Strategic Management Practices and Performance of the National Housing Corporation of Kenya

Abstract

This study aimed to investigate the influence of strategic management practices and performance of the National Housing Corporation (NHC) in Kenya. The specific objectives included examining the effects of strategic financial planning and resource allocation, land governance, building technology, and the house ownership process on the performance of the NHC. The study drew upon four established theoretical frameworks: Resource-Based View, Agency Theory, the Balanced Scorecard, and Linear and Adaptive Strategy Model. The research employed a mixed-methods approach, integrating both qualitative and quantitative techniques. A correlational research design was used to assess the relationships between strategic management practices and performance outcomes. The target population consisted of 630 individuals within the NHC, from which a sample size of 245 participants was determined. Quantitative data was collected through structured surveys, which were administered to executives, managers, and staff. The questionnaire return rate was 153 (85%) completed questionnaires out of the 245 targeted respondents. Statistical analysis was conducted using correlation coefficients and regression analysis. Qualitative data was gathered through semi-structured interviews with senior managers and strategic decision-makers, alongside document analysis of reports and policies. The qualitative data was analyzed thematically to identify key factors influencing the effectiveness of strategic management practices. The study revealed that there were significant positive relationships between organizational performance of NHC and strategic financial planning (β = 0.325, p < 0.001), land governance (β = 0.280, p < 0.001), building technology (β = 0.210, p < 0.001), and house ownership process (β = 0.198, p < 0.001). Financial planning and resource allocation practices were positively associated with operational efficiency and revenue generation, emphasizing the importance of sound financial management. Land governance policies were found to influence the ease of land acquisition and compliance with regulatory frameworks, with inefficiencies in these areas posing challenges to organizational operations. Building technology emerged as a critical driver of construction quality, speed, and cost efficiency, highlighting the transformative potential of technological innovation. The house ownership process was linked to customer satisfaction and organizational reputation, with challenges such as affordability and lengthy application processes impacting overall performance. The study findings point to the integral role of strategic management practices in driving the performance of state-owned housing corporations. The study highlights the need for a balanced focus on financial, technological, and operational dimensions to ensure sustainable organizational growth and enhanced service delivery. The study recommends that the government should consider developing comprehensive policies aimed at fostering a more enabling environment for the NHC to implement effective strategic management practices.