Strategy Implementation Practices, Integration of Esg Metrics and Performance of Manufacturing Firms in Kenya

Strategy implementation involves conversion of strategic intents into coordinated organisational actions. These study sought to examine the relationship between strategy implementation practices and integration of ESG metrics and performance of manufacturing firms in Kenya. Strategy implementation was measured using adequacy of resource allocation, leadership communication, and organisational culture. A mixed method research approach and a cross sectional research design were adopted. The target population was 992 manufacturing firms registered with Kenya Association of Manufacturers as at 31 December 2024. Sample size of 285 was calculated using Yamane’s formula and simple random sampling technique was used. The primary data were collected from senior managers using structured open ended questionnaires. 89 % response rate was attained. Firm performance was measured using Return on Equity (ROE). Quantitative data was analysed using descriptive statistics, Pearson Product-Moment correlation and simple linear regression while qualitative data was analysed thematically. Results show that strategy implementation practices were widely embraced with a grand mean of 3.99 and individual means ranging between 3.96 and 4.02. The Pearson correlation analysis showed a significant positive correlation between strategy implementation and firm performance (r = .638, p < .001). Simple linear regression also revealed that strategy implementation was a significant predictor of firm performance, accounting for 40.7 % of the variance in ROE (R² = .407, F (1,253) = 173.561, p < .001). The regression coefficient was positive and statistically significant (B =.451, β =.638, t = 13.174, p <.001). ESG metrics also had a positive and statistically significant relationship with strategy implementation practices (r =.565, p <.001). The findings highlight the significance of successful strategy implementation and ESG integration in manufacturing companies. Manufacturing firms need to integrate ESG considerations in strategic execution, enhance resource alignment, establish implementation responsibility, strengthen leadership communication, promote a supportive organisational culture and establish continuous tracking mechanisms.

Strategy implementation, ESG metrics, Manufacturing firms, Firm performance, Return on Equity.

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