The Moderating Role of the Legal Environment on the Relationship between TMT Characteristics and Organizational Performance in a Regulatory Setting in Kenya
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Date
2020
Authors
Oketch, Joseph O.
Kilika, James M.
Kinyua, Godfrey M.
Journal Title
Journal ISSN
Volume Title
Publisher
AIR
Abstract
The legal environments of regulatory agencies are key predictors of their organizational performance as they
influence how the regulatory agencies are created, their mandates, sources of funding and reporting frameworks.
Reporting frameworks include the nature of the relationships between the regulatory agencies and the policy
makers, political actors, the legislature, the executive, judicial processes, regulated entities and the public. The
specific objective of the study was to establish the moderating effect of the legal environment on the relationship
between top management team characteristics and organizational performance of the independent regulatory
agencies in Kenya. To achieve this objective, the study adopted descriptive cross-sectional research design. The
target population of the study was all the twenty-three state regulatory agencies currently existing in Kenya. Due
to the uniqueness of each independent regulatory agency and the distinct roles played by each top management
team member in their organization, the study adopted a census survey of all the top management team members
in all the twenty three state regulatory agencies in order to capture the required information. Primary data was
gathered using structured questionnaire administered through drop and pick later method. Descriptive statistics
was then used to summarize the survey data into percentages, frequencies, means and standard deviations.
Whisman and McClelland model was used to test for the moderation. The findings of the study showed that legal
environment has significant moderating effect on the relationship between top management team characteristics
and performance of the independent regulatory agencies in Kenya The study recommends that the independent
regulatory agencies should have stable funding mechanism so as not to rely on the parent ministries or exchequer
support for them to be financially independent in executing their mandates. Lastly the study recommends for
judicial system to recognize and support the work of the independent regulatory agencies in enforcement of the
laws and regulations for their sectors or sub-sectors.
Description
Article
Keywords
Top Management Team Characteristics, Legal Environment, Independent Regulatory Agencies, Organizational Performance
Citation
Oketch, Joseph O. and Kilika, James M. and Kinyua, Godfrey M., The Moderating Role of the Legal Environment on the Relationship Between TMT Characteristics and Organizational Performance in a Regulatory Setting in Kenya (February 3, 2020). Journal of Economics and Business, Vol.3 No.1 (2020), Available at SSRN: https://ssrn.com/abstract=3530224