Strategic Change Management, Corporate Governance and Firms Performance of Manufacturing Firms in Nairobi County

Abstract

Firm performance is an organization's actual output as assessed against its stated goals and objectives. Performance metrics are metrics that can be used to evaluate an organization. One out of every five projects fail within the first year. The general objective of the study was to determine the moderating effect of corporate governance on the relationship between strategic change management and firm performance of manufacturing companies in Nairobi County. The study was guided by the following specific objectives; to determine the effect of organizational structure changes, technological changes, organizational leadership changes and organizational culture changes on firm performance. The study was guided by the Lewin's Change Management Model, agency theory, stakeholder theory, transaction leadership theory and resource dependency theory. The study adopted explanatory design. The target population for this study were 554 respondents. The sample size were 232 respondents. The study applied the use of stratified random sampling technique. Data were collected using structured questionnaires. Pre-testing of research instruments were achieved through pilot study in manufacturing companies in Kiambu County. The study used content and construct validity. The reliability test were achieved by use of Cronbach’s alpha coefficient. Collected data were analysed using both descriptive and inferential statistics. Descriptive statistics used included frequency, means, mode, minimum, and maximum and standard deviation. Inferential statistics used in this study were correlation and regressions models. Analysed data were presented in form frequency tables and percentages. The study findings revealed that there was a positive linear effect of organizational structure changes on firm performance (β1=.300, p=0.000). Technological changes has a positive and significant effect on firm performance (β2=.203, p=0.000). Organizational leadership changes was found to have a positive and significant effect on firm performance (β3=.121, p=0.017). Organizational culture changes were found to have a positive and significant effect on firm performance (β4=.168, p=0.003). Corporate governance has a positive and significant moderating effect on the relationship between organizational structure changes and firm performance (β=.060; p<0.05). The corporate governance had a positive and significant moderating effect on the relationship between technological changes and firm performance (β=.013; p<0.05). Corporate governance has a positive and significant moderating effect on the relationship between organizational leadership changes and firm performance (β=.012; p<0.05). Corporate governance had a positive and statistically significant moderating effect on the relationship between organizational culture changes and firm performance (β=.164; p<0.05). The study concluded that the organizational structure was positively perceived by the majority of respondents, particularly in terms of encouraging critical thinking and providing learning opportunities to employees. Technological changes, improve effectiveness and efficiency of the company. organizational leadership changes indicate that effective leadership practices, employee development, and role modeling contribute significantly to the firm's performance. Concerning organizational culture recognized the significance of good team orientation and effective communication in the company. Corporate governance has a positive moderating effect on the relationship between relationship between strategic change management and firm performance of manufacturing companies. The study recommended that manufacturing companies focus on improving their corporate governance practices. Manufacturing companies should pay close attention to their strategic change management processes.