INFLUENCE OF POWER DISTANCE ON EMPLOYEE EMPOWERMENT AND MULTINATIONAL CORPORATION PERFORMANCE IN KENYA

  • M. A. Oloko Commerce and Economics Studies, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya
Keywords: Employee empowerment, power distance and multinational corporation performance (MNC)

Abstract

A study was carried out with the specific objectives as to establish the influence of power distance on the
strength of the relationship between employee empowerment and organization performance and to establish
whether there is a direct relationship between employee empowerment and organization performance. Data
for the study was collected using a questionnaire which contained measurements of power distance,
employee empowerment and non-financial measures of performance of organizations. A pilot study was
conducted to pre-test the questionnaire using a sample of 10 respondents. The questionnaire consisted of a
Likert type scale ranging from 5 – very great extent to 1 – not at all. A census study of 60 multinational
corporations operating in Kenya was conducted. The response rate was 65%, which is, 39 firms were
interviewed. These results confirmed that the strength of the relationship between employee empowerment
and MNC performance in a host country is influenced by power distance. The result (r = 0.608, < 0.01) showed
a moderate relationship between employee empowerment and MNC performance. The magnitude of the
correlation coefficient implies a moderate relationship (r = 0643, p < 0.01) between employee empowerment
and organization performance.

Published
2019-05-15