Journal of International Trade, Logistics and Law, Vol. 8, Num. 2, 2022, 154-161 154 THE EFFECTS OF STAKEHOLDER’S INVOLVEMENT ON PERFORMANCE OF PUBLIC AUTHORITIES IN DELIVERING WATER SERVICES IN TANZANIA: LESSON FROM DAWASA Taussi Ally NYAMBITTA College of Business Education (CBE) Mohamed Habibu MOHAMED College of Business Education (CBE) Received: September 28, 2022 Accepted: November 08, 2022 Published: December 01, 2022 Abstract: The significance of stakeholders involvement towards the performance of public authorities brought several debate in the country. This study established the effect of stakeholders involvement on performance of public authorities in delivering water services in Tanzania. The study adopted a cross sectional design on a sample of 52 respondents obtained through stratified sampling and simple random sampling technique. Data were collected through questionnaire, interview and documentary review and analyzed quantitatively and qualitatively. Quantitative data was analyzed through descriptive statistics, frequency, percentage and inferential statistics analysis while Qualitative data was analyzed through content analysis. The study found that stakeholders had a positive and significant effect on the performance of public authorities in delivering water services in Tanzania. Therefore, it was concluded that stakeholder is a prerequisite for the performance of public authorities in delivering water services. The study recommended that DAWASA should have stakeholders’ in different program in order to facilitate performance in water service delivery. Since factors affect performance of public authority in delivering water services are many and diverse, this study focused only one predominant factor (stakeholder’s involvement). Hence, the finding of this study should not be generalized beyond that particular unit of inquiry. Other studies should be conducted to ascertain the extent to which other factors such as organisational resources, management, and technology effect performance of public authority in delivering water services in Tanzania. Keywords: Stakeholders Involvement, Performance of Public Authority 1. Introduction Quality service delivery of water is a problematic in Dar es Salaam City given the fact that 5.7 million of people lives in Dar es Salaam but only 75% of the population were estimated to have access to reliable water supply services (EWURA, 2018). Despite of that accessibility, still water service was extremely defective and characterized by extensive limiting and low pressure. Therefore, stakeholder’s involvement is very important to the performance of public authority in water services delivery. Stakeholders involvement has been not paid a great attention as a contributing factor to public authority performance in water service delivery. Success of water service delivery will depend on how the management interacts with other actors in the form of the stakeholders and how each of the stakeholders reacts to the quality of service received. The interactions could be conflictual, cooperative or competitive (Prell, 2017). A number of studies have been done on the factors affecting performance public authorities in water service delivery such as Jimenez and Reed (2018) and Sanders and Jennifer (2016)). However, most of the previous studies looked into the general factors on the performance public authority in water service delivery with limited study in stakeholder’s involvement. Besides, previous studies have revealed that lack of community participation has a negative impact on sustainability of water service delivery especially after the withdrawal of donors’ support (Kanyala, 2017). However, lack of community participation does not represent stakeholder involvement. Stakeholder’s involvement focuses on The Effects of Stakeholder’s Involvement on Performance of Public Authorities in Delivering Water Services in Tanzania: Lesson from Dawasa 155 identification of stakeholders so as to understand their behavior, purposes, interrelations and welfares (Kanjina, 2011; Taesombat et. al., 2012). Therefore, it is not well known as to what extent stakeholder’s involvement effects on performance of public authority in water services delivery in Tanzania. The current study has been conducted to fill such a gap. 2. Literature Review 2.1. Stakeholders Involvement and Performance of Public Authority Stakeholder as any group or individual who is affected by or can affect the achievement of an organization’s objectives or an individual and organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion (Freeman, 2014). Stakeholders involvement on the performance of public authority in water service delivery include: roles played by stakeholders in achieving organization water objectives, challenges faced in achieving those objectives, implementation support, stakeholder’s contribution to organizational resources, funding from stakeholders, conflicts and government policies. Performance refers to the output derived from a certain task measured against pre-known standards of function, accuracy, cost, completeness and speed. In a contractual agreement, performance is defined as the fulfillment of one’s obligation, in a way that it covers all the performance from all the duties, responsibilities and liabilities as per the terms of the contract (Richard et al., 2012). Performance of Public Authority is the act of promoting or improved performance and accountability in respect of specify principles governing the operation of Public. Public performance also reflects the real output obtained from a public organization as measured against the pre-intended goals and objectives (Richard et al., 2012). 2.2. Theoretical Framework This study was guided with Stakeholders Theory. Freeman (1984) explains stakeholder as any individual that can affect or will be affected with the company objectives when it comes to realizations. Jones & Wicks (1999) contend that the organization has co relationships with several constituent groups and that it can prompt and maintain the support of these groups by considering and balancing their relevant interests. Stakeholder theory has a vital message that organizations should aim at maximizing not only their own profits but also maximizing benefits or minimizing damages to other organizations and individuals on their activities. (Donaldson & Preston, 1995) stated that stakeholder theory is considered as managerial theory because it depicts managers as individuals who pay simultaneous attention to the legitimate welfares of all suitable stakeholders. The theory further provides a comprehensive picture about the role that stakeholders play in the strategic decisions and strategic future of the organization (Eden and Ackermann, 1998). The relevant and application of this theory to the current study is that it explain primary and secondary stakeholders of DAWASA who corporate with DAWASA on water service delivery. Stakeholder of DAWASA includes employees, customers, suppliers, financiers, communities, governmental bodies, trade associations, and trade unions which support DAWASA on water service delivery. 2.3. Empirical Literature Review William, (2012) found that stakeholders’ practices work to develop the performance of the organization in water services through individual knowledge and skills in the long term affects organization performance. However, this study did not discuss much on how stakeholder’s involvement trough attitudes and behaviors influence organizational performance. Therefore, the current study is sought to fill such a gap. Blyton and Turnbull (2013) found that stakeholders’ participation conceptualized a set of deeds that assist stakeholders to develop a sense of ownership and power delegation in water service delivery. However, the study did not discuss on the extent of stakeholders involvement through problem solving, decision making and information processing effects on organizational performance. Therefore, the current study is sought to fill such a gap. Gallagher (2016) revealed that organizational culture as basic assumptions members of an organization pose towards organizational performance which directs stakeholders’ thoughts and actions. The study further expose organizational culture as a form of shared basic assumptions learned by organizational members as they solve problems of external version. However, the study did not discuss the extent to which stakeholder’s involvement solves internal problems as result of organizational performance. Taussi Ally NYAMBITTA & Mohamed Habibu MOHAMED 156 3. Methodology The study employed a cross sectional design whereby information gathered represents what is going on at a particular point in time. This greatly helped in obtaining useful data in a reasonably short period. Stratified sampling and simple random sampling were used to obtain the sample of 52 respondents. Data were collected through questionnaire, interview, and documentary review and analyzed quantitatively and qualitatively. Quantitative data was analyzed through descriptive analyses as well as inferential analyses which were used to test on the effect of stakeholder’s involvement on performance of public authority in delivering water services in Tanzania. Finally, the result presented on tables. The study also used content analysis to analyze data collected from the documents and interviews. 3.1. Sample Size Determination and Sampling Method The sample size comprised 52 respondents. These were drawn from the different departments of DAWASA whereby in each department 95 percent of significant level was used to draw sample. Likewise sample was determined by the Small Sample Technique by Barney (1991) through a formula of 100 cN n  Table 1: Population Distribution of DAWASA Category Population Sample Communication officers 13 11 IT officers 15 13 Procurement officers 12 10 Marketing officers 16 14 Human resource officers 3 3 Manager 1 1 Total 60 52 Source: DAWASA (2019) 4. Results 4.1. Demographic Characteristics of the Respondents Table 2 shows that 35 (67.3%) of the respondents were Male respondents and 17 (32.7%) of all respondents were female respondents. The respondents have the age of 18-30 years were 30 (57.7%) while about 18 (34.6%) were between the ages of 31-50 years. Moreover about 4 (7.7%) were above the age of 50 years. This suggests that most of the respondents were young, energetic and vastly mature to facilitate performance of public authorities in delivering quality water services. Table 1 indicates that 39 (75.0%) of the respondents are bachelor level, 7 (13.5%) of the respondents are secondary level of education, 06 (11.5%) of the respondents are masters level and 0 (0.0%) none of them are primary level of education and PhD level. The data shows that a big number of respondents have been educated, skilled and knowledgeable. Therefore, respondents are capable of reading and providing correct information relevant to the current study. Table 2: Demographic Characteristics of the Respondents (n =52) The Effects of Stakeholder’s Involvement on Performance of Public Authorities in Delivering Water Services in Tanzania: Lesson from Dawasa 157 Variable Characteristics Frequency Percent Age 18 – 30 30 57.7 31 – 50 18 34.6 50 and above 4 7.7 Education level Primary 0 0.0 Secondary/certificate 7 13.5 Bachelor degree 39 75 Masters 06 11.5 PhD 0 0.0 Gender Male 35 67.3 Female 17 32.7 Source: Field data (2019) 4.2. Findings on the Effects Stakeholder’s Involvement on Performance of Public Authority Respondent’s responses were computed by making an aggregate of responses given by respondents to the items and 5 Point Likert Scale (1=Strongly Disagree, 2=Disagree, 3=Neutral,4=Agree and 5=Strongly Agree) which were categorized according to their percentages and frequencies as shown in table 3: Table 3: The Effects of Stakeholder’s Involvement on Performance of Public Authority Statement SD D N A SA Total F % F % F % F % F % F Stakeholder’s involvement affects implementation of water service 0 0 0 0 6 11.5 16 30.8 30 57.7 52 Taussi Ally NYAMBITTA & Mohamed Habibu MOHAMED 158 delivery Contribution of resources from stakeholders affects execution of water services 0 0 0 0 7 13.5 14 26.9 31 59.6 52 Funding from stakeholders positively affects water service delivery 0 0 0 0 7 13.5 19 36.5 26 50 52 Conflicting opinion from stakeholders affects execution of water service delivery 0 0 0 0 18 34.6 28 53.8 6 11.5 52 Government policies negatively affect execution of water service delivery 0 0 0 0 6 11.5 13 25.0 33 63.5 52 Source: Field data (2019) Key: F = Frequencies, % = Percentages Table 3 indicates that 46 (88.5%) of the respondents agreed that stakeholder’s involvement affects implementation of water service delivery, 6 (11.5%) of respondents were neutral and remaining 0 (0.0%) of respondent disagreed. 45 (86.5%) of respondents agreed that contribution of resources from stakeholders affects execution of water services, 7 (13.5%) respondents were neutral and 0 (0.0%) of the respondents disagreed. 45 (86.5%) of respondents agreed that funding from stakeholders positively affects water service delivery, 7 (13.5%) were neutral and 0 (0.0%). 34 (65.3%) of respondents agreed that conflicting opinion from stakeholders affects execution of water service delivery, while 18 (34.6%) were neutral and 0 (0.0%) of respondents disagreed. 46 (88.5%) of respondents agreed that government policies negatively affect execution of water service delivery, 6 (11.5%) of respondents were neutral and 0 (0.0%) of respondents disagreed. This implied that stakeholder’s involvement has much contribution on the performance of public authority in water service delivery since stakeholders are contributing on the planning strategies, decision making, implementation support, stakeholder’s contribution to organizational resources, funding, conflicting and government policies. During interview the researcher was eager to know if stakeholder’s involvement effects performance of public authority in water service delivery. Key informants demonstrated that; “Cooperative potential of supportive stakeholders can be encouraged by involving them in relevant issues. Stakeholders can affect the implementation of DAWASA in water service delivery, most of our stakeholders are involved on contribution to organization resource, decision making. Therefore, their potential cooperative may be overlooked, in order to strengthen involvement of stakeholder on water service delivery to improve performance of DAWASA” (Interview, HR Manager, July 2019). It was further expressed by one of the participant that; “Authorization on project decision-making, opinions, contributions or funding should be increased by means of legal aspect, being able to manage stakeholders’ expectations and concerns following government policies is one of crucial success factors for DAWASA in water resources project and other infrastructure project management. On The Effects of Stakeholder’s Involvement on Performance of Public Authorities in Delivering Water Services in Tanzania: Lesson from Dawasa 159 the other hand, inadequate management of the stakeholders concerns could lead to conflicts and arguments for a project implementation at DAWASA.” 4.3. Inferential Statistics Results This component presents the inferential statistics results. The Statistical Package for Social Sciences (SPSS) was employed to facilitate the computation of measurements of the variables. Therefore, the study employed Linear Regression Analysis and Pearson Correlation Coefficient to test the relationship between stakeholder’s involvement and performance of public authority. 4.3.1 The effect of stakeholder’s involvement on performance of public authority Table 4: Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson 1 .831a .744 .720 .41257 2.043 a. Predictors: (Constant), Stakeholder’s Involvement, Contribution of Resources, Funding, Conflicting Opinions, Government Policies. Source: Field data (2019) Table 4 shows that, the R is 0.831 which indicates that there is strong relationship between stakeholder’s involvement and performance of public authority. The R square statistic of the model is implying that 74% of performance of public authority is accounted for stakeholder’s involvement effects much on performance of public authority, contributing in resources, funding various projects and conflicting opinion and government policies. Table 5: Pearson Correlation Coefficient PFM STK PFM Pearson Correlation 1 .493** Sig. (2-tailed) .000 N 52 52 STK Pearson Correlation .493** 1 Sig. (2-tailed) .000 N 52 52 **. Correlation is significant at the 0.01 level Source: Field data (2019 Key: PFM = Performance, STK = Stakeholders Table 5 present the result on the effects of stakeholder’s involvement on performance of public authority in delivering water services. The results on the table indicate that there is a significant relationship between stakeholder’s involvement and performance of public authority since the P-value is equal to 0.000 and less than alpha value 0.05. Moreover, the value of the correlation coefficient which is 0.493 falls under the coefficient range of ± Taussi Ally NYAMBITTA & Mohamed Habibu MOHAMED 160 0.41 to ± 0.70. This indicates moderate correlation between stakeholder’s involvement and performance of Public Authority. 5. Discussion The study found that there is a significant relationship between the effects of stakeholder’s involvement and performance of public authority. The results are in line with Mishra and Sachan (2012) who found that stakeholder’s involvement is a key driver of organization performance. These results also concurred with Grigg (2016) who found that inadequate of social impact on evaluation of various water resources project due to poor identification of stakeholders needs is the main factors of project failure. The study further revealed that the involvement of stakeholder should be in a participatory manner carried out on the basis of dual bottom up and top down interactive for successful performance of the organization, The result also supports the theory (Stakeholders Theory) that provides a comprehensive picture about the role of stakeholders in strategic decisions and strategic future performance of the organization. Performance of public authority is largely contributed by stakeholder as individuals who pay simultaneous attention to the legitimate welfares of organization. 6. Conclusion & Recommendation 6.1. Conclusion The study found that there is a significant relationship between stakeholder’s involvement and performance of public authority in delivering water service. Therefore, DAWASA should make sure that stakeholders are involved in organization objectives, planning strategies and decision making. Furthermore it is recommended that the conduct of employee appraisals should be emphasized since it has significant contribution to the whole performance of the public authority as it helps management to assign different tasks to employee as internal stakeholders. 6.2. Recommendation This study was based on establishing the effects of stakeholder’s involvement on performance of public authority in delivering water service in Tanzania citing DAWASA as a case study. Therefore, researcher is inviting other researchers to conduct other factors affecting performance of public authorities in Tanzania such as organization resource, technology and organization structure. References Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. Blyton, P., and Turnbull, P. (2013). Stakeholders’ involvement and participation in organisations. The Dynamics of Employee Relations, 217-244. Donaldson, T.and Preston, L. E. (2015). The stakeholder theory of the corporation: concepts, evidence, and implications, The Academy of Management Review, 20(1): 65-91 Eden, C, & Ackerman, F. (1998). Making Strategy: The Journey of Strategic Management. London: Sage EWURA (2018). Water utilities performance report, district and township water utilities, Tanzania. Freeman, R. E. (2014). Strategic Management: A Stakeholder Approach, Pitman, Boston. Freeman, R. E.: (1984). Strategic Management: A Stakeholder Approach (Pitman Publishing Inc., Marshfield). Gallagher, R. S. (2016). The Soul of an Organisation, Understanding the resources that drive organization successful, Dearborn Trade Publishing. Grigg, N.S., (2016). Water Resources Management: Principles, Regulations, and Cases, McGraw-Hill Professional, 540 p. Kanjina, S., (2011). Participatory water resources management in Thailand: Where are the local community, URL. Kanyala, M. Mahinda (2017). Community Participation in Donor Funded Rural Water Supply Projects: The case of Uyui District, Tabora Region Tanzania: A Dissertation submitted in fulfillment of the requirements for the degree of Master of Arts in rural development of the Sokoine University of Agriculture, Morogoro, Tanzania. Mishra, B. & Sachan, D., (2012). Stakeholders and Organization Performance: A Key Driver of Performance and Productivity. International Journal of Management Research and Review. Vol. 2(8): 1334 – 1341. The Effects of Stakeholder’s Involvement on Performance of Public Authorities in Delivering Water Services in Tanzania: Lesson from Dawasa 161 Prell, C., et.al. (2017). Stakeholder analysis and social network analysis in natural resource management, Sustainable Research Institute, The university of Leeds, United Kingdom. Reed, D., (2018). Employing normative stakeholder theory in developing countries: A critical theory perspective, Business and Society, 41(2): 166-217. Richard et al. (2012). Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management. Sanders, H and Fitts, J. (2016). Assessing the sustainability of rural water supply Programme: A case study of Pagawa, Tanzania. Wicks, A. (1999). Convergent Stakeholder Theory. Academy of Management Review, 24, 206-221. William, A.N. (2012). Organization performance and stakeholder’s participation. Ultimate companion limited. Bachelor’s Thesis. Mikkeli University of Applied Sciences.