Organizational Structure and Firm Competitiveness in Kenya's Telecommunication Sector
Abstract
: The research sought to analyze the effect of internal organizational factors on the competitiveness of telecommunication companies in Kenya, as there has been little empirical work exploring the relationship between telecommunication companies' internal organization and their competitiveness, particularly regarding nontraditional performance measures. Guided by the Contingency Theory, which states that organizational forms must fit with environmental factors to be "effective", it was decided to study the effect of organizational structure on firm competitiveness. A descriptive survey research design was used, and structured questionnaires were set up to collect data from 108 executive and senior managers of whom 97 provided responses. Cronbach's alpha was used to assess the reliability of the items measuring organizational structure, and it was deemed acceptable for analysis. Organizational structure was highly practiced, with an overall mean score of 4.412. Results indicated that organizational structure was positively correlated with competitiveness and was significant at the critical value of .01. In addition, regression analysis indicated that organizational structure had a significant positive effect on competitiveness (β = .414, p < .001). The study foun d that organizational structures were effective in boosting competitiveness. It suggested that telecom companies need to reinforce role clarity, coordination, hierarchy, and flexibility in their structure to maintain their competitive edge.