Effect of Stakeholder Participation in Planning on Performance of Kenyan Alcohol Manufacturing Firms

Abstract

Manufacturing companies have a direct impact on national governments and value addition at large. Manufacturing, like other sectors, has felt the effects of a variety of stakeholder engagement factors. Although many companies engage their stakeholders in day-to-day business activities, studies have reported a challenge for them in managing diverse operations in dispersed markets. An examination of the effect of stakeholder participation in planning on the performance of Kenyan alcohol manufacturing firms, namely East African Breweries Limited, Kenya Wine Agencies Limited, and Keroche, was undertaken. The study concentrated on the performance of these firms for five years (2017–2021). Guided by stakeholder theory, the study adopted the descriptive cross-sectional research design. The target population was 608 stakeholders (senior management, middle management, and lower management) working in various employment cadres. The stratified random sampling design was used to sample 241 respondents from various departments. Data was collected through questionnaires and analysed descriptively and inferentially. Descriptive statistics involved means, standard deviations, frequencies, and percentages, while inferential statistics involved Pearson correlation and simple regression analysis. The Shapiro-Wilk test of normality was conducted, and since the p-values were above 0.05, the data was normal. The study found that stakeholder participation had a significant effect on organizational performance in selected alcohol manufacturing entities (t = -6.958, p<0.05). The study therefore rejected the null hypothesis formulated. The study recommends frequent engagement of stakeholders at work by firm management to enhance performance.