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Article Published In Vol.6 (May-June-2018)

Stakeholder Involvement and Performance of Sugar Parastatals in Western Kenya

Pages : 451-456, DOI:

Author : Michael Kulundu Okumba, Dr. Egessa Robert and Mr. Wanjere Dishon

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Stakeholder involvement is a major boost to performance in many organizations all over the world. Many companies have embraced Strategic Planning as a factor to counter the unexpected turbulent business operating environment. Performance improvement provides an opportunity for organizations to contribute to the organizations’ profits via improving the production processes, rather than merely seeking the reduction or omission of costs. The Kenyan sugar industry has always been guided by a Strategic Plan which envisages converting the sugar industry into a world class producer of sugar and the co-products. However, the results have always been contrary to expectations. The purpose of this study was to investigate the effect of Stakeholder Involvement on Performance of Sugar Manufacturing Parastatals in Western Kenya. This research adopted Descriptive Survey method and Correlation Research design, since this provided an accurate and valid representation of variables that pertain to or are relevant to the study. The study targeted four Government owned sugar companies in Western Kenya. The respondents were mainly Management staff of sugar companies from Section Heads and above. Non-Probability Sampling design was employed in the study because the researcher used Purposive Sampling method due to the sample selection based on the knowledge of the group. The researcher used questionnaires and interviews as research instruments. Data collected was analyzed by use of Descriptive and Inferential Statistics, a Simple Regression Analysis was used to model a relationship between Strategic Planning Practices and firm Performance in the Sugar Manufacturing Parastatals in Western Kenya. Pearson’s Coefficient of Correlation was used to analyze relationships among variables. The study found out that there is a higher positive and significant correlation between stakeholder involvement and firm performance (r=0.420) followed by strategy formulation (r=0.311) and environmental scanning (r=0.270). It was also found out that macro environment have a positive and significant moderating effect between strategic planning practices and firm performance. The study concluded that stakeholder involvement leads to a higher contribution to firm performance. The study thus recommended that the management of Sugar Manufacturing Parastatals in Western Kenya should invest much of its resources in involving their stakeholders in major decision making processes. Some of these strategies entail; Carrying out stakeholder profiling in the organization; Regular and deliberate programme to update stakeholders on company activities; analyzing and implementing stakeholders feedback in the organization; Giving key stakeholders special attention when they visit our company.

Keywords: Stakeholder involvement, parastatals performance, strategic planning, sugar industry



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