PERFORMANCE OF REGIONAL DEVELOPMENT AUTHORITIES IN KENYA

Abstract

government development strategic plan, the Kenya Vision 2030. The RDAs have a big potential in attracting investments to achieve sustainability and complement the government’s efforts in wealth and employment creation. However, a number of management challenges inhibiting RDAs from achieving its objectives. For instance, a protracted and winding plan preparation process brought about by limited planning skills, capacity and financial resources have affected effective plans formulation and implementation. The process has also operated without linkages to key planning institutions and without effective implementation frameworks. This has resulted to over dependency on the exchequer for their recurrent and capital requirements, dilution of the mandate of RDAs and diversion of funds to other institutions for activities meant to be implemented by RDAs; weak institutional support, poor governance, lack of autonomy, unclear policies on ownership of assets and absence of regional development policy. Therefore, the purpose of this study was to determine the influence of corporate governance on the relationship between organizational resources and performance of regional development authorities in Kenya. The specific objectives were to establish the influence of technological resources on performance, determine the influence of financial resources on the performance, establish the influence of human resources on the performance and establish the moderating effect of corporate governance on the relationship between organizational resources and performance of regional development authorities in Kenya. The study was guided by resource based theory, dynamic capabilities theory, stewardship theory and contingency theory. The study adopted explanatory research design. The study was conducted in six regional development authorities that cover 47 counties. This includes Kerio Valley Development Authority, Ewaso Ngiro South, Ewaso Ngiro North, Coast Development Authority, Lake Basin Development Authority, Tana and Athi Rivers Development Authority. The targeted population was 169 comprising of chief managers, managers, heads of department and chief accountant. The study used stratified random sampling to select 118. Primary data was collected using structured questionnaires and interview schedules. Pilot study was conducted to test validity and reliability of research instruments. The researcher used descriptive statistics and inferential statistics. The findings revealed that organizational resources significantly accounted for 42.3% variation in performance of regional development authorities in Kenya (R2=0.423, P=0.000). Specifically, when technological resources changes by a unit, performance changes by 0.375 units (β1=0.375, P=0.000); when financial resources changes by a unit, performance changes by 0.236 units (β2=0.236, P=0.011); when human resources changes by a unit, performance changes by 0.418 units (β1=0.418, P=0.000). Corporate governance has significant moderating influence on the relationship between organizational resources and performance as indicated by change in R2=0.109, p=0.000 implying that the interaction of organizational resources and corporate governance explained up to 10.9% change in performance of regional development authority. The study concluded that organizational resources influence performance. The study further concluded that corporate governance significantly increases the influence of organizational resource on performance of regional development authorities. The study recommended that regional development authorities ought to reduce overdependence on exchequer to resources but generate their own financial resources and link with other organizations for transfer as well as upscale for technological and human resources. The study also recommended that board should be diverse in terms of gender, relevant industry experience and independent board member from the management.