STRATEGIC RESTRUCTURING AND PERFORMANCE OF KENYA POWER AND LIGHTING COMPANY LIMITED IN KENYA
Abstract
The purpose of this study was to examine the influence of strategic restructuring on performance of the Kenya Power and Lighting Company Limited in Kenya. Specifically, the study examined the influence of managerial restructuring and process restructuring on performance of the Kenya Power and Lighting Company Limited in Kenya. The study was informed by the resource-based theory, dynamic capability theory, and resource-advantage theory. The study employed the cross-sectional survey research design to test noncausal relationship between the study variables without the researcher controlling any of them. The proportionate stratified random sampling technique was used to select a sample size of 30 senior managers and 77 middle managers from a target population of 41 senior managers and 105 middle managers of the Kenya Power and Lighting Company Limited in Kenya. A self-administered structured survey questionnaire was used to collect primary data. A pilot study was conducted to test the validity and reliability of the constructed survey questionnaire. The study utilized the drop and pick method. The collected data was coded, edited and entered into the Statistical Package for Social Sciences (SPSS) version 26 to create a data sheet that was used for statistical analysis. The descriptive statistics were used to compute, summarize the data in respect to each variable and describe the sample’s characteristics. The Pearson’s product moment correlation analysis was performed to confirm or deny the relationship between the study variables. The correlation results indicated that managerial restructuring and process restructuring had positive and significant relationship with the performance of the Kenya Power and Lighting Company Limited in Kenya. A standard multiple linear analysis was performed with firm performance as the dependent variable and managerial restructuring and process restructuring as the predictor variables. The correlation results indicated that managerial restructuring and process restructuring had positive and significant influence on the performance of the Kenya Power and Lighting Company Limited in Kenya. The study recommends that managers and practitioners should consider a holistic reassessment and implementation of the strategic restructuring to foster the performance of the electric power distribution companies. The policymakers should consider initiating a review of the existing policies to motivate the managers and practitioners to consider a holistic reassessment and implementation of the strategic restructuring to foster the performance of the electric power distribution companies. Future research should examine the influence of strategic restructuring on firm performance with environmental turbulence as a moderator in other sectors or contexts.
Key words: Strategic restructuring, Process restructuring, Managerial restructuring, Firm performance, Kenya
CITATION: Warigia, C. S., & Kising'u, T. M. (2024). Strategic Restructuring and Performance of the Kenya Power and Lighting Company Limited in Kenya. The Strategic Journal of Business & Change Management, 11 (4), 798 – 820. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3119
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