INFLUENCE OF HUMAN RESOURCES ON PERFORMANCE THROUGH CORPORATE GOVERNANCE OF REGIONAL DEVELOPMENT AUTHORITIES IN KENYA
Abstract
The objective of this study was to determine the influence of corporate governance on the relationship between organizational resources and performance of regional development authorities in Kenya. The specific objectives were to determine the influence of human resources on the performance of regional development authorities in Kenya and establish the moderating effect of corporate governance on the relationship between human resources and performance of regional development authorities in Kenya. The study adopted explanatory research design. The study was conducted in six regional development authorities that cover 47 counties. This included Kerio Valley Development Authority, Ewaso Ngiro South Development Authority, Ewaso Ngiro North Development Authority, Coast Development Authority, Lake Basin Development Authority, Tana and Athi Rivers Development Authority. The targeted population was 169 comprising of chief managers, managers, heads of department and chief accountant. The study used stratified random sampling to select 118. Primary data was collected using structured questionnaires and interview schedules. Pilot study was conducted to test validity and reliability of research instruments. Validity was ascertained using content and construct validity while reliability using Cronbach alpha. Data was analyzed using both descriptive and inferential statistics. The null hypotheses were tested at 5% significance level. The findings revealed that when human resources changes by a unit, performance changes by 0.418 units (β2=0.418, P=0.000). Corporate governance has significant moderating influence on the relationship between human resources and performance as indicated by change in R2=0.241, p=0.000 implying that the corporate governance explained up to 24.1% change in performance of regional development authority. Accountability had significant positive moderating effect on the relationship between human resources and performance while board composition had significant negative moderating effect on the relationship between human resources and performance. The study recommended possessing human resources is not enough to create superior performance hence there is need for firms to be organized in order to take full advantage of their human resources.
Keyword: Human Resources, Corporate Governance, Performance, Regional Development Authorities.
CITATION: Wanyama, E. W., & Shitseswa, E. A. (2020). Influence of human resources on performance through corporate governance of regional development authorities in Kenya. The Strategic Journal of Business & Change Management, 7(3), 1 – 15.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1654
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