Effect Of Organisational Culture on Employee Performance in Public Water Companies in Coastal Kenya

The study investigated how organizational culture (adhocracy, clan, market, and hierarchical) affects employee performance in seven public water companies in Coastal Kenya. It was guided by dynamic capabilities theory, job-embeddedness theory, and bureaucratic theory and used a descriptive research design. The target population was 428 employees; a sample of 207 was drawn using proportionate stratified random sampling with Slovin’s formula (e = 0.05). Data were collected via a structured questionnaire whose validity and reliability were confirmed through a pilot test of 21 respondents (10% of the sample). Findings showed that all four culture types significantly influenced employee performance, but with different strengths: hierarchical culture (structured systems, formal procedures, clear authority) was the strongest positive predictor of performance; market culture (performance orientation, targets, competitiveness) had a notable positive effect; clan culture (supportive, family-like environment, teamwork) showed a moderate but statistically significant positive relationship; and adhocracy culture (innovation, creativity, risk-taking) produced a smaller yet meaningful influence and was the weakest predictor among the four. Recommendations: public water companies should balance and leverage all four cultures—promote clan features (support, teamwork), strengthen adhocracy (space for innovation and calculated risk-taking), embed market practices (clear goals, accountability), and sustain hierarchical elements (well-defined processes and leadership) that provide stability and clarity. The study also calls for comparative research across other regions and sectors (e.g., healthcare, education, transport) to test generalizability and reveal any sector-specific cultural dynamics.