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.
Keywords: organisational performance; strategy implementation; organisational capability; internal processes; strategy implementation styles; Resource Based View; Dynamic Capability Theory.
Introduction
Background
In recent years, the focus on enhancing public sector performance has grown significantly, driven by the need to meet objectives, fulfil mandates and satisfy stakeholder expectations, all of which are crucial for national development (Nkemchor & Ezeanolue 2021). Strategic planning plays a vital role in this endeavour by providing a systematic approach to setting and achieving goals (Mitchell 2018). This process involves defining clear objectives and strategies, forming a comprehensive plan that typically includes an organisation’s long-term vision, current mission, guiding principles and the necessary actions to achieve its goals (Fuertes et al. 2020; Hamann, Halw & Guenther 2023). Effective strategic planning enables organisations to anticipate future challenges, reduce impulsive responses to unforeseen events and make evidence-based decisions, ultimately leading to improved overall performance (Yuhang & Rui 2023).
However, the success of strategic planning largely hinges on its effective implementation. Strategy implementation involves transforming strategic plans into actionable tasks and ensuring that these tasks are executed efficiently (Barati-Stec 2015). Despite its critical importance, many public organisations struggle with the execution phase, often resulting in suboptimal performance outcomes (Vigfússon, Jóhannsdóttir & Ólafsson 2021; Zaidi et al. 2018). This study examines Malawi as a case study, a Southern African nation bordered by Mozambique, Zambia and Tanzania, which faces significant developmental challenges as one of the world’s least developed countries. Electricity access remains critically low, with only 11.3% of households connected to the national grid in 2024 – a figure far below the Southern African Development Community (SADC) average of 50% and the global average of 91% (Ministry of Energy of Malawi 2024; World Bank Group n.d.). This lack of access severely constrains growth in agriculture, industry and urbanisation, all of which are essential for Malawi’s development (NPC 2020).
To address these challenges, the MW2063 Agenda aims to increase electricity accessibility to 50% by 2030 and achieve universal access by 2063. Achieving these ambitious targets hinges on the performance of state-owned enterprises (SOEs), particularly the Electricity Generation Company of Malawi (EGENCO) and the Electricity Supply Corporation of Malawi (ESCOM). Together, these two SOEs are central to Malawi’s electricity sector, with EGENCO responsible for generating 391.45 megawatts (MW) of the country’s 492.45 MW capacity and ESCOM overseeing transmission, distribution and retailing (Ministry of Energy of Malawi 2024). Recognising the pivotal role of these SOEs, the MW2063 Agenda emphasises the need for public sector reforms, including the development of strategic plans aligned with national electrification objectives. However, there is limited clarity on how these SOEs can effectively implement strategic initiatives to meet these goals. This gap underscores the importance of this study, which seeks to recommend best practices for improving strategy implementation.
There has been significant interest in understanding the factors that contribute to successful strategy implementation. Numerous studies, including those by Sial et al. (2013), Mbaka and Mugambi (2014), Alharthy et al. (2017), Vigfússon et al. (2021), Magiri, Ngui and Mathenge (2018), Kandie and Koech (2015), Busaka and Kwasira (2015), Sawaneh (2023), Kandie and Koech (2015) and Momanyi, Senaji and Were (2018), have identified best practices for effective strategy implementation. These practices include fostering a supportive organisational culture, building an adaptive and efficient organisational structure, ensuring employee motivation and engagement and securing sufficient financial resources. Additionally, continuous planning, monitoring and evaluation are crucial for maintaining strategic focus and flexibility, while strong leadership and effective stakeholder engagement are essential for guiding the implementation process.
Despite the widespread recognition of best practices for strategy implementation, the applicability of these practices varies significantly across different organisational and regional contexts. For instance, factors such as organisational culture, structure and employee motivation strategies can vary significantly across organisations, necessitating a customised approach to strategy implementation (Thompson et al. 2005). Therefore, while the literature on strategy implementation is extensive, there is a noticeable gap in research focused on public electricity utility companies.
Therefore, this study aims to bridge this gap. The primary objective is to explore the relationship between strategy implementation and organisational performance in public electricity utility companies. Specifically, it seeks to:
Identify the current strategy implementation practices in public electricity utilities; Assess the impact of these practices on organisational performance; and Provide recommendations for enhancing strategy implementation to improve performance in public utilities.
Theoretical foundation
The Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) are the common theories in strategic management literature that provide valuable insights into strategy implementation, particularly within public sector organisations like public electricity utility companies. The RBV posits that an organisation’s ability to maintain a competitive advantage over time is rooted in its unique internal resources, such as specialised skills, institutional knowledge and other valuable assets (Nason & Wiklund 2018). This perspective highlights the importance of leveraging internal resources to drive organisational effectiveness and achieve long-term performance. In the context of public electricity utility companies, the RBV suggests that the efficient use of these unique internal resources is crucial for enhancing operational efficiency and service delivery. However, a significant limitation of the RBV is its static nature, which assumes that the value of resources remains constant over time (Hitt, Xu & Carnes 2016). This limitation is particularly challenging in dynamic sectors like energy, where adaptability is essential.
To address this limitation, the DCT complements the RBV by emphasising an organisation’s ability to adapt, integrate and reconfigure its internal and external resources in response to environmental changes (Teece 2019). This theory is especially relevant for public electricity utility companies operating in dynamic environments, where flexibility and responsiveness are key to maintaining performance. DCT highlights the importance of developing processes that allow organisations to identify opportunities, seize them and realign their resources accordingly (Gremme & Wohlgemuth 2017). Therefore, the integration of RBV and DCT offers a comprehensive framework for understanding how public electricity utility companies can achieve and sustain high performance. While RBV focuses on the strategic importance of internal resources, DCT emphasises the need for continuous adaptation to external developments. This dual approach enables organisations to not only capitalise on their existing strengths but also remain agile in the face of environmental changes. By combining these theories, this study provides valuable insights into the strategy implementation practices that can enhance the performance of public electricity utility companies.
Conceptual model
The primary theoretical lens guiding this research is the RBV. To operationalise the concept of internal resources and their significance in strategy implementation, this study utilises the framework proposed by Thompson et al. (2005), which categorises strategy implementation enablers into three key domains: enhancing organisational competence, managing internal operations and fostering appropriate leadership and culture. Enhancing organisational competence involves recruiting skilled teams, acquiring essential resources and establishing an effective organisational structure. Managing internal operations encompasses the effective allocation of resources in line with strategic goals, implementing supportive policies and procedures, employing process management tools and fostering employee motivation.
To address the limitations of the RBV, which focuses on static internal resources, the DCT is incorporated to provide adaptability in response to changing environments. The research leverages Andrews, Beynon and Gen’s (2017) framework on strategy implementation styles, highlighting two key approaches: rational and incremental. The rational strategy implementation (RSI) style relies on a structured, systematic plan, offering clarity but often leading to rigidity. In contrast, the incremental strategy implementation (ISI) style emphasises flexibility, allowing continuous adjustments in response to feedback, fostering creativity but potentially introducing uncertainty. Combining both approaches enables organisations to leverage the strengths of RBV for internal resource utilisation while maintaining DCT’s emphasis on adaptability, offering a balanced and effective strategy implementation framework.
Thus, the conceptual framework of this study suggests that organisational performance is primarily influenced by the effective management of internal resources, such as the development of organisational capabilities, oversight of internal processes (IP) and fostering of effective leadership and culture. However, the effectiveness of these strategies is moderated by the organisation’s ability to adapt and respond to changing circumstances, as guided by its chosen strategy implementation style. Figure 1 illustrates how strategy execution practices and organisational performance are interrelated.
 |
FIGURE 1: Depiction of impact of strategy execution practices on organisational performance. |
|
Previous research
According to the conceptual model presented earlier, building organisational capability is a key determinant of successful strategy implementation. This requires not only the recruitment of skilled leadership and management but also the development and retention of a capable workforce, alongside the creation of an efficient organisational structure. Studies such as those by Vigfússon et al. (2021), Sial et al. (2023), Al-Khouri (2014) and Korir and Moronge (2017) have emphasised that inadequate leadership and staff capabilities present significant obstacles to the effective execution of strategies. For instance, Vigfússon et al. (2021) point out that clear leadership and a skilled workforce are central to the success of strategy implementation. Similarly, Zaidi et al. (2018) and Abass, Munga and Were (2017) demonstrate that a well-structured organisation, characterised by clear lines of authority and decision-making processes, is essential for effective strategy execution. These findings are echoed in the African context, with Kaphale (2023) and Kaonde (2014) highlighting the importance of strong organisational structures and effective human resource management in supporting strategy implementation efforts in Malawi.
Effective management of internal operations is equally critical for aligning organisational activities with strategic objectives. Key components include resource allocation, the establishment of supportive policies and the adoption of process management tools. Research by Vigfússon et al. (2021) and Zaidi et al. (2018) underscores that aligning resources with strategic goals is a critical success factor. Meanwhile, Sial et al. (2023) address the challenges posed by resource limitations, particularly in the public sector. Policies and procedures also play an essential role; Zaidi et al. (2018) and Kibachia, Iravo and Luvanda (2014) argue that well-defined procedures ensure that every action contributes to strategic goals. Process management tools like Total Quality Management (TQM) and Six Sigma streamline operations and help maintain high standards, as noted by Vigfússon et al. (2021) and Aladag et al. (2020). In Africa, Kinemo (2020) and Magiri et al. (2018) emphasise the importance of automation and real-time data systems in countries like Tanzania and Kenya, supporting resource optimisation and strategy execution. Similarly, Kaphale (2023) and Kaonde (2014) argue that robust systems, effective performance management and clear communication are vital for the successful execution of strategies.
Appropriate leadership and a supportive organisational culture are fundamental to successful strategy implementation. Studies by Vigfússon et al. (2021) and Alharthy et al. (2017) illustrate the importance of ethical leadership and cultivating a positive organisational culture, which are key to driving performance and supporting strategy execution. Similarly, Al-Khouri (2014) and Aladag et al. (2020) stress the need for leadership commitment and a clear vision, which are crucial to the effective execution of strategies. In African contexts, Nyambane and Walter (2017) and Nkosi (2015) emphasise leadership styles that promote continuous professional development and adaptability as essential for overcoming barriers to strategy implementation. Olivier and Schwella (2018) add that leadership styles promoting engagement and risk management, alongside ethical standards, are necessary for effective strategy execution. In Malawi, Kaphale (2023) and Kaonde (2014) identify resistance to change and political interference as significant barriers, stressing the importance of leadership that can foster shared values and align organisational culture with strategic objectives.
Furthermore, the significance of dynamic capabilities, as highlighted by Yini Lin and Lei-Yu Wu (2013), Sial et al. (2023), and Kaphale (2023), underscores the need for organisations to not only leverage internal resources but also to remain adaptable in response to changing environments. These studies illustrate that the integration of dynamic capabilities with the RBV enables organisations to reconfigure their resources and processes to maintain performance and respond to environmental changes effectively. This adaptability is particularly crucial in dynamic sectors, where the ability to continuously innovate and improve is key to maintaining a competitive edge. Therefore, combining robust organisational capabilities with dynamic processes enhances the flexibility and resilience required for sustained success.
Despite the extensive research on strategy implementation, significant gaps remain, particularly in the integration of the RBV and DCT. Very few studies demonstrate how these two theoretical frameworks can be integrated or synergised to enhance organisational performance. Most studies highlight the role of dynamic capabilities in leveraging internal resources for improved performance, but they do not thoroughly explore the mechanisms by which these capabilities and resources can be combined to optimise performance. This lack of integration is particularly evident in the public electricity utility sector, where the dynamic nature of the industry demands an approach that not only leverages existing resources but also adapts to rapidly changing external conditions. This study aims to fill this gap.
Research methods and design
Research paradigm and design
This study employs a deductive approach to validate the impact of strategy implementation practices on organisational performance, grounded in an objectivist ontological perspective. Objectivism posits that organisational performance is based on measurable and tangible facts, independent of individual opinions or biases (Kant 2014; Rabetino, Kohtamäki & Federico 2021; Schoonenboom & Johnson 2017). The epistemological stance of this research is positivism, which emphasises knowledge acquisition through observable and quantifiable evidence. Positivist research is centred on hypothesis testing, exploring cause-and-effect relationships, and uncovering patterns that can be generalised across broader contexts using empirical methods (Antwi & Hamza 2015; Kivunja & Kuyini 2017).
To balance the potential overemphasis on positivism, it is important to recognise that this approach, while rigorous and well-suited for testing hypotheses, may not fully capture the subjective experiences within organisations. However, the choice of positivism was driven by the need to generate objective, generalisable insights applicable to the broader context of electricity sector. The study employs a quantitative, non-experimental correlational research design to examine the relationships between strategy implementation practices and organisational performance without manipulating variables (Mohajan 2020). This approach was chosen for its ability to discover and quantify relationships in real-world settings (Apuke 2017; Zikmund et al. 2014).
Research methods
Data were gathered using a structured questionnaire survey. The decision to use a structured survey was based on its effectiveness in collecting measurable data and facilitating statistical analysis for hypothesis testing (Walle 2015). Online surveys, conducted using KoBoToolbox, were used because of their efficacy and cost-efficiency in reaching a wide range of participants. The study focused on two key SOEs in Malawi’s electricity sector: the EGENCO which generates electricity, and the ESCOM which transmits and distributes power.
The total study population consisted of 699 employees across these organisations, including executive management, middle management and technical staff. A purposive sampling method was used to select a final sample size of 304 participants, ensuring that respondents were involved in strategy development and implementation processes and had at least 2 years of experience, which is critical for gathering informed and reliable data (Eichhorn 2014; Urdan 2016). However, it is important to acknowledge that purposive sampling, while useful in targeting specific expertise, may introduce sampling bias, limiting the generalisability of the findings. This method was chosen because of constraints such as limited access to detailed participant lists and the need to ensure that the sample included only those with relevant experience. Although this approach may lead to biases, the careful selection based on inclusion criteria being a professional staff and having worked for at least 2 years aimed to minimise these effects and focus on obtaining relevant insights from knowledgeable participants.
The study developed indices to operationalise the variables under investigation. These included the Organisational Performance Index (dependent variable), the Organisational Capability Index, the Internal Processes Index, Leadership and Culture Index, the RSI Style Index and the ISI Style Index (independent variables). These indices were constructed based on key performance indicators (KPIs) identified from relevant literature cited in this article, with respondents rating each KPI on a 5-point Likert scale, including (Andrews et al. 2017; Poister et al. 2013; Thompson et al. 2005). To ensure validity and reliability of the indices, Cronbach’s alpha was calculated to assess internal consistency, with a threshold range from 0.60 and above indicating strong reliability (Signh 2017). Validity was assessed using Exploratory Factor Analysis (EFA), with factor loadings above 0.5 considered acceptable (Urdan 2016). The EFA confirmed that the measured constructs were appropriate and aligned with the theoretical framework.
Most survey items met this criterion, but the index for supportive leadership and culture was not properly constructed, therefore excluded from further analysis. The Leadership and Culture Index included two items: (1) ‘The corporate culture within your organisation is conducive to successful strategy execution’ and (2) ‘The leadership within your organisation is conducive to successful strategy execution’. However, the index did not demonstrate adequate reliability (Cronbach’s alpha < 0.60). These issues were likely because of the limited number of survey items addressing the multidimensional nature of leadership and culture. Consequently, the index was excluded from the analysis. This limitation has been acknowledged in the article, with suggestions for future research to expand and refine the measurement of leadership and culture.
Data quality and analysis
The survey data were analysed using SPSS version 29.0. The survey achieved a 50% response rate, resulting in 153 valid responses out of the initial 203. According to Wu, Zhao and Fils-Aime (2022), a respectable response rate for online surveys is approximately 44.1%. Ordinal logistic regression was used to analyse the impact of strategy implementation on organisational performance. As the data collected were categorical and measured on a Likert scale ranging from strongly agree (5) to strongly disagree (1), an ordinal logistic regression model was deemed the most appropriate analytical approach. This choice is consistent with similar studies, such as those by Pratiwi (2019) and Eygü and Güllüce (2017), which emphasised the importance of using ordinal regression for categorical variables to ensure meaningful, reliable and valid results. An ordinal regression was run where by Organisational Performance Index was dependent on Organisational Capability Index, the Internal Processes Index, the RSI Style Index and the ISI Style Index. The regression included the interaction between the RSI Style Index, and the ISI Style Index and on Organisational Capability Index and Internal Processes Index. The regression model assessed the strength and direction of these relationships, allowing for meaningful interpretations that could guide improvements in strategy implementation practices within the sector.
During the research process, several practical challenges were encountered, particularly in data collection and data analysis. During data collection, the use of online surveys mitigated some challenges, such as geographical dispersion of participants, but also introduced issues like lower response rates. To address these, follow-up reminders were sent to participants, and responses were carefully screened for completeness. Additionally, the study envisaged challenges related to ensuring data quality, such as avoiding common methods bias (CMB). To mitigate this, the survey design included counterbalancing questions and using diverse response formats, following recommendations by Eichhorn (2014) and Reuning and Plutzer (2020). During data analysis, two main challenges emerged in running the ordinal regression model. Firstly, data sparsity was observed, particularly in the ‘strongly disagree’ category, which had very few observations. To address this issue, the original 5-point scale was collapsed into a 4-point scale by merging the ‘disagree’ and ‘strongly disagree’ categories. Secondly, severe multicollinearity was detected, primarily because of the interaction terms. This was mitigated by centring the variables (removing the mean), as suggested by Tranmer and Elliot (2020). However, centring reintroduced sparsity in the interaction terms, which was subsequently resolved by merging certain categories in the interaction terms too.
Ethical considerations
Ethical clearance to conduct this study was obtained from the University of Zambia Biomedical Research Ethics Committee (ref. no. 5033-2024).
Ethical considerations were paramount throughout this study. Participants’ consent was implied through their engagement with the survey, a method chosen to reduce the potential influence of signed consent forms on participant responses (Cassell, Cunliffe & Grandy 2017). Study information, including its objectives, potential risks and benefits, confidentiality measures and other relevant details, was shared via email. This was followed by a link to the questionnaire, allowing participants to proceed only if they agreed to participate by clicking the link. The study ensured anonymity and confidentiality by implementing data-collection practices that prevented any linkage of responses to individual participants. Additionally, care was taken to avoid any deceptive practices in data collection, adhering strictly to ethical guidelines (Walle 2015). The results were reported with attention to the needs of both academic and practitioner audiences, ensuring clarity and avoiding any misinterpretation.
Results
Descriptive results
Table 2 provides a summary of the findings, with a mean score of 2.5 considered average. Scores below 2.5 indicate agreement with the presence of a practice or style, while scores above 2.5 suggest a level of disagreement. Overall, the respondents reported that their organisations exhibited strong organisational capabilities, with a mean score of 2.14, indicating a generally positive perception of their workforce’s skills, the organisational structure and the assets necessary for executing strategic initiatives. This suggests that the organisations are well-equipped internally to support effective strategy implementation. The IP within these organisations was rated closer to the average, with a mean score of 2.44. This result indicates that while there are adequate financial resources, policies and management systems in place, there may still be room for improvement in certain areas, such as incentives and motivational practices, which received higher scores, suggesting some level of dissatisfaction.
| TABLE 1: Validity and reliability of constructs. |
| TABLE 2: Strategy implementation practices. |
Regarding strategy implementation styles, the data revealed that both rational and incremental approaches are employed by these organisations, with the rational style being slightly more prevalent. The rational style, with a mean score of 2.27, reflects a structured and systematic approach to strategy execution, characterised by well-aligned operational plans, regular reviews and data-driven decision-making processes. The ISI style, which had a mean score of 2.46, was perceived as less dominant but still significant. This style emphasises adaptability and responsiveness, allowing organisations to adjust their strategies in response to emerging needs and uncertainties. However, the higher mean score indicates a less consistent application of this approach, particularly in areas such as experimentation, learning and stakeholder input, where scores suggest a degree of hesitancy or inconsistency in implementation.
Ordinal logistic regression results
Guided by interpretations by Eygü and Güllüce (2017), Table 3 indicates that the ordinal logistic model was deemed appropriate, as evidenced by a decrease in the -2 Log Likelihood value from 267.921 (intercept-only) to 140.397 (final model), with a highly significant Chi-Square test statistic of 127.524 (df = 23, p < 0.001), confirming that the predictors significantly enhance the model’s explanatory power. Goodness-of-fit tests further supported the model’s adequacy, with the Pearson Chi-Square statistic (159.274, df = 133, p = 0.060) and the Deviance Chi-Square statistic (99.246, df = 133, p = 0.987) indicating no significant lack of fit. The Pseudo R-Square values demonstrated strong explanatory power, with the Cox and Snell R-Square (0.565) suggesting the model accounts for 56.5% of the variance in the dependent variable, the Nagelkerke R-Square (0.616) adjusting this to 61.6% and the McFadden R-Square (0.334) reflecting moderate but meaningful explanatory capability typical of logistic regression. Together, these measurements confirm the model’s robustness and predictive strength.
Ordinal logistic regression relies on the proportional odds assumption, which requires that the location parameters (slope coefficients) are consistent across response categories according to Gambarota and Altoè (2024). This assumption was tested using the Test of Parallel Lines in SPSS, which evaluates whether the location parameters are parallel across the response categories in the model. Table 4 indicates that, under the null hypothesis, the parameters are assumed to be the same across categories. The -2 Log Likelihood for the null hypothesis model was 140.397, compared to 96.154 for the general model, resulting in a Chi-Square statistic of 44.243 (df = 46) with a p-value of 0.546. As the p-value exceeds 0.05, the null hypothesis is not rejected, indicating that the proportional odds assumption holds. However, as noted in the footnotes, potential limitations in maximising the log-likelihood may affect the validity of this test, warranting cautious interpretation.
Considering that the model is well-fitted and the proportional odds assumption holds, the parameter estimates are meaningful and valid. The results reveal mixed effects of the predictors on the odds of being in higher categories of the outcome variable (OP). For RSI, the effects at levels 3 (Estimate = -1.006, p = 0.246) and 4 (Estimate = 0.061, p = 0.967) are not statistically significant, indicating minimal direct influence on OP categories. In contrast, ISI shows a significant negative effect at level 2 (Estimate = -2.609, p = 0.015), meaning that as ISI increases to this level, the likelihood of achieving higher OP categories decreases. Organisational Capability (OC) at level 2 (Estimate = -3.188, p = 0.003) similarly shows a strong negative effect, suggesting that lower OC levels hinder OP performance. Internal Processes at level 2 (Estimate = -5.061, p < 0.001) exhibit the strongest negative impact, indicating that inefficiencies in IP substantially reduce the likelihood of achieving higher OP categories. Marginal significance for IP at levels 3 and 4 supports a trend where weaknesses in IP moderately lower the odds of better OP outcomes. Interaction effects, though not statistically significant, suggest potential moderating influences. For example, the ISI × OC interaction at level 0.5 (Estimate = -2.825, p = 0.137) implies that certain ISI and OC combinations could amplify negative outcomes on OP. Similarly, ISI × IP at level 0 (Estimate = 2.024, p = 0.274) indicates that specific combinations might slightly improve OP.
Discussion
Interpretation of key findings
The first objective of this study was to identify current strategy implementation practices in public utilities using Malawi as a case. Descriptive results indicate that these organisations exhibit strong organisational capabilities, including workforce skills, organisational structure and essential assets for strategy execution. Internal processes were rated average, suggesting adequate financial resources, policies and management systems but highlighting areas for improvement, particularly in incentives and motivational practices. Both rational and ISI styles are employed, with the rational style being more dominant. This structured approach emphasises aligned operational plans, regular reviews and data-driven decisions. The incremental style, while promoting flexibility and responsiveness, showed inconsistencies in areas such as experimentation and stakeholder input.
The second objective was to assess the impact of these practices on organisational performance. This study identifies several key factors influencing strategy implementation within public electricity utility companies, addressing the research objectives and filling notable gaps in the literature. The findings underscore the critical role of organisational capability, which encompasses workforce skills, structural support and asset utilisation. Specifically, higher levels of organisational capability are associated with improved performance, while deficiencies significantly hinder progress. This aligns with prior research by Vigfússon et al. (2021) and Sial et al. (2023), which emphasised leadership and staff competence as pivotal for successful strategy execution. Similarly, Korir and Moronge (2017) found comparable results in Kenyan public organisations, highlighting the importance of competent staff and efficient structures for effective strategy implementation. These findings support the RBV, which posits that internal resources, such as human capital and organisational capabilities, are central to achieving competitive advantage and driving performance.
The study also highlights the substantial influence of IP on performance. Inefficient IP were found to significantly reduce the likelihood of achieving higher performance outcomes, confirming that clear policies, efficient resource allocation and continuous improvement mechanisms are essential for success. This finding aligns with studies by Zaidi et al. (2018) and Kibachia et al. (2014), which emphasised the alignment of operations with strategic goals. Furthermore, the importance of IP is reinforced by research from Kaphale (2023) and Kaonde (2014), who identified resource allocation and management systems as crucial in sub-Saharan Africa for driving public sector performance. These findings validate the DCT, which highlights the need for organisations to be adaptive and responsive to internal and external changes.
The study also established that the ISI style demonstrated significant negative effects at level 2 (Estimate = -2.609, p = 0.015), indicating that higher reliance on ISI at this level reduces the likelihood of achieving higher organisational performance (OP) categories. This suggests that while ISI emphasises adaptability, its effectiveness may diminish if not adequately aligned with organisational capabilities and IP. At higher levels (3 and 4), ISI showed no statistically significant effects, implying that its influence might taper off. These results align with findings by Aladag et al. (2020) and Sawaneh (2023), who highlighted the importance of flexibility in dynamic environments but also cautioned against over-reliance on unstructured approaches. In contrast, the RSI style, characterised by structured planning, did not show significant effects at any level (e.g. Estimate = -1.006, p = 0.246 for RSI = 3). This challenges the assumption by Andrews et al. (2017) that rational approaches are universally effective. The lack of significant direct effects suggests that RSI, when applied in isolation, does not substantially influence OP.
The interaction effects support the notion that strategy implementation styles may moderate the impact of Organisational Capability (OC) and IP on OP. The ISI × OC interaction (Estimate = -2.825, p = 0.137) suggests that incremental strategies can amplify the negative effects of weak organisational capabilities on performance, indicating that adaptability alone cannot compensate for deficiencies in workforce skills or organisational structure. Conversely, the ISI × IP interaction (Estimate = 2.024, p = 0.274) hints that incremental strategies may mitigate the adverse effects of inefficient IP, enhancing performance when flexibility complements process improvements. Similarly, the RSI × OC interaction (Estimate = 0.545, p = 0.614) implies that rational strategies may strengthen the positive impact of robust organisational capabilities on performance, emphasising the importance of structured approaches in leveraging existing strengths. However, the RSI × IP interaction (Estimate = -0.168, p = 0.884) suggests that rigid strategies may exacerbate the negative effects of misaligned or inefficient IP, reinforcing the need for adaptability in dynamic environments. These findings indicate that strategy implementation styles serve as critical moderators, influencing how OC and IP affect OP. Incremental strategies may soften weaknesses or amplify strengths depending on the context, while rational strategies are most effective when aligned with strong organisational resources and efficient processes. This reinforces the need for strategic alignment between implementation styles and organisational factors, consistent with the RBV and DCT.
The third objective of this study was to provide recommendations for enhancing strategy implementation to improve performance in public utilities. Based on the findings and their alignment with theoretical frameworks, several policy implications and actionable recommendations are proposed for utility companies, particularly in the public electricity sector. Foremost, utility companies should focus on strengthening organisational capabilities by recruiting and retaining skilled leadership and workforce, establishing robust organisational structures and acquiring assets that support the achievement of strategic objectives. To achieve this, companies should develop talent management strategies and leadership development programmes, periodically review organisational structures to align with evolving strategic goals, and ensure the acquisition of requisite assets to support performance.
Furthermore, optimising IP is essential for improving operational efficiency and accountability. Utility companies should implement mechanisms to enhance the allocation of financial resources, establish clear policies and procedures, adopt business management processes that drive continuous improvement, install information and operations management systems, and provide incentives and motivational practices to support effective strategy execution. These steps will ensure that internal operations are aligned with strategic objectives and can respond effectively to dynamic challenges. Finally, utility companies should adopt a balanced approach to strategy implementation, combining structured planning (rational style) with adaptability (incremental style) to navigate complex and dynamic environments. While incremental strategies promote flexibility, excessive adaptability can lead to inefficiencies, underscoring the need for a hybrid approach that leverages the strengths of both styles (Andrews et al. 2017; Teece 2019). As a practical measure, companies should establish clear guidelines on when and how to employ rational and incremental strategies, ensuring structured planning is complemented by the ability to adapt plans based on feedback and changing conditions.
Significance of results
This study makes a substantial contribution to strategic management literature by integrating two foundational theories – the RBV and DCT. By merging these frameworks, it offers a comprehensive understanding of how strategy implementation practices influence organisational performance, especially within public sector organisations. This dual approach underscores the importance of leveraging internal resources (a key element of the RBV) while also emphasising the need for adaptability in response to environmental changes, as highlighted by DCT. The study demonstrates that aligning internal resources and processes with strategic objectives, while maintaining flexibility in strategy implementation, is critical for organisations, particularly those operating in dynamic environments. This insight holds relevance not only for the public electricity sector but also for organisations in both public and private sectors that face fluctuating operational landscapes.
Additionally, the study’s findings hold significant value for other developing countries with public electricity utility sectors facing challenges similar to those in Malawi. By focusing on an under-researched area – the public electricity sector – this research expands the scope of strategic management theory, applying it to global contexts that are often underrepresented in academic discourse. The actionable insights generated, such as the emphasis on strategic investments in organisational capabilities, the optimisation of IP, and the balance between adaptive and structured strategy implementation styles, provide clear and practical recommendations for practitioners and policymakers. These insights equip leaders with effective tools to enhance organisational performance and implement strategies successfully.
Methodologically, the study’s design, employing structured surveys and regression analysis, ensures the reliability and validity of the findings. The use of well-established constructs and indices serves as a valuable reference for future research. This methodological framework can be replicated across various organisational settings, contributing both to academic discourse and practical applications of strategy implementation. The study thus stands as a significant tool for examining strategy implementation, not only in the public electricity sector but across other organisational domains.
Study limitations
While this study provides valuable insights into strategy implementation within the public electricity sector, several limitations must be acknowledged. The quantitative approach adopted in the research, though useful for obtaining measurable results, may overlook complex and subjective factors that affect strategy implementation. Given the intricacies of implementing strategies in public sector organisations, future research could benefit from mixed-methods approaches. For example, incorporating qualitative methods such as interviews and focus groups could uncover deeper insights into the decision-making processes and organisational dynamics that quantitative surveys may miss (Yuhang & Rui 2023). These qualitative methods would offer a richer understanding of the challenges and informal practices that impact strategy implementation.
Furthermore, the purposive sampling method employed in this research also presents limitations. While it allowed for targeting participants with relevant expertise, it may introduce sampling bias and limit the generalisability of the findings. The inclusion criteria ensured the reliability of responses; however, future studies should adopt probabilistic sampling techniques to enhance generalisability and address potential biases. Another limitation of the study is the exclusive reliance on self-reported data, which may introduce social desirability bias (Walle 2015). While steps were taken to mitigate this bias – such as using counterbalancing questions and varied response formats – future research could improve data accuracy by triangulating self-reported data with performance reports or external evaluations. This would help ensure that the reported outcomes more accurately reflect the organisation’s actual performance.
Lastly, while this study emphasises organisational capability and IP, it does not thoroughly explore the role of leadership and organisational culture in strategy execution. These elements are critical as they shape employee engagement, decision-making and overall strategic alignment. The exclusion of a leadership and culture index from the analysis is a notable limitation, as it may obscure the complex interactions between IP, leadership styles and culture. Future studies should incorporate a stronger framework for analysing leadership and organisational culture, following recommendations by Thompson et al. (2005).
Conclusion
This study has successfully examined the relationship between strategy implementation practices and organisational performance in public organisations using the case of Malawi’s electricity utility sector, providing important insights. The findings emphasise that organisational capability (OC) and IP are critical drivers of performance. Weaknesses in these areas negatively impact organisational performance. Regarding strategy implementation styles, ISI demonstrated a notable influence, emphasising the value of adaptability. However, excessive reliance on flexibility can hinder performance, indicating the need for a balanced approach. In contrast, RSI did not show significant direct effects on performance, suggesting that structured planning alone may not be sufficient without strong organisational support. The interaction effects reveal that strategy implementation styles can moderate the impact of organisational resources on performance. For example, incremental strategies are more effective when paired with robust organisational capabilities and well-aligned IP, while rational strategies require strong organisational capabilities to drive improvements. Based on these findings, the study recommends that public utility companies invest in building organisational capabilities through targeted employee development and asset utilisation strategies. Furthermore, organisations should continuously enhance their IP and integrate both rational and incremental approaches to strategy implementation.
Acknowledgements
Gratitude is extended to the respondents who participated in this research. All participants were informed and volunteered to complete the questionnaire. This article is partially based on the author’s thesis entitled ‘The Impact of Strategy Implementation Methods on the Performance of Public Organisations in the Energy Sector: A Case of Malawi’ towards the degree of PhD in Business and Management in the Institute of Distance Education, University of Zambia, Zambia, with supervisor Dr. Javaid A. Dar.
Competing interests
The authors declare that they have no financial or personal relationships that may have inappropriately influenced them in writing this article.
Authors’ contributions
P.M.M. conceived the project, formulated the main conceptual ideas and conducted data collection and analysis. J.A.D. supervised the project. P.M.M. and J.A.D. contributed critical feedback and helped shape the research, analysis and manuscript.
Funding information
This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.
Data availability
Data supporting the findings of this study are available from the corresponding author, P.M.M., upon reasonable request.
Disclaimer
The views and opinions expressed in this article are those of the authors and are the product of professional research. They do not necessarily reflect the official policy or position of any affiliated institution, funder, agency or that of the publisher. The authors are responsible for this article’s results, findings and content.
References
Abass, M.K., Munga, J. & Were, E., 2017, ‘The relationship between strategy implementation and performance in county governments of Kenya: A case study of Wajir County government’, International Academic Journal of Human Resource and Business Administration 2(3), 381–401.
Alharthy, A.H., Rashid, H., Pagliari, R. & Khan, F., 2017, ‘Identification of strategy implementation influencing factors and their effects on the performance’, International Journal of Business and Social Science 8(1), 34–44.
Al-Khouri, A.M., 2014, ‘Strategy and execution: Lessons learned from the public sector’, International Business Research 7(10), 61. https://doi.org/10.5539/ibr.v7n10p61
Andrews, R., Beynon, M.J. & Genc, E., 2017, ‘Strategy implementation style and public service effectiveness, efficiency, and equity’, Administrative Sciences7(1), 2–19. https://doi.org/10.3390/admsci7010004
Antwi, S.K. & Hamza, K., 2015, ‘Qualitative and quantitative research paradigms in business research: A philosophical reflection’, European Journal of Business and Management 7(3), 217–225.
Apuke, O.D., 2017, ‘Quantitative research practices: A synopsis approach’, Arabian Journal of Business and Management Review (Kuwait Chapter) 6(10), 40–47. https://doi.org/10.12816/0040336
Barati-Stec, I., 2015, ‘Strategic planning in Hungarian municipalities’, Transylvanian Review of Administrative Sciences 11(SI), 5–14.
Busaka, J. & Kwasira, J.O.S.P.H.A.T., 2015, ‘An assessment of challenges influencing strategy implementation in public sector organizations in Kenya: A case of betting control and licensing board’, International Journal of Research in Applied Natural and Social Sciences 3(10), 12–22.
Cassell, C., Grandy, G. & Cunliffe, A.L., 2017, The SAGE handbook of qualitative business and management research methods, SAGE, London.
Eichhorn, B.R., 2014, Common method variance techniques, SAS Institute Inc., Cleveland, OH, viewed 05 September 2024, from https://www.lexjansen.com/mwsug/2014/AA/MWSUG-2014-AA11.pdf.
Eygü, H. & Güllüce, A., 2017, ‘Determination of customer satisfaction in conservative concept hotels by ordinal logistic regression analysis’, Journal of Financial Risk Management 6(3), 269–284. https://doi.org/10.4236/jfrm.2017.63020
Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R. & Sabattin, J., 2020, ‘Conceptual framework for strategy implementation: A literature review’, Journal of Engineering 2020(1), 6253013. https://doi.org/10.1155/2020/6253013
Gambarota, F. and Altoè, G., 2024, ‘Ordinal regression models made easy: A tutorial on parameter interpretation, data simulation and power analysis’, International Journal of Psychology 59(6), 1263–1292.
Gremme, K.M. & Wohlgemuth, V., 2017, ‘Dynamic capabilities: A systematic literature review of theory and practice’, European Journal of Management Issues 25(1), 30–35. https://doi.org/10.15421/191705
Hamann, P.M., Halw, O. & Guenther, T.W., 2023, ‘Meta-analysis of the corporate planning–organizational performance relationship: A research note’, Strategic Management Journal 44(7), 1803–1819. https://doi.org/10.1002/smj.3476
Hitt, M.A., Xu, K. & Carnes, C.M., 2016, ‘Resource-based theory in operations management research’, Journal of Operations Management 41, 77–94. https://doi.org/10.1016/j.jom.2015.11.002
Kandie, H.K. & Koech, A.K., 2015, ‘Factors influencing strategy implementation at the National Treasury Ministry in Kenya’, European Journal of Business and Management 7(10), 1–10.
Kant, S.L., 2014, ‘The distinction and relationship between ontology and epistemology: Does it matter?’, Politikon: The IAPSS Journal of Political Science 24, 68–85. https://doi.org/10.22151/politikon.24.4
Kaonde, P.D.F., 2014, ‘Improving strategy formulation and implementation in higher education institutions in Malawi: An empirical study’, Doctoral dissertation, University of Bolton.
Kaphale, J.C., 2023, ‘Strategic plan implementation challenges and organisational performance of Malawi Communications Regulatory Authority and Malawi Posts Corporation, 2016–2021’, Journal of Public Administration and Development Alternatives (JPADA) 8(1), 46–57. https://doi.org/10.55190/GIMX7939
Kivunja, C. & Kuyini, A.B., 2017, ‘Understanding and applying research paradigms in educational contexts’, International Journal of Higher Education 6(5), 26–41. https://doi.org/10.5430/ijhe.v6n5p26
Mbaka, R.M. & Mugambi, F., 2014, ‘Factors affecting successful strategy implementation in the water sector in Kenya’, Journal of Business and Management 16(7), 61–68. https://doi.org/10.9790/487X-16736168
Ministry of Energy of Malawi, 2024, Malawi beyond connections: Energy access diagnostic report based on multi-tier framework, Ministry of Energy of Malawi, Lilongwe.
Mitchell, D., 2018, ‘Strategic implementation: An illustration of theory/practice disconnect in public administration’, Public Administration Quarterly 42(1), 59–89. https://doi.org/10.1177/073491491804200103
Mohajan, H.K., 2020, ‘Quantitative research: A successful investigation in natural and social sciences’, Journal of Economic Development, Environment and People 9(4), 50–79. https://doi.org/10.26458/jedep.v9i4.679
Momanyi, H., Senaji, T.A. & Were, E.A., 2018, ‘An assessment of factors affecting strategic implementation in devolved government units in Kenya: Case of Nairobi City County’, International Academic Journal of Human Resource and Business Administration 3(2), 339–359.
Nason, R.S. & Wiklund, J., 2018, ‘An assessment of resource-based theorizing on firm growth and suggestions for the future’, Journal of Management 44(1), 32–60. https://doi.org/10.1177/0149206315610635
National Planning Commission of Malawi (NPC), 2020, MW2063, National Planning Commission of Malawi, Lilongwe.
Nkemchor, E.M. & Ezeanolue, E.T., 2021, ‘Effect of strategy implementation on organizational performance in Tertiary institution in Delta State, Nigeria’, International Journal of Innovative Social Sciences & Humanities Research 9(3), 75–87.
Poister, T.H., Edwards, L.H., Pasha, O.Q. & Edwards, J., 2013, ‘Strategy formulation and performance: Evidence from local public transit agencies’, Public Performance & Management Review 36(4), 585–615. https://doi.org/10.2753/PMR1530-9576360405
Pratiwi, N.M., 2019, ‘Implementing ordinal regression model for analyzing happiness level in Indonesia’, Journal of Physics: Conference Series 1320(1), 012015.
Rabetino, R., Kohtamäki, M. & Federico, J.S., 2021, ‘A (Re)View of the philosophical foundations of strategy implementation’, International Journal of Management Reviews 23(2), 151–190. https://doi.org/10.1111/ijmr.12244
Reuning, K. & Plutzer, E., 2020, ‘Valid vs. invalid straightlining: The complex relationship between straightlining and data quality’, Survey Research Methods 14(5), 439–459.
Sawaneh, B., 2023, ‘Success and impact of strategic plans implementation on public service delivery in the Gambia’, Journal of Public Administration, Finance and Law 27, 397–418. https://doi.org/10.47743/jopafl-2023-27-32
Schoonenboom, J. & Johnson, R.B., 2017, ‘How to construct a mixed practices research design’, Köln Z Soziol 69(2), 107–131. https://doi.org/10.1007/s11577-017-0454-1
Sial, A., Usman, M.K., Zufiqar, S., Satti, A.M. & Khursheed, I., 2013, ‘Why do public sector organizations fail in implementation of strategic plan in Pakistan’, Public Policy and Administration Research 3(1), 33–42.
Singh, A.S., 2017, ‘Common procedures for development, validity, and reliability of a questionnaire’, International Journal of Economics, Commerce and Management 5(5), 790–801.
Teece, D.J., 2019, ‘A capability theory of the firm: An economics and (strategic) management perspective’, New Zealand Economic Papers 53(1), 1–43. https://doi.org/10.1080/00779954.2017.1371208
Thompson, A.A., Strickland, A.J., Gamble, J. & Thompson, A.A., 2005, Crafting and executing strategy: The quest for competitive advantage: Concepts and cases, McGraw-Hill/Irwin, New York, NY.
Urdan, T.C., 2016, Statistics in plain English, 4th edn., Routledge, London.
Vigfússon, K., Jóhannsdóttir, L. & Ólafsson, S., 2021, ‘Obstacles to strategy implementation and success factors: A review of empirical literature’, Strategy Implementation Journal 26(2), 012–030. https://doi.org/10.5937/StraMan2102012V
Walle, A.H., 2015, Qualitative research in business: A practical overview, Cambridge Scholars Publishing, Cambridge.
World Bank Group, n.d., World Bank open data, viewed 15 August, 2024, from https://data.worldbank.org/.
Wu, M.J., Zhao, K. & Fils-Aime, F., 2022, ‘Response rates of online surveys in published research: A meta-analysis’, Computers in Human Behavior Reports 7, 100206. https://doi.org/10.1016/j.chbr.2022.100206
Yuhang, D. & Rui, H., 2023, ‘Research on the Public Sector’s strategy implementation process based on dynamic capabilities’, International Journal of Science and Research Archive 10(01), 469–477. https://doi.org/10.30574/ijsra.2023.10.1.0769
Zaidi, F.I., Zawawi, E.M.A., Nordin, R.M. & Ahnuar, E.M., 2018, ‘An empirical analysis of strategy implementation process and performance of construction companies’, IOP Conference Series: Earth and Environmental Science 117(1), 012–026. https://doi.org/10.1088/1755-1315/117/1/012026
Zikmund, W.G., D’Alessandro, S., Winzar, H., Lowe, B. & Babin, B., 2014, Marketing research, Cengage Learning, Sydney.
|
Hide
Show all
Email this article (Login required)
