Strategic management practices and organisational performance of telecommunication companies. A case study of Airtel Uganda

Abstract

This study sought to examine the effect of strategic management practices on organisational performance of the telecommunication companies in Uganda, basing on a case study of Airtel Uganda. The objectives of the study were: to examine the effect of strategy formulation on performance of Airtel Uganda, to assess the effect of strategy implementation on performance of Airtel Uganda and to examine the effect of strategy evaluation on performance of Airtel Uganda. The study used a mixed research design where both quantitative and qualitative approaches were applied. A sample of 83 respondents was considered from a population of 105 with the help of Yamane formula of sample determination (1967). Simple random and purposive sampling were used in selecting the respondents. Data was collected by use of a questionnaire and interview guide. The study used both quantitative and qualitative techniques of data analysis and a computer package called statistical package for social scientists (SPSS) was used for data entry and analysis. A response rate of 89.1% was achieved. Results revealed that the most effective contributor to organisational performance is strategy evaluation (R Square of 0.751), followed by strategy implementation (R Square of 0.712) and the least contributor is strategy formulation (Adjusted R Square of .456). The test also revealed that Airtel Uganda Ltd strategic management practices have a statistically significant positive relationship with organisational performance since all p values were below the alpha of 0.05 and as such the null hypothesis was rejected. The study concludes that successful execution of strategies has a positive impact on organizational performance. This highlights the importance of effectively translating strategic plans into actionable steps and ensuring their proper implementation throughout the organization. The study also concludes that by developing well-crafted strategies, effectively executing them, and continuously evaluating their effectiveness, the organization can increase its chances of achieving favorable outcomes and maintaining a competitive advantage in the telecommunications industry. The study recommends that Airtel Uganda Ltd should implement a structured strategic planning process that involves key stakeholders to ensure their input and alignment with organizational goals. It is also suggested that Airtel Uganda Ltd should develop a clear and well-communicated strategy execution plan that outlines roles, responsibilities, and timelines to enhance coordination and accountability. The study also suggests that Airtel Uganda Ltd should involve relevant stakeholders in the evaluation process to gain diverse perspectives and insights.