A strategy execution model for the public sector in an emerging economy

Abstract

Public sector organisations are investing more money in the formulation of strategies each year. However, few who create good strategies eventually have compelling success in their execution endeavours. The strategy-to-execution gap, often referred to as strategic discord, is a long-lasting problem with no easy solution at hand. This study, therefore, intended to explore the development of a suitable strategy execution model for the public sector in an emerging economy. A sequential explanatory mixed-methods (SEMM) research design (quantitative followed by a qualitative phase) was adopted. The results described were Conflicting stakeholder expectations and Resource availability as key barriers hindering successful strategy execution in the public sector. These key obstacles include the Lack of resources, preparing an organisation for execution and the Lack of models that assist in the execution process. The literature review provided the foundation for the development of the measuring instrument in the first phase of the study. The questionnaire provided the basis for the quantitative data, derived from a representative sample of 380 managers, followed by 15 semi-structured interviews for the qualitative data. Structural Equation Modelling (SEM) was conducted to establish the statistical model fit. Hypotheses were then examined between model constructs of Stakeholder objectives, Resources and Strategy to determine their influence on one another. The results of the literature study were combined with the empirical study to convey that resource availability is the most important enabler of strategy execution. Nevertheless, there are also additional significant characteristics of alignment, hence the substantial mediating correlation between strategy implementation and execution. While the association between stakeholder objectives and resource availability was not confirmed in the quantitative component of the study, most of the respondents in the qualitative phase articulated that this was due to the key differences in stakeholders’ objectives between the private and public sectors. The statistical analysis of the research confirmed the reliability and validity of the measuring instrument in an emerging economy context. The new model could enable both public and private sector organisations to determine or predict strategic execution success through the assessment of resource risks early in the process.