Stakeholders involvement in strategy development in state corporations within the coastal region of Kenya
Abstract
State corporations in Kenya exist to meet the objectives of various stakeholders with diverse
interests in the environment they operate in. They play an important role as partners in
development by working to improve the lives of the Kenyan citizens. The role these
organizations play is critical as they provide vital services not met by the central government.
The central concern of stakeholder involvement is the survival of the firm hence managers need
to understand who the stakeholders are, what their issues are, and what motivates them. It
encourages integrated approach to decision making and management to develop strategies that
ensure long-term success of the organization. The overall aim of this study was to assess
stakeholder involvement in strategy development among the State Corporations in the Coastal
region in Kenya. The specific objectives were to determine the extent of stakeholder involvement
in the strategy development process and to establish factors influencing the stakeholders’
involvement in the strategy development process of State Corporations in the Coastal region.
Literature review was gathered from various sources with more emphasis on more current
literature from renowned authors in stakeholder management and strategy development. The
research used a descriptive survey design which aimed at assessing extent of stakeholder
involvement in strategy development. The data collection tool used was a questionnaire with
closed and open-ended questions guided by the contents of the literature review and aimed at
achieving the set objectives. The study population was the thirteen State Corporations based in
the Coastal region of Kenya. The study revealed that the State Corporations involve their
stakeholders in the strategy development process. The study also established that the firms
consider various factors in deciding the level of stakeholder involvement in the strategy
development process. The study concluded that the State Corporations involve their key
stakeholders in the strategy development process and consider numerous factors in deciding to
what extent they should involve their stakeholders. The study recommends that the management
of the State Corporations consider involving more stakeholders in future and that the government
consider privatisation in order to make firms more efficient.
Publisher
University of Nairobi