Effect Of Non-Market Stakeholders’ Interests On Organizational Productivity: A Survey Of Rift Valley Bottlers Limited

Abstract

The study sought to assess the effects of nonmarket stakeholders’ interest on the productivity of Rift Valley Bottlers Limited. The specific objectives of the study were: to establish the effect of community interest on the productivity of Rift Valley Bottlers Limited; to determine the effect of media interest on the productivity of Rift Valley Bottlers Limited, and to assess the effect of Government interest on the productivity of Rift Valley Bottlers Limited. The study adopted a survey research design and it targeted 3 nonmarket stakeholders, namely the community, media and government. A sample size of 147 respondents out of a target population of 233 was arrived at andstratified random sampling technique was employed to sample study respondents.Questionnaires were employed to collect data and each group of respondents had a unique questionnaire due to their unique interest on the organization. A pilot test onwas conducted on Equator Bottlersthe Kaiser Meyer Olkin Measure of Sampling Adequacy (KMO) measured validitywhile Cronbach’s alpha measured reliabilityof questionnaires. Descriptive analysis employed frequencies, percentages and mean and inferential analysis employed multiple linear regressions analysis) and Pearson Correlation analysis to test the relationship between research variables. The findings indicated that there is a strong positive correlation (0.748) and a significant relationship (p=0.001) between community interest and organizational productivity, a moderate negative correlation (0.459) and insignificant relationship (p=0.472)exist between media interest and organizational productivity and it a strong negative correlation (0.546) and insignificant relationship (p=0.163)exists between government interest and organizational productivity. The results also indicated existence of a strong linear relationship (R=0.796) between nonmarket stakeholders’ interests and organizational productivity and that nonmarket stakeholders interests contribute 63.4% (R2=0.634) towards organizational productivity.These findings are significant in providing insight on the contribution of nonmarket stakeholders on the overall performance of an organization and it recommendsorganizations to foster an understanding of the interests and contributions of the nonmarket stakeholders, improvement in production speed, ethical complianceand regularly communication.