Influence of Participatory Stakeholders Involvement Interventions on Performance of Commercial State Corporations in Kenya
Authors: Asser Juliana Hawario , Kamau Charles Guandaru 
Published: July 2024

Organizations worldwide face obstacles that hinder their ability to achieve long-term goals in change management in an optimal and sustainable manner. Failing to embrace change renders managers irrelevant in the competitive market. The success of any organization relies on the support of stakeholders. By considering the interests of various stakeholders, organizations can improve their performance. This study aimed to investigate the relationship between engaging stakeholders in the decision-making process and the success of state-owned businesses in Kenya. The researchers used a cross-sectional survey methodology and selected a sample of forty-eight commercial state enterprises through stratified random sampling. The study involved a total of one hundred and forty-four participants, including CEOs, Finance Managers, and HR Managers from each company. Survey forms were distributed to the participants in their respective institutions with the assistance of research aides to collect data. The collected data was analyzed using SPSS version 24 and Microsoft Excel. Regression models were used, and standard F and t tests were conducted for hypothesis testing. The research examined stakeholder involvement and support in three aspects: involvement in the change process, fostering positive relationships between different groups, and support from stakeholders. Factor analysis was applied to five factors. The majority of respondents agreed that involvement in the change process and support from stakeholders have a significant impact on participatory stakeholder involvement interventions. The findings revealed a significant positive relationship between involvement in the change process and performance, as well as between support from stakeholders and performance. The correlation coefficients were 0.502 and 0.580 respectively, with p-values of 0.000. The regression coefficients for participatory stakeholder involvement interventions were statistically significant at a 5% level of significance, with a coefficient of 0.632 and a p-value of 0.000. This indicates that the null hypothesis was rejected, supporting the alternative hypothesis that participatory stakeholder involvement interventions have an impact on the performance of commercial state corporations in Kenya. The research concluded that engaging stakeholders in decision-making, especially involving them in the change process and receiving their support, is closely linked to the performance of commercial state-owned companies in Kenya. Involvement in the change process showed a beneficial and direct connection with performance, while support from stakeholders also indicated a favorable association with performance. This research highlights the importance of stakeholder involvement interventions in implementing change initiatives in commercial state corporations in Kenya. It is crucial for these corporations to seek support from stakeholders when involving them in their operations, as the study revealed that stakeholder support significantly enhances organizational performance.