Abstract
This study sought to establish the relationship between management participation and firm performance. The study was premised in the applauded significant role that management participation plays on firm performance. However, a glaring knowledge gap established from literature review indicate a paucity of empirical support to the extent of the relationship with both the financial and none financial performance. Firms in Export Processing Zones (EPZs) in Kenya were studied. Significant relationship was established only with internal business process performance. Theoretically, the study showed that management participation is a much more complex variable moderated by other factors. Therefore, managers ought to focus on moderating factors like culture and diversity to understand the relationship between management participation and performance.
Highlights
Organizational performance is greatly influenced by the depth and breadth of management involvement
The rest of the performance measures which included return on investment, sales growth rate and market performance were not significantly influenced. These results are in line with past studies which focused on management participation and performance and reported mixed results
This is in light of the significant percentage of capital investment ploughed to the firms in Export Processing Zones (EPZs) by both the local entrepreneurs and multinational companies
Summary
Organizational performance is greatly influenced by the depth and breadth of management involvement. In the field of strategic management, many studies have focused on the middle and top management [1]-[4]. These studies focus on the general organizational performance. This study attempts to determine the relationship between management participation with both the financial and non financial performance measures. This study was premised on the venerated role management participation plays in firm performance. Export Processing Firms (EPZs) have been rapidly growing as indicated by the rate of entry [5] and they play a key role in
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