INFLUENCE OF ORGANIZATION RESTRUCTURING ON PERFORMANCE OF SELECTED MEDIA FIRMS IN KENYA
DOI:
https://doi.org/10.47941/jbsm.714Abstract
Purpose: The current study sought to establish the influence of organization restructuring on performance of selected media firms in Kenya. The study specifically sought to establish the influence of cost restructuring, governance reformation, downsizing and processes centralization on performance of selected media firms in Kenya.
Methodology: The theories that guided the study includes Transaction Cost Theory, Agency Theory, Social Exchange Theory and Planned Change Theory. The study adopted a descriptive research design. The target population of the study comprised of three media firms in Kenya (Nation Media Group, Royal Media Services and Standard Group Limited). A total of 340 employees in the managerial positions of the selected media firms were targeted in the study. The study adopted Yamane (1967) sampling formula in acquiring a sample of 183 respondents. The study used quantitative data that was collected from respondents using 5 point Likert scales questionnaire with closed ended questions. A pilot test was conducted prior data collection to assess the reliability and validity of the questionnaires. Data was analyzed using SPSS. Both descriptive and inferential statistics were used. The study findings were presented in form of tables and figures for easier interpretation.
Findings: The study established that Cost Restructuring, Governance Reformation and Downsizing positively and significantly influences performances of media firms and that increase in one indicator increases the levels of performances. Process Centralization was found to positively influence performance levels of media firms but to insignificant levels.
Unique Contribution to Theory Practice and Policy: The study provided recommendations to the media firms to enhance their cost restructuring practices since the practice bears positive influence on performance, to capitalize on reforming their respective governance since the practice bears positive influence on performance, to enhance downsizing activity since the practice bears positive influence on performance and to partly focus on enhancing centralization processes since the practice bears positive but insignificant influence on performance.
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