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Author(s): Fredrick Githui, Margaret Oloko (Prof.), Jane Njuru (Ph.D.), Caroline Ntara (Ph.D.).

Volume/Issue: Volume 9, Issue 1 (2026)

Page No: 1-18

Journal: International Journal of Entrepreneurship and Business Innovation (IJEBI)

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Abstract:

Kenya government commercial institutions are operating in a more intricate and competitive environment that requires adaptability, creativity, and strategic modernization. This study takes into account the intersection of modernization efforts and performance of government commercial institutions with focus on how organizational performance is influenced by improvements in technology, digitization, and business process engineering. The research aims to evaluate if modernization as an element of turnaround strategy contributes to operational efficiency, improved delivery of services, and institution sustainability. Using a descriptive survey design, the study targeted a population of 34 government-owned commercial entities in Kenya. Primary data were collected using structured questionnaires and statistically analyzed using descriptive statistics and linear regression modeling via SPSS. Post-positivist philosophy and quantitative orientation were adopted by the research to allow for replicability and objectivity of findings. The results showed that modernization exerts a significant influence on organizational performance when implemented with strategic fit and adequate resource support. Specifically, in-house business process automation, digital innovation, and infrastructure improvements were established to streamline operations and reduce redundancies in operations. However, the study also established that targeted modernization initiatives lacking strategic integration or launched in the absence of good change management frameworks are likely to yield little in terms of performance improvement. Furthermore, environmental factors and political factors were established to have the role of moderators between the performance-modernization approach relationship, thereby emphasizing the need for enabling policy and regulatory environments. The study concludes that modernization is not just a technical or technological process but also a strategic imperative for public sector organizations to enhance performance and remain pertinent in an increasingly dynamic economic landscape. It recommends modernization to be institutionalized as an ongoing practice supported by leadership, capacity building, and continuous monitoring.

Keywords:

Modernization Plan, Public Sector Performance, Government Commercial Organizations, Digitalization, Automation of the Process, Turnaround Plan, Organizational Performance, Kenya, Strategic Alignment, Political Environment.

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