Effects of Strategy Formulation on Institutional Performance: A Study of TVET Institutions in North Rift Region, Kenya

Abstract

This study examined the effect of strategic formulation on the performance of Technical and Vocational Education and Training (TVET) institutions in the North Rift Region, Kenya. The study is premised on the persistent underperformance of TVET institutions despite national policy support. The study was grounded on Resource-Based View (RBV) Theory and adopted a causal research design. Data was collected through structured Likert-scale questionnaires from 74 principals and industrial liaison officers across 37 institutions using a census method. A pilot test confirmed strong reliability, with Cronbach’s Alpha values ranging from 0.793 to 0.867. Data was analyzed using descriptive statistics, regression models, correlation, and chi-square tests.  Results revealed the correlation between TVET performance and strategy formulation is moderate and positive (r = 0.570, p < 0.05). Regression analysis indicated that strategy formulation had a positive and statistically significant effect on TVET performance (β = 0.344, p<0.05). The study concludes that effective and structured strategy formulation is a vital determinant of performance for TVET institutions in the North Rift Region. The Ministry of Education, in collaboration with TVET institutions and stakeholders, should invest in continuous training and capacity-building programs for institutional leaders and strategic managers on modern strategic planning tools and frameworks. Strengthening skills in goal setting, environmental scanning, stakeholder engagement, and long-term planning will improve the quality of strategic plans developed across institutions. Future research could explore the mediating and moderating factors influencing this relationship.