Stakeholders involvement in strategy development in state corporations within the coastal region of Kenya

Abstract

State corporations in Kenya exist to meet the objectives of various stakeholders with diverse interests in the environment they operate in. They play an important role as partners in development by working to improve the lives of the Kenyan citizens. The role these organizations play is critical as they provide vital services not met by the central government. The central concern of stakeholder involvement is the survival of the firm hence managers need to understand who the stakeholders are, what their issues are, and what motivates them. It encourages integrated approach to decision making and management to develop strategies that ensure long-term success of the organization. The overall aim of this study was to assess stakeholder involvement in strategy development among the State Corporations in the Coastal region in Kenya. The specific objectives were to determine the extent of stakeholder involvement in the strategy development process and to establish factors influencing the stakeholders’ involvement in the strategy development process of State Corporations in the Coastal region. Literature review was gathered from various sources with more emphasis on more current literature from renowned authors in stakeholder management and strategy development. The research used a descriptive survey design which aimed at assessing extent of stakeholder involvement in strategy development. The data collection tool used was a questionnaire with closed and open-ended questions guided by the contents of the literature review and aimed at achieving the set objectives. The study population was the thirteen State Corporations based in the Coastal region of Kenya. The study revealed that the State Corporations involve their stakeholders in the strategy development process. The study also established that the firms consider various factors in deciding the level of stakeholder involvement in the strategy development process. The study concluded that the State Corporations involve their key stakeholders in the strategy development process and consider numerous factors in deciding to what extent they should involve their stakeholders. The study recommends that the management of the State Corporations consider involving more stakeholders in future and that the government consider privatisation in order to make firms more efficient.