School of Business and Economics
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Welcome to School of Business and Economics collection.This collection contains Journal articles published by faculty affiliated to the school.
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Item Organizational Structure and Performance of Tier One Commercial Banks in Nairobi County, Kenya(Academic Journal of Social Sciences and Education,, 2025-07) Rita, Chaga Mwamsindo; Kihara, Peter; Cherono, VivianThe performance of Tier One commercial banks in Nairobi County is increasingly shaped by internal structural dynamics amid rising operational costs, stricter regulatory demands, and heightened market competition. This study investigated the effect of organizational structure— focusing on hierarchy levels, formalization, and span of control—on bank performance. Grounded in Organizational Structure Theory, the research adopted a descriptive design targeting senior and middle-level managers from all 11 Tier One banks. A purposive sample of 88 managers drawn from 8 banks participated in the study. Data were collected through structured questionnaires and analyzed using SPSS Version 26.0, employing descriptive statistics and simple linear regression. The findings revealed strong, negative, and statistically significant bivariate relationships between each organizational structure variable and bank performance. However, the simple linear regression results indicated that the overall influence of organizational structure on performance was not statistically significant (β = –2.14, p = 0.113). This suggests that although structural elements such as hierarchy, formalization, and span of control may individually impact performance, their combined effect does not sufficiently explain performance variations when analyzed within a single model. The study concludes that organizational structure may influence performance outcomes at the individual factor level, but its predictive power is limited when assessed holistically through simple regression. It is recommended that Tier One banks consider streamlining their internal structures by eliminating unnecessary hierarchical layers, simplifying formal procedures, and widening managerial span of control where feasible. Pilot-testing these structural changes in selected units may offer practical insights for enhancing strategic performance in a competitive banking environment.Item Agency Banking Strategy and Performance of Commercial Banks of Tier Three Banks in Kenya(Academic Journal of Social Sciences and Education, 2025) Kinyua, Robert Muchiri; Kihara, Peter; Milui, JoshuaThe performance of commercial banks in Kenya has increasingly been influenced by the adoption and utilization of agency banking, which plays a pivotal role in enhancing operational efficiency, customer engagement, and overall bank performance. This study investigates the influence of agency banking on the performance of tier-three commercial banks in Kenya, focusing specifically on the number of agents, agent network coverage, transaction volume through agents, and agent performance metrics. Grounded in Resource- Based Theory, the Technology Acceptance Model (TAM), Diffusion of Innovations Theory, Bank-Led Theory, and Agency Theory, the research examines how the adoption and integration of agency banking affect key performance indicators. A descriptive research design was used, targeting all 21 tier-three commercial banks in Nairobi City County, with a sample population of 2,123 employees across senior, middle, and operational management. Primary data was collected through structured questionnaires distributed to a purposive sample of 273 employees. Data analysis was conducted using descriptive, diagnostic, and inferential statistical methods with SPSS Version 26.0. The findings revealed that agency banking significantly and positively influenced the organizational performance of tier-three banks in Kenya. The study concludes that enhancing agency banking strategies can improve the operational efficiency of these banks. Recommendations include expanding agent networks, optimizing transaction volumes, and improving agent performance metrics to maximize the potential of agency banking and ensure long-term success.Item Influence Of Strategy Formulation On Performance Of Water Service Providers In The Lower-Eastern Counties Of Kenya.(Academic Journal of Humanities and Social Sciences Research,, 2025-09) Miriti, Erastus Mwongera; Kihara, Peter; Miluwi, JoshuaKenya's water service providers face significant performance challenges, with Non-Revenue Water exceeding 45% and water coverage at only 60%. These inefficiencies result in annual revenue losses of approximately Kshs 15.8 billion, significantly constraining agricultural productivity in an agriculture-dependent economy. This study examined the influence of strategy formulation on performance of water service providers in the Lower- Eastern counties of Kenya. The study aimed to determine the influence of strategy formulation on performance of water service providers in the Lower-Eastern counties of Kenya. The research was anchored on four complementary theories: Resource Based View theory, which emphasizes strategic application of distinctive organizational resources; Dynamic Capabilities Theory, focusing on adaptive capacity development; Agency Theory, addressing principal-agent relationships in state-owned water resources; and Stakeholder Theory, recognizing diverse interests in water resource management. The study adopted a positivist philosophy using descriptive survey design with mixed-methods approach. The target population comprised 758 staff across ten licensed water service providers. Stratified purposive sampling yielded 183 respondents determined by Yamane's formula. Data collection utilized self-administered questionnaires with pre-testing confirming reliability (Cronbach's Alpha: 0.73-0.86). Analysis employed SPSS Version 21 for descriptive and inferential statistics. Bivariate regression analysis revealed a significant positive relationship between strategy formulation and performance (r = 0.426, p < 0.001). Strategy formulation explained 18.2% of performance variation (R2 = 0.182). The regression equation Y = 2.077 + 0.365X1 + ε demonstrated that each unit increase in strategy formulation resulted in 0.365 unit improvement in performance (β = 0.365, t = 5.771, p < 0.001). The F-statistic (33.302) confirmed model significance. Strategy formulation significantly influences water service provider performance.. Water service providers should establish comprehensive stakeholder engagement frameworks, invest in strategic planning capabilities, implement balanced performance measurement systems, and prioritize research and development investments for sustainable competitive advantage.Item Strategy control influences the performance of textile firms under AGOA.(The Strategic Journal of Business & Change Management,, 2025-09) Ithili, James Kimathi; Kihara, Peter; Mbithi, MaryThe African Growth and Opportunity Act (AGOA), enacted on May 18, 2000, as Title One of the Trade and Development Act of 2000, was designed to offer sub-Saharan African nations, particularly those enacting economic reforms, preferential access to U.S. markets. The act aimed to enhance trade relations by granting more favorable market access than that offered to other regions without free trade agreements. In 2015, AGOA was extended for 10 more years by President Obama, affecting 49 eligible African countries through the Extension and Enhancement of AGOA Act, signed on June 29, 2015. This study evaluated how strategy control influences the performance of textile firms under AGOA. Data collection involved closed-ended questionnaires, pilot-tested for validity and reliability, representing 10.5% of the target population. Ethical clearance and necessary permits were obtained. Data analysis was performed using SPSS version 24. Strategy Control: A positive and significant relationship with performance was observed (r=0.822, p<0.05), implying that effective strategy control measures are linked to improved performance. The recommendations focus on cultivating proactive foresight and developing agile, adaptable strategies to manage external uncertainties, particularly regarding the future of the AGOA agreement. Firms are also advised to address the implementation gap by focusing on resource mobilization, training, and strategic partnerships, as well as enhancing strategic control through data-driven decision-making and quality management. For policy considerations, the study recommends that the Kenyan government intensify lobbying for AGOA's extension or pursue alternative trade agreements to diversify market access. Additionally, policymakers should support the textile sector by developing local supply chains and implementing policies to reduce production costs, such as addressing high electricity costs.Item The Nexus between Managerial Capabilities, Sponsorship and Performance of Private Chartered Universities in Kenya(EPRA International Journal of Multidisciplinary Research (IJMR), 2024-06) Mbithi, Mary; Kihara, Peter; Omanwa, Clemence NiyikizaThe changing higher education space has created the need for universities to align themselves in order to record improved performance and also be able to compete globally with other universities. Universities are considered as institutions as well us organisations and therefore they need to have managers with the relevant capabilities in order to drive the university forward. Unlike public universities that are sponsored by the government private universities have different sponsors who influence their ability and capability to performance. A triangulation of both quantitative and qualitative designs was used. This study therefore sought to investigate the nexus between managerial capabilities, sponsorship and performance of private chartered universities in Kenya. This study targeted all the registered private chartered universities and was pegged on the dynamic capabilities theory and the agency theory. Data was collected using questionnaires and analysed using SPSS version 25. The study findings indicated that sponsorship influenced managerial capabilities and performance of private chartered universities in Kenya.Item Leadership Styles and Performance of Road Projects under Kenya Rural Roads Authority In Kenya(EPRA International Journal of Multidisciplinary Research (IJMR), 2024-05) Mrongo, Leonard Ouma; Kihara, Peter; Cherono, Vivian; Thiankolu, Eunice GacheriRoad infrastructure drives global economic growth by facilitating the movement of goods, services, and people, enhancing trade and regional integration; recent improvements in developing countries have reduced cost overruns, highlighting the importance of effective strategy implementation, stakeholder engagement, and sustainability considerations for project success. The aim of the study was to establish whether leadership styles influence the performance of road projects by Kenya Rural Roads Authority. The study sought to establish whether leadership styles influence the performance of road projects by Kenya Rural Roads Authority. The study employs multiple theories, including Resource-Based Theory, Agency Theory, and others, within a mixed-methods approach guided by pragmatism. Focused on 140 Development Road Projects by KeRRA, it includes 104 Strategy Implementation Officers, Contractors’ CEOs, and KeRRA officials. Data, gathered through questionnaires and interviews, underwent statistical analysis revealing a significant positive correlation (r = 0.508, p < 0.05) between leadership styles and project performance, using SPSS Version 27. The study suggests that project managers at the Kenya Rural Roads Authority demonstrate positive leadership qualities, such as agreeableness and visionary leadership, which are linked to timely completion of road construction projects, although challenges like resistance to change and laissez-faire leadership tendencies may impede project success. Recommendations include reinforcing and promoting positive leadership qualities among project managers at the Kenya Rural Roads Authority, focusing on aspects such as agreeableness, visionary leadership, and developmental leadership, while addressing challenges related to laissez-faire and resistance to change through training and support initiatives, and emphasizing the importance of directive leadership to improve project outcomes and ensure successful completion of road construction projects.Item Leadership Styles and Performance of Road Projects Under Kenya Rural Roads Authority In Kenya(EPRA International Journal of Multidisciplinary Research (IJMR), 2024-05) Mrongo, Leonard Ouma; Kihara, Peter; Cherono, Vivian; Thiankolu, Eunice GacheriRoad infrastructure drives global economic growth by facilitating the movement of goods, services, and people, enhancing trade and regional integration; recent improvements in developing countries have reduced cost overruns, highlighting the importance of effective strategy implementation, stakeholder engagement, and sustainability considerations for project success. The aim of the study was to establish whether leadership styles influence the performance of road projects by Kenya Rural Roads Authority. The study sought to establish whether leadership styles influence the performance of road projects by Kenya Rural Roads Authority. The study employs multiple theories, including Resource-Based Theory, Agency Theory, and others, within a mixed-methods approach guided by pragmatism. Focused on 140 Development Road Projects by KeRRA, it includes 104 Strategy Implementation Officers, Contractors’ CEOs, and KeRRA officials. Data, gathered through questionnaires and interviews, underwent statistical analysis revealing a significant positive correlation (r = 0.508, p < 0.05) between leadership styles and project performance, using SPSS Version 27. The study suggests that project managers at the Kenya Rural Roads Authority demonstrate positive leadership qualities, such as agreeableness and visionary leadership, which are linked to timely completion of road construction projects, although challenges like resistance to change and laissez-faire leadership tendencies may impede project success. Recommendations include reinforcing and promoting positive leadership qualities among project managers at the Kenya Rural Roads Authority, focusing on aspects such as agreeableness, visionary leadership, and developmental leadership, while addressing challenges related to laissez-faire and resistance to change through training and support initiatives, and emphasizing the importance of directive leadership to improve project outcomes and ensure successful completion of road construction projectsItem Moderating Effect of Corporate Governance On The Relationship Between Strategy Implementation and The Performance of Road Projects by Kenya Rural Roads Authority(African Journal of Social Issues, 2024) Mrongo, Leonard Ouma; Kihara, Peter; Cherono, Vivian; Thiankolu, EUNICE GacheriThe purpose of the study is to establish whether corporate governance moderates the relationship between strategy implementation and the performance of road projects by Kenya Rural Roads Authority. The study employs a multi-theoretical approach, integrating Resource-Based Theory, Agency Theory, Contingency Theory of Leadership, Legitimacy Theory, Theory of Constraints, Enterprise Risk Management, Technology Acceptance Model, and Communication Theory. The study utilized a mixed-methods approach, with pragmatism as the chosen research philosophy. The study focused on 140 Development Road Projects by KeRRA. The sample comprised 208 individuals, including 104 Strategy Implementation Officers (SIOs) and 104 Contractors’ Chief Executive Officers (CEOs). This was determined using the Solvin 1974 formula due to authority duality. The Director General of KeRRA and the Secretary to the Board of Directors were also part of the target population. The research employed a mixed-methods approach, utilizing a sequential explanatory design to investigate the relationship between governance practices, technology adoption, resource availability, communication, and road project outcomes at the Kenya Rural Roads Authority (KeRRA). Data collection involved questionnaires and interviews with strategy implementation officials and the Director General, utilizing cluster, stratified, and deliberate sampling for both qualitative and quantitative data. Statistical analyses, including Pearson correlation and regression analysis were performed on SPSS Version 27. The study revealed that corporate governance practices have a statistically significant moderating effect on the influence of strategy implementation on the performance of road projects by Kenya Rural Roads Authority.Item Operational Processes and Performance of Private Chartered Universities in Kenya(Journal International of Business Management, 2024-07) Mbithi, Mary; Kihara, Peter; Omanwa, Clemence NiyikizaIn today’s world managers play a very important role in ensuring organisations achieve their objectives and private universities are not any different for theme survive the turbulent and dynamic environment they need to align their internal operational processes in order to improve performance. This study sought to investigate the influence of operational capabilities on the performance of private chartered universities in Kenya. The study was anchored on the resource based view theory and the dynamic capabilities theory. The study was pegged on a positivist research philosophy while the research method employed was a mix of both qualitative and quantitative techniques. The research collection tool was subjected to validity tests where the lowest acceptable Cronbach alpha threshold was 0.7. Data was collected from all the twenty five private chartered universities in Kenya. The sample size was 230 respondents from all the private chartered universities in Kenya using self-administered questionnaires. The data was then cleaned, coded and analysed using SPSS software. The study used binary logistic regression to carry out the inferential statistics. Binary logistic model was fitted so as to establish the cause-and-effect relationship existing among the study variables. From the research findings private universities that had strong processes were 1.640 times more likely to increase their log odds of recording improved performance. The study also conducted diagnostic tests which were recommended for logistic regression models. The study therefore recommended that private universities need to invest in technology that would enable them to automate their processes and ease the flow of processes from one department to another. The study also recommended that universities need to integrate all their university processes in order to ensure seamless transactions for students