Assessment of Turnaround Strategy on Organizational Performance: A Case of Kenya Industrial Estates, Kenya

Abstract

The purpose of this study was to assess the influence of turnaround strategy on organization performance in Kenya Industrial Estates. The aims of the study were to determine the influence of streamlining and to examine the level of adoption of modern ICT systems and its impact on organizational performance of KIE. Descriptive research design was adapted to the study. The target population was 207 out of which a sample size  of  115 employees was selected from  KIE; 85 small and medium enterprises supported by KIE and 7 stakeholders comprising of ICDC, KAM, KEBs, IPC, IDB, KIRDI and Ministry of Industrialization, Cooperatives and Enterprise Development. Primary and secondary data will be applied to collection data, questionnaires will be used to collect primary data. The questionnaires were pre-tested on a pilot basis with a sample of 10 respondents and both research supervisors to discuss and ascertain the validity of the questionnaire. Data was then coded and entered into SPSS (V. 23) creating a data sheet for analysis. Both qualitative and quantitative techniques were used to analyse data. Characteristics of collected data were analysed using descriptive statistics; Pearson's correlation. The hypothesis in the study was tested at 95% confidence level. The study established that organizational streamlining (B=0.100; p <0.05), restructuring (B=0.374; p <0.05) and adoption of modern ICT systems at KIE (B=0.553; p <0.05) had enabled the organization to improve on its performance at 5% level of significance. However, downsizing that had been carried out at KIE had no significant effect (B=0.001; p > 0.05) on performance of KIE. The study makes the following recommendations. First, as time passes, KIE may find that further organization structures need to be streamlined. Change is an evolving process. KIE must continually examine and revise its business processes and operations. Secondly, MSMEs play a vital role in Kenya's economy and are an integral component of the country's growth strategy. KIE should also encourage MSMEs to adopt technology to reap its benefits. This will also increase integration, coordination and communication between KIE and these MSMES. Thirdly, restructuring is an important strategy in any turnaround. KIE needs to ensure that this is not an event but a process. In future more restructuring may be required since the business environment is dynamic and is in a state of continuous change.