Implementation of Business Strategies in Parastatals in Developing Countries: Analysis of Influencing Factors using Tanzania Telecommunications Company Limited (TTCL)

Abstract

This study sought to investigate the factors affecting implementation of business strategies in Tanzanian parastatals using the Tanzania Telecommunications Company Limited (TTCL) as a case of study. Specifically, the study assessed the influence of the following; - resource availability, employees’ skills level, technology characteristics, organizational leadership, and organizational structure on implementation of a business strategy. From a five-point Likert scales questionnaire run to 111 TTCL officers across the country, data were subjected to a multiple regression analysis. Findings reveal that all hypothesized relationships (with exception of organizational leadership as well as organizational structure) had significant influence on implementation of a business strategy. Theoretically, the study findings imply that a successful implementation of a business strategy is a function of resource availability, technological characteristics and availability of competent and skilled employees. Parastatals thus need to be equipped with required resources including supply of modern technologies. Moreover, there should be continuous training so as to increase employees’ skills level necessary for proper implementation of business strategies. Since this study only focused on TTCL and could not cover a wide range of government parastatals across Tanzania, other studies may be conducted in remaining parastatals in the country to expand the knowledge in that facet.

Keywords: Business Strategy Implementation, Government Parastatals, Telecommunication Company Limited, Resource availability, Employee skills, Technology characteristics, Organizational leadership, and Organizational Structure