The relationship between lean practices and performance of parastatals in kenya

Abstract

The ability to identify changes in an environment and appropriately respond by choosing a convenient management approach is critical to the success of parastatals. Globally, lean is one of the management concepts that ensure this. There is limited evidence linking these in Africa, and particularly in Kenya. From several financial performance reports including 2021/2022, the performance of some parastatals in Kenya is below average (2.40). They register low performance yearly thus suggesting insufficient implementation of lean practices. Past studies investigated the effect of individual constructs of lean, leaving the composite effect unattended. This study sought to analyse impact of Lean Practices on performance of parastatals, and was guided by Institutional theory.

A census approach was applied with a target population of 34, comprising 102 respondents, out of which 12 respondents were sampled using a cluster technique and 86 for the actual study. Questionnaires were administered to collect data and were analysed using descriptive statistics. Cronbach’s alpha tested reliability as content validity tested validity. Sample results show a coefficient of 0.818, implying that the instrument is reliable. The findings reveal that Lean had 71.7% significant effect on performance. The study concludes that lean has a significant and positive impact on the performance of parastatals in Kenya and recommends that parastatals in Kenya should continue to prioritize the implementation of lean practices as a key strategy for enhancing performance.