Declining University Performance: Kenyans Demand More Restructuring Strategies and Government Regulatory Attention

Sabbena Nthenya Kivindo^1, , Stephen M. A. Muathe¹ and Anne W. Muchemi¹

¹School of Business, Economics and Tourism, Kenyatta University

Cite this paper:
Sabbena Nthenya Kivindo, Stephen M. A. Muathe and Anne W. Muchemi. Declining University Performance: Kenyans Demand More Restructuring Strategies and Government Regulatory Attention. Journal of Business and Management Sciences. 2024; 12(6):244-254. doi: 10.12691/jbms-12-6-1

Abstract

Since education has the transformative power to advance a nation through increased opportunities, social cohesion, and sustainable economic growth, public universities are essential in every nation. These institutions are instrumental in advancing the Sustainable Development Goals through the generation of knowledge and the initiation of research that results in innovative breakthroughs. This investigation sought to determine the effect of restructuring strategies and regulatory framework on performance of selected public universities in Kenya. It was specifically concerned with determining how the performance of a few Kenyan public universities was affected by restructurings related to operations, downsizing, and governance reform; and as well examine how government regulations moderate the relationship between restructuring strategies and performance of selected public universities in Kenya. The research utilized dynamic capability theory, institution theory and balanced scorecard model. A semi-structured questionnaire was administered to 341 public university management team members. A multiple linear regression model was employed to evaluate the study hypothesis, utilizing a 95% level of significance for hypothesis testing. According to the study's findings, the performance of the chosen public universities was considerably improved by operations redesign and downsizing restructuring while governance reform restructuring negatively affected the university performance. On the other hand, regulatory framework played a significant moderating role between restructuring strategies and performance of the selected public universities in Kenya. The results provide empirical validation of the robustness of restructuring strategies and regulatory framework in explaining the moderating effect of regulatory framework on the relationship between restructuring strategies and organization performance. The study adds a new dimension to the existing body of knowledge, emphasizing the critical role of external regulatory environments in shaping the effectiveness of internal organizational strategies. The study recommends that university management members must adopt and maintain high standards of quality education and assurance as outlined by the Commission of University Education, performing regular quality checks of academic programs and ensuring that teaching facilities meet recommended standards.

Keywords:
Regulatory framework restructuring strategies operations redesign restructuring downsizing restructuring governance reform restructuring organization performance

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