Strategy Execution Capability, Government Policy and Corporate Turnaround Strategy Implementation in Kenyan State Corporations Within the Nairobi Metropolitan Region
DOI:
https://doi.org/10.65150/EP-jefrr/V2E8/2026-13Keywords:
Strategy Execution Capability, Corporate Turnaround Strategy Implementation, Strategic Alignment, Government Policy, State Corporations.Abstract
State corporations play a pivotal role in Kenya's socio-economic trajectory through public service delivery, policy implementation, and alignment with socio-economic blueprints such as Kenya Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA). However, persistent financial distress, operational inefficiencies, governance bottlenecks, and chronic dependence on state bailouts continue to compromise their service delivery. Although turnaround strategies are routinely formulated, many fail during execution, indicating that strategy execution capability remains a critical prerequisite for turning strategic plans into operational realities.This study examined the influence of strategy execution capability on corporate turnaround strategy implementation in Kenyan state corporations within the Nairobi Metropolitan Region, with government policy evaluated as a moderating variable. Specifically, the study evaluated the influence of strategic alignment capability, resource deployment capability, performance monitoring capability, and organizational coordination capability on corporate turnaround strategy implementation. Anchored in the positivist research philosophy, the study adopted a descriptive cross-sectional survey design. The target population comprised 450 respondents drawn from top, senior and middle management across 90 state corporations operating in the Nairobi Metropolitan Region. A sample of 212 respondents was drawn using stratified and simple random sampling techniques. Primary data were gathered using structured, self-administered questionnaires based on a five-point Likert scale. Reliability was established via Cronbach's alpha (α ≥ .70), while validity was verified through expert review and diagnostic assessments. Data were analyzed using IBM SPSS Version 29, using descriptive statistics (frequencies, percentages, means, and standard deviations) and inferential statistics (Pearson correlation, multiple linear regression, and hierarchical regression).The empirical findings demonstrated that strategic alignment capability, resource deployment capability, performance monitoring capability, and organizational coordination capability all had positive and statistically significant direct effects on turnaround strategy implementation. Furthermore, hierarchical regression revealed that government policy significantly moderated the relationship between strategy execution capability and turnaround implementation. The study concludes that execution capability, when reinforced by consistent and predictable institutional policies, is critical for public sector turnaround success. It recommends that public sector managers institutionalize dynamic tracking tools, align resource allocation directly with strategic goals, and build inter-departmental synergies, while urging policymakers to streamline regulatory compliance to accelerate turnarounds.
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Copyright (c) 2026 Farhiya Ali Ibrahim, Patrick Mutua Kimaku, Meshack Mwandoe Pongah (Author)
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