STRATEGIC CHANGE MANAGEMENT PRACTICES AND PERFORMANCE OF SAFARICOM PUBLIC LIMITED KENYA
Okoth Atieno Pauline - Postgraduate, Department of Business Administration, School of Business, Kenyatta University, Kenya
Dr. Sarah Achsah W. Kamau (PhD) - Department of Business Administration, School of Business, Kenyatta University, Kenya
ABSTRACT
Safaricom Public Limited, Kenya, is a leading telecommunications company that has long been hailed as a success story due to its innovative products, market dominance, and robust financial performance. However, in recent years, the company has faced significant challenges in sustaining high levels of financial performance, customer satisfaction, operational efficiency, and employee engagement, which are key measures of organizational performance. Despite its position as a market leader, Safaricom has been grappling with various issues that threaten its ability to maintain this performance. The study investigated how strategic change management practices affect the performance of Safaricom Public Limited, Kenya. Specifically, the study sought to determine the effect of communication plan, stakeholder engagement, capacity building, and strategic leadership on effects of the performance of Safaricom Public Limited, Kenya. The study was guided by the following theories: the Balanced Scorecard model, change theory, stakeholders' theory, and Dynamic Capability Theory. A descriptive research design was applied. The target population consisted of 72 senior managers from Kenya's Safaricom Plc. Safaricom Limited's 83 managers were chosen via stratified random sampling. Questionnaires were utilized throughout the study to collect the main data. The piloting phase involved 10% of the study population, and it was utilized to assess the research tool's validity and reliability. The research looked at both content and constructs validity. Cronbach's Alpha coefficient was used to assess the instrument's dependability. In order to collect both quantitative and qualitative data, the surveys contained both closed-ended and open-ended questions. Content analysis was employed to examine the qualitative data. Both descriptive statistics (mean, standard deviation, percentages, and frequencies) and inferential statistics were used in the quantitative data analysis method. To show how the variables relate to one another, inferential statistics like regression and correlation analysis were employed. The findings of the study were calculated and analyzed using the Statistical Program for Social Sciences, version 22. The results were presented using tables and charts. Results showed that the communication plan had a positive and significant effect on the Performance of Safaricom Plc, Kenya (β=0.183, p=0.044). Results also showed that Stakeholders' engagement had a positive and significant effect on the Performance of Safaricom Plc, Kenya (β=0.282, p=0.011). Further results also showed that capacity development had a positive and significant effect on the Performance of Safaricom Plc, Kenya (β=0.252, p=0.028). In addition, results also showed that strategic leadership had a positive and significant effect on the Performance of Safaricom Plc, Kenya (β=0.240, p=0.026). The study concluded that a standardized communication plan provides a consistent framework for interactions, ensuring that information is clear, unambiguous, and delivered effectively to all relevant parties, which is crucial for achieving organizational goals. The study also concluded that increased stakeholder involvement, particularly in decision-making and communication, contributes positively to the firm's competitiveness. In addition, Strong leadership, combined with flexible organizational structures and effective systems, is critical for successful strategy implementation and execution. To improve performance at Safaricom, use diverse communication channels like formal feedback mechanisms (surveys, performance appraisals), digital platforms (internal portals, email), and informal methods (one-on-one meetings, cross-functional teams). Policy makers should create a regulatory framework that actively encourages and supports innovation and investment in the telecommunications sector, allowing companies like Safaricom to thrive.