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Synergistic Effects and Financial Performance of Kenya Agricultural and Livestock Research Organization

Author

Listed:
  • Okuku Washingtone Oluoch

    (Department of Accounting and Finance, Kenyatta University)

  • Dr. Fredrick W.S. Ndede

    (Department of Accounting and Finance, Kenyatta University)

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.

Suggested Citation

  • Okuku Washingtone Oluoch & Dr. Fredrick W.S. Ndede, 2024. "Synergistic Effects and Financial Performance of Kenya Agricultural and Livestock Research Organization," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(5), pages 2213-2223, May.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:5:p:2213-2223
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    References listed on IDEAS

    as
    1. Mario Benassi & Matteo Landoni, 2019. "State-owned enterprises as knowledge-explorer agents," Industry and Innovation, Taylor & Francis Journals, vol. 26(2), pages 218-241, February.
    2. Bilei Zhou & Jie (Michael) Guo & Jun Hua & Angelos J. Doukas, 2015. "Does State Ownership Drive M&A Performance? Evidence from China," European Financial Management, European Financial Management Association, vol. 21(1), pages 79-105, January.
    3. Agnes Ogada & Amos Njuguna & George Achoki, 2016. "Effect of Synergy on Financial Performance of Merged Financial Institutions in Kenya," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(9), pages 199-207, September.
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