Influence of Budget Constraints on Implementation of Strategic Plans among Mission Hospitals in Kenya.

Abstract

Strategy implementation is key for the success of an organization. This is because well formulated strategies may fail to produce the desired performance, if they are not successfully implemented. Making a strategy work or implementing it throughout the organization, is however, not an obvious process. In the recent past many strategic plans have been prepared and still have remained in the shelves without any benefits being realized from their implementation. In 2017 according to research only 5% of the companies in Kenya were able to fully implement their strategic plans. Therefore, the main purpose of this paper was to determine the influence of budget constraints on implementation of strategic plans among mission hospitals in Kenya. The study used a descriptive and correlation research design to explain whether there is any relationship between the dependent and the independent variables. The target population of the study was 380 employees working in the mission hospitals in Nyeri out of which a sample of 114 employees was selected using the stratified random sampling and later selected randomly using the simple random technique. Primary data was collected with the help of structured questionnaire. The questionnaire were administered using drop and pick procedure while secondary data was collected from secondary sources and also from the respective hospitals websites. The collected data was cleaned, edited and analyzed with the help of SPSS (23) where descriptive statics and multiple regression analysis were used to establish the relationship between the independents and the dependent variable of the study. The findings of the study were analyzed and presented inform of tables for easier interpretation and presentation and the results obtained will form the basis of recommendation. The study established that budget constraint significantly influenced implementation of strategic plan among mission hospitals in Kenya. Allocation of adequate financial resource had highest mean (4.22) which implied that inadequate resources were being made on strategic plan implementation. 73.6% of the respondents agreed that material price fluctuation also significantly influenced the implementation of strategic plan. It was recommended that mission hospitals budget constraint as one of the major factor that influenced strategic plan implementation among mission hospitals. It was recommended that mission hospitals should implement their strategic plans using adequate budgetary allocations as the research findings indicated that proper implementation strategic plan improves the innovation capacity of hospital which in return creates a competitive strategy.