Social entrepreneurship (SE) factors are said to lead to higher sales, profits and increased productive employment of private sector enterprises in Kenya, Africa and the world in general. Despite these successes, little is known whether these factors have a relationship with the performance of commercially oriented parastatals. This study sought to determine how organizational resources and environmental factors affect the performance of enterprise based parastatals in Kenya. The study adopted a descriptive research design. The study population consisted of 55 enterprise based parastatals with a population of 495 top managers. Using stratified and simple random sampling techniques, 432 respondents were selected from amongst the 55 commercially oriented parastatals in Kenya. A questionnaire and key informant interviews were used to collect data. Secondary data was collected from financial and audited statements. Coefficients between independent variables (firm resources and environmental factors) and (firm performance) elements obtained from factor analysis were computed to explore possible strengths and direction of relationships. Binary logistic regression analysis was conducted and this was used to make interpretations and conclusions. The study established a significant relationship between organizational and environmental factors respectively with performance of enterprises based parastatals in Kenya. The study recommended that policies that integrate social entrepreneurship in enterprise based parastatals in Kenya should be formulated for the enterprises to achieve their intended objectives and for improved performance. The policies should ensure among others that prudent use of organizational resources and exploitation of environmental factors are integrated as core aspects of the management of the organizations.
Keywords: Enterprise Based Parastatals, Firm Performance, Organizational Resources. Environmental Factors, Social entrepreneurship
