The Influence of socio-cultural factors on employee performance in multinational companies in Nairobi, Kenya

Abstract

Sociocultural factors such as communication styles, gender roles, and power distance influence how employees interact, make decisions, and pursue organizational goals. However, empirical evidence on their combined effect on employee performance remains limited. This study examined the influence of socio-cultural factors on employee performance in multinational companies (MNCs) in Kenya. Specifically, it assessed the effects of communication styles, gender roles, and power distance on employee performance. The study was guided by Hofstede’s Cultural Dimensions Model and Social Role Theory and adopted a positivist research philosophy with a descriptive cross-sectional design. The target population for this study were the 238 MNCs operating within Nairobi, Kenya. The sample size for the study was 150 multinational companies. The respondents comprised of four employees consisting of two senior people and two middle-level people in each selected MNCs. Therefore, selecting 600 employees. Data were collected using a structured questionnaire based on a five-point Likert scale and analyzed using descriptive statistics and multiple linear regression in SPSS version 28. The findings revealed that communication styles, gender roles, and power distance have a positive and significant influence on employee performance. Collectively, these socio-cultural factors explained a substantial variation in employee performance. The study concludes that socio-cultural factors play a significant role in shaping employee performance in multinational companies. It recommends that policymakers review labour policies to reduce hierarchical barriers and that organizations promote inclusive communication and equitable workplace practices. Future research should explore additional socio-cultural factors, such as ethnicity and religion, to further understand their influence on employee performance in multinational contexts.