Abstract:
Many public corporations experiencing decline in performance have opted to implement
turnaround strategies to improve their performance. This study extends previous research
findings by seeking to examine the effect of turnaround strategies on performance of
Public Corporations in Kenya, by identifying the turnaround strategies adopted in these
Corporations, and to determine the effect of turnaround strategies on their performance.
To achieve this objective, correlational research was adopted. The target population
comprised 162 public corporations in Kenya. A purposive sample of thirty two (32)
corporations was used in the study. A Likert type scale questionnaire was administered to
respondents to collect data from the selected public corporations. Primary data was
complemented with secondary data collected from the corporations for the previous three
years. Data collected was edited and processed using Statistical Package for the Social
Sciences (SPSS). Descriptive statistics that is in percentages were used to describe the
research variables. Pearson’s product moment coefficient was used to examine the
relationship between turnaround strategies and organisational performance and multiple
regression was used to establish the effect of turnaround strategies on performance of the
corporations. The results showed a significant positive relationship between turnaround
strategies and performance, P-value<0.05. The positive relationship suggests that when
declining corporations implement turnaround strategies (revenue generating and cost
reduction strategies) their performance when measured using the balance scorecard
measurement tool which measures financial perspective, customer satisfaction, internal
business processes and innovation and learning perspectives, will improve positively. The
findings also found that cost reduction strategies had a greater effect on the performance
of public corporations in Kenya compared to revenue generating strategies. Therefore, it
can be recommended that public corporations need to implement turnaround strategies to
turn around declining corporations. The study also recommends areas of further research
