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EFFECTS OF CHIEF EXECUTIVE OFFICER’S SOCIAL NETWORKS AND PERFORMANCE OF STATE CORPORATIONS IN KENYA

 
Ben Chumo
School of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology


James M. Ngari
School of Business and Economics, Kenya Methodist University

 
ABSTRACT

Chief Executive Officers are one important organizational resource that sets the path for the firm’s strategic direction. There was need to carry out a study in Kenya and consider whether there is a relationship between the Chief Executive Officers’ social networks and performance of state corporations in Kenya. The specific objectives of the study were to determine whether, social networks, both intra-firm and inter-firm affect the performance among state corporations in Kenya. The study was carried out in Nairobi where the Chief Executive Officers and management staff of 11 state corporations were based. The research study used descriptive research design and the target population constituted 477 management staff and Chief Executive Officers’ of the eleven state corporations.  However, only 153 formed the sample size which represented 30% of the total population. The Chief Executive Officers’, heads of departments and middle level management formed the key respondents of the research study. The study employed a structured questionnaire to collect data. Data collected was analysed using Social Science Statistical Package (SSPS). Reliability was tested using Cronbachs alpha and all the variables met the threshold for subsequent analysis. Factor analysis was also employed to test for validity where the questions that didn’t meet the threshold were dropped and not considered for subsequent analysis. Correlation analysis indicated that the independent variables had a positive and insignificant relationship with organizational performance of state corporations in Kenya. Regression analysis was also used to test the nature of the relationship and it was reported that among the three independent variables, CEOs’ social networks had a positive but insignificant relationship with performance of state corporations. CEOs’ social networks explained 10% of variation in performance of state corporations in Kenya. The study therefore concluded that CEOs’ social networks have no significant effect on the performance of state corporations in Kenya.


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