Joint Ventures and the Financial Sustainability of Commercial State-Owned Enterprises in Kenya

Abstract

The main focus of this study was to examine the relationship between joint ventures and financial sustainability among selected government-owned enterprises in Kenya, focusing on the Postal Corporation of Kenya (PCK) and the Kenya Broadcasting Corporation (KBC). The study was anchored on the Resource-Based View and adopted a quantitative correlational research design. Primary data were collected using structured questionnaires from employees of the two enterprises. From a target population of 1,720 employees, a sample of 324 respondents was selected through stratified random sampling, of whom 316 returned usable questionnaires. Data were analysed using descriptive statistics, Pearson correlation, and regression analysis. The findings revealed a positive and statistically significant relationship between joint ventures and financial sustainability (r = 0.669, p < .001). Regression analysis further showed that joint ventures explained 44.8% of the variation in financial sustainability (R² = 0.448, F = 254.395, p < .001), with a significant positive regression coefficient (β = 0.669, p < .001). The study concludes that joint ventures are significantly associated with financial sustainability among the selected government-owned enterprises. It recommends that government-owned enterprises strengthen well-governed joint-venture arrangements that support strategic resource mobilisation, investment, and operational efficiency.