MCOM Theses and Dissertations (2023)

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Effectiveness of internal control systems on fraud detection and prevention among Small and Medium-Sized Enterprises in Nairobi Kenya
(Strathmore University, 2023) Opiyo, L. A.
Despite the government's commitment to the ease of doing business, there has been debate over why small and medium-sized enterprises are experiencing a downward trend in business survival. Statistics from the Economic Survey of 2021 show that small and medium-sized enterprises have grown significantly in Kenya during the past 10 years, accounting for around 96 percent of all business enterprises in the country. However, 90% of new businesses fail to survive past their third anniversary. The main objective of this study, therefore, was to investigate the effect of internal control systems on fraud detection and prevention among SMEs in Nairobi, Kenya; specifically to establish the effect of the control environment on fraud detection and prevention among SMEs in Nairobi, Kenya; to establish the effect of risk assessment mechanisms in fraud detection and prevention among SMEs in Nairobi Kenya; and, to establish the effect of monitoring in fraud detection and prevention among the SMEs in Nairobi Kenya. The study was anchored on Reliability and Fraud Diamond Theories. The study adopted an explanatory research design, also known as an experimental design. The group of interest was all the SMEs in the Nairobi Central Business District registered with Nairobi City County. According to the Nairobi City County License Register of 2021, there are 993 business enterprises in the Nairobi Central Business District with between 10 and 99 employees. Therefore, the target population of this study was 993 managers/owners of business enterprises in the Nairobi Central Business District. Yamane's (1967) formula was utilized to determine the sample size for the study in this circumstance. 400 owners/managers from the target population served as the respondents for the study. Primary data was used in the study, and semi-structured questionnaires were used to gather it. To evaluate the accuracy and dependability of the research instrument, a pilot test was carried out for the study. To assess this data, various data analysis techniques were used. Additionally, descriptive statistics, as well as inferential statistics, were used to examine the quantitative data. SPSS version 28 was used to complete the data analysis task. The inferential statistics used were factor analysis and ordinal (ordered) logistic regression. The results were that there was a positive correlation between risk assessment and monitoring and fraud detection and prevention among SMEs in Nairobi Kenya. However, there was a weak correlation between the control environment and fraud detection and prevention among SMEs in Nairobi, Kenya. This study contributes to theory by building on the theoretical framework such as the Fraud Diamond theory and improving on the understanding of internal control systems, and the possible effect ICS could have on fraud detection and prevention. Empirically, the study guides management practices by giving insights on how to close the gaps in accounting requirements and other laws that SMEs employ to manipulate profits and deceive investors. The findings of this study were limited to the ICS components of the COSO framework. The study was also limited to data collected using an explanatory research design yet fraud detection and prevention may be affected by technological advancements and unprecedented occurrences which may affect how business is carried out in organizations.
The Effect of customer relationship management practices on customer retention in the exhibition industry within Nairobi City County
(Strathmore University, 2023) Letting, A.
The purpose of this study was to investigate the effect of customer relationship management practices on customer retention in the exhibition industry within Nairobi City County. This paper examined how service quality, technology adoption, and complaint handling affect customer retention in the exhibition industry. The target population of the study was 52 exhibition companies and the respondents were the marketing managers or directors of the respective firms. The study utilized structured closed ended questionnaire with 5 Likert scales to collect the primary data. Descriptive and inferential statistical method was used in analysing data while Regression and Correlation methods were used to determine the relationship between the customer relationship management practices and customer retention. The results were presented using bar graphs pie charts and tables. The study found a strong positive and statistically significant relationship between service quality and customer retention. This is an indication that service quality influences customer retention. The study also found a strong positive and statistically significant relationship between technology adoption and customer retention meaning that technology adoption influences customer retention. Further, the study found that there is a strong positive and statistically significant relationship between complaint handling and customer retention which means complaint handling influences customer retention. The study revealed that relationship of complaint handling with customer retention is influenced by consumers whose complains are effectively resolved. Therefore, complaints can make the company perform better. The study had its limitations. The research engaged senior management staff who were quite a challenge to access due to their busy schedules. Furthermore, the study was limited to examining the effect of customer relationship management practices on customer retention in exhibition industry in Nairobi City County which limits the generalization of the findings to other industries. In future research, a similar study should be done to examine the effect of customer relationship management practices on customer retention across different industries to understand which policies are effective for different industries and sectors. The study also recommends a similar study to be done to establish the role of other CRM practices on customer retention.
Impact of financial management practices on financial sustainability of Football Kenya Federation
(Strathmore University, 2023) Shabanji, F.
Sports federations suffer from limited financial sources majority of which includes scanty sponsorship, minimal gate collection, league fees among many other sources. This study investigated the financial management practices in sport federations based on a case study of Football Kenya Federation and the various sources of funds available for the sport federations. The study is anchored on the cash management theory and the risk management theory. Specifically, the study sought to establish the influence financial reporting, budgeting, working capital management, investment decisions, financing decisions and accounting information systems on financial management in sport federations based on a case study of Football Kenya Federation. Therefore, the target population in study was 136 constituent members. The study adopted a stratified proportionate sampling technique to select the sample of 101 constituent members of FKF. The study used primary data and secondary data. Primary data was obtained using self-administered questionnaires while secondary data was obtained from Football Kenya Federation. Two respondents, the chairperson and finance managers, were selected from each of the constituent members of FKF and hence 202 questionnaires were issued. The questionnaire is made up of both open ended and closed ended questions. Data was analysed using Statistical Package for Social Sciences (SPSS Version 25.0). The study established that a significant change in financial sustainability of the sports federations is as a result of financial management practices adopted by the organizations such financial reporting (R 2=-0.060, P=0.604), budgeting (R 2=-0.276, P=0.034), working capital management (R 2=0.463, P=0.022), accounting information systems (R 2=-.551, P=0.003), investment decisions (R 2=0.153, P=0.501) and financing decisions (R 2=0.279, P=0.05). Working capital management, Financing decisions, budgeting, accounting information system have a statistically significant effect on the financial sustainability of the sport entities while financial reporting and investment decision has a statistically insignificant effect on the financial sustainability of the sport federations.
The effect of digitalization on the operational efficiency of telecommunication firms in Kenya
(Strathmore University, 2023) Wandeto, P.
Kenya’s telecommunication sector has grown tremendously in recent years, and this has been attributed to growth in the digital economy, mobile uptake, and internet penetration. Despite this growth, little scholarly work has been conducted to examine the effect of digitalization on the operational efficiency of telecommunication firms in Kenya. In particular, the study examined the effect of digital literacy on the operational efficiency of telecommunication firms in Kenya, established the effect of organizational digital capability on the operational efficiency of telecommunication firms in Kenya, and found out the effect of digital investment on the operational efficiency of telecommunication firms in Kenya. The study focused on the leading mobile telecommunication companies, and mobile service providers in Kenya with the three main telecommunication firms: Safaricom Ltd, Airtel Networks Kenya Ltd, and Telkom Kenya Ltd serving as data sources. In the examination of the effect of digitalization on operational efficiency among firms in telecommunication, this study used Diffusion of Innovation Theory, Resource- based Theory and Queueing Theory. This study used a descriptive research design and all 280 employees serving in different employment cadres at Safaricom Ltd, Airtel Networks Ltd, and Telkom Ltd constituted the target population. In identifying target departments, the study used a purposive sampling technique and stratified sampling was used to select a sample of 165 employees working in the five sections/departments. Data collection was conducted using a questionnaire. The study analyzed the data collected using descriptive analysis and regression analysis. A quantitative approach was used for data analysis. The findings showed that the independent variables (Digital literacy, Digital capability, and Digital investment) explain 57.6% of the variability of the dependent variable (operational efficiency). The study findings show that there are telecommunication firms that have not fully committed adequate financial resources for digitalization and digital literacy can help employees achieve their goals more quickly. ANOVA results tested whether overall regression model was a good fit for the data. The results show that the independent variables statistically predict dependent variable p=001 (
Effect of strategic change management practices on service delivery at the directorate of immigration of Kenya
(Strathmore University, 2023) Opar, G. A.
Occasioned by mounting outcry from an increasingly enlightened citizenry, the Kenyan government, as with other public administrations, has in the recent past resorted to reforms under the new public management dispensation. This was aimed at advancing an enhanced service delivery. In the immigration department, a number of service improvements and technological innovations have particularly been introduced in an effort to improve customer experience. It however remains unexplored in the Kenyan body of knowledge, the effect of these strategic change management practices on service delivery, presenting a knowledge gap. The study thus sought to examine the effect of strategic change management practices on service delivery at the Directorate of Immigration Services. More specifically, the study sought to establish the effect of strategic employee participation on service delivery at the Directorate of Immigration Services of Kenya; to determine the effect of strategic corporate communication on service delivery at the Directorate of Immigration Services of Kenya; and to establish the effect of strategic leadership on service delivery at the Directorate of Immigration Services of Kenya. This study employed a descriptive research design. The study targeted 168 senior, middle and operational level staff from the Directorate of Immigration Services headquarters in Nairobi, Kenya. The determined sample size was 118, which were proportionately distributed across the three job cadres. Questionnaires that are structured in design was used to gather information from study participants. Data analysis was then conducted using both descriptive and inferential statistics. This served to provide a general impression of where a majority of respondents lies with regard to the questionnaire items as well as the statistical association between the independent and dependent variables. Strategic employee participation, strategic corporation participation and strategic leadership are significantly associated with service delivery at the Directorate of Immigration Services of Kenya. This implies that a notable proportion of the variance in service delivery at the Directorate of Immigration Services of Kenya is attributed to strategic corporation participation. The study recommends that in order to realize superior service delivery in the management of change among government institutions, public administrations ought to actively involve lower cadre employees in a joint decision making and collective bargaining manner. It is also recommended that public administrations carry out strategic corporate communication in a manner that reduces employee anxiety, through established internal communication channels. It is further recommended that administrative leadership in government institutions provide support, direction, and motivation during the management of change.
Effect of leadership transition interventions on organization performance: a case of international NGOs in Nairobi County
(Strathmore University, 2023) Nyakundi, A. A.
Organizations are now functioning in an ever-changing world with unprecedented challenges. Increasing complexity and performance constraints require firms to implement leadership transitions in order to improve organizational performance. The performance of non-governmental organizations (NGOs) as a major development stakeholder is particularly concerning. It has been stated that foreign aid can only boost growth in a sound policy environment with consistent good leadership in terms of management and governance. The current study sought to investigate the effect of leadership transition interventions on the performance of international NGOs within Nairobi County. The specific objectives of this study were to determine the effects of executive onboarding programs, organization socialization, and transitional coaching on the performance of international NGOs within Nairobi County. Leadership transition theory underpinned this research and was complemented by structural contingency theory. A descriptive cross sectional survey design was adopted in this study. The participants in this study were all 93 international NGOs registered with the NGO Coordination Board and had experienced leadership transitions. The study adopted a census approach where all 93 INGOs were involved while two respondents were selected for each firm, contributing to a sample size of 186 respondents. Primary data was collected using a questionnaire. The data was analyzed with the use of SPSS, which included descriptive and inferential statistics. Multiple linear regression analysis and correlation analysis were tested using inferential statistics. Frequency tables and figures were used to present and interpret the study findings. The study findings indicated that job orientation was conducted in their organizations to make new leaders understand the operational processes of the organizations and that team integration was conducted to enhance collaborative principles within the organizational units for high performance. It was also established that respondents indicated that their organization encourages co-worker support and that performance competency priorities are consistent and well-articulated to the new leaders. Further, transition coaching had a positive and statistically significant effect on the organizational performance of NGOs in Nairobi County. It was therefore concluded that executive onboarding programs had statistically significant effects on the organizational performance of international NGOs in Nairobi County. It was also concluded that organizational socialization and transition leadership had a positive and statistically significant effect on the organizational performance of NGOs in Nairobi County. It was recommended that the management of international NGOs strive to embrace the findings of this study in order to be aware of the most significant aspects of leadership transition that they should embrace in order to enhance the organizational performance of their firms. Further, it was recommended that policymakers concerned with the regulation of NGOs in the country strive to ensure that they have in place effective measures on what ought to be followed during leadership transition.
Factors influencing customer satisfaction with services offered by tours and travel agencies in Nairobi
(Strathmore University, 2023) Adundo, M.
Customer satisfaction is a measure of how well a product or service meets the needs and expectations of its customers. It is a complex and multi-dimensional construct that can be influenced by various factors such as product or service quality, price, convenience, responsiveness, and customer service. Customer satisfaction is generally considered to be a positive outcome, as it indicates that customers are happy with the product or service they have received. To this end, this study aimed to investigate the factors influencing customer satisfaction with services offered by high-end tours and travel agencies in Nairobi County. The factors that the study considered were promotional value, functional value, emotional value, and innovative value. The study adopted a descriptive research design. The target population in this study was customers who utilize the services of high-end tour and travel agencies in Nairobi. A sample of customers from four high-end tour agencies, Abercrombie & Kent Ltd, African Horizons Travel Safaris, Bush and Beyond Ltd, and Pollmans Tours Safaris Ltd-Msa was selected using judgmental sampling technique. Data was collected using a structured questionnaire. It was then analysed using descriptive statistics and inferential statistics and presented using tables and figures. The questionnaires issued were responded to and returned to the researcher. The correlation tests for promotional value, functional value, emotional value, and innovative value and customer satisfaction showed there existed a significant and strong positive effect these four factors on the Customer Satisfaction of the tour and travel agencies in Kenya. The research concluded that all four factors significantly influence customer satisfaction with the services provided by tours and travel agencies in Nairobi. The study recommends that the management of tour and travel agencies aim to increase their promotional, functional, emotional, and innovative values to increase their customer satisfaction and improve their brands. Policy-makers should encourage collaboration among tours and travel agencies, industry associations, government bodies, and other relevant stakeholders to create platforms for knowledge sharing, best practice exchange, and joint initiatives to improve overall service quality and customer satisfaction. The study limitations include the focus only on high-end tours and travel agencies. Also, the study has geographic limitation as it only focuses on Nairobi. Future research should build upon existing theories and frameworks related to customer satisfaction and service quality in the context of tours and travel agencies. Future studies could consider a more diverse, incorporate objective measures or employ mixed-method approaches and representative sample to obtain a comprehensive understanding of customer satisfaction.
Effect of corporate social responsibility practices on organizational performance-a case of telecommunication sector companies in Kenya
(Strathmore University, 2023) Mwania,L. M.
There are several factors that affect the performance of telecommunication firms in Kenya. In order for these firms to succeed, it is paramount that they develop appropriate drivers for the organizations’ performance, key among them is the practice of corporate social responsibility. However, this area seems to have limited empirical studies based on a developing market context, moreover within the telecommunications sector. The primary objective of the study was to examine the effect of Corporate Social Responsibility practices on organizational performance in Kenya's telecommunications sector, with particular emphasis on mobile telephony companies’ responsibilities in four areas, namely economic, legal, ethical, philanthropic, and how these responsibilities or practices influence the performance of telecommunications sector companies. The specific objectives were to establish the effect of economic CSR practice on the performance of telecommunication firms in Kenya, to establish the effect of legal CSR practice on the performance of telecommunication firms in Kenya, to establish the effect of ethical CSR practice on the performance of telecommunication firms in Kenya, and to establish the effect of philanthropic CSR practice on the performance of telecommunication firms in Kenya. The study adopted a survey-based descriptive design. The study’s sample size was 204 staff members from the telecommunication companies selected using purposive sampling. Structured questionnaires were used to collect data which was then analyzed using descriptive statistics i.e mean and standard deviation and inferential statistics, correlation analysis, and multiple regression analysis in SPSS software Version 25.0. The results were presented using percentages, and tabulations. From this study, the findings indicated that economic corporate social responsibility practice, legal corporate social responsibility practice, social corporate social responsibility practice, and philanthropic corporate social responsibility practice presented a significant relationship with the performance of telecommunication sector companies. This study contributes to theory by building on the theoretical framework such as Stakeholder theory and improving on the understanding of CSR practices and the possible effects that CSR practices could have on organizational performance. The study's findings do offer a solid foundation for further research. This study used Carol’s CSR Model which includes economic, legal, social, and philanthropic responsibilities as the link between CSR and the performance of telecommunication firms. The study recommends that future studies should therefore consider other variables or moderators in this relationship to determine how CSR practices produce results in the new contexts.
The Effects of forensic accounting services on the integrity of financial statements of public sector entities in Kenya
(Strathmore University, 2023) Magetto, M. C. M.
This study examined the effect of forensic accounting services on the integrity of financial statements of public sector entities in Kenya. Specifically, the study sought to; determine whether forensics accounting techniques are appropriate in uncovering fraudulent financial statements among public sector entities; assess whether computer-assisted reviews are appropriate in uncovering fraudulent financial statements among public sector entities and examine the extent to which fraud deterrence skills contribute to the uncovering of fraudulent financial statements among the public sector entities in Kenya. The study was anchored on the Prospect theory and Fraud diamond theory. The study adopted a positivist research philosophy with descriptive research guiding the examination of the research problem. Seven public sector entities were considered as the target population as well as the study sample size which constituted 120 staff members consisting of top and middle-level management. A stratified random sampling method was used to choose 120 respondents from the target population. The top and middle-level managers were chosen because they have the best knowledge and understanding of the research problem and are best equipped to judge whether using forensic accounting services to reduce financial statement fraud is viable. The study used a quantitative research methodology, and structured questionnaires were taken into consideration when gathering data. A quantitative analysis was performed on the research data that was gathered. Descriptive and inferential statistics were used in the quantitative analysis. Figures and tables were used to illustrate the data after analysis. With the aid of descriptive statistics and the Ordinal (Ordered) Logistic Regression model, the result revealed the application of forensic accounting services significantly enhanced the integrity of the financial statements of public sector entities. The study further revealed the importance of forensic accounting techniques as well as computer-assisted reviews on the integrity of financial statements. Also, the study revealed the importance of fraud deterrence skills on the integrity of financial statements and the lack of capacity and awareness of most staff of the workings of computer-assisted reviews as well as the use of forensics accounting techniques in enhancing the integrity of financial statements. It was recommended that public sector organizations should be mandated to implement forensics accounting techniques, computer-assisted reviews, and fraud deterrence techniques, as well as expanded training on the use of forensic accounting services and their value to the public sector organizations. Additionally, the use of anonymous hotlines should be promoted, along with widespread public awareness initiatives and prompt responses to inquiries from public sector management.
Influence of innovation on customer satisfaction: a case of customers of Safaricom Plc
(Strathmore University, 2023) Ogogo, S. A.
Businesses today operate in a competitive environment and therefore they need to ensure they keep their customers satisfied. The competition is not just local but global, making organizations rethink about strategies for customer satisfaction. One such strategy is innovative strategies. The telecommunication industry in Kenya has become competitive and firms in this sector have been forced to come up with new and improved ideas to better their services and products so as to deliver customer satisfaction. Previous studies have presented conceptual, contextual, and methodological gaps which this study sought to address by determining the influence of innovation on customer satisfaction for customers of Safaricom Plc. The specific objectives of the study were to establish the influence of product innovation on customer satisfaction for customers of Safaricom Plc, to establish the influence of process innovation on customer satisfaction for customers of Safaricom Plc and to establish the influence of marketing innovation on customer satisfaction for customers of Safaricom Plc. This study was informed by two theories namely: Diffusion of Innovation Theory and Expectancy disconfirmation Theory. The study employed descriptive cross -sectional research design and made use of Krejcie and Morgan table and 5% level of precision or margin of error to arrive at a sample size of 385 respondents to whom structured questionnaire was administered. The data collected was purely quantitative, thus SPSS aided the analysis. The analysis involved the use of descriptive and inferential statistics. The results were displayed using tables, charts, and bars. The findings revealed that the variance in the dependent variable was explained by the model. The coefficient of determination indicated that the independent variables used in this study of product innovation, process innovation and marketing innovation were jointly responsible for variation in customer satisfaction for customers of Safaricom Plc. The remaining percentage of the expected variation in customer satisfaction for customers of Safaricom Plc. was accounted for by other factors which were not part of the current model. The study found that the model adopted in this study was statistically significant in explaining the influence of innovation (product innovation, process innovation, and marketing innovation) on customer satisfaction for customers of Safaricom Plc. In terms of the influence of each innovation, the study established a positive and significant relationship between product innovation and customer satisfaction, a positive and significant relationship between process innovation and customer satisfaction, and a positive and significant relationship between marketing innovation and customer satisfaction. The findings led to the conclusion that various forms of innovations used in this study - product, process, and marketing innovation each have a significant and positive influence on customer satisfaction for customers of Safaricom Plc. The study thus recommends that the management of Safaricom Plc should continue to prioritize and invest in innovation as a central component of its business strategy. The management should also dedicate resources to research and development, fostering a culture of innovation within the organization, and regularly seeking feedback from customers to understand their needs and preferences. The study was limited by use of a small sample size of customers within Nairobi County, and relied solely on self-reported measures, presenting a risk of response bias or social desirability bias. Only three innovation types were used in the study. Future studies could address these limitations.
Micro, Small, and Medium Enterprises and public procurement participation: the nexus of supply chain finance, digitalization and barriers in Nairobi County
(Strathmore University, 2023) Muladi, A. E.
Public procurement is practiced everywhere, among both developed and developing economies. The arguments for the inclusion of relatively smaller firms in public procurement suffice since they offer a significant contribution to the economy and offer employment to a wide number of people in every nation. Though the contribution of micro, small, and medium enterprises (MSMEs) in the development of economies has been widely discussed in contemporary studies, their participation in public procurement contracts still remains an issue. In Kenya, despite the institutional reforms and policies carried out in public procurement, MSMEs still struggle to participate in public procurement contracts. With this backdrop, the current study examines how supply chain finance, digitalization, and barriers impact MSMEs’ participation in public procurement markets. Data for the study were collected from prequalified suppliers registered under Public Procurement and Regulatory Authority (PPRA) in Nairobi County. A sample size of 100 consisting of prequalified government suppliers was selected. A multistage sampling beginning with systematic and ending with a simple random sampling approach was adopted and an 84% response rate was achieved. The survey approach was adopted by administering questionnaires to the respondents. A multiple regression model was employed to estimate the structural model of the study. Statistical software, SPSS Version 25, and Hayes Process MACRO were used to analyze the data quantitatively. The regression findings revealed that there is a positive and significant effect between Supply Chain Finance and MSME Public Procurement Participation. It was also revealed that Digitalization has a positive and significant effect on MSME Public Procurement Participation. Again, barriers to MSME pubic procurement participation have a significant but negative effect on MSME Public Procurement Participation. It is therefore recommended that owners and managers of MSMEs invest in digital tools such as e-procurement technology, software, procurement management systems, etc. to make them competitive enough to participate in public procurement calls. Also, MSMEs should utilize the available supply chain finance solutions to be capable to expand and compete with larger firms in public procurement activities. The study was limited to using three variables as independent variables and recommended that future studies may investigate a model where digitalization will be the independent variable, supply chain finance, the mediator, and barriers, the moderator. Keywords: Public Procurement, Digitalization, Supply Chain Finance, Micro, Small and Medium Enterprises (MSMEs).
Effect of digital payments interoperability on revenue collection for supermarkets in Nairobi, Kenya
(Strathmore University, 2023) Owino, P. O.
Innovation supported by technology is a key driver for business performance in the wake of tough economic situation businesses are facing post COVID and further escalated by the war in Ukraine. Businesses are recording declining revenues and hence the need to reorganize their operations to be fit for the future. The objective of the study was to determine the effect of digital payments interoperability on revenue collection for supermarkets in Nairobi, Kenya. The specific objectives were to determine the effect of acceptability, speed of transactions, traceability and the moderating effect of security on digital payments interoperability and revenue collection for supermarkets in Nairobi, Kenya. The study used Technology Acceptance theory and Transactions Cost theory. The positivism research philosophy was adopted for the study. The study focused on major supermarkets in Nairobi and data was collected from the management staff of these organizations to examine adoption of digital payment interoperability within the supermarkets. A descriptive correlational research design was employed in the study. The study targeted 468 employees from accounting, finance, information communication technology (ICT), operations and procurement departments from 18 supermarkets registered with RETRAK in Nairobi County. Purposive sampling was used, where all the ninety heads of departments from the supermarkets were selected as respondents. The researcher employed primary data which was collected through structured questionnaires that were closed ended. The researcher conducted a pilot study where 10 employees from the supermarkets were used to check reliability and validity of instruments. The study found that acceptability, speed of transactions and traceability of digital payments interoperability had a significant positive effect on revenue collection for supermarkets in Nairobi, Kenya. In addition, security has a significant moderating effect on digital payments interoperability and revenue collection for supermarkets in Nairobi, Kenya. The study recommends that policymakers should ensure that digital payment systems are secure and protect customer data. Governments can encourage innovation in digital payment systems by providing funding for research and development, as well as offering tax incentives to businesses that develop innovative digital payment solutions. The firms can encourage the development of interoperable digital payment systems that can work across different platforms and devices. To further encourage adoption of digital payments the supermarkets can provide incentives to customers. The supermarkets can also work to educate consumers about the benefits and risks of using digital payment systems. Key Words: Acceptability, digital payments interoperability, revenue, security, speed of Transactions, traceability.
The Influence of flexible work arrangements on organizational performance: a case of multinational corporations in Kenya
(Strathmore University, 2023) Mwasaru, N.
In the current global work environment, there is intense competition for talented employees and for market share based on advanced technology, higher product quality and lower prices in order to realize strategic advantage and organizational performance. A flexible working environment provides employees with a balance between their personal and professional lives, resulting in job satisfaction and better performance and an overall development of the organization in its entirety. Flexible work arrangements (FWA) can be defined in terms of flexibility in number of hours worked, flexibility in location and flexibility in work programming. This study conceptualized flexible work arrangements as flexible working hours, flexible working scheduling and remote working. While research has been conducted correlating FWA to organizational performance, study approaches, concepts and contexts adopted vary. This study thus attempted to fill this gap by investigating the influence of flexible work arrangements on organizational performance of multinational corporations in Kenya. The study pegged its variables on two key theories; underpinning flexible work arrangements, this study used the self-determination theory and underpinning organizational performance, the resource-based view. This study was based on positivism research philosophy and utilized descriptive cross-sectional survey design. The study population consisted of the 226 MNCs in Nairobi and purposive sampling was used to determine the respondents in 143 MNCs, who were managers in charge of either Human Resource Management or Finance. A structured closed-ended questionnaire was used for data collection. The data was analysed in SPSS and then analysed using descriptive and inferential statistics. Results were presented in form of graphs and tables. The results of this study established that flexible working hours and flexible work schedules do not have an influence on the performance of MNCs in Kenya but remote working has a weak influence on organizational performance. The findings of this study are expected to guide key stakeholders such as labour organizations and government agencies to formulate and implement labour policies regarding FWA practices that guide and support employees’ ability to work from any location of their choosing. The leadership of corporations, guided by the findings of this study, will be able to identify employees' flexible work arrangement practices needs, create practical solutions, and implement these practices to be able to achieve corporate goals and objectives. The study results add onto the existing literature on the relationship between remote working and organizational performance and contribute to the theories of resource-based view and self-determination. The study was limited to MNCs in Nairobi Kenya, while the response rate was hampered by the electioneering period of 2022 and restrictions of Covid-19 at that time.
Influence of product differentiation strategies on the internationalization of the brewing firms in Kenya
(Strathmore University, 2023) Oduol, G. A.
Product differentiation is one of the best strategies used to go global. It is an approach being developed by most businesses by providing customers with something unique, different, and distinct from the items their competitors within the same industry may offer in the marketplace. Most companies in the breweries industry in Kenya are not utilizing the differentiation strategy effectively which is why getting Kenya breweries brands are seldom found in developed countries, hence prompted the researcher to conduct research on assessing the influence of product differentiation strategies on the internationalization of the brewing industry in Kenya, with emphasis on establishing the influence of capacity differentiation strategy, design differentiation strategy and writing differentiation strategy on the internationalization of brewing industry in Kenya. The research design was the correlational research design which aided in establishing the relationship that exists between the variables. The scope of the study was EABL, 254 Brewing Co, The Big Five Breweries Ltd, Wananchi Breweries, Kwal Factory, Danish Brewing Company, Bateleur Brewery, Mashara Breweries, and Bilashaka Breweries with a target population of 1078 Managers and a sample size of 107 respondents, the data collection instrument was a questionnaire, and the analysis model was multiple linear regression model. Data were coded and processed with the aid of SPSS version 22.0. The study found that the capacity differentiation strategy is statistically significant to the internationalization of the brewing industry in Kenya. Design differentiation strategy is statistically significant to the internationalization of the brewing industry in Kenya. From the findings, the study, therefore, concluded that increasing the capacity differentiation strategy and design differentiation strategy by a single unit would lead to increased chances for local breweries to access the global market. The study found that the writing differentiation strategy is not statistically significant to the internationalization of the brewing industry in Kenya despite its relevance. Therefore, the study concludes that while writing differentiation strategy is important in product differentiation it is slightly important in internationalizing a firm. To enable companies to access the international market, policymakers should consider policies that address product design, language, and content. Such policies should ensure that product information is available in multiple languages to cater to non-English speaking consumers, and that product design is visually appealing to global consumers. The study thus suggests, while the study highlights the importance of product differentiation, further research can explore the effectiveness of different product differentiation strategies, including taste, quality, packaging, branding, and cultural relevance, in different international markets.
The Effect of influencer marketing on brand loyalty among Small and Medium Enterprises in Nairobi City County
(Strathmore University, 2023) Omani, K. M.
There are various challenges facing Small and Medium Enterprises in Nairobi City County. It is significant that SMEs develop appropriate marketing strategies that would give them a competitive edge against well-established organizations. Marketing is a critical element in achieving brand loyalty, objectives and goals, which then leads to positive increases the performance of an organization. The main objective of the study was to establish the effect of influencer marketing on brand loyalty among small and medium enterprise in Nairobi City County. To achieve this objective, the researcher focused on the following specific objectives; to establish the effect of digital, celebrity, and expert influencers on brand loyalty among small and medium enterprises in Nairobi City County. The study was anchored on social learning theory, and Trust-Commitment theory. The study also adopted a descriptive research design in conducting the research with a target population of the top 100 small and medium enterprises operating in and licensed by Nairobi City County. The study focused on the top 100 SMEs because they are likely to have well organized marketing activities, marketing personnel, social media presence and influencer marketing. A total sample of 200 respondents were drawn from the top 100 small and medium enterprises using purposive sampling technique. The primary data was collected by the use of a structured questionnaire, which consisted of closed-ended statements and questions. The collected data was inspected for completeness and accuracy, thereafter coded in a Statistical Package for Social Sciences (SPSS) Version 26 for analysis. The data was analyzed using both descriptive, and inferential statistics and the results presented in form of tables and figures. The study findings indicated that the effect of digital influencers was statistically significant to predict the brand loyalty. Similarly, the findings revealed that celebrity influencers exhibited a positive and moderate relationship with brand loyalty and it had a significant positive effect on brand loyalty. The study equally demonstrated that expert influencers had significant positive effect on brand loyalty. The study concluded that the revealed positive relationship between influencer marketing and brand loyalty means that SMEs in Nairobi City County have embraced influencer marketing (digital, celebrity and expert) as a significant marketing strategy to build a strong competitive advantage. This study concentrated on the Small and Medium Enterprises; therefore, this study recommends a similar study to be conducted on other sectors of the economy like manufacturing companies.
Determinants of portfolio concentration risk in microfinance institutions in Kenya
(Strathmore University, 2023) Tanyai, N. N.
Microfinance institutions’ performance is important. Stable microfinance institutions advance commerce helping alleviate poverty and unemployment. Microfinance banks offer vital financial services that include savings, credit, insurance and financial advisory to low-income earners and small firms. However, MFIs are vulnerable to portfolio concentration risk which substantially affect their financial stability. Additionally, legal reforms have been instituted to offer sound regulatory framework for microfinance institutions in Kenya. Specifically, the study sought to examine the determinants of portfolio concentration risk among the microfinance institutions in Kenya and to investigate the moderating effect of 2019 legal reforms on determinants of portfolio concentration risk in microfinance institutions in Kenya. In terms of the determinants of portfolio concentration risk among the MFIs, the study covered firm level factors, industry-level factors, and macro-economic factors. This study was anchored on public interest theory of regulation and modern portfolio theory. The study adopted a positivism research philosophy and follow an explanatory research design. The study's target population was seventy senior credit officers drawn from the fourteen registered and licensed microfinance banks operating in Kenya. This study used primary data that was collected by the use of a semi-structured questionnaire. Data analysis was done in the form of descriptive and inferential statistics. Results showed that firm specific factors, industry level factors and macroeconomic factors had a positive effect on portfolio concentration risk. This meant that they did not lead to addressing portfolio concentration risk among MFIs, but rather exacerbated it. Moreover, it emerged that 2019 legal reforms moderating the relationship between firm specific factors, industry level factors and macroeconomic factor with portfolio concentration risk. It is recommended that MFIs adopt and practice the legal reforms as instituted as this lowers portfolio concentration risk.
Effects of internet marketing on sales performance of second-hand vehicles among car bazaars in Nairobi County
(Strathmore University, 2023) Kagechu, A. G.
Increasingly, organizations are operating in a competitive environment due to evolving technology and consumer taste. Technology has resulted in companies adopting internet marketing in order to reach the customers without incurring high costs in the advertising process. Like in many other local industries, players in the automotive industry in Kenya have adopted internet marketing as a way to advertise their products competitively. The general objective of this study is to investigate the effect of internet marketing on sales performance of second hand vehicles with a focus on car bazaars in Nairobi County. The specific objectives of the study are; to evaluate the influence of website marketing, search engine marketing, email marketing and social media marketing on sales performance of second hand vehicles among car bazaars in Nairobi County. The study was anchored on Diffusion of Innovation theory as well as the Theory of Firm Performance. Descriptive cross sectional research design was adopted in this study. The target population was 395 registered second hand car bazaars within Nairobi City County. A sample size of 195 respondents was arrived at using the Modified Fisher Model. Primary data was collected using questionnaires. Quantitative data was coded into SPSS and data generated. Inferential statistic was conducted to test the relationship between the independent and dependent variables. Tables and figures were used to present the findings of the study while interpretation was done through prose interpretation. The study found that there was a statistically significant relationship between website marketing, search engine marketing, e-mail marketing, social media and sales performance of second-hand vehicles in Nairobi County. Second-hand vehicle dealers used free and paid search engine marketing to acquire new customers. Furthermore, they used email lists for promotional marketing and social media to increase sales. The study concludes that website marketing contributed most to the sales performance of second-hand vehicles followed by social media marketing, search engine marketing while email marketing contributed least. The study recommends that car bazaars should adopt internet marketing to improve their sales performance. The study was limited to Nairobi County and second hand cars. Further research could be carried out in other regions within the country and among other sectors.
Investigating the effect of board characteristics on the dividend payout of commercial banks in Kenya
(Strathmore University, 2023) Mutai, D. C.
ABSTRACT Commercial banks' dividend payment policies vary since each firm selects what, how, and when to pay dividends to its shareholders. Despite operating in the same economic climate, some banks pay higher dividends while others pay lower dividends. The Board of directors legally decides the distribution of the earnings of a company. Is there a relationship between board characteristics and dividend payout? How do board characteristics affect the dividend payout of commercial banks in Kenya? To answer these questions, the study evaluated the effect of board characteristics on the dividend payout of commercial banks in Kenya. The study carried out an analysis of the 37 licensed banks commercial banks in Kenya from 2017 to 2021. The study was grounded using stakeholder and agency theories. The study used both secondary and primary data to achieve its objective. Secondary data was obtained from published annual reports of Commercial Banks and primary data was collected using questionnaires to get more insights into the perception of stakeholders regarding the relationship between board characteristics and dividend payout. The data was analyzed using logit and tobit regression models and the results indicated that board independence had a positive statistically significant effect on dividend payout of commercial banks in Kenya. Board gender diversity had a negative statistically significant effect (p value <0.1) on dividend payout of commercial banks in Kenya. Board size, board members’ average age and board average years of experience showed no statistically significant effect on dividend payout of commercial banks in Kenya. The study had a limitation of time as it focused only on five years’ period that is between 2017 to 2021. It is unclear if the study was done for a longer period, the same results would still hold. The study also did not incorporate all board characteristics hence future studies can consider incorporating that.
Factors influencing the perceptions of the quality of financial reporting of Non-Governmental Organizations in Nairobi County, Kenya
(Strathmore University, 2023) Mundia, B. N.
Poor financial reporting practices among some Kenyan NGOs have adversely affected their financial performance. Coupled with this fact is that NGO donor funds have been decreasing. The motivation for this study was to establish whether the implementation of an effective internal control system, using a computerized accounting system, and having an internal audit function would lead to an improvement in the perception of the quality of financial reporting by NGOs in Nairobi County, Kenya and if NGO size and NGO age have a controlling effect. An explanatory research design was used in this study. The target population of the study was the 285 NGOs that existed in Nairobi in 2020, each being represented by its Finance Director, 160 public/governmental external auditors and 424 private auditors in Nairobi County, Kenya, who audit NGOs, totaling to 869 respondents. A simple random sampling technique was used to sample a total of 408 respondents to represent the views of the target population. The sample size comprised of 134 NGOs represented by their Finance Directors, 75 public/governmental external auditors and 199 private external auditors. Also, the study covered a sample of 35 large NGOs which makes up 70% of the total number of large NGOs for the review of their financial statements for the financial year 2021 to determine the level of compliance with the Deloitte 2021 IFRS checklist. Structured questionnaires were used to collect primary quantitative data from the sampled respondents to address the stipulated objectives. The researcher used a multiple linear regression model to explain the influence of internal control systems, internal audits, and computerized accounting systems on the perceptions of the quality of financial reporting of the NGOs in Nairobi County, Kenya, addressing the first, second, and third specific objectives of the study. The findings were that the implementation of internal control systems, the effective usage of an internal audit department and the adoption of computerized accounting systems boost the level of the perceptions of the quality of financial reporting of the NGOs in Nairobi County, Kenya. Finally, the study, found that NGO size negatively affects the perceptions of the quality of financial reporting of the NGOs while NGO age positively affects the perceptions of the quality of financial reporting of the NGOs. The findings were corroborated by the findings of an examination of the financial statements of the 35 large NGOs: their financial statements complied with all the IFRS disclosure requirements based on the Deloitte 2021 IFRS disclosure checklist: in addition, the NGOs’ financial statements had been audited by Auditors registered with the Institute of Certified Public Accountants of Kenya (ICPAK) as mandated by the NGO Coordination Board and the audit reports of all the NGOs stated that the auditors were of the opinion that the financial statements had been prepared in accordance with IFRSs.
The Impact of supply chain finance mechanisms on the supply chain performance of manufacturing firms in Nairobi, Kenya
(Strathmore University, 2023) Wanjohi, C. M.
Supply chain financing (SCF) has gained increasing popularity and attention among practitioners and academicians, particularly after the global economic crisis during 2007– 2008. This study aimed to assess the adoption and impact of SCF on the supply chain performance (SCP) of manufacturing firms, with a focus on external collaboration as a moderating factor. The specific objectives were to determine the impact of pre-shipment and post-shipment SCF mechanisms on SCP in manufacturing firms in Nairobi, Kenya as well as the moderating effect of external collaboration on this impact. Guided by resource-based view and social exchange theories, the study used a multistage sampling technique to select 256 firms from a population of 725 registered manufacturing firms in the Kenya Association of Manufacturers (KAM) database as of December 2021. Primary data was collected through questionnaires and analyzed using SPSS, employing descriptive and inferential statistics. The findings revealed that pre-shipment SCF had a positive and significant impact on SCP, while post-shipment SCF had a negative and significant impact. Moreover, external collaboration was found to moderate the relationship between SCF and SCP. These findings suggest that the adoption of SCF mechanisms, particularly pre-shipment financing, can enhance supply chain performance in the manufacturing sector. The study highlights the importance of considering external collaboration as a facilitator for maximizing the benefits of SCF adoption. The implications of these findings are significant for manufacturing firms in Nairobi, as they provide insights into the strategic utilization of SCF mechanisms and the importance of fostering collaborative relationships with external partners. This study contributes to the existing body of knowledge on SCF and SCP, offering valuable guidance for practitioners and policymakers in the manufacturing sector.

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