CORPORATE RESTRUCTURING AND PERFORMANCE OF CEMENT MANUFACTURING FIRMS IN MACHAKOS COUNTY, KENYA

Michael Mukinusu Masinde, Dr. Robert Gitau

Abstract


Corporate restructuring is the process of redesigning one or more aspects of a company. Turbulent and ever changing working environment has severely affected businesses resulting in losses thus drop in performance. It is evident that most of them have resorted to restructuring to turn around this situation. The purpose of this study is to determine the influence of corporate restructuring on the performance of cement manufacturing firms in Machakos County, Kenya. Specifically, the study sought to determine the extent to which financial restructuring affect the performance of cement manufacturing firms in Machakos County, Kenya and to assess the effects of developmental restructuring on performance of cement manufacturing firms in Machakos County, Kenya. The study adopted a survey research design. The target population of this study consisted of all the Cement Manufacturing firms, operating in Machakos County. The sampling frame of this study was all the 400 employees of six cement manufacturing   in Machakos County. The study used stratified random sampling to select 10% of the target population. The researcher theretofore took a sample of 40 which is above 10% of the population of 400. This study used primary data. Questionnaires were used in the collection of data. The study employed a multiple Regression analysis to estimate the causal relationships between elements under study. With the aid of Statistical Package for Social Sciences (SPSS) the research performed a multiple regressions analysis on primary data. The results of analyzed data were presented using tables and charts with a brief description thereafter. The study concludes that financial restructuring has a positive and significant effect on performance of cement manufacturing firms in Machakos County, Kenya. The study also concludes that developmental restructuring has a positive and significant effect on performance of cement manufacturing firms in Machakos County, Kenya. Based on the findings, the study recommends that the management of cement manufacturing firms in Kenya should embrace developmental restructuring by prioritizing innovation and technology adoption. By investing in research and development, firms can explore new production methods and sustainable practices that not only improve efficiency but also reduce environmental impact.

 

Key Words: Corporate Restructuring, Financial Restructuring, Developmental Restructuring, Performance of Cement Manufacturing Firms in Machakos County, Kenya


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