Influence of Organizational Structure on the Performance of Paint Manufacturing Firms in Kenya

The purpose of this study was to examine the influence of organizational structure on the performance of paint manufacturing firms in Kenya. The study adopted a correlational research design to establish the relationship between structural dimensions and firm outcomes. The target population consisted of 26 paint manufacturing companies registered with the Paint Manufacturers Association of Kenya, with 156 employees forming the unit of observation. A sample of 113 respondents was derived using stratified random sampling based on the Taro Yamane formula. Primary data were collected using structured questionnaires administered physically and online over a two-week period. Data analysis involved both descriptive statistics (means and standard deviations) and inferential analysis using binary logistic regression at a significance level of 0.05. The findings indicated that organizational structure had a significant effect on firm performance. Specifically, companies with flat organizational structures were 85 times more likely to report improved performance compared to those with tall or highly hierarchical structures. The results highlighted the advantages of decentralized decision-making, broader spans of control, and streamlined communication channels in enhancing operational efficiency and responsiveness within the industry. The study concludes that flat organizational structures foster better performance outcomes among paint manufacturing companies by enabling faster decision-making, reducing bureaucracy, and improving coordination across departments. It recommends that firms adopt structures with clearer spans of control, open lines of communication, and mechanisms for quick feedback to boost competitiveness. Finally, the study suggests that managers consider flatter organizational designs as a strategic option for sustaining performance in an increasingly dynamic market environment.