Influence of Power Distance on Employee Empowerment and MNC Performance: A Study of Multinational Corporations in Kenya

Abstract

This study focused on the influence of power distance on the relationship between employee empowerment and performance of multinational corporations in Kenya. In the recent past, employee empowerment has been promoted as a general recipe for enhancing work performance. The main objective developed for this study is to determine whether the strength of the relationship between employee empowerment and performance of a multinational corporation depends on power distance. Data for the study was collected using a questionnaire which contained measurements of power distance, employee empowerment and multinational corporation performance. The questionnaire consisted of a Likert type scale ranging from 5 – very great extent to 1 – not at all. A census study of 60 multinational corporations operating in Kenya was conducted. Data was analyzed using multiple regression analysis was used to test this hypothesis. Regression analysis was conducted and the findings showed that power distance moderated the relationship between employee empowerment and multinational corporation performance. Thus, the study concluded that power distance determines the success or failure of multinationals in host countries.