ORGANIZATIONAL RESTRUCTURING AND ORGANIZATIONAL PERFORMANCE OF SELECTED COMMERCIAL BASED PARASTATALS IN KENYA
Abstract
This study examined the effect of organizational restructuring on the organizational performance of selected commercial-based parastatals in Kenya. Guided by the Contingency Theory, the study utilized a quantitative approach, collecting primary data from 85 senior management, 265 middle management, and 850 operational staff across ten commercial parastatals with the largest net profits in FY2022/2023. Stratified random sampling ensured the representativeness of the sample, while structured questionnaires captured data relevant to the research objectives. The findings revealed that organizational restructuring positively influences performance by streamlining roles, enhancing decision-making, and improving operational efficiency. The regression analysis showed strong relationships between organizational restructuring and performance. The study's contributions include insights into the synergistic effects of strategic change interventions and actionable recommendations for parastatal managers and policymakers. Limitations include the study's focus on commercial parastatals in Kenya, reliance on cross-sectional data, and self-reported responses, which were mitigated through rigorous methodological designs and diagnostics. The study recommended longitudinal research to assess the long-term impacts of these interventions, comparative studies across sectors, and further exploration of moderating factors such as organizational culture and external dynamics. The findings provide valuable guidance for enhancing organizational performance through well-planned and executed strategic interventions.
Key Words: Organization Reforms, Change Management, Decision Making, Changes, Structures
CITATION: Mohamed, E., Munga, J., & Kithinji, M. (2025). Organizational restructuring and organizational performance of selected commercial based Parastatals in Kenya. The Strategic Journal of Business & Change Management, 12 (2), 908 – 922. http://dx.doi.org/10.61426/sjbcm.v12i2.3247
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3247
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