Effect of Strategic Alignment on Firm Performance in Telecommunication Sector in Kenya

Abstract

The study sought to analyse the relationship between strategic alignment and firm performance focusing on the telecommunication sector in Kenya. The indicators of the strategic alignment the study specifically focused on include employees’ alignment, key processes alignment, IT alignment and customer alignment. A descriptive research design was used in this particular study. Since the study population was small (10 firms) the study opted for census survey where all the elements of the population were included in the sample size. Hence the study sample remained 50 heads of key departments from the 10 telecommunication firms in Kenya. The findings revealed that strategic alignment significantly influenced firm performance of telecommunication firms in Kenya. The study established that employee’s alignment, key process alignment, IT strategic alignment and customer alignment positively and significantly affected the firm performance in telecommunication sector in Kenya. The study concluded that firms that have aligned their employees, key processes, information technology and customer to their long term strategy have a clear direction on what the firm what to achieve and who is responsible. The study recommends that organisation should ensure that all the departments within the organisation are aligned to different objective in the long term strategy hence ensuring every objective is realized.

Keywords: Strategic Alignment, Employees, Key Processes, IT, Customer, Telecommunication