improve the performance of their organization. Additionally, continuous investment in technological innovation, effective strategic resource planning, strategic leadership development, and robust strategy monitoring practices should be prioritized to enhance overall organizational performance.