Effect of Organizational Culture on the Performance of Family Owned Businesses in Kenya: A Case of Chandaria Industries Limited, Nairobi

Abstract

This study sought to find out if organizational culture had an effect on the performance of family businesses in Kenya, with a specific focus on Chandaria Industries Limited. The study was guided by the following objectives:to identify the components of organizational culture, to examine the measures of performance and to examine the effect of organizational culture on the performance of family-owned businesses. The study conducted a descriptive research design and sampled a total of 170 staff of Chandaria Industries Limited which included senior management, middle level management and subordinate staff. Data was collected by use of a questionnaire and data analyzed usingSPSS version 21 software. Data was presented using frequency tables and figures. The response rate for this study was at 70%. The study was able to establish the following key findings: The study found that the components of organizational culture includedleadership, consistency, mission and team involvement as noted by 61.9%, 64.3%, 71.4% and 78.6% of the respondents respectively. The results of the study revealed that there was high correlation between competency and mission with employee satisfaction. The study also established that the measures of performance at Chandaria industries limited included competitiveness, employee satisfaction and growth. The study concluded that organizational culture components such as leadership, consistency, mission and team involvement affected organizational performance at Chandaria Industries Limited. The study recommends the stipulation of clear goals, to engage its teams and enhance organizational the extent of implementation of organizational culture.