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Julius Ochieng Olayo

Jomo Kenyatta University of Agriculture and Technology (JKUAT)



Dr. Alice N. Simiyu

Jomo Kenyatta University of Agriculture and Technology (JKUAT)



Prof. Elegwa Mukulu

Jomo Kenyatta University of Agriculture and Technology (JKUAT)



CITATION: Olayo, J., O., Simiyu, A., N., Mukulu, E. (2018). The Moderating Effect Of Corruption, Nepotism And Tribalism On The Relationship Between Strategic Human Resource Management Practices And Performance Of Parastatals In Kenya. International Journals of Strategic Management. Vol. 7 (4) PP 71 – 84.







As globalization and competition becomes a real phenomenon, there is more emphasis to link strategy and organization performance. To compete effectively, organizations must adopt ways of enhancing their competitive advantage and profitability. This study sought to determine the moderating effect of corruption, nepotism and tribalism on the relationship between SHRM practices and performance of parastatals in Kenya with both quantitative and qualitative approaches. A population of 9600 was targeted in 32 purely commercial parastatals in Kenya. A sample of 240 respondents was selected from 10 parastatals using cluster random sampling technique. Cluster sampling allows study of parastatals in the clusters as they are involved in different businesses. The respondents included CEOs, senior managers, supervisors and other staff in each of these parastatals. Primary data was obtained from the respondents through self-administered questionnaires and interviews. Questionnaires were administered through drop and pick later method. Interviews were conducted by use of an interview guide. Data was analyzed using both descriptive and inferential statistics with the use of Statistical Package for Social Science (SPSS version 22). Descriptive and inferential statistics were used for analysis. The study findings indicated that the performance of parastatals was deteriorating and facing much competition from other industries. The study concluded that strategic human resources management practices have a significant positive effect on the performance of parastatals. When all this practices (recruitment, training, decentralized teams and employee reward) were used, it was found that there was improved performance in the parastatals. However when the moderating variable was added into the model, the study found a negative and significant effect on performance. The study therefore concludes that corruption, nepotism and bribery had a negative and statistically effect on the relationship between strategic management practices and performance of parastatals. The study recommends that change management should be encouraged to wipe out corruption in the recruitment and selection processes so as to have the competent employees who will enhance organizational performance. The top management should be in support of the changes so as to make the strategic human resource management practices effective in the organization if any success is to be achieved.


Key Words: Corruption, Nepotism, Bribery, Tribalism, Performance, Parastatals


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