Corporate culture and Performance of Large retail Chain stores in Nairobi City County, Kenya

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Wambui, Pauline Muthoni
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Kenyatta University
Over the last few years, some large retail chain stores have been faced with significant financial woes causing them to experience dramatic decline in performance and eventually collapse. Analysts have argued that poor managerial and cultural attributes have been key factors that have played a key role towards poor performance of retail chain stores across Nairobi City County. Therefore, the main objective of this study was to investigate the effect of corporate culture on performance of large retail chain stores in Nairobi City County Kenya. The specific objectives of this study were to establish the effect of employee involvement, organization norms and values, organization adaptability and organization consistency on performance of large retail chain stores in Nairobi City County, Kenya. The study adopted descriptive research design and was anchored on Resource-Based View, Balanced Scorecard, Daniel Denison and Schein theories. The target population therefore consisted of 6 selected retail chain store branches operating across Nairobi City County (NCC). The unit of analysis was 6 retail chain store branches operating across NCC while the unit of observation was 529 comprising of the managers and supervisors of the supermarkets. The sample size of 228 was attained using stratified random sampling to select the respondents based on whether managers or supervisors and systematic sampling was used to pick the respondents from each stratum. Primary data was gathered using structured questionnaire. Content validity of the data instruments was checked by the research supervisor. The instruments’ reliability was measured using Cronbach’s alpha. The research yielded both quantitative and qualitative results. The quantitative data was coded and entered into the Statistical Packages for Social Scientists (SPSS Version 25) software, which was then analyzed using descriptive statistics. The opinions of the respondents' were also used to generate qualitative data. Responses that share common patterns were placed together in the same category. In addition, the researcher used a multiple regression analysis to evaluate the extent of the relationship between the response and predictor variables at a 95% confidence level. The study established that decisions are not usually made at the level where the best information is available. The research also found that the working procedures in the supermarket are flexible allowing for employees to make key decisions. The research found that the supermarket does not encourage and reward those who take risk. Moreover, the study found that the supervisors and managers follow the guidelines that they set for the rest of the organisation. The study concluded that organization norms and values had the greatest effect on the performance of large retail chain stores in NCC Kenya, followed by employee involvement, then organization adaptability while organization consistency had the least effect to the performance of large retail chain stores in NCC Kenya. The study recommends that the large retail chain stores in NCC establish the right organisational culture that would cultivate an environment that support successful strides in their performance. Teamwork can also be encouraged to improve information access from other departments by fostering strong synergy between departments. The study recommends that other studies should consider looking at the medium and small sized retail chain stores in order to compare results. Moreover, other studies should consider other retail chain stores in other counties apart from Nairobi City County.
A Research Project Submitted to School of Business in partial Fulfillment of the requirements for the award of Degree of Master of Business Administration (Strategic Management), Kenyatta University
Corporate culture, Performance, Large retail Chain stores, Nairobi City County, Kenya