Influence of Stakeholder Involvement on Performance of Large Manufacturing Firms in Kenya
DOI:
https://doi.org/10.53819/81018102t50103Abstract
Large Manufacturing firms are critical to the economic development of a nation and the wellbeing of its citizens. However, most large manufacturing firms in Kenya have recently recorded a decline in performance. Thus, the study sought to examine the influence of stakeholder involvement on the performance of large manufacturing firms in Kenya. The specific objectives were to examine the influence of commitment, staff participation in the CER process and attendance in CER & implementation forums on the performance of large manufacturing firms in Kenya. The study adopted a descriptive and explanatory research designs. The target population for the study was 499. A sample size of 336 was obtained using the Yamane formula. The study used questionnaires to collect the data. The results and discussion included the reliability results, factor analyses, correlation, hypotheses testing and regression analysis. The findings of the study showed that staff participation in the CER process and attendance at CER & implementation forums explain 20.7% of the variations in the performance of large manufacturing firms in Kenya. The commitment and performance of large manufacturing firms in Kenya are positively and significantly related. Staff participation in the CER process and the performance of large manufacturing firms in Kenya are positively and significantly related. Similarly, attendance at CER & implementation forums are positively and significantly related to the performance of large manufacturing firms in Kenya. The study recommended that large manufacturing firms in Kenya should support environmental innovation such as collaborating and networking to enhance performance. It is recommended that the firms need to allocate resources to fund corporate environmental responsibilities. The top management in the firms needs to be highly committed to supporting the initiatives that safeguard the environment.
Keywords: Commitment, staff participation in CER process, attendance in CER & implementation forums, performance, large manufacturing firms, Kenya
References
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Suryani, M. R., & Dianawati, W. (2018). The Effect of Environmental Commitment on Financial Performance through Green Innovation. International Journal of Managerial Studies and Research, 6(11), 30-42. https://doi.org/10.20431/2349-0349.0611003
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World Bank Group (2019). Kenya Economic Update. Reviving Private Sector Credit Growth and Boosting Revenue Mobilization to Support Fiscal Consolidation.
Bejnarowicz, A., & Aderum, T. (2018). Employees’ Participation in a Company’s CSR: How do formal and informal cultural systems affect employees’ participation in a company’s CSR activities.
Chen, H. L., Hu, Y. C., Lee, M. Y., & Yen, G. F. (2020). Importance of employee care in corporate social responsibility: An AHP-based study from the perspective of corporate commitment. Sustainability, 12(15), 5885. https://doi.org/10.3390/su12155885
Costa, J., & Fonseca, J. P. (2022). The Impact of Corporate Social Responsibility and Innovative Strategies on Financial Performance. Risks, 10(5), 103. https://doi.org/10.3390/risks10050103
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests.Psychometrika, Vol. 22(3), pp. 297-334. https://doi.org/10.1007/BF02310555
Dobre, E., Stanila, G., & Brad, L. (2015). The influence of environmental and social performance on financial performance: evidence from Romania’s listed entities. International Journal of Sustainability, 7(3), 2513–2553. https://doi.org/10.3390/su7032513
Dyduch, J., & Krasodomska, J. (2017). Determinants of corporate social responsibility disclosure: An empirical study of Polish listed companies. Sustainability, 9(11), 1934. https://doi.org/10.3390/su9111934
Epstein, M. J., &Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
Farooq, M., & Reynaud, E. (2019). Does employees’ participation in decision making increase the level of corporate social and environmental sustainability? An investigation in South Asia. Sustainability, 11(2), 511. https://doi.org/10.3390/su11020511
Gualandris, J., &Kalchschmidt, M. (2016). Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust. International Journal of Production Research, 54(8), 2470-2486. https://doi.org/10.1080/00207543.2015.1106018
Hafezalkotob, A. (2015). Competition of two green and regular supply chains under environmental protection and revenue seeking policies of government. Computers & Industrial Engineering, 82, 103-114. https://doi.org/10.1016/j.cie.2015.01.016
Hawrysz, L., &Foltys, J. (2015). Environmental aspects of social responsibility of public sector organizations. Sustainability, 8(1), 19. https://doi.org/10.3390/su8010019
Kadie, J. (2021). Corporate Social Responsibility and Performance of Manufacturing Industry in Kenya (Doctoral dissertation, United States International University-Africa).
Kamande, M. W. (2011). The Impact of Clean Production on the Performance of Kenya Manufacturing Firms. Ph.D (Economics). Dissertation. University of Dar es Salaam: Tanzania
Kavitha, V. & Anuradha, T. (2016). Corporate social responsibility in insurance sector in India. International Journal of Innovation Research and DevelopmentVol 5 Issue 2 ISSN 2278 – 0211 (Online) www.ijird.com
Kibogy, J. C. (2017). The Effect of Corporate environmental responsibility on Organizational Performance: A Case of Bamburi Cement Limited (Doctoral dissertation, Daystar University, School of Business and Economics).
Kothari, C. (2004). Research Methodology: Methods & Techniques. 2nd Ed. New Delhi, India: New age International Publishers.
Lavrakas, P. J. (2008). Encyclopedia of survey research methods. Sage Publications. https://doi.org/10.4135/9781412963947
Li, D. Y., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive strategy: Evidence from China. Journal of Business Research, 67(1), 2793-2799.
Makori, D. M., & Jagongo, A. O. (2013). Environmental accounting and firm profitability: An empirical analysis of selected firms listed in Bombay stock exchange, India.
May, T., & Williams, M. (2002). An introduction to the philosophy of social research. London: Routledge. https://doi.org/10.4324/9780203500064
Menike, L. M. C. S. (2020). Impact of Environmental Disclosure on Firm Performance: An Empirical Analysis of Food, Beverage and Tobacco Sector Companies Listed in Colombo Stock Exchange, Sri Lanka. International Journal of Academic Research in Business and Social Sciences. 10(10), 518-536. https://doi.org/10.6007/IJARBSS/v10-i10/7977
Muloli, M. M. (2020). Effects of Corporate Social Responsibility on Firm Performance: Implication for Banking Sector in Tanzania.
Mwangi, M., & Mwiti, J. K. (2015). The effect of voluntary disclosure on stock market returns of companies listed at the Nairobi securities exchange. Journal of Finance,
Nederhand, J., & Klijn, E. H. (2019). Stakeholder involvement in public–private partnerships: Its influence on the innovative character of projects and on project performance. Administration & Society, 51(8), 1200-1226. https://doi.org/10.1177/0095399716684887
Ntiamoah, E. B., Egyiri, P. O., & Kwamega, M. (2014). Corporate social responsibility awareness, firm commitment and organizational performance. Journal of Human Resource and Sustainability Studies, 2014. https://doi.org/10.4236/jhrss.2014.22008
Orlitzky, M., Siegel, D. S., & Waldman, D. A. (2011). Strategic corporate social responsibility and environmental sustainability. Business & society, 50(1), 6-27. https://doi.org/10.1177/0007650310394323
Orodho, J.A. (2009). Elements of Education and Social Sciences, Research Methodology (2nd Edition), Maseno; Kenzja Publishers.
Rahi, S. (2017). Research design and methods: A systematic review of research paradigms, sampling issues and instruments development. International Journal of Economics & Management Sciences, 6(2), 1-5. https://doi.org/10.4172/2162-6359.1000403
Rashid, A., Rahman, A., & Khalid, A. (2014). Environmental corporate social responsibility (ECSR) as a strategic marketing initiative. Procedia-Social and Behavioral Sciences, 1(3), 499-508. https://doi.org/10.1016/j.sbspro.2014.04.058
Ringnér, M. (2008). What is principal component analysis? Nature biotechnology, 26(3), 303-304. https://doi.org/10.1038/nbt0308-303
Seunghee, I.,Chung, Y. W., & Yang, J. Y. (2016). Employees’ participation in corporate social responsibility and organizational outcomes: The moderating role of person–CSR fit. Sustainability, 9(1), 28. https://doi.org/10.3390/su9010028
Somjai, S., Fongtanakit, R., & Laosillapacharoen, K. (2020). Impact of environmental commitment, environmental management accounting and green innovation on firm performance: An empirical investigation. International Journal of Energy Economics and Policy, 10(3), 204. https://doi.org/10.32479/ijeep.9174
Suryani, M. R., & Dianawati, W. (2018). The Effect of Environmental Commitment on Financial Performance through Green Innovation. International Journal of Managerial Studies and Research, 6(11), 30-42. https://doi.org/10.20431/2349-0349.0611003
Taber, K. S. (2018). The use of Cronbach’s alpha when developing and reporting research instruments in science education. Research in science education, 48(6), 1273-1296. https://doi.org/10.1007/s11165-016-9602-2
Tasneem, F., Muhammad, S., & Basit, A. (2016). The Impact of Environmental Reporting on Firms’ Performance. International Journal of Accounting and Business Management, 4(2), 275-300.
TATA CHEMICALS MAGADI LIMITED (2021). Annual Report And Financial Statements For The Year Ended 31 March 2021. Retrieved from https://www.tatachemicals.com/upload/content_pdf/18-tata-chemicals-magadi-limited-march-2021.pdf
Vidal, R., Ma, Y., & Sastry, S. S. (2016). Principal component analysis. In Generalized principal component analysis (pp. 25-62). Springer, New York, NY. https://doi.org/10.1007/978-0-387-87811-9_3
World Bank Group (2019). Kenya Economic Update. Reviving Private Sector Credit Growth and Boosting Revenue Mobilization to Support Fiscal Consolidation.
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Published
2022-09-15
How to Cite
Mdasha, Z. ., Kariuki, P. ., & Wanjohi, P. . (2022). Influence of Stakeholder Involvement on Performance of Large Manufacturing Firms in Kenya. Journal of Strategic Management, 6(5), 69–89. https://doi.org/10.53819/81018102t50103
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