The role of strategy implementation practices on performance of the public sector organisations

Abstract

Background: Effective strategy implementation is crucial for public sector organisations. Despite the importance of strategic planning, many public organisations struggle with execution, leading to performance gaps. This study addresses the limited research on strategy implementation in public companies.

Aim: This study investigates how strategy implementation practices – focusing on organisational capability, internal processes and implementation styles – impact the performance of public companies.

Setting: The research was conducted in Malawi, involving state-owned enterprises responsible for electricity generation and distribution.

Methods: A quantitative design was used, with structured surveys distributed to 304 employees. Ordinal logistic regression analysis examined the relationships between strategy implementation practices and organisational performance.

Results: The findings reveal that organisational capability and internal processes significantly enhance performance. Rational strategy implementation alone did not directly impact performance but incremental strategy implementation showed a strong positive influence on performance, emphasising the value of adaptability; however, beyond a certain point, excessive flexibility hindered performance, underscoring the need for balance in strategy execution styles.

Conclusion: Public organisations should prioritise investments in organisational capabilities, balance strategy implementation styles and align internal processes with strategy to optimise performance.

Contribution: This study advances strategic management theory by integrating the Resource-Based View and Dynamic Capabilities Theory, offering insights into improving strategy implementation in public electricity utility organisations.