ఎంటర్‌ప్రెన్యూర్‌షిప్ & ఆర్గనైజేషన్ మేనేజ్‌మెంట్

Influence of Occupational Health Compensation on Firm Performance

Abstract

Jared Otieno, Arvinlucy Onditi and Fronica Monari

Employee compensation after occupational accidents is a factor that influences employee and firm performance yet it has received limited attention among researchers and practitioners. Firms in Kenya are grappling with the sky rocketing cost of occupational health compensations considering a 30% annual growth rate in occupational accidents. The objective of the study was to establish the influence of occupational health compensation on the performance of firms. The main theoretical foundations were Equity Theory and General Adaptation Syndrome (Gas) Theory. The study was premised on Interpretivism and Positivism paradigms whereby Explanatory research design was used. The sample size was 414. Stratified and simple random sampling was used. Questionnaires, interview guide and document analysis were the main instrument of data collection. Data was analyzed using descriptive statistics and Structural equation modeling using Warp PLS.v.5. The study findings showed occupational health compensation moderated by health and safety policy regulation influenced performance of firms at βeta coefficient 0.15, p=0.001<0.05 hence significant. Occupational health and safety policy regulation moderation was significant at β=-0.27, p=0.01<0.05. The study
contributes to theory by Universalistic consideration of occupational health and safety compensation shaped by the vertical integration of health and safety policy regulation as advanced by Contingency theory in explaining performance of firms.