Effect Of Corporate Governance On Performance Of Kenya Agricultural And Livestock Research Organization In Kenya

Abstract

The aim of the study was to determine the effect of corporate governance management on performance of Kenya Agricultural and Livestock Organization research funds. Descriptive research design was applied. The study had a population of 75 employees from the Kenya Agricultural and Livestock Research Organization research institutes. The study utilized primary and secondary data which was collected using questionnaires. The study managed to obtain 64 completed questionnaires. representing 85. 3 percent response rate. A pilot test was conducted using 22 questionnaires of research scientist and technical officers to check the reliability and validity of the data. The statistical package for social sciences (SPSS) version 24 was used to analyze data. Descriptive statistics was used describe the variables using the mean and standard deviation. Regression analysis was used to establish the effect of corporate governance on the performance of the Kenya Agricultural and livestock research funds. As shown by the mean of 2.572 it was clear that leadership has a moderate impact on performance of research funds. As demonstrated by a mean of 3. 853 it is evident that control mechanism has significant effect on performance of research funds. Institutional culture has a big impact on the performance of research funds as shown by the mean of 3. 531. As shown by the mean of 3.503 performance of research funds is based on the structures the organization put in place. The study revealed that there is a positive relationship which statistically significant between the performance KALRO research funds and institution leadership (r=0.589, P = 000<0.005) There is a strong positive relationship which statistically significant between the performance of KALRO research funds and control mechanism r=0. 0. 700, p=000<0.05) There is a moderate positive relationship that is statically significant between the performance of KALRO research funds and institutional structure (r=0.650 p=000<0.055). There is a strong positive relationship which is statically significant between the performance of KALRO research funds and institutional culture (r= 0.801 P=0.001 < 0.005). Therefore, an increase in institutional leadership, control mechanism institutional structure and institutional culture results in higher performance of KALRO research funds. The results of the analysis of variance (ANOVA) test indicated that independent variables (institutional leadership, control mechanisms, institutional structure and culture are important in performance of KALRO research funds as indicated by significance value =0.000 which is lesser level significance (p=value 0.000<0.005). The study concluded that the effect of corporate governance and performance of research funds was positive. The limitation of this study it was carried on only KALRO research institutes neglecting other research institutions. This study recommends that the management to fortify leadership system, establish a setting whereby member of staff assist one another, support institutional committees to operate effectively so as to enhance transparency and accountability. Allocate adequate resources to support employees undertake their tasks. ensure continuous orientation of employees to enable them acclimatize with the organization.