Doctor of Philosophy in Business Administration and Management

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Effects of Regulatory Reforms on Security Market Returns: Evidence from Nairobi Securities Exchange
(2014-04) Gillian, Wambeti Mwaniki
Capital markets are key to the economic development of any economy. Most governments have invested immensely on the capital markets through regulation to ensure that the investors are protected and making the market more efficient. The responsibility of regulation of the capital market in Kenya rests with the Capital Market Authority. Since its establishment the authority has created a regulatory framework that is aimed at creating orderliness, fairness and efficiency in the capital market. This study aims at examining the effect of reforms, guidelines and regulations enacted by the capital market authority on stock market returns. This was achieved through carrying out an event study methodology on specific regulation independently. The causal research design was used on each event to find out whether there was any significant difference between pre and post regulation by observing the behaviour of abnormal returns and stock returns volatility. Data was collected from a sample of 39 companies out a population of 55 companies which traded continuously from 1998 to 2010. NSE and stock returns were subjected to market model to determine alpha and beta to calculate abnormal returns. The GARCH model was used to find the significant difference between the pre and post regulation through stock market volatility. The study results indicate that each regulation analysed had evidence of abnormal returns that accumulated slowly over the event period for each of the regulations under analysis. The analysis of regulation on insider trading shows high level of abnormal returns ranging from O to 8. The analysis of the information disclosure regulation, corporate governance and licensing requirements regulations indicates reduced abnormal returns ranging from -02 to 0.7,-0.4-0.6 and -0.4-0.06 respectively. The regulation on the Central Depositories (operational rules) had abnormal returns ranging from -1 to 4 but much was after the regulation was enacted. This could be attributed to the December 2002 general election which constituted the pre regulation period. All regulation indicated reduced volatility during the post regulation measured using the GARCH model. This is an indication of the positive effects of the regulation on Stock returns. The volatility of the mean, standard deviation and variance indicates that the market efficiency has improved as new regulations were being enacted by CMA. Each regulation created shock in volatility of the stock returns which was not persistent over time. The results indicate that investors viewed the regulation as good news to the market. There was anticipation among the investors before each regulation was enacted by CMA as reflected by stock volatility during the pre -regulation period. The study concludes that regulation of the capital market bring about efficiency through reduced volatility and reduced abnormal returns as successive regulations are enacted by the government. These results create attention to policy makers on the implementation of reforms, regulation and guidelines targeting market operations and institutional development in Kenya.
Key Account Management, E-Commerce, Implementation Models, Market Orientation and Performance of Selected Private Sectors Firms in Kenya
(KeMU, 2014-05) Muhia, charlse mwangi
Modern business firms are facing stiff competition in this era of a rapidly changing business environment coupled with the globalization of markets. Consequently, many firms have adapted key accounts management model to build, nurture and maintain strong customer bonds in addition to other marketing strategies. The key account management model has successfully been utilized in the developed economies. With the advent of e-commerce, business environment has rapidly changed impacting greatly on business strategies practices. This is not the case in developing countries like Kenya, thus this study assessed the effects of key accounts management on selected private sector firms 'in Ken-ya. The core ofthis study was to assess the relationship between key accounts management, e-commerce, implementation models, market orientation and performance of private sector firms in Kenya. The objectives of the study were to: assess the effect of key success factors of key account management on performance of private sector firms; assess the effect of implementation models on firm performance; establish the effects of e-commerce; and lastly establish the role of market orientation on the firm performance. Descriptive survey research design was used and data was collected through questionnaires that were e-mailed to the respondents. The target population comprised of private sector firms operating in Kenya with a minimum turnover of KES750 Million per annum during year 2010 and 2011. The population comprised of 301 firms and a sample size of 168 firms was obtained through stratified random sampling technique. Data analysis was done using factor analysis, Pearson correlation coefficient and multiple regression analysis. Jn order to test the proposed theoretical study model, Structural Equation Modeling was performed using AMOS version 17.0. The model was supported as having a good fit since all the key statistical indices were above or below the recommended levels. The findings showed that core success factors of key accounts management (organizational, inter-firm and individual factors) significantly impacted firm performance as was indicated by the regression model results (R2 = 0.487, p= 0.01). The three main implementation models (change, collaborative and cultural variables) had a significant effect on firm's performance as indicated by the regression model results (R2 = 0.624, p = 0.01). E-commerce had a significant impact on the firm's performance (R2 = 0.662, p = 0.01). Finally, market orientation significantly influenced firm performance (R2 = 0.224, p = 0.01). In conclusion, key account management strategy significantly affected the firm's performance while e-commerce influenced firm performance through information technology and organizational capabilities. From this study it is recommended that managers of private sector firms should tap into this new knowledge regarding key account management to enhance their competitiveness.
Effects of Situational Factors and Packaging Characteristics on the Outcome of Purchase Behavior in Kenyan Supermarkets
(2014-06) Hannah, Wanjiku Wambugu
Previous studies on shopping behavior have paid considerable attention to the effect of situational factors in explaining the outcome of consumer's buying behavior in the supermarkets. Other studies have limited the explanation of consumer's shopping behavior to the influence of packaging elements. However, no study has considered the effect of the two sets of factors on the shopper's behavior at the supermarkets in same framework. Moreover, despite the growing number of supermarkets in Kenya, customer shopping behavior in supermarkets in Kenya has received very limited attention. This study investigates the effect of situational factors and packaging characteristics on the outcome of behavior (amount of processed milk bought from supermarkets in Kenya). The knowledge generated by this study could help retailers and other marketing practitioners to formulate and undertake more efficient marketing strategies. Several hypotheses were tested against cross-section data collected from 1230 shoppers in supermarkets in three towns in Kenya. Data was collected using self-administered questionnaires. It was analyzed using quantitative techniques. Descriptive statistics were used when analyzing shopper's characteristics. Regression analysis was used to test hypotheses concerning the effects of situational factors and packaging characteristics on the amount of fresh processed milk bought. The results showed that except for purpose for drinking directly from the pack reason for buying, all the other situational factors had significant effect on the amount of milk purchased. They include: supermarket atmospherics, store density/crowding, presence of companions, time of the day, being cash-constrained state and long stay at milk stand in the supermarket. However, being cash-constrained state, time of the day when shopping was done (morning), crowding at the milk stand and the purpose for drinking directly from the pack had negative effect on the amount of processed milk bought. Perceived importance for milk packaging characteristics had positive and significant effect on the amount of processed milk bought from supermarkets. After the controlled factors (individual characteristics) were included in the regression model, the effect of perceived importance for packaging characteristics and all situational factors (except for drinking purpose of buying) on the amount of processed milk bought remained significant. Shopper's age, education, income, gender (male) and family size had a positive effect on the amount of fresh processed milk purchased. However, price had a negative effect on the amount of processed milk purchased.
Influence of Trust on Savings Mobilization in Co-Operatives in Nyamira County
(International Academic Journal of Economics and Finance (IAJEF), 2017-08) Nyatichi, Jeremiah Mauti; Evangeline, Gichunge; Risper, Orero
The purpose of the research was to study the influence of trust on savings mobilization in co-operatives in Nyamira County. It was conducted using descriptive research among co-operative members in savings and credit co-operatives. The statistical sample consisted of 220 members who were randomly selected and studied through questionnaire. Data was collected from a random sample of 220 respondents and was analyzed using the STATA 13 computer software. The validity of the questionnaire’s reliability was ascertained by the researcher using the Cronbach’s alpha coefficient which was at 0.991. The data was collated using the Likert scale. The results showed that trust highly influenced savings mobilization through co-operatives among the people of Nyamira. Therefore, it is recommended that trust which significantly influenced savings mobilization in Nyamira County should be taken seriously when dealing with savings mobilization, government policies and programmes. The findings of the study will be useful for the County and National Governments in formulating coherent Policies that address developmental challenges in co-operatives
Implementing Business Strategy: A Critical Analysis on the Role of Strategic Communication among Parastatals in Kenya
(KeMU, 2018-02) Mutali J., Namulia Immaculate
A review of literature indicates that strategy implementation is an important component of strategic management process. There still exists a high failure rate in the implementation of business strategy as a result of the existence of many potential barriers. The improvement of service performance is one of the most pressing issues facing public organizations in Kenya. The lack of communication-specifically strategic communication in the management structures of organizations has repeatedly been identified as one of the barriers to effective implementation of business strategy. The significance of this study was represented by its attempt to examine the influence of strategic communication on the implementation of business strategy among Parastatals in Kenya. Independent variables under study were communication policy alignment to strategy; adequacy of information communicated; communication channels used and communication activities. The dependent variable was the implementation of business strategy. This study adopted an exploratory approach using a descriptive survey design. The study was anchored on the philosophy of pragmatism; a mixed design involving quantitative and qualitative designs which were used to obtain information from 126 Parastatals drawn from the total population of 187. The target respondents comprised of managers at all three levels in sampled Parastatals in Kenya. The study required the collection of both primary and secondary data for triangulation purposes. The sampling frame entailed all Parastatals as obtained from the Kenya Gazette. Proportionate stratified random sampling was used to select a sample of 378 in selected strata's of 126 statistically selected Parastatal headquarters. Self-administered questionnaires were used to collect the data. A pre-test was conducted on a different sample of similar characteristics to the actual sample to ascertain the reliability of the data collection instruments. Data was analyzed using the Statistical Package for Social Sciences (SPSS) version twenty two and summary statistics such as mean scores, variances, standard deviation and inferential statistics namely; correlation analysis and regression results were used to test the hypotheses. The results provided statistical evidence that a positive and significant influence exists between implementation of business strategy and strategic communication. In the practice, this study recommends that managers must make efforts to consistently communicate the strategic intent to all employees at all levels; have in place communication policies as well as conduct communication audits for proper alignment to strategy. Further, the study acclaims that managers at all levels should be competent communicators in giving correct, clear, timely and easily understandable information to employees to enhance success of implementation. On methodology, the study recommends further studies using experimental designs because strategy implementation is a process and actual effects can only be well captured using a longitudinal approach. Regarding policy, this study recommends that the need for Kenyan government to audit and strengthen existing communication policy frameworks to support and improve implementation of strategic plans. This study therefore is of significance to the Government of Kenya, policy makers and strategic management scholars to use the study findings
Antecedents of Technology Adoption and Financial Inclusion among Micro Enterprises in Machakos County, Kenya
(KeMU, 2018-08) Mwania, Paul Mutwiwa
The increased levels of mobile and internet banking has enabled the Micro Enterprises (MEs) to save, undertake transactions and access low cost credit without necessarily having security for their loans. Many micro-enterprises are not included in the mainstream financial system and hence they cannot access credit. However, with the increased level of antecedents of technology adoption (mobile and internet banking), the micro enterprises have not fully adopted this new innovation to increase their levels of financial inclusion. The aim of the study was to examine the antecedents of technology adoption (mobile and internet banking) on financial inclusion among the micro enterprises in Machakos County. The study adopted a descriptive research design since it seeks to build a profile about the relationship between antecedents of technology adoption (mobile and internet banking) to financial inclusion in Kenya. The study was targeting micro enterprises operating in Kenya with a special focus to Machakos County. Purposive sampling technique was used to select the sample for the study. Questionnaire was used for data collection as it was cost effective as opposed to other instruments. Pilot testing involved60 businesses which were not included in the final sample. To enhance validity in this study, content related validity of the questionnaire was used. On the other hand, reliability was assessed using the test-retest method and was done alongside the pilot study. The researcher selected a pilot group comprising 10% of the sample. The research instruments were tested for reliability using the split half method. This was done by collecting data from 60 respondents. Data was verified and edited for completeness and consistency. Content analysis and descriptive analysis was employed. Regression analysis was applied to establish the relationship between the variables. Regression results showed that convenience and financial inclusion are positively and significantly related (β=0.201, p<0.001). Transaction cost and financial inclusion were also found to positively and significantly related (β=-0.091 p<0.002). Perceived value and financial inclusion are positively and significantly related (β=0.233, p<0.001).Collateral and financial inclusion are positively and significantly related (β =0.154, p<0.002) while technology adoption and financial inclusion are positively and significantly related (β=0.573, p<0.001). The study further found that financial services technology innovation moderates the relationship between transaction cost, perceived value and convenience and financial inclusion of micro enterprises. The study concludes that collateral, transaction cost, convenience, perceived value and technology adoption have a positive and significant relationship with financial inclusion of micro enterprises. It was further established that mobile and internet banking have improved the access to financial services by micro-enterprises. This is seen through improved business growth among the enterprises as they can access low cost credit for business growth. The low cost of credit for the micro-enterprises has improved the level of financial inclusion. It’s recommended that owners of micro enterprises should use mobile banking since it makes it easier for them to carry out their businesses operations. According to the study, use of internet banking makes it easier for owners of micro-enterprises to carry out their businesses operations. The study recommends that owners of micro enterprises should adopt use of internet banking since it does not require a lot of technical knowledge for it is simple to use hence convenient for business owners. The owners of micro-enterprises should use mobile and internet banking to accomplish their banking tasks anytime and anywhere since it is efficient for them.
Relationship between Financial Management Practices and Financial Stability of Football Clubs in Kenya. A Survey of Football Clubs at the Kenya Premier League
(KeMU, 2018-09) Kinyariro, Dickson Kamau
This research investigated whether there exists an association between the financial management practices put in place by the Kenyan football clubs and their financial stability. The specific research objectives guided the study by establishing the influence of investment practices, financial reporting framework, working capital management and financing activities on stability of football clubs in Kenya. The underpinning theories include: Agency theory, game theory in sports and contracting theory. Explanatory research design was adopted. Questionnaires were used to collect data. The target population comprised of sixty-three respondents from twenty-one football clubs that were participating between 2010-2014 seasons of the Kenyan Premier League. The respondents comprised financial officers, the chairpersons, and accountants at the clubs. Purposive sampling as well as simple random sampling were adopted to select the respondents. Yamane (1967) formula which is used to calculate sample sizes at 95% confidence level and e = 0.05 was used to obtain the sample size. The total number of respondents was fifty-four (54). Descriptive statistics and inferential statics were used in data analysis. From the research it was established that with well laid financial management practices, there exists significant influence on the financial stability of football clubs. The research concludes football clubs have the capacity to improve their performance both by winning matches as well as enhancing their financial capability through embracing standard financial management structures and thereby leading to financial stability. The research recommends that for the clubs to succeed, pro-active and innovative measures must be put in place. Football academies that train young footballers should be established. This would ensure supply of senior players to the football clubs hence reducing cost of player recruitment while also maintaining high level of competitiveness. Football clubs should ensure that financial reporting is enhanced at all times. Qualified staff with competitive salary packages should be employed to ensure credibility of financial reports. The management should be in a position to analyze the financial reports for financial decision making. Automation of accounting systems has proved to enhance efficiency, security and credibility of accounting information generated. Football clubs should embrace this technology to enable them monitor at all levels the expenses, flow of cash and proceeds generated. More research needs to be undertaken on other financial aspects affecting the overall performance of football clubs.
Credit Risk and Lending Performance of Commercial Banks in Kenya
(KeMU, 2019-08) Karanja, John Gakuu
Credit risk poses substantial exposure both to the banks and the economy; a scenario evident in East Africa financial crises; this in part owing to the fact that the banking sector is vital in any economy. The decline of profitability within the banking industry and financial losses can be attributed to credit exposures that went awry. This underscores the significance of management of credit risk within the banking sector. While lending is profitable for the banks especially on account of the interest paid on the amount borrowed, it also has disadvantages which results from delays or default in loan repayments. This study was purposed to evaluate the credit risk and lending performance of commercial banks in Kenya. Descriptive survey research design was employed whilst the target population for this study was employees of the 42 commercial banks in Kenya as at 1st January, 2018. Purposive sampling was used to pick 42 credit managers and simple random sampling invoked to determine the other 301 respondents from the target population of 1260 employees. Both structured and unstructured questions were used to collect primary data. Thereafter, the data was analyzed using descriptive statistics including frequency distribution tables, measures of central tendency and standard deviations. In addition, advance statistical techniques including logistic regression analysis and Pearson correlation were used to establish relationships among variables and provide description of the data while qualitative data was analyzed in narrative form. The results were then presented in tabular representations supplemented by relevant explanations. The results of the study revealed that the combined effect of credit risks positively influenced the lending performance of banks. The study concluded that credit risk activities significantly influenced the lending performance of commercial banks; and as a result the operating capital of commercial banks had gone down to very low levels since lending is a source of income for the commercial banks and this has affected the performance of the entire banking sector. The study recommended that Government of Kenya through the National Treasury and in collaboration with Central Bank of Kenya and Kenya Bankers’ Association should formulate policies that will help the commercial banks reduce the level of credit risks and improve the lending performance which was currently affected to a great extent.
Socio-Entrepreneurial Practices and Community Empowerment within the Coastal Tourism Circuit in Kenya
(KeMU, 2019-08) Ikwaye, Samuel
A relatively small segment of business, known as social entrepreneurship (SE), is increasingly being acknowledged as an effective source of solutions to a variety of social problems. Despite this, little is documented as regards the role of social entrepreneurial practices and how they impact the local communities in Kenya in the context of the contribution of tourism and hospitality. Further, little is known about the requirements an innovation has to fulfill in order to be a social one and distinguish itself from other types of innovations. Also considered as important but whose evidence is also scarce is the role of SE practices on empowerment of local communities as well the existence of a legal framework to encourage the development of SE as a social economy in Kenya’s coastal tourism circuit. This study sought to contribute in filling the existing knowledge gap by assessing the role of tourism and hospitality enterprises’ SE practices on empowerment of communities with specific focus on the coastal tourism circuit in Kenya. Specifically, the study sought to determine the influence of enterprises’ socioeconomic practices, sociocultural practices and that of their green initiatives on empowerment of communities. Additionally, the role of innovations that the enterprises implement on empowerment was assessed. A descriptive survey of Kenya Association of Hotel Keepers registered enterprises as well as classified facilities, beneficiaries of empowerment programs and civic leaders were conducted. Data was collected from 42 enterprises purposively selected as well as from beneficiaries sampled using snowball sampling. Prior to the commencement of the actual study, 35 respondents affiliated to five enterprises participated in a pilot study to pre-test the research instrument. Data was collected using self-administered questionnaires. Quantitative data was analyzed descriptively and inferences drawn from correlation and multiple linear regression analyses results which were obtained with the aid of Statistical Package for Social Sciences (SPSS) version 23 computer software. Findings were that hotel enterprises within the coastal tourism circuit in Kenya had adopted socio-entrepreneurial practices, with socio-cultural practices having the greatest extent of adoption followed by green initiatives then social innovations, and lastly socio-economic practices. The practices were positively and significantly related with community empowerment at 0.05 level of significance. The relationship which was linear was strongest for social innovation followed by socio-cultural practices then socio-economic practices and lastly green initiatives. Similarly, it was found that socio-economic practices, socio-cultural and green initiative significantly influence community empowerment. Lastly, hierarchical regression analysis illustrated that social innovation mediates the relationship between socio-economic, socio-cultural and green innovation and community empowerment. It is therefore recommended that hotel enterprises enhance their level of adoption of the socio-entrepreneurial practices to enable local communities feel their impacts. In the process, due regard should be given to the vulnerable groups including women, youth and persons with disabilities. At the same time sensitization of host communities should be enhance through involvement of local civic leaders.
Capital Adequacy Framework, Funds Allocation Strategy and Financial Performance of Deposit Taking Sacco’s in Kenya
(KeMU, 2019-09) Ng`eno, John Cheruiyot
This study was aimed at establishing the relationship between capital adequacy framework and financial performance of deposit taking savings and credit cooperatives societies in Kenya. There is a declining trend of deposit taking SACCOs in Kenya. In 2016,164 SACCOs were licensed to operate as deposit taking SACCOs in Kenya. The study intention was to conduct a census survey but the responses were less. Only 111 deposit taking societies responded. The government had introduced various legislations attempting to streamline the operations of cooperative entity. Sustainability of cooperative movement depends on various factors one of which being capital adequacy. In this study the influence of six dimensions of capital adequacy framework namely: internal financing, external financing, portfolio selection, credit management, risk management and managerial capability was examined. A descriptive survey was conducted using questionnaires to collect data from the respondents. Pilot survey was conducted on 12 deposit taking SACCOs to ensure that questionnaire serve the intended purpose. Data analysis was carried out using both descriptive and inferential statistics with the aid of statistical package for social sciences (SPSS 23). Correlation and regression analysis were used to establish the relationship between research variables. It was found that internal financing, credit management; portfolio selection, risk management and managerial capability had positive effect on financial performance of deposit taking SACCOs in Kenya. This means that as the five variables increase then financial performance will be increase. External financing had negatively influenced on the financial performance. With prudent external financing, deposit taking SACCOs will attain favourable outcome. Funds allocation was found to have a significant moderating influence on the relationship between capital adequacy framework and financial performance. Hypotheses were tested at 5 percent significance level. The null hypotheses were rejected and it was established that capital adequacy framework and moderating variables influenced significantly financial performance. It is recommended that focus on capital adequacy framework will enhance financial performance of deposit taking SACCOs in Kenya.
Self Actualization and Entrepreneurship Education among Undergraduate University Students in Kenya
(Journal of Entrepreneurship and Project Management (JEPM), 2020) Bilha, Wambui Ngigi; Dr. Evangeline, M. Gichunge; Dr. Risper, Orero
Purpose: The main objective of this paper is to ascertain the connection shared by self actualization factors and entrepreneurship education as a specialization among undergraduate students within universities in Kenya. Methodology: This research was designed as a descriptive survey, correlation quantitative research. The study population of 2,043 students was drawn from 3rd year undergraduate business students who had already selected their areas of specialization. The Krejcie & Morgan sample formula for finite samples was used to yield a sample of 327 students that participated in the research. Questionnaires were the primary data collection instrument and the collected data was modeled through regresssion model and analyzed using SPSS version 24. Results: Self-actualization and entrepreneurship education are negatively and significantly related (β =-1.459, p=0.000) The results therefore show a rejection of the null hypothesis therefore meaning that self-actualization has a significant effect on entrepreneurship education specialization. Unique contribution to policy and practice: It is found that person inputs like self-fulfillment and identity are critical in deciding the career path that a student will take. It is therefore prudent for parents and people who view themselves as role models for students to first appreciate entrepreneurship as a worthy career path. Educators should be diligent in highlighting the benefits and esteem associated with choosing such a career path. Students should be exposed to knowledge of entrepreneurship as a valid career choice from an early age so that they may develop a strong sense of identity as they make their choices.
Firm Characteristics and Performance of Private Health Insurance Sector in Kenya
(Journal of Business and Strategic Management (JBSM), 2020) Kang’e, McDonald; Eng. Dr. Thomas, A. Senaji; Dr. Risper, Orero
Purpose: This study sought to establish the influence of firms’ characteristics as determinants of transient advantage on performance. Specifically, the study looked at the influence of firm age and firm size on the performance of insurance firms in Kenya. Methodology: This study employed descriptive research design targeting all the 19 insurance companies that offer health insurance products as at end of December 2017. Secondary data was collected on the firm characteristics (firm age and firm size) and the performance of health insurance (Gross Weighted Premiums and Underwritten Results). Descriptive and inferential analysis was conducted to show the relationship between the variables. The analyzed data was presented by use of bar charts, graphs and frequency tables. Inferential statistics were done including correlation regression and ANOVA. Results: The study revealed that firm size had a positive relationship between age and firm performance that was statistically significant. The study also revealed that firm age had a positive relationship between age and firm performance that was statistically significant. Conclusion: Age of a company is a quality that has been identified in this study as a factor which enables a company to gain capabilities which enable it to exploit transient advantage. It has been observed that the age of a company enables it to gain experience and learning which makes it able to overcome the effects of a rapidly changing business environment. With time these companies also gain a reputation placing them above their competitors. Age, alone, may not guarantee the performance of a company. Other factors have to accompany longevity for the firm to be able to exploit transient advantages and improve its performance. This can be proven by the fact that there are firms that had been in the sector for over three decades yet they control a small portion of the market share. This may be because the benefits of accumulated knowledge can be overcome by the inertia, inflexibility and bureaucracy brought about by routine, rules and organizational structure. Contributions to theory, practice and policy: The study recommended that firms should form partnerships with other firms to enhance cheaper resource outsourcing and offset the disadvantage which comes with firm age and firm size thus increasing firms’ profitability. It was also recommended that strategic partnerships should be adopted to enhance new market penetration and faster growth due to pooling of resources. It is further recommended that the age and size of an organization must be well supported by agility to enable the firm exploit transient advantages and that firms must use the financial muscle and experience gained over the years to take advantage of waves of opportunity
Distribution Models and Performance of Private Health Insurance Sector in Kenya
(European Journal of Business and Strategic Management (EJBSM), 2020) Kang’e, McDonald,; Eng. Dr. Thomas, A. Senaji; Dr. Risper, Orero.
Purpose: Health insurance firms continue to compete for the same client base without registering any significant improvement in either penetration levels or performance. This study sought to establish the influence distribution models as a transient advantage on performance of private health insurance sector in Kenya. Methodology: Descriptive survey design was adopted in the study targeting a population comprising managers, assistant managers and supervisors. Four respondents were drawn from each of the five departments, namely sales, strategy, finance, operations and customer service departments in the 19 private health insurance companies where data was collected from a sample of 308 out of the 380 that were targeted. The data were analyzed and both descriptive and inferential results obtained and interpreted. Results: It was found that distribution models (β=-0.77, exp (B) =0.563, p=0.036<0.05) significantly predicted performance. Since the distribution models negatively predicted performance, it is recommended that these models be re-examined to determine their weaknesses with a view to improving them since as currently deployed, the distribution models have a negative impact on health insurance performance. Contributions to theory, policy and practice: The study recommends the employment of multiple channels of distribution of insurance product rather than relying on traditional channels of agent/broker and bancassurance. Mobile applications and internet technology could be used to make access to insurance products more convenient to access, reaching potential customers where and when they can be found while at the same time cutting on the cost of availing these services. To be able to achieve this, there will be need to invest in R&D. It is then imperative that insurance companies must have budgets for R&D. New distribution avenues like Saccos should also be pursued. Distribution channels selected must be those that enable insurance companies to achieve their profitability and penetration objectives.
Job Availability and Entrepreneurship Education among Undergraduate University Students in Kenya
(International Journal of Entrepreneurship and Project Management (IJEPM), 2020) Bilha, Wambui Ngigi; Dr. Evangeline, M. Gichunge; Dr. Risper, Orero
Purpose: The purpose this study was to ascertain the connection shared by job availability factors and entrepreneurship education as a specialization among undergraduate students within universities in Kenya. Methodology: This research was designed as a descriptive survey, correlation quantitative research. The study population of 2,043 students was drawn from 3rd year undergraduate business students who had already selected their areas of specialization. The Krejcie & Morgan sample formula for finite samples was used to yield a sample of 327 students that participated in the research. Questionnaires were the primary data collection instrument and the collected data was modeled through regresssion model and analyzed using SPSS version 24. Results: Job availability and entrepreneurship education are positively and significantly related (β =0.406, p=0.000). Therefore, a unit increase in job availability would lead to increase in preference for entrepreneurship education by 0.406. Factors like career utility, probability of advancing in one’s occupation, flexibility in terms of work-life balance; economic growth and stability; and the unemployment levels in Kenya are the major driving forces in determining an area of specialization for students. Unique contribution to policy and practice: The study recommends that students should look at themselves as a consolidation of traits and skills and not just an occupation. This will help them achieve major skills an entrepreneur which are versatility, agility, innovativeness, determination, relationship and communication skills, the ability to constantly study and improve on previous drawbacks, and the ability to manage work, time, and money.
Social Cognitive Career Predictors, Entreprenology and Entrepreneurship Education Among Undergraduate University Students in Kenya
(KeMU, 2020-11) Ngigi, Bilha Wambui
Research in entrepreneurship education is dynamic owing to the fact that it has a myriad of dimensions and faces. However, learning theories like social cognitive theories have not gained noteworthy or increased attention in the entrepreneurship education community. Grounded by the Social Cognitive Career Theory, the main objective of this study was to ascertain the connection shared by social cognitive career predictors, entreprenology and entrepreneurship education as a specialization among undergraduate students within universities in Kenya. The specific objectives of this study were to determine the role of self-actualization on entrepreneurship education specialization among undergraduate students within Kenyan Universities; establish the role of scholarly ambition on entrepreneurship education specialization among undergraduate students within Kenyan Universities; determine the influence of availability of job opportunities on entrepreneurship education specialization among undergraduate students within Kenyan Universities; investigate the role of field attractiveness on entrepreneurship education specialization among undergraduate students within Kenyan Universities; establish the mediating effect of entreprenology on the relationship between social cognitive career predictors and entrepreneurship education specialization among undergraduate students within Kenyan Universities. The study was designed as a descriptive survey, correlation quantitative research. The target population was sourced from 9 Kenyan chartered universities that offer entrepreneurship among available specialization options. The study population of 2,043 students was drawn from 3rd year undergraduate business students who had already selected their areas of specialization. A sample of 280 out of the 327 targeted students that participated in the research. Questionnaires were the primary data collection instrument. The collected data was modeled, regressed hierarchically and analyzed using SPSS version 24. It was found that self-actualization and scholarly ambition had an inverse and significant relationship with entrepreneurship education. Job availability and field attractiveness had a positive and significant relationship with entrepreneurship education. Entreprenology was found to have a full mediating and significant effect on entrepreneurship education. From the findings, it was recommended that demystification of entrepreneurship to students was necessary for them to appreciate its utility while setting their lifelong personal and academic goals. Contextual supports from educators, parents, institutions and government agencies should be made available for students willing to pursue entrepreneurial careers so as to increase and develop entrepreneurial self-efficacy.
Organizational Strategic Capabilities, Compliance with Regulations and Competitive Advantage of Commercial Banks in Kenya
(KeMU, 2020-11) Kamau, James Gathogo
The business environment today is characterized as Volatile, Uncertain, Complex and Ambiguous thus the capability to sense and respond to market threats and opportunities with speed and surprise has become essential for survival of organizations. The commercial banks operating in Kenya are experiencing a fast pace of change characterized by customers’ sophistication, strict regulation and supervision, technology advancement and liberalization of banking license leading to rapid internationalization. With a demonstration of three commercial banks in Kenya collapsing in the last five years, there is perhaps a need to reevaluate how to compete and gain competitive advantage in this sector. In such a situation, scholars agitate for agility. However, empirical literature on the relationship between organizational agility and competitive advantage is scarce. Thus this study sought to establish the effect of Information Technology Capability, Knowledge Management Capability, organizational adjustment agility and market capitalizing agility on competitive advantage of commercial banks in Kenya. The study also tested for the mediating effect of higher order capabilities as well as moderating effect of compliance with central bank regulations. The study was anchored on the McKinsey 7S Framework Model, the Resource Based View, the dynamic capability Theory and the Market Power Theory. A positivist research philosophy was adopted for the study. A descriptive survey design was adopted.A pilot study was conducted on 2 commercial banks and hence the remaining 37 were used in the main survey. A total of 259 respondents were sampled from the 37 commercial banks to participate in the survey. The relationship between the variables was tested using ordinary least square regression model. On the other hand, the moderating effects of compliance with Central Bank of Kenya regulations was also tested using the moderated multiple regression model. The study findings are that organizational strategic capabilitiesnamely knowledge management capability, information technology capability, operational adjustment agility and market capitalizing agility are moderately developed (M = 4.00) on a scale of 1 to 5 and have a positive and significant effect on competitive advantage of commercial banks in Kenya. The regression results established that the strategic capability with the highest effect is ICT capability followed by Market Capitalizing agility then Knowledge Management Capability and the one with the least effect is Operational Adjustment Agility. It was also established that organizational strategic capabilities(Knowledge Management, ICT capability, Market Capitalizing agility and Operational Adjustment Agility) accounts for up to 59.3% of the variation in competitive advantage of commercial banks in Kenya. Furthermore, compliance with central bank regulations have a significant moderating effect on the relationship between organizational strategic capabilitiesand competitive advantage of commercial banks in Kenya. It is recommended that commercial banks intensify the development and employment of both lower level and higher level dynamic capabilities because they were found that they positively and significantly influence competitive advantage. Further, more focus should be directed to market capitalizing agility and operational adjustment agility because these capabilities were found to be less developed at (M < 4.00).
Internal Marketing, Regulations as Amoderator, and Competitive Market Dynamics: A Study of Insurance Firms in Kenya
(KeMU, 2020-11) Abongo, Benjamin Okeyo
The dynamism of growing competition and the environmental organisations have to work together to win customers’ attention. Insurance is a quality dependent service where the service and the service provider are inseparable, hence the need for insurance companies to manage external market performance individually by changing the way contact employees engage with the external customer (Internal Marketing). Insurance firms in Kenya posted mixed signal of profitability and fluctuating number of policies during the six-year period from 2013 to 2018. Insurance penetration, a measure of insurance firms’ contribution to Gross Domestic Product also declined steadily from 2.88% to 2.43% in the same period. This was an indication that insurance professionals are not working to create competitive firms. The study sought to investigate the influence of internal marketing, insurance regulations (moderator) on competitive market dynamics. Other than look at Internal Marketing in the lens of material rewards, the study considered the special case of goal congruence in modelling organisation cultures where insurance firms and their employees pursue the same goal, at the same time. More specifically, the study assessed the combined effect of the elements of Internal Marketing including Management Support, Internal Communication and Employee Involvement as moderated by Insurance Regulations on the Competitive Market Dynamics. A mixed method involving quantitative and qualitative methods provided a pragmatic approach to the understanding of the social reality behind Internal Marketing and Competitive Market Dynamics in the presence of an Insurance Regulation. The mixed data was obtained from the 25 Life and 37 Non-Life insurance companies through a multistage data collection method involving census, purposive and convenience sampling methods. Data from the 62 insurance companies were obtained through a field interview guided by a Likert type questionnaire, distributed to employees and customers of insurance companies. The study used descriptive statistical methods to analyse the direct effect between the variables and Ologit and more specifically, the Structural Equation Modelling (SEM) Techniques. The study found that Internal Communication lacked statistical power on the Competitive Market Dynamics when, Management Support and Employee Involvement were statistically significant. Further, the results of Insurance Regulations indicated a significant improvement in the outcomes of Management Support, Internal Communication and Employee Involvement therefore, the research confirmed that Internal Marketing had a positive influenced Competitive Market Dynamics of insurance firms in Kenya. The research further confirmed that Internal Marketing worked well in the presence of a robust regulatory framework. The study recommended for an investigation into the reason why internal communication did not post significant result. Insurance regulation to be fully implemented to improve internal marketing practices of management support, internal communication and employee involvement
Forensic Accounting and Fraud Control in County Governments in Kenya: Evidence from Counties in Mt. Kenya Region
(KeMU, 2020-11) Karuti, Jephitha Kirimi
In the 21st century fraud is becoming an issue that top management of many organizations is struggling to control. Globally most companies do not admit they are vulnerable to fraud. Studies have shown that fraud can occur internally or externally and may involve employees, client or other relevant stakeholder’s in an organization. The result of past studies indicates that fraud can occur amidst policies, tools and models that have been put in place. In Kenya fraudulent acts have been witnessed almost in the entire sectors of economy. The purpose of the current study was to investigate and come up with conclusive results on how policies on forensic accounting, fraud management tools, degree of awareness on methods of forensic accounting and how application of skills on forensic accounting influenced fraud control in County Government in Kenya. Ten counties in Kenya were involved in the study and a total of 415 staff members were the target population. Pilot test was done within two other counties in Kenya not included in the final study. Descriptive research design was used with quantitative and qualitative data applied for analyses. Inferential statistics were obtained from regression analysis which entailed normality test, multicollinearity test, model fitness, model specification and test of hypothesis done at 95% confidence level. These assisted in making the decision on whether to reject or accept null hypotheses. All the study’s null hypotheses were rejected. Forensic accounting skills was the resilient variable followed by fraud management tools, forensic accounting policies and the least was the level of awareness on methods of forensic accounting. The conclusions were based on the study findings and recommendations derived. The research established that policies on forensic accounting were not properly enforced by county government employees to fight threat of fraud. County governments requires to be vigilant in reporting cases of fraud as the study concluded that reporting of the cases could be hampered by lack of fraud control plan and inefficient fraud reporting mechanism. Another important conclusion was that county governments should incorporate external fraud experts to deter perpetration of fraud. Likewise, reporting of incidences of fraud has not been very effective in many organizations across the globe; therefore, additional study can be done to establish whether fraud reporting policy can assist in eradication of fraud incidences as the management improve on use of traditional and modern tools to detect and prevent fraud. The study, recommend that accounting experts and consumers needs more information on the importance of forensic accounting and how it can be used to eradicate fraud.
Comprehension of External Environment, Decision Making, Strategy Implementation and Performance of Micro, Small and Medium Enterprises in Kinshasa - Dr Congo
(KeMU, 2020-11) Nongolola, Kasanga Junior
The ability of managers to comprehend the environment in which they operate and make decisions about strategy implementation which in turn affects performance of organisations is scarcely documented in empirical studies. The purpose of this study was to examine the relationships between comprehension of external environment, decision-making, strategy implementation and performance of micro, small and medium enterprises in Kinshasa, Democratic Republic of Congo. This study tested the nexus between comprehension of external environment and performance, the effect of comprehension of external environment on both decision making and strategy implementation, the influence of decision making and strategy implementation respectively on performance, the moderating role of decision making and mediating role of strategy implementation on the relationship between comprehending the external environment and the performance of micro, small and medium enterprises (MSMEs) operating in different industries in Kinshasa. A positivist paradigm with deductive approach and a cross-sectional survey design were used. Primary data was collected using a drop-and-pick later questionnaire which was distributed to 643 respondents from MSMEs that were officially registered and operating in Kinshasa. Secondary data was collected from the MSMEs’ past financial documents such as balance sheets, statement of cash flows, and profit and loss statements. Both financial (return on asset, increase in sales and profit) and non-financial (managers’ qualitative assessment of customer satisfaction, employee satisfaction, growth in number of employees and improvement in number of customers) measures were used to measure the performance of the MSMEs. The findings were that comprehension of external environment had a statistically significant effect on performance (B = 0.748, t = 9.873, p < 0.05), on decision making (B = 0.105, t = 13.406, p < 0.05) as well as on strategy implementation (B = 0.80, t = 35.214, p < 0.05). Further, both decision making and a strategy implementation had statistically significant influence on performance (B = 0.762, t = 8.46; B = 0.45, t = 5.962 p < 0.05). While decision making significantly moderated the relationship between comprehension of external environment and performance, strategy implementation significantly mediated the relationship between comprehension of external environment and performance. These findings contribute to theory, policy and management practices. The study recommends that MSMEs should enhance managers’ intuitive and rational decision making skills, ensure that cultural norms of the community are well understood, and embrace technology to enhance creativity and innovation. Lastly, the government should create a centre for capacity building of MSMEs through seminars, workshops and conferences. This study also recommends further studies on more factors affecting the performance of MSMEs in Kinshasa.
Social Capital and Savings Mobilization in Co-Operative Societies, Nyamira County, Kenya.
(KeMU, 2020-11) Mauti, Nyatichi Jeremiah
The general purpose of the study was to examine the influence of social capital on savings mobilization in co-operative societies in Nyamira County. The specific goals were to examine how trust influences savings mobilization in Nyamira County; establish the effect of networks of association in savings mobilization; examine how norms affect savings mobilization; and establish whether savings mobilization is affected by credit handling as an intervening variable in Nyamira County. A census covering all co-operators with savings accounts in savings and credit co-operative societies in Nyamira County was taken. Descriptive research methods were used to detail the analysis of the predictions as they influenced savings mobilization in co-operative societies. Members with savings accounts formed the population and a stratified sample of 220 members was drawn. Data collection was done using questionnaires and analyzed using STATA 13 computer programme. Regression analysis was done to establish the effect of trust, standards and linkages of co-operative societies and savings mobilization in Nyamira County. The model had three and 182 degrees of difference. The general hypothesis of the research was to examine the effect of the elements of the social capital theory on savings mobilization and co-operative societies in Nyamira County. The model summary showed that the association between savings mobilization and trust, norms and networks of association had no multi-collinearity among the regressors in the model. The Cronbach’s Alpha coefficient showed an inter-item covariance of 0.18 and the scale reliability coefficient of 0.80 confirming the independence of each regressor. The coefficient of probability of trust was 16%, norms 1.4%, and networks of association 0%. The inter-correlations among the items of analysis were positive. The findings concluded that the elements of social capital theory significantly influenced savings mobilization and co-operative societies in Nyamira County. Trust significantly affected savings mobilization in co-operatives societies while norms strengthened co-operative societies and significantly affected the level of savings mobilization in Nyamira County. Networks of association had a significant effect on savings mobilization through co-operative societies in Nyamira County. Co-operative societies needed to examine their members’ relations and adhere to set standards with governance structures based on good norms and well-articulated policies. Employees needed training in credit handling, public relations and the co-operative philosophy. Members should be treated equally. Government needed to embrace the co-operative business model to solve the community’s pertinent issues. The study showed that savings and credit co-operative societies were all-inclusive in resource mobilization which made them financially stable and able to satiate members’ credit needs without discrimination. To capture and expound on the impact of co-operative societies in the development of entrepreneurship in Kenya, further research should be undertaken to establish the motivating factors that influenced member contentment with savings and credit services in co-operative societies in Kenya, and examine the influence of reciprocity on social capital and co-operative savings services that supported entrepreneurship in Nyamira County. It will be interesting to examine the economic influence of the level of education and co-operative production in Kenya.