THE MODERATING ROLE OF BOARD COMPOSITION ON THE RELATIONSHIP BETWEEN ASSESSMENT CAPABILITY AND PERFORMANCE OF SUGAR FIRMS IN KENYA
THE MODERATING ROLE OF BOARD COMPOSITION ON THE RELATIONSHIP BETWEEN ASSESSMENT CAPABILITY AND PERFORMANCE OF SUGAR FIRMS IN KENYA
Gideon Olieki Kato - Jomo Kenyatta University of Agriculture and Technology, Kenya
Dennis Juma - Jomo Kenyatta University of Agriculture and Technology, Kenya
Julius Miroga - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The sugar industry in Kenya has faced tough times recently. This has led to cut throat competition between the sugar firms and forced a rethink of strategy by the players to survive the tough times as each one is constantly in the race to better performance in the industry. This study sought to determine the influence of assessment capability on the performance of sugar firms in Kenya. The study utilized a descriptive survey research design that incorporates quantitative and qualitative approaches. The target population for this study consisted of all management-level employees of the nine sugar firms in the western sugar belt. Using Yamane’s formula to determine the size of the sample, 204 respondents were sampled using random sampling from the population from which primary data was collected using questionnaires administered through drop and pick method. The collected data was coded and analysed using quantitative methods with the help of descriptive and inferential statistics. The results of this study are useful to sugar companies as a guide in the formulation of strategies to enhance their market position and performance. The study is also useful to strategic management practitioners in the sugar industry in the formulation and implementation of strategies and plans to promote growth. The study also builds on existing knowledge in the area of strategic flexibility and therefore, is of benefit to scholars and researchers as it can be used to stimulate farther research to develop a better understanding of assessment capability as a concept of strategic flexibility, its adoption and implementation. The study concluded that board composition has a statistically significant moderation effect on the relationship between the assessment capability and performance of sugar firms in Kenya. Based on the findings of the study the researcher recommends that organizations should put in place proper and adequate mechanisms to constantly monitor their operating environment with the aim of sensing any changes that may need readjustment of the firm in order to cope in the industry.
