Employees’ facilitative allowances on the performance of commercial state corporations in Kenya

Abstract

This study examined the effect of employees’ facilitative allowances on the performance of commercial state corporations in Kenya. Despite their mandate, many commercial state corporations have consistently underperformed, raising concerns about their continued existence. Scholarly research on whether employees’ facilitative allowances structures and their implementation affect the performance of commercial state corporations in Kenya is lacking. The study draws on theories such as Resource-based theory, Principal Agency Theory, Dynamic capability theory, and Stakeholder Theory. A survey research design was employed, targeting 612 managers from 68 commercial state corporations in Kenya. The sample size of 242 managers was determined using the Yamane sampling formula. The research instrument demonstrated high reliability and validity. Inferential and descriptive statistical analyses were performed on the data collected, including multiple regression models and hierarchical regression for moderation analysis. The results revealed that employees’ facilitative allowances significantly and positively influenced the performance of commercial state corporations. These findings emphasise the importance of employee facilitative allowances in enhancing the performance of commercial state corporations. Recommendations include prioritising facilitative allowances and the implementation of remuneration policy guidelines for improved performance. Overall, this research offers significant insights into the influence of employees’ facilitative allowances on commercial state corporations’ performance in Kenya.