Effectiveness of strategy implementation in state-owned enterprises

Abstract

Effective strategy implementation remains the cornerstone of delivering good corporate performance, and for state-owned enterprises this is no different. In recent times, multiple authors have acknowledged that while a vast amount of literature exists in the field of strategy formulation, little research has been conducted in the field of strategy implementation. Added to this, majority of the studies focus on strategy implementation in private as opposed to state-owned enterprises, despite their global significance. The aim of this study was to explore the effectiveness of strategy implementation in state-owned enterprises. A multiple case study research approach was followed, and data was collected through 12 semi-structured interviews across two state-owned enterprises. Thematic analysis was performed in order to analyse each interview and make comparisons between the two cases studied. This study extends the literature by identifying various barriers to, and enablers of, strategy implementation and offers strategy execution framework that is tailored for state-owned enterprises. In the main, the need for access to resources were found to be crucial for the sustainability and success of the enterprise; and its shareholders were in most instances viewed as a barrier to, rather than an enabler of, effective strategy implementation.