Influence of Strategic Direction on Organizational Performance of Public Corporations in Kenya. A Case Study of Agricultural Finance Corporation

Abstract

This study examined the influence of strategic direction on the organizational performance of public corporations in Kenya, focusing specifically on the Agricultural Finance Corporation. The study was grounded in Contingency Theory. A descriptive research design was employed, with data collected from a sample of 204 employees across various management levels at AFC. The study also adopted simple random method. Primary data were gathered through standardized questionnaires, while secondary data on organizational performance were sourced from AFC’s financial reports and other relevant publications. Data analysis involved the use of descriptive and inferential statistics, including mean, standard deviation, Pearson correlation, and regression analysis, facilitated by SPSS version 29. It was found that a well-defined strategic direction, when effectively communicated and aligned with the organization’s operations, led to improved financial performance, operational efficiency, and customer satisfaction. Based on these findings, the study recommended several strategies for improving the performance of public corporations like AFC. It was recommended that AFC’s leadership enhance strategic communication to ensure that all employees are aligned with the organization’s vision, mission, and goals.