Stakeholder Involvement Strategy and Performance of Kenyan State Corporations: a Case Study of Energy Government Funded Firms

Abstract

The prosperity of a firm is dependent mostly on propelling stakeholder cooperation. Hence, the performance of a firm is is directly proportional to the effectiveness of managing the conflicting interest of various stakeholders. The aim of the current study is to scrutinize the influence of stakeholder involvement strategy on the performance of government-funded energy corporations in Kenya. The study used the crosssectional survey with the sole purpose of determining the rate (or level) of a specific aspect, in a distinct populace at a precise point in time. The study also used the descriptive survey design as it sought to answer the question of what is going on which is an important aspect to consider for social researchers. This study was a census targeting all the government funded energy firms in Kenya. Currently, there are nine government-funded energy firms in Kenya. Primary data source was used in this study where data was obtained through interactive interviews. The main instrument of data collection in this study was an interview guide. In-depth interviews also encouraged capturing of respondents’ perceptions in their own words, a very desirable strategy in qualitative data collection. Targeted interviewees comprised of managers from each of the nine government-funded energy firms in Kenya. In this study data was collected from general manager and the line managers in the energy firms. The nature of data collected was qualitative and was therefore analyzed using content analysis technique. This is a technique of making inferences by systematically and objectively identifying specific characteristics of messages as the basis to relate trends. The study established that the employees and other stakeholders play an imperative role in managing the organization’s performance. The decision making techniques have an influence on the organizations performance. The study also established that customer’s feedback on the perceived value of a firm’s products is always sought to tailor its usefulness to the customer need. In addition the study found that customer’s input on the product pricing is always incorporated in the organizations decisions. The study concludes that customer accessibility to the organization’s products is an important variable that the organizations considers during the distribution of the services and products respectively, as well as the firm endeavors to offer eco-friendly products and being environmentally responsible and quality of the products meet their expectation respectively. The study concludes that the organizations has a clear and transparent ordering procedure that apply equally to all suppliers, and that the organizations and suppliers relationship is made with a longterm view and consider the price received from the suppliers to be fair to the organizations. The study recommends that the government of Kenya as the vital stakeholder should consider privatizing these firms to make them more efficient and more competitive in the economy. This will improve the quality of their services and even make them more accountable for their actions rather than hiding under a cloud of government bureaucratic procedures. The process of privatization should also be consultative