THE MODERATING EFFECT OF INDUSTRY POLICY ON THE RELATIONSHIP BETWEEN STRATEGIC ORGANIZATION DESIGN AND SUSTAINABLE PERFORMANCE OF PARASTATALS IN KENYA
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Abstract
The main objective of the study was to examine the moderating effect of industry policy on the relationship between strategic organization design and sustainable performance of parastatals in Kenya. The institutional 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. It was evident from the findings that industry Policy has a significant moderating effect on the relationship between strategic organization design and sustainable performance of parastatals in Kenya. Organization Design was found to play a critical role towards the sustainable performance of parastatals.
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References
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Wooldridge, J. M. (2013). Introductory econometrics: A modern Approach (5 ed.). Michigan: South-Western, Cengage Learning.
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.
Bashir, S. (2015). Impact of Decentralized Decision Making on Firm’s Performance. Arabian Journal of Business and Management Review, 5(4), 2223-5833.
Bowlby, R. (2014). Living the Future: Organizational Performance Assessment. Conneticut : Library Management Consulting.
Campbell, A., Whitehead, J., Alexander, M., & Goold, M. (2015). Strategy for the Corporate Level: Summary of the Main Messages. John Wiley & Sons.
Cochran, C. L., & Malone, E. F. (2014). Public policy: perspective and choice. Colorado: Lynne Rienner Publishers.
Cooper, D. R., & Schindler, P. S. (2013). Business Research Methods (12th ed.). Irwin Mc Graw-Hill.
Chatterjee, C., & Nag, T. (2018). Board Composition and Financial Performance: Evidence from Indian and Chinese Listed Firms. South Asian Survey, 22(2), 127-135.
David, R. J., Tolbert, P. S., & Boghossian, J. (2019). Institutional Theory in Organization Studies. Retrieved from Oxford Research Encyclopedia of Business and Management.
Deloitte. (2016). Corporate Performance? A meta-analysis of academic research & invitation to engage in the dialogue. Nyenrode: Deloitte.
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.
Hope, K. R. (2014). Kenya's corruption problem: causes and consequences. CommonWealth and Comparative Politics, 52(4), 493-512.
Johns, R. (2010). Survey Questions Bank: Methods Fact Sheet 1. United Kingdom: University of Strathclyde.
Joshi, H. (2012). Multicollinearity Diagnostics in Statistical Modeling and Remedies to deal with it using SAS. Cytel Statistical Softwares and Services.
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.
Korhonen, J. (2014). Big Data – Big Deal for Organization Design? Journal of Organization Design, 3(1), 31-36.
Maduenyi, S., Oluremi, A. O., Fadeyi, O., & Ajagbe, M. A. (2016). Impact of Organizational Structure on Organizational Perfomance. Research Gate: International Confrence on African Development Issues: Social and Economic Model for Development Track.
Marashdeh, Z. M. (2014). The Effect of Corporate Governance on Firm Performance in Jordan. Lancashire: University of Central Lancashire.
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.
Rashid, A. (2018). Board independence and firm performance: Evidence from Bangladesh. Future Business Journal, 4(1), 34-49.
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.
Suddaby, R. (2015). Can Institutional Theory Be Critical? Journal of Management Inquiry, 24(1), 93-95.
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 for a continuous outcome variable. Statistical Methods in Medical Research, 25(3), 1057–1073.
Wang, Y. (2009). Board Independence and Firm Performance:. Swinburne: Swinburne University of Technology.
Witt, M. A. (2017). Transnational Education Policy and a Globally Competitive Workforce: A Comparative Analysis of Vocational Education and Training Policy in the European Union and the United States. Cham: Springer, Cham.
Wooldridge, J. M. (2013). Introductory econometrics: A modern Approach (5 ed.). Michigan: South-Western, Cengage Learning.