Influence of Stakeholder Involvement on Performance of Large Manufacturing Firms in Kenya

Abstract

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