CORPORATE GOVERNANCE PRACTICES AND THEIR EFFECT ON STRATEGIC PLAN IMPLEMENTATION AT ISUZU EAST AFRICA
Abstract
This study focused on identifying corporate governance practices and their effect on strategic plan implementation at Isuzu East Africa. Dynamic capability theory, agency theory and stakeholder theory were used to guide the study. The research was conducted at Isuzu East Africa, a private manufacturing company and respondents were employees working in the organization. IEA had a total of 474 employees and the targeted sample size was 30% of the total, equivalent to 143 employees. Descriptive research design that is cross sectional and stratified random sampling was used when collecting responses. A questionnaire was used for data collection and both close and open ended questions were used. The questionnaires were administered to employees online through google forms. A 5-point Linkert scale was used for close ended questions. The research instrument was tested to ensure reliability and validity. Reliability was determined using Cronbach’s alpha coefficient. Responses were kept anonymous to ensure confidentiality of information given by participants of the study. Data collected was analyzed using SPSS and relationship between the various variables determined using correlation and regression analysis. The study found that there was statistically significant relationship between change management, resource management and risk control and strategic plan implementation. The research concluded that resource management had the greatest impact on strategic plan implementation. The study recommended that organizations adopt practices that positively affect implementation of their strategic objectives. Organizations need to maintain a score card of their change management, resource management and risk control strategies to ensure they are aligned to achieve effective implementation. Additional research should be conducted in organizations in different sectors to determine the corporate governance practices most critical for their strategic plan implementation and other variables such as communication and organization structure studied.
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