Abstract: The purpose of this study is to investigate the relationship between strategy formulation, strategy implementation and organizational performance within government institutions in Yemen. Evaluation of the proposed model was done through questionnaire survey data collected from one hundred and twenty valid responses among employees within the Ministry of Health. The analysis examines the relationship between the variables of the proposed model, Including Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM) via AMOS. The results show that the data fits the proposed model well, including three second-order constructs; namely strategy formulation which contains three first-order constructs (vision, mission and goals), strategy implementation which contains three first-order constructs (strategy, structure and human resources) and organizational performance which contains four first-order constructs (financial, customer, operation and learning and growth). The model proposed by the research and evidenced by the goodness of fit of the model to the data, explained 80% of the variance in organizational performance. The findings of the multivariate analysis demonstrates three main results. Firstly, strategy formulation has a positive impact on strategy implementation; secondly, strategy implementation has great influence on organizational performance; and finally, strategy implementation mediates the relationship between strategy formulation and organizational performance (as shown by the bootstrapping analysis). The theoretical and practical implications are also discussed.
Osama Isaac, Yassien Masoud, Sarminah Samad and Zaini Abdullah, 2016. The Mediating Effect of Strategic Implementation Between Strategy Formulation and Organizational Performance Within Government Institutions in Yemen. Research Journal of Applied Sciences, 11: 1002-1013.