Synergistic Effects and Financial Performance of Kenya Agricultural and Livestock Research Organization
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Date
2024-06-22
Authors
Okuku, Washingtone Oluoch
Ndede, Fredrick W.S.
Journal Title
Journal ISSN
Volume Title
Publisher
IJRISS
Abstract
This paper explores the synergistic effects and financial performance of KALRO, which is one of the State
Corporations in Kenya. It envisaged finding out whether there is a strong relationship between operating and
financial synergies and KALRO’s financial performance using primary and secondary data. A sample of 32
respondents were selected using stratified random sampling from key management personnel. Structured
questionnaires were administered to gather information, which was analyzed on SPSS Statistics version 25.A
pilot study was used to test for the validity of the study to know whether the questions were aligned with the
study hypotheses. The findings revealed that synergy gains had a bigger influence on the performance of
KALRO. The operating synergy was found to have a significant positive influence on KALRO’s performance
(Adjusted R2 = 0.695; p = 0.024), while financial synergy had an insignificant negative influence on KALRO’s
performance (Adjusted R2 =0.185; p =0.218). Government policy was found to have a significant mediating
effect between synergistic gains and performance of KALRO. The limitation of this research was the smaller
sample size, thus, a comprehensive research was recommended to determine the synergy spread in all 16
KALRO institutes and centers
Description
Article
Keywords
Synergy, Operating synergy, financial synergy, KALRO, State corporations, Parastatals
Citation
Oluoch, O. W., & Ndede, F. W. (2024). Synergistic Effects and Financial Performance of Kenya Agricultural and Livestock Research Organization. International Journal of Research and Innovation in Social Science, 8(5), 2213-2223.