STRATEGIC STAKEHOLDER’S POLICY AND SUSTAINABLE PERFORMANCE OF PARASTATALS IN KENYA
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Abstract
The objective of the study was to establish the effect of strategic organization stakeholder policy on sustainable performance of parastatals in Kenya. The stakeholder theory was used. The study undertook a descriptive research design using a quantitative technique. The study population was 231 Parastatals in Kenya. The research sample size was determined using slovin’s mathematical formula, where 146 parastatals made up the sample for the study. One respondent from selected parastatals was selected using stratified random sampling. Data was collected using closed ended questionnaires which were analyzed using Statistical Package for Social Sciences. A pilot study of 20 respondents was done to test for validity, reliability and diagnostics. From a sample of 146 respondents, 97 respondents filled and submitted the results representing 66% response rate. The results from the multiple regression analysis indicated that there was indeed a significant relationship between the two variables (β = 0.894, p < 0.05). This led to the view that Strategic Stakeholder policy was a factor affecting sustainable performance of parastatals in Kenya. The study also recommended the need for the management of the parastatals to enhance stakeholder engagement through transparent communication and regular consultations and establish frameworks for evaluating and monitoring the impact of stakeholder policies on sustainable performance.
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References
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Affairs’, S. D. (2017). Openness to, and Restrictions Upon, Foreign Investment Openness to Policies Towards Foreign Direct Investment. Nairobi: Government of Kenya.
Al-Jafari, M. K., & Samman, H. A. (2015). Determinants of Customer satisfaction: Evidence from Industrial Companies Listed on Muscat Securities Market. Review of European Studies, 303-311.
Angelova, B., & Jusuf Zekiri. (2011). Measuring Customer Satisfaction with Service Quality Using American Customer Satisfaction Model (ACSI Model). International Journal of Academic Research in Business and Social Sciences, 1(3), 232-258.
Anthony, J. P., & Bhattacharyya, S. (2010). Measuring organizational performance and organizational excellence of SMEs – Part 2: an empirical study on SMEs in India. Emerald Group Publishing Limited, 14(3), 42-52.
Atif, M., Bilal, A., & Chaudhry, N. I. (2015). Impact of Knowledge Sharing on Organization Performance: The mediating role. Punjab: University of the Punjab Gujranwala, Pakistan.
Barako, D. D., Hancock, P., & Izan, H. Y. (2006, 3 3). Factors Influencing Voluntary Corporate Disclosure by Kenyan Companies. Corporate Governance an International Review, 14(2), 107-125.
Bosnjak, M. (2014). Customer Satisfaction. Dordrecht: Springer, Dordrecht.
Bowlby, R. (2014). Living the Future: Organizational Performance Assessment. Conneticut : Library Management Consulting.
Bush, T. (2016). Cost mangement . London: Palgrave Macmillan, London.
Campbell, A., Whitehead, J., Alexander, M., & Goold, M. (2015). Strategy for the Corporate Level: Summary of the Main Messages. John Wiley & Sons.
Cooper, D. R., & Schindler, P. S. (2013). Business Research Methods (12th ed.). Irwin Mc Graw-Hill.
Depaire, B., Vanhoof, K., & Wets, G. (2006). Expectation-Performance Compatibility in a Customer Satisfaction. 1-6.
Driehuis, M., & Cheng, H.-M. (2013). Understanding Deserved Cost mangement to Pick the Right Growth Opportunities. Finance and Control.
Felizardo, A., Félix, E. G., & Thomaz, J. P. (2009). Organizational Perfomance Measurement and Evaluation Systems in Smes: The Case of Transforming Industries in Portugal. Évora: University of Évora and CEFAGE-UE.
Garg, A. K., R.J.O. Joubert, R. J., & Pellissier, R. A. (2014). Measuring business performance: A case Study. Research Gate, 7-21.
Gikonyo, C. S. (2018). Employee Engangement and Perfomance of Research and Training in Parastatals in Kenya. Nairobi: Kenyatta University.
GOK. (2021). Kenya integrated performance management policy. Nairobi: Ministry of public service and gender.
Hadani, M., Bonardi, J.-P., & Dahan, N. M. (2016, 6 27). Corporate political activity, public policy uncertainty, and firm outcomes: A meta-analysis. Strategic Organization, 15(3), 338-366 .
Heath, J., & Norman, W. (2004). Stakeholder Theory, Corporate Governance and Public Management: What can the History of State-Run Enterprises Teach us in the Post-Enron era. Journal of Business Ethics, 247–265.
Heenetigala, K. (2011). Corporate Governance Practices and Firm's Perfomance of Listed Companies in Sri Lanka. Melbourne: Victoria University.
Henri, J.-F. (2002). Performance Measurement and Organizational Effectiveness: Bridging The Gap. Québec City: Université Laval.
Hillman, A. I., & Dalziel, T. (2003). Board of Directors and Firms perfomance: Intergrating Agency and Resource Dependence Perspectives. Academy of Management Revew, 28(3), 383-396.
Hirsch, S., Schiefer, J., Gschwandtner , A., & Hartmann, M. (2014). The Determinants of Firm Customer satisfaction Differences in EU Food Processing. Journal of Agricultural Economics, 65(3), 703-721.
Huitema, B., & Laraway, S. (2006). Encyclopedia of Measurement and Statistics, Edition: Autocorrelation." Encyclopedia of Measurement and Statistics. USA: SAGE Publications.
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Kimia, J. N. (2019). Interrogating Problems Facing Parastatals in Kenya. International Journal of Economics and Management Studies , 92-96.
Kiriga, B., Hoka, H., Njogu, H., Laibuni, N., Nyangena, J., Laichena, J., . . . Obiero, B. (2018, 3). Policy Monitor: Supporting Sustainable Development Through Research. Nairobi: KIPPRA.
Koech, P. M., & Namusong, G. S. (2012). The Effect of Leadership Styles on Organizational Performance at Parastatals in Kenya. International Journal of Business and Commerce, 2(1), 01-12.
Kyereboah-Coleman, A. (2007). Relationship Between Corporate Governance and Firm Perfomance: An African Perspective. Stellenbosch: University of Stellenbosch.
Kiriga, B., Hoka, H., Njogu, H., Laibuni, N., Nyangena, J., Laichena, J., . . . Obiero, B. (2018, 3). Policy Monitor: Supporting Sustainable Development Through Research. Nairobi: KIPPRA.
Marashdeh, Z. M. (2014). The Effect of Corporate Governance on Firm Performance in Jordan. Lancashire: University of Central Lancashire.
Ministry of Industry, T. a. (2017). Draft Kenya Investment Policy: Investment growth for sustainable development. Nairobi: KEPSA. Retrieved 4 8, 2019, from https://www.tralac.org/news/article/11795-draft-kenya-investment-policy-investment-growth-for-sustainable-development.html
Munyoki, C. (2015). Competitive Strategies, Organizational Autonomy, Positioning and Perfomance of Kenyan Parastatals. Nairobi: The University of Nairobi.
Muraga, K. D. (2015). Strategic Human Resource Management Practices and Perfomance of Parastatals in Kenya. Nairobi: Kenyatta University.
Mutua, J. M. (2012). A citizen's handbook on taxation in Kenya. Nairobi: Institute of Economic Affairs.
Miller, L. R., & Brewer, D. J. (2003). A-Z of Social Research. London: Sage Publications.
Miring'u, A. N. (2011). An analysis of the effect of corporate governance on performance of commercial parastatals in Kenya. Kenyatta University. Nairobi: Database of African theses and Dissertations including Research.
Ogolla, G. O., & Nzulwa, J. (2018). Influence of perfomance contracting on service delivery in parastatals in Kenya: A case of the Kenya National Examination Council. The strategic journal of business and change management, 5(4), 170 - 192.
Otieno, D., Linge, T., & Sikalieh, D. (2019). Influence of idealized influence on employee engagement in Kenya. Research in Business & Social Science, 8(5), 2147-4478.
Pintea, M.-O., & Achim, M.-V. (2013). Perfonance an Evolving concept. Romania: Sectoral and Operational Program for Human Resources Development.
Taaliu, S. T. (2017). Corruption in Schools and Universities. Open Journal of Social Sciences, 227-231.
Thai, V. V. (2015). Determinants of Customer Expectations of Service: Implications for Fostering Customer Satisfaction. International Journal of Management and Applied Science, 1(4), 146-151.
Wang, Y. (2009). Board Independence and Firm Performance:. Swinburne: Swinburne University of Technology.
Wooldridge, J. M. (2013). Introductory econometrics: A modern Approach (5 ed.). Michigan: South-Western, Cengage Learning.
Yazdanfar, D. (2013). Customer satisfaction determinants among micro firms: evidence from Swedish data. International Journal of Managerial Finance, 9(2), 151-160.
Phillips, R. (2010). Stakeholder Theory and Organizational Ethics. Published by Berrett-Koehler Publishers
Pintea, M.-O., & Achim, M.-V. (2013). Perfonance an Evolving concept. Romania: Sectoral and Operational Program for Human Resources Development.
PWC. (2007). The road ahead forpublic service deliveryDelivering on the customer promise. Public Sector Research Centre
Reena, K., & Singh, M. R. (2017). A Study on Nature of Services and customers’ expectations and perceptions regarding service quality. IOSR Journal of Business and Management (IOSR-JBM), 12-20.
Sasaka, P., Namusonge, G., & Maurice, S. (2016). Effect of Strategic Management Practices on the Performance of Corporate Social Responsibility of State Parastatals in Kenya. Nairobi: Jomo Kenyatta University of Agriculture and Technology.
SCAC. (2022). List of Parastatals Report. Nairobi: GOK.
Whitehead, A. L., Julious, S. A., Cooper, C. L., & Campbell, M. J. (2016, 6 19). Estimating the sample size for a pilot randomised trial to minimise the overall trial sample size for the external pilot and main trial
Heath, J., & Norman, W. (2004). Stakeholder Theory, Corporate Governance and Public Management: What can the History of State-Run Enterprises Teach us in the Post-Enron era. Journal of Business Ethics, 247–265.
Heenetigala, K. (2011). Corporate Governance Practices and Firm's Perfomance of Listed Companies in Sri Lanka. Melbourne: Victoria University.
Hillman, A. I., & Dalziel, T. (2003). Board of Directors and Firms perfomance: Intergrating Agency and Resource Dependence Perspectives. Academy of Management Revew, 28(3), 383-396.
Huitema, B., & Laraway, S. (2006). Encyclopedia of Measurement and Statistics, Edition: Autocorrelation." Encyclopedia of Measurement and Statistics. USA: SAGE Publications.
Joshi, H. (2012). Multicollinearity Diagnostics in Statistical Modeling and Remedies to deal with it using SAS. Cytel Statistical Softwares and Services.
Kiriga, B., Hoka, H., Njogu, H., Laibuni, N., Nyangena, J., Laichena, J., . . . Obiero, B. (2018, 3). Policy Monitor: Supporting Sustainable Development Through Research. Nairobi: KIPPRA.
Marashdeh, Z. M. (2014). The Effect of Corporate Governance on Firm Performance in Jordan. Lancashire: University of Central Lancashire.
Mutua, T. N., & Moronge, M. (2018). EFFECT OF SUPPLY CHAIN PRACTICES ON PROCUREMENT PERFORMANCE OF STATE CORPORATIONS IN KENYA. The Strategic Journal, 1-22.
Ogolla, G ., & Nzulwa , J. (2018). Influence of perfomance contracting on service delivery in parastatals in Kenya: A case of the Kenya National Examination Council. The strategic journal of business and change management, 5(4), 170 - 192.
Ondoro, C. O. (2015). Measuring Organization Perfomance from Balanced Score Card to Balanced ESG Framework. International Journal of Economics, Commerce and Management, 715-725.
Otieno, D., Linge, T., & Sikalieh, D. (2019). Influence of idealized influence on employee engagement in. Research in Business & Social Science, 8(5).
Owande, L. A. (2016). Effects of Board Composition on Financial Perfomance of Commercial Banks in Kenya. Nairobi: The Nairobi University.
Pintea, M.-O., & Achim, M.-V. (2013). Perfonance an Evolving concept. Romania: Sectoral and Operational Program for Human Resources Development.
Waichahi, Z. M., & Machoka, P. (2019). Determinants of performance of the procurement function in parastatals in kenya: a case study of east african portland cement plc. African journal pf emerging issues, 1(8), 1-8.
Wooldridge, J. M. (2013). Introductory econometrics: A modern Approach (5 ed.). Michigan: South-Western, Cengage Learning.
Affairs’, S. D. (2017). Openness to, and Restrictions Upon, Foreign Investment Openness to Policies Towards Foreign Direct Investment. Nairobi: Government of Kenya.
Al-Jafari, M. K., & Samman, H. A. (2015). Determinants of Customer satisfaction: Evidence from Industrial Companies Listed on Muscat Securities Market. Review of European Studies, 303-311.
Angelova, B., & Jusuf Zekiri. (2011). Measuring Customer Satisfaction with Service Quality Using American Customer Satisfaction Model (ACSI Model). International Journal of Academic Research in Business and Social Sciences, 1(3), 232-258.
Anthony, J. P., & Bhattacharyya, S. (2010). Measuring organizational performance and organizational excellence of SMEs – Part 2: an empirical study on SMEs in India. Emerald Group Publishing Limited, 14(3), 42-52.
Atif, M., Bilal, A., & Chaudhry, N. I. (2015). Impact of Knowledge Sharing on Organization Performance: The mediating role. Punjab: University of the Punjab Gujranwala, Pakistan.
Barako, D. D., Hancock, P., & Izan, H. Y. (2006, 3 3). Factors Influencing Voluntary Corporate Disclosure by Kenyan Companies. Corporate Governance an International Review, 14(2), 107-125.
Bosnjak, M. (2014). Customer Satisfaction. Dordrecht: Springer, Dordrecht.
Bowlby, R. (2014). Living the Future: Organizational Performance Assessment. Conneticut : Library Management Consulting.
Bush, T. (2016). Cost mangement . London: Palgrave Macmillan, London.
Campbell, A., Whitehead, J., Alexander, M., & Goold, M. (2015). Strategy for the Corporate Level: Summary of the Main Messages. John Wiley & Sons.
Cooper, D. R., & Schindler, P. S. (2013). Business Research Methods (12th ed.). Irwin Mc Graw-Hill.
Depaire, B., Vanhoof, K., & Wets, G. (2006). Expectation-Performance Compatibility in a Customer Satisfaction. 1-6.
Driehuis, M., & Cheng, H.-M. (2013). Understanding Deserved Cost mangement to Pick the Right Growth Opportunities. Finance and Control.
Felizardo, A., Félix, E. G., & Thomaz, J. P. (2009). Organizational Perfomance Measurement and Evaluation Systems in Smes: The Case of Transforming Industries in Portugal. Évora: University of Évora and CEFAGE-UE.
Garg, A. K., R.J.O. Joubert, R. J., & Pellissier, R. A. (2014). Measuring business performance: A case Study. Research Gate, 7-21.
Gikonyo, C. S. (2018). Employee Engangement and Perfomance of Research and Training in Parastatals in Kenya. Nairobi: Kenyatta University.
GOK. (2021). Kenya integrated performance management policy. Nairobi: Ministry of public service and gender.
Hadani, M., Bonardi, J.-P., & Dahan, N. M. (2016, 6 27). Corporate political activity, public policy uncertainty, and firm outcomes: A meta-analysis. Strategic Organization, 15(3), 338-366 .
Heath, J., & Norman, W. (2004). Stakeholder Theory, Corporate Governance and Public Management: What can the History of State-Run Enterprises Teach us in the Post-Enron era. Journal of Business Ethics, 247–265.
Heenetigala, K. (2011). Corporate Governance Practices and Firm's Perfomance of Listed Companies in Sri Lanka. Melbourne: Victoria University.
Henri, J.-F. (2002). Performance Measurement and Organizational Effectiveness: Bridging The Gap. Québec City: Université Laval.
Hillman, A. I., & Dalziel, T. (2003). Board of Directors and Firms perfomance: Intergrating Agency and Resource Dependence Perspectives. Academy of Management Revew, 28(3), 383-396.
Hirsch, S., Schiefer, J., Gschwandtner , A., & Hartmann, M. (2014). The Determinants of Firm Customer satisfaction Differences in EU Food Processing. Journal of Agricultural Economics, 65(3), 703-721.
Huitema, B., & Laraway, S. (2006). Encyclopedia of Measurement and Statistics, Edition: Autocorrelation." Encyclopedia of Measurement and Statistics. USA: SAGE Publications.
Jones, G. R. (2013). Organizational Theory, Design and Change. New York: Pearson Education Inc,. Kenya, G. o. (2015). Parastatals Act. Nairobi: Kenyan Government.
Kimia, J. N. (2019). Interrogating Problems Facing Parastatals in Kenya. International Journal of Economics and Management Studies , 92-96.
Kiriga, B., Hoka, H., Njogu, H., Laibuni, N., Nyangena, J., Laichena, J., . . . Obiero, B. (2018, 3). Policy Monitor: Supporting Sustainable Development Through Research. Nairobi: KIPPRA.
Koech, P. M., & Namusong, G. S. (2012). The Effect of Leadership Styles on Organizational Performance at Parastatals in Kenya. International Journal of Business and Commerce, 2(1), 01-12.
Kyereboah-Coleman, A. (2007). Relationship Between Corporate Governance and Firm Perfomance: An African Perspective. Stellenbosch: University of Stellenbosch.
Kiriga, B., Hoka, H., Njogu, H., Laibuni, N., Nyangena, J., Laichena, J., . . . Obiero, B. (2018, 3). Policy Monitor: Supporting Sustainable Development Through Research. Nairobi: KIPPRA.
Marashdeh, Z. M. (2014). The Effect of Corporate Governance on Firm Performance in Jordan. Lancashire: University of Central Lancashire.
Ministry of Industry, T. a. (2017). Draft Kenya Investment Policy: Investment growth for sustainable development. Nairobi: KEPSA. Retrieved 4 8, 2019, from https://www.tralac.org/news/article/11795-draft-kenya-investment-policy-investment-growth-for-sustainable-development.html
Munyoki, C. (2015). Competitive Strategies, Organizational Autonomy, Positioning and Perfomance of Kenyan Parastatals. Nairobi: The University of Nairobi.
Muraga, K. D. (2015). Strategic Human Resource Management Practices and Perfomance of Parastatals in Kenya. Nairobi: Kenyatta University.
Mutua, J. M. (2012). A citizen's handbook on taxation in Kenya. Nairobi: Institute of Economic Affairs.
Miller, L. R., & Brewer, D. J. (2003). A-Z of Social Research. London: Sage Publications.
Miring'u, A. N. (2011). An analysis of the effect of corporate governance on performance of commercial parastatals in Kenya. Kenyatta University. Nairobi: Database of African theses and Dissertations including Research.
Ogolla, G. O., & Nzulwa, J. (2018). Influence of perfomance contracting on service delivery in parastatals in Kenya: A case of the Kenya National Examination Council. The strategic journal of business and change management, 5(4), 170 - 192.
Otieno, D., Linge, T., & Sikalieh, D. (2019). Influence of idealized influence on employee engagement in Kenya. Research in Business & Social Science, 8(5), 2147-4478.
Pintea, M.-O., & Achim, M.-V. (2013). Perfonance an Evolving concept. Romania: Sectoral and Operational Program for Human Resources Development.
Taaliu, S. T. (2017). Corruption in Schools and Universities. Open Journal of Social Sciences, 227-231.
Thai, V. V. (2015). Determinants of Customer Expectations of Service: Implications for Fostering Customer Satisfaction. International Journal of Management and Applied Science, 1(4), 146-151.
Wang, Y. (2009). Board Independence and Firm Performance:. Swinburne: Swinburne University of Technology.
Wooldridge, J. M. (2013). Introductory econometrics: A modern Approach (5 ed.). Michigan: South-Western, Cengage Learning.
Yazdanfar, D. (2013). Customer satisfaction determinants among micro firms: evidence from Swedish data. International Journal of Managerial Finance, 9(2), 151-160.
Phillips, R. (2010). Stakeholder Theory and Organizational Ethics. Published by Berrett-Koehler Publishers
Pintea, M.-O., & Achim, M.-V. (2013). Perfonance an Evolving concept. Romania: Sectoral and Operational Program for Human Resources Development.
PWC. (2007). The road ahead forpublic service deliveryDelivering on the customer promise. Public Sector Research Centre
Reena, K., & Singh, M. R. (2017). A Study on Nature of Services and customers’ expectations and perceptions regarding service quality. IOSR Journal of Business and Management (IOSR-JBM), 12-20.
Sasaka, P., Namusonge, G., & Maurice, S. (2016). Effect of Strategic Management Practices on the Performance of Corporate Social Responsibility of State Parastatals in Kenya. Nairobi: Jomo Kenyatta University of Agriculture and Technology.
SCAC. (2022). List of Parastatals Report. Nairobi: GOK.
Whitehead, A. L., Julious, S. A., Cooper, C. L., & Campbell, M. J. (2016, 6 19). Estimating the sample size for a pilot randomised trial to minimise the overall trial sample size for the external pilot and main trial
Heath, J., & Norman, W. (2004). Stakeholder Theory, Corporate Governance and Public Management: What can the History of State-Run Enterprises Teach us in the Post-Enron era. Journal of Business Ethics, 247–265.
Heenetigala, K. (2011). Corporate Governance Practices and Firm's Perfomance of Listed Companies in Sri Lanka. Melbourne: Victoria University.
Hillman, A. I., & Dalziel, T. (2003). Board of Directors and Firms perfomance: Intergrating Agency and Resource Dependence Perspectives. Academy of Management Revew, 28(3), 383-396.
Huitema, B., & Laraway, S. (2006). Encyclopedia of Measurement and Statistics, Edition: Autocorrelation." Encyclopedia of Measurement and Statistics. USA: SAGE Publications.
Joshi, H. (2012). Multicollinearity Diagnostics in Statistical Modeling and Remedies to deal with it using SAS. Cytel Statistical Softwares and Services.
Kiriga, B., Hoka, H., Njogu, H., Laibuni, N., Nyangena, J., Laichena, J., . . . Obiero, B. (2018, 3). Policy Monitor: Supporting Sustainable Development Through Research. Nairobi: KIPPRA.
Marashdeh, Z. M. (2014). The Effect of Corporate Governance on Firm Performance in Jordan. Lancashire: University of Central Lancashire.
Mutua, T. N., & Moronge, M. (2018). EFFECT OF SUPPLY CHAIN PRACTICES ON PROCUREMENT PERFORMANCE OF STATE CORPORATIONS IN KENYA. The Strategic Journal, 1-22.
Ogolla, G ., & Nzulwa , J. (2018). Influence of perfomance contracting on service delivery in parastatals in Kenya: A case of the Kenya National Examination Council. The strategic journal of business and change management, 5(4), 170 - 192.
Ondoro, C. O. (2015). Measuring Organization Perfomance from Balanced Score Card to Balanced ESG Framework. International Journal of Economics, Commerce and Management, 715-725.
Otieno, D., Linge, T., & Sikalieh, D. (2019). Influence of idealized influence on employee engagement in. Research in Business & Social Science, 8(5).
Owande, L. A. (2016). Effects of Board Composition on Financial Perfomance of Commercial Banks in Kenya. Nairobi: The Nairobi University.
Pintea, M.-O., & Achim, M.-V. (2013). Perfonance an Evolving concept. Romania: Sectoral and Operational Program for Human Resources Development.
Waichahi, Z. M., & Machoka, P. (2019). Determinants of performance of the procurement function in parastatals in kenya: a case study of east african portland cement plc. African journal pf emerging issues, 1(8), 1-8.
Wooldridge, J. M. (2013). Introductory econometrics: A modern Approach (5 ed.). Michigan: South-Western, Cengage Learning.