Stakeholder Management Practices and Customer Satisfaction in the Public Sector in Rwanda: A Case of Rwanda Water and Sanitation Corporation
DOI:
https://doi.org/10.53819/81018102t2141Abstract
Stakeholder management plays an important role in organizational management. The study examined the influence of stakeholder management practices on customer satisfaction in the public sector in Rwanda. The specific objectives included to establish the influence of stakeholder mapping on customer satisfaction, to examine the influence of defensive stakeholder management practice on customer satisfaction and lastly to ascertain the influence of offensive stakeholder management practice on customer satisfaction in public sector in Rwanda case of WASAC. This study employed a case study and descriptive research design to explore issues of stakeholder management and how it influences customer satisfaction. The population size was 172,184 people constituting of external customers and internal customers of WASAC mainly employees, heads of directorates and board of Directors. A sample size of 399 respondents was computed using Yamane’s formula though 324 respondents are the ones who returned questionnaires. The sampling technique used in identifying respondents was stratified, purposive and simple random sampling. Data was collected through interviews and structured questionnaires and analysed using IBM SPSS Version 22. The data was presented in tables. Descriptive statistics findings did indicate 55%-100% of respondents in support of implementation of stakeholder mapping and defensive stakeholder management practices at WASAC. However, 20% and below supported the implementation of offensive stakeholder management practice at WASAC. Pearson correlation coefficient was found to be 0.560, 0.685 and -0.620 for stakeholder mapping, defensive stakeholder management practice and offensive stakeholder management practice respectively. Additionally, beta coefficients were 0.132, 0.235 and -0.211 with corresponding p values of 0.038, 0.001 and 0.024. The study therefore concluded that stakeholder mapping and defensive stakeholder management practices positively and significantly influence customer satisfaction while offensive stakeholder management practice negatively and significantly influence customer satisfaction. The study recommended managers of WASAC to conduct stakeholder analysis to identify all stakeholders, their characteristics and how they relate with the company, companies to adopt transparency and fairness in decision making process involving selection and recruitment, and lastly democracy and inclusivity should be practiced by companies and avoid any form of corrupt deals and practices for better performance and customer satisfaction.
Keywords: Stakeholder management practices, customer satisfaction, public sector, stakeholder mapping, defensive stakeholder management, offensive stakeholder management
References
Alvavarez, D., Emilio, L., Mitali, M. & Turner, R. (2016). Global Project Management Trends. International Journal of Information Technology, 7: 54-73.
Andualem W., (2019). Communication and Its Impact on Customer Satisfaction in the Hospitality Industry. IRASD Journal of Management. 1 (2), 97-102
Atandi & Wanyonyi (2016). Determinants of Performance in Public Sector Enterprises: Case of Huduma Centres in Central Business District, Nairobi-Kenya. University of Nairobi Repository.
Bal, M., Bryde, D., Ochieng, G. E. & Fearon, D. (2013). Stakeholder Engagement: Achieving Sustainability in the Construction Sector. Sustainability, 6: 695-710.
Dohnalova, Z & Zimola, B. (2014). Corporate Stakeholder Management. Porcedia Socila and Behavioral Sciences Journal, 110: 879-886.
Freeman, R.E. (2011). Strategic Management: A Stakeholder Approach. Cambridge: Cambridge University Press UK.
Freeman, R.E., Haririson, J.S., Wicks, A.C., Purnel, L. & Parmar, B.L. (2010). Stakeholder Theory. The State of the Art. Academy of Management Annals, 3: 403-445.
Freeman, R.E., Jeffrey, S.H & Zyglidopoulos, S. (2018). Stakeholder Theory. Cambridge: Cambridge University Press.
Harrison, J.S., Freeman, R.E. & Phillips, R.A. (2019). The Cambridge Handbook of Stakeholder Theory. Cambridge: Cambridge University Press UK.
Huddlestton, P., Whiple, J., Mattick, R.N. & Lee, S.J (2013). Customer satisfaction in food retailing: comparing specialty and conventional grocery stores. International Journal of Retail & Distribution Management, 37:1, 63-80.
Huemann, M., Pernille, E. & Claudia, R. (2016). Rethink! Project Stakeholder Management. Newton Square: Project Management Institute.
Ingenbleek, P.T.M. & Immink, V.M. (2010). Managing Conflicting Stakeholder Interests: An Exploratory Case Analysis of the Formulation of Corporate Social Responsibility Standards in the Netherlands. Journal of Public Policy and Marketing, 29(1), 46-55.
Isike, C. (2017). Stakeholder Engagement as a Core Management Function: Analysing the Business Value of Stakeholder Engagement for Nigerian Business Organizations. Journa of Economics and Behavioural Studies, 9(1), 46-55.
Jensen, T. & Johan, S. (2016). Stakeholder theory and globalization: The challenges of power and responsibility. Organization Studies, 32, 473-488.
Kakumu, O.A. (2016). Mapping Stakeholder positions in the Kenya Land Reform Process. International Journal of Technology Management and Sustainable Development, 15 (1).
Kariuki, J.N., Wario, G. & Odhiambo, R. (2018). Role of offensive and hold stakeholder management strategies on operational performance of smallholder tea sector in Kenya. The Strategic Journal of Business and Change Management, 5(4), 1932-1944.
Kinyua, J.S., Amuhaya, M.I. & Namusonge, G.S. (2016). Stakeholder Management strategies and financial performance of Deposit Taking SACCOs in Kenya. JKUAT Repository.
Kothari, C.R. (2011). Research Methodology:Methods and Techniques. New Delhi: New Age International.
Kwizera, N. (2017). An Analytical Study on customers’ expectations after sale services and their satisfaction level. A comparative study of MTN and TIGO in Huye District Rwanda. University of Rwanda Repository.
Luvanda, V.H. & Lee, J. (2016). Public Service Reform in Tanzania: The Assessment of Effectiveness Implementation of Client Service Charter (CSC) in the Public Service. Korea Development Institute Repository.
Marthur, V.N., Austin, S., Price, A.D.F. & Moobela, C. (2007). Defining, Identifying and Mapping Stakeholders in the assessment of Urban Sustainability and its Assessment. International Conference on Whole Life Urban Sustainability and its Assessment, 1-18.
Miles, S. (2017). Stakeholder Theory Classification: A Theoretical and Empirical Evaluation of Definitions. Journal of Business Ethics, 143(3), 437-459.
Mishra, J.G.R & Suar, D. (2010). "Do Stakeholder Management Strategy and Salience Influence Corporate Social Responsibility in Indian Companies?”. Socia Responsibility Journal, 6(2), 306-327.
Mugenda, O.M. & Mugenda, O.M. (2003). Research Methods:Qualitatitative and Quantitative Approaches. Nairobi: African Centre for Technology Studies.
Mukamana & Kalimba (2022). Influence of Stakeholder Participation on Project Performance in Rwanda. A Case of Speak out Project. Global Scientific Journals. 10 (110, 2173-2191.
Murwanashyaka, T. & Shukla, J. (2015). Effect of Stakeholders Management practices on performance of construction projects in Rwanda. International Journal of Science and Research, 6 (10).
Ng'ang'a, H.W. (2014). Supplier Selection Criteria and Supply Chain Performance in Non-Governmental Organizations in Kenya. University of Nairobi Repository.
Okechukwu, E. (2013). Is Stakeholder Theory Really Ethical? African Journal of Ethics, 7 (2).
Phillips, R.A. (2011). Stakeholder Theory: Impact and Prospects. Cheltenham: Edward Elgar.
Rausch, A. (2010). ‘Reconstruction of decision making behaviour in shareholder and stakeholder and stakeholder theory. Implications for management accounting systems. Review of Managerial Science.
Rwanda Today. (2021). Wasac on the Spot over dry taps, Financial misappropriation. Kigali.
Smakalova, P. (2012). Generic Stakeholder Strategy. Economic Management Journal, 17(4), 2661-2667.
Suanders, M.N.K., Philips, L. & Adrian, T. (2015). Research Methods in Business Studies, 7th ed. London: Reason Education Limited.
Teddy, H.F. (2013). Analysis of Stakeholder Approach as an Effort to increase Customers Loyalty. Journal of Applied Sciences Research, 9(5), 2485-2488.
Umamaheswari, K., Yagnam, N & Pooja, N. (2022). Electronic Banking & Customer Satisfaction in Rwanda: A Study on Bank of Kigali, Rwanda. International Journal of Trend in Scientific Research and Development. 6(4), 1811-1820.
