Managing Resistance to Change and Its Effect on Performance of State Corporations within Nairobi Metropolitan Area, Kenya

Abstract

This study investigated the effect of managing resistance to change on the performance of state corporations in the Nairobi Metropolitan Area, Kenya. Despite ongoing reforms, many state corporations continue to face challenges such as inefficiencies, financial losses, and poor service delivery, largely attributed to resistance to change. The study examined four key strategies; communication, employee involvement, technological adaptability, and capacity building, as well as the moderating role of government policies and regulations. It was guided by two objectives: to establish the effect of managing resistance to change on performance of state corporations in Nairobi Metropolitan Area, and to determine the moderating effect of Government Policies and Regulations on the relationship between Resistance to Change management and Performance of State Corporations within Nairobi Metropolitan, Kenya. Guided by established theories including Lewin’s Change Model and the Technology Acceptance Model, the study adopted a descriptive research design involving a sample size of 215 respondents determined by Yamane 1967 formular which was selected from 187 state corporations. Data were collected using structured questionnaires and analyzed using descriptive and inferential statistics. The findings revealed that all four strategies significantly and positively influence organizational performance, collectively explaining 42.6% of performance variation. Government policy compliance was also found to significantly strengthen the relationships between the predictors and organizational performance. The study concludes that effective management of resistance to change enhances organizational performance, particularly when aligned with regulatory frameworks, underscoring the position that organizational initiatives are more effective when implemented within the boundaries of government policies and regulatory guidance. The study recommends strengthening communication, employee involvement, technological investment, training programs, and policy alignment to improve performance outcomes.