MCOM Theses and Dissertations (2021)

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Effect of factor investing on stock returns at the Nairobi Securities Exchange in Kenya
(Strathmore University, 2021) Chakaya, Muhwa
Factor investing is the investment process to gain selective exposure to factors which explain an asset’s risk and return. The purpose of this study was to establish the extent to which stock returns from factor investing were profitable at the Nairobi Securities Exchange. The two factors under study were value and momentum. The study used daily stock prices of large-capitalization stocks during the period January 2010 to December 2019. For each factor, three portfolios were formed: high (value and winning portfolio), low (growth and losing portfolio), and an intermediate portfolio. The stock returns from the factor portfolios were then analysed using descriptive statistics and regression analysis with the estimated parameters tested for significance. The study found out that factor investing was not profitable at the NSE: momentum factor earned positive returns albeit with mixed results while value factor and the combined factor portfolio lost money. The study also reported that stock returns from factor investing were highly cyclical: the stock returns exhibited high drawdown, long durations to prior peaks, and fluctuating returns in bull and bear markets. Finally, the studied showed that CAPM was a suitable model to explain the returns of long-only portfolios (value and winning), but ineffective in explaining the returns of long-short portfolios (value and momentum premium). A limitation of this study was its focus on large-capitalisation stocks. Prior studies focused on factors that explain stock returns at the NSE; therefore, this study added to knowledge the analysis of the profitability of stock returns from factors at the NSE.
The Effect of environmental, social and governance disclosures on firm value of firms listed on the Nairobi Securities Exchange
(Strathmore University, 2021) Kimilu, Cynthia Ndanu
This study investigates the link between environmental, social, and governance (ESG) disclosures and the firm value of firms listed on the Nairobi Securities Exchange (NSE). The research investigates ESG practices to demonstrate how a company's commitment to and effectiveness in attaining environmental, social, and governance goals produces intangible value that leads to improved total firm value. The empirical analysis looked at the association between ESG practices and ROA and ROE using the stakeholder theory and the ESG conceptual framework. Since most previous research has focused on corporate social obligations and sustainability disclosures, there is a dearth of literature on the relationship between ESG disclosures and business value. To collect, present, and evaluate data, the study used mixed methods research (MMR). The study used annual ESG data from 62 Kenyan enterprises registered on the Nairobi Stock Exchange (NSE) from 2013 to 2020. The influence of ESG disclosures on business value was investigated using random effect panel regression analysis. The data show a substantial link between regulatory agencies and stakeholder pressure, as well as the amount and reasons for ESG disclosures among NSE-listed companies. Corporates, investors, regulators, and policymakers should all be aware of the findings. The study found that NSE listed companies should deliberate steps directed toward strategic governance, as well as internal and organizational cultures geared toward information disclosure, in order to reduce the cost of getting essential information. Despite having a secondary research reliability test, it was unable to uncover bias since data may have been modified by the firm to appeal to stakeholders such as customers, investors and government. Future research should look into the factors that influence ESG disclosures in a variety of scenarios and settings, including country-specific, regional, and sector-specific scenarios.
The Relationship between corporate governance practices and performance of micro finance institutions in Kenya
(Strathmore University, 2021) Njora, Julius Nyiri
Corporate governance practices aim to enhance a firm`s long-term shareholders value through a process of accountability by managers. It provides a structure through which the objectives of a company are set, and the means of attaining those objectives and monitoring performance are determined. Despite the utilization of such practices by organizations, many have failed to actualize the set objectives. The aim of this study therefore was to establish the relationship between corporate governance practices and performance of micro-finance institutions in Kenya. The study was anchored on three theories: Resource dependency theory, Agency theory and Stakeholder theory. The study examined board characteristics which included board size, board independence, the ownership structure and CEO duality and how they affect the performance of micro-finance institutions in Kenya. Firm performance was measured using non-financial measures of performance through a balance scorecard. The study was done through a positivist philosophical view and adopted a descriptive survey research design. The study population was 45 micro-finance institutions registered with the central bank of Kenya and those who are members of Association of Microfinance Institutions in Kenya. Primary data was collected through self-administered questionnaires to the management staff and directors of the micro-finance institutions. A test for reliability was carried out using Cronbach’s alpha model. Both descriptive and inferential statistics were used to analyse the data and the findings presented in tables and charts. The study established that board size and board independence were significant in explaining the performance of micro-finance institutions in Kenya. The study concluded that a small board size enhances operational efficiency and decision making in an organization. The presence of executive directors in a board improves the accountability and prosperity of a board of directors. The study further recommended a small board size consisting of a maximum of 10 members and presence of executive directors to a maximum of 4 members. The study contributes to the current literature on corporate governance and the use of non-financial measures of performance in a firm. The key limitations of the study were the time constraints and the limitation of score as the study focused on a limited number of variables of corporate governance.
Effect of communication strategies on the successful implementation of programmes at the International Livestock Research Institute, Kenya
(Strathmore University, 2021) Guuru, Tabitha Wambui
The communication function in organizations has been recognized as one of the main factors that contributes to the success in the implementation of programmes. The effectiveness of the communication strategies applied by organizations determines the direction of the programmes. However, comprehensive studies that explored the effect that communication strategies had on the success of implementation of programmes in nongovernmental organizations were visibly lacking. ILRI as one of the NGOs implementing livestock development programmes in Kenya has in its overall strategy highlighted the significant role of communication in the management and success of its programmes. Nevertheless, the link between the communication strategies applied by the organization and the success of implementation of its programmes remained unexplored. Therefore, the main objective of this study was to establish the effect of communication strategies on the successful implementation of programmes at ILRI, Kenya. The study was guided by three specific objectives that sought to determine the effect of participatory communication, results-driven communication and multi-channeled communication on the implementation of programmes at ILRI, Kenya. The study was anchored on the participatory communication theory, uses and gratifications theory, goal-oriented communication theory and implementation theory. The study employed a descriptive cross sectional research design. The study targeted all the 379 employees involved in the various programmes implemented by ILRI in Kenya and were based at the organization’s headquarters in Nairobi, Kenya. Stratified sampling method was used to select the sample. The study was based on primary data collected using structured questionnaires. The data obtained was analysed using both descriptive and inferential analysis with the aid of the statistical package for social sciences. A regression model was used to show the relationship between the study variables. The study found that participatory communication strategy, results-driven communication strategy and multi-channeled communication strategy had positive effect on the success of implementation of programmes at ILRI. The study concluded that communication strategies were a key determinant of success of programme implementation at ILRI.
Influence of human resource information system practices on talent acquisition in commercial banks in Kenya
(Strathmore University, 2021) Karuga, Tabitha Wangari
With the advent of the 21st century came the ever increasing effect of globalisation and technology. Therefore a tremendous surge in the implementation of new technology, this has led to organizations amplifying the use of information systems in various functions and departments for organizational competitive advantage and success. Even though human resource information system (HRIS) propels this technology rush, little information exists on effect of HRIS practices on talent acquisition in Commercial Banks in Kenya. To get a clear understanding of the influence of human resource information system practices on talent acquisition, this study assessed the level of the human resource information system practices like electronic recruitment, electronic selection and electronic training and development to determine the underlying assumption of this research study within the 42 Commercial banks in Kenya. Diffusion of innovation theory and human capital theory has been used as the main focus in the theoretical framework. The main gap within the Commercial banks is the consequence of recruiting individuals with wrong skills as there has been an increase in competition among the banks. The study used a descriptive survey method which employed a quantitative approach. The target population for the study were the human resource managers who are responsible for recruitment and selection within the firm. Questionnaires were used to collect the quantitative data. A total of 210 self-explanatory questionnaires were administered. Data collected was analysed by use of statistical software for data analysis namely, MS-Excel and Statistical Package and Social Science (SPSS). The findings of the study showed that electronic recruitment, electronic selection, and electronic training and development, were significant in explaining talent acquisition. The findings generated from the study should provide human resource team with an understanding of the relationship between human resource information system practices and talent acquisition in Commercial banks in Kenya and give them insights on which practices they should concentrate on in order to acquire more talent. This study recommends that banks should endeavour to use human resource information system practices in order to attract talent. It can also be a tool for identification of highly potential employees and directing them to areas of their working interest.
The Influence of strategic planning practices in crisis management by selected organizations in the service industry in Nairobi County
(Strathmore University, 2021) Kamani, Judith Mukami
Strategic planning practices are management practices which involve the creation of future objectives and identification of programs necessary to achieve the organizations goals and create controls to monitor and implement the company’s strategies. The research focused on the ideal principal that organizations within the service industry in Nairobi should have a blueprint through its strategic plans on how to manage a crisis situation in order to maintain a competitive advantage within the industry. The specific objectives of the study was to establish the influence of personnel training, pre-set guidelines and contingency planning had in crisis management in service organizations in Nairobi. The study utilized the three theories of contingency planning theory, crisis management planning model and business planning theory. Judgmental sampling technique was used to select respondents working in the service industry within the Nairobi county. Data was analyzed using SPSS, descriptive statistics, correlation analysis and regression analysis. The study demonstrated that there is a strong, positive and significant relationship between the independent variables of personnel training, pre- set guidelines and contingency fund and the dependent variable of crisis management. The study concludes that while organizations have identified various internal facets that protect them from the negative effects that comes with crisis situations, companies today still need to take bolder steps in managing their strategic planning practices.
The Effects of business process outsourcing practices on the operational performance of local manufacturing companies in Nairobi County
(Strathmore University, 2021) Mulli, Julia
Given the operational performance challenges faced by manufacturing firms in Kenya, there was a need for a study to evaluate whether business process outsourcing practices can aid in enhancing operational performance of manufacturing firms. The study therefore sought to determine the effect of business process outsourcing practices on the operational performance of local manufacturing companies in Nairobi. The study was based on the transaction cost theory, the resource-based view theory and the core competency theory. The philosophical framework underpinning the study was the positivism approach. Descriptive survey design was adopted in the research. The population of the study was local manufacturing companies in Nairobi County. There are 341 local manufacturing companies in Nairobi (KAM,2016). The sample size was 184 and the study adopted simple random sampling to pick the 184 companies that took part in the study. The study used primary data that was obtained through a self-administered questionnaire. The questionnaire comprised of closed-ended questions. After the field survey, the raw data was coded and then entered into an MS Excel spreadsheet. Then the complete data were keyed into statistical package for the social sciences software for descriptive, correlation analysis and regression analysis were performed. The study established that primary activities were outsourced as evidenced by an average mean score tending towards agreement. Accounting and finance activities outsourcing was less practiced by local manufacturing companies with a few firms preparing not to outsource their accounting and finance activities as evidenced by average score tending towards disagreement. The study also established that back-office activities were highly outsourced as evidenced by average score tending towards agreement with statements. In addition, ANOVA showed that, first, primary activities outsourcing has a statistically insignificant effect on operational performance of local manufacturing companies in Nairobi County as given by p-value greater than 0.05 level of significance. Secondly, that accounting and finance activities outsourcing has a statistically significant effect on the operational performance of local manufacturing companies in Nairobi County as given by p-value less than 0.05 level of significance. Lastly, back-office activities outsourcing had a statistically significant effect on the operational performance of local manufacturing companies in Nairobi as given by p-value less than 0.05 level of significance. Finally, regarding the joint effect of primary, accounting & finance and back-office activities outsourcing on operational performance, R2 revealed that primary, accounting & finance and back-office activities outsourcing explained thirty-four point five percent of variation on operational performance of local manufacturing companies in Nairobi County. In addition, the ANOVA showed that primary, accounting & finance and back-office activities outsourcing on the operational performance of local manufacturing companies in Nairobi was statistically significant given by p-value less than 0.05 level of significance. The study concluded that business process outsourcing practices have a major influence on the operational performance of local manufacturing companies in Nairobi and recommend that top management of manufacturing firms in Nairobi to continue outsourcing company activities to improve operational performance and especially should outsourcing of back-office activities given its strong impact on operational performance. The research was based on local manufacturing companies in Nairobi County and the findings may not be applicable to other manufacturing firms outside Nairobi. Finally, the study focused on only three business process outsourcing practices, namely primary activities outsourcing, accounting and finance activities outsourcing, and back-office activities outsourcing. There are more than three business process outsourcing practices.
Effect of export market orientation on export performance of Medium Sized Enterprises in Kenya
(Strathmore University, 2021) Njembue, Julius Muiruri
In the current era of a highly competitive business environment characterized by globalization, deregulation of markets, stiff rivalry and constant changes in the customers’ needs and expectations, Medium Sized Enterprises (MSEs) involved in exporting need to manage their strategic orientations for superior performance. The aim of this study was to investigate the effect of export market orientation on export performance of MSEs in Kenya. The specific objectives of the study were: To establish the effect of export market intelligence generation on export performance of the Kenyan MSE’s, to determine the effect of export market intelligence dissemination on export performance of MSEs in Kenya and to establish the effect of export market responsiveness on export performance of the Kenyan MSEs. The research was founded on the Resource Based View and the Dynamic Capabilities Perspective. The study focused on the KPMG and Nation Media Top 100 mid-sized companies in Kenya as the sample size. Three respondents were selected from each company by judgmental sampling: The General Manager, Head of Sales and Marketing and Sales persons responsible for the export operations. Descriptive cross-sectional survey design was adopted for this study and data collected using structured questionnaires. The Statistical Package for Social Sciences was used in analyzing of the data collected. Descriptive statistics, spearman’s correlation and regression analyses were conducted to test the relationship between the variables. The study concluded that; export market intelligence generation had a weak but positive effect on export performance of MSEs in Kenya, export market intelligence dissemination had significant effect on export performance of MSEs in Kenya and that export market responsiveness had a strong, positive and significant effect on export performance of MSEs in Kenya. The study recommends to the practitioners to invest in training and capacity building of their personnel on matters of export market orientation practices and to the Kenyan government to extend their support to the exporting MSEs through incentives like tax reliefs to enable them invest more financially in their export operations. The study contributes theoretically to scholarly work by adopting RBV and the Dynamic Capabilities View. Conceptually, by adopting Kohli and Jaworski (1990)’s intelligence perspective in operationalizing export market orientation and contextually by conducting the research in a developing nation while majority of the previous studies had focused on developed countries. The study was limited in the sense that it only focused on the top 100 exporting MSEs therefore findings could not be generalized on other MSEs who were exporting and did not participate in the Nation Media and KPMG top 100 mid-sized companies. Future studies could focus on investigating the effect of EMO on EXP of MSEs while anchoring their studies on different theories from the ones used in this study. Also, local studies could focus on different business contexts apart from the MSE sector adopting Kohli and Jaworski (1990)’s intelligence perspective in their research.
The Effect of corporate governance structures on firm performance among family-owned businesses in Nairobi County Kenya
(Strathmore University, 2021) Munyoki, Diana Itumbi
Family-owned businesses form a significant pillar of most economies across the globe because these organizations are a major contributor to wealth creation and employment creation. Most successful worldwide businesses started their activities as family businesses and have effectively become global brands. Like any other business though, corporate governance is a concern here too. Family business continuity plans are expected to establish a governance structure for the family and for the family business. These structures are aimed at improving procedural and control mechanisms of the family-owned company and for coordinating the correspondence and connection between family proprietors and business executives. With more and more family businesses opening to the world, such firms can no longer keep away from execution of the corporate governance standards for reasonable and transparent functioning. However, there is scanty empirical evidence on the extent to which corporate governance structures affect firm performance among family-owned businesses. Therefore, the fundamental aim of this study was to research the effects of corporate governance structures on firm performance by relying on resource-based theory and institutional theory. The specific objectives of the study were:-to determine the effect of ownership structure on firm performance of family-owned businesses in Kenya, to establish the effect of board structure on firm performance of family-owned businesses, and to establish the effect of management structure on firm performance. The study used a descriptive research design to collect data from a sample of 220 family-owned businesses; a structured questionnaire was employed to obtain data while analysis was done with the use of the statistical package for social sciences (SPSS). The quantitative data generated was subjected to descriptive statistical analysis, correlation and regression analysis. The study found that there was a significant and positive relationship between ownership structure and firm performance in family-owned businesses. Further, the study established that there was a positive significant relationship with CEO-duality, however women on board, board composition and board Committee were not significant in influencing firm performance in family-owned business. The study further found that separate chairman and CEO roles had a positive effect on a corporate’s reputation hence influence on the firm performance in family-owned businesses. The findings for management structures were observed to be positively related to firm performance. Of all the three structures ownership structure had a greater influence on firm performance. The recommendations of the study are: - hiring of a professional CEO, strategic differentiation to create more growth opportunities, introduction of a governance code by policy makers that accommodates the complexities of family businesses that are publicly traded. The study was however limited by the Covid – 19 crisis, where holding a one on one interview was a challenge following the government directive of social distancing, hence most of the interviews were done over the telephone. Information withholding was also another challenge encountered given the nature of family businesses.
Effect of corporate social responsibility on corporate image of commercial government-owned entities in Kenya
(Strathmore University, 2021) Kung’u, Victor Wainaina
Despite corporate social responsibility being a noble objective, it is only secondary to such organisations because there are other pressing concerns, profit-seeking activities that are more closely linked with the core business. As such most organizations have overlooked the role, corporate social responsibility can have on the organization. More so, in the current environment, most state-owned commercial entities in Kenya are engulfed in fraud, lossmaking and poor service delivery, as well as endemic corruption, which has negatively affected the public perception of the institution. Thus, it was critical to analyse, if any, the influence corporate social responsibility may have on the corporate image of the organization. Specifically, the study focussed on the effect of economic, environmental, ethical and legal social responsibility on the corporate image. Theoretically, the study relied on Stakeholder Theory and Corporate Social Performance Theory. The research utilized a positivism paradigm in the examination of the study problem. A quantitative approach was predominantly applied in the study. The unit of analysis for the current research was the 50 commercial and financial government-owned entities in Kenya. The study targeted three senior-level managers in each of the institutions leading to a sample frame of 150 respondents. The sample size was calculated using the Yamane formula, which leads to 109 participants being considered in the research. The study used non-probability sampling in the selection of study participants. The study employed a structured research questionnaire that was administered using physical questionnaires and electronic methods as deemed convenient. The research quality was fostered through reliability and validity tests that was conducted in a small sample of 10% (N=11) of the respondents. The collected data was analysed using SPSS 25, with descriptive and inferential tests being employed. The results were presented using bar graphs, charts and tables. The survey obtained a 67% response rate. The correlation tests indicated there was a strong positive effect of economic and environmental social responsibility on the corporate image. The study further affirmed there is a moderate and positive effect of ethical and legal social responsibility and corporate image of state corporations in Kenya. The regression analysis showed that 51% of the changes in the corporate image of state commercial corporations in Kenya are determined by corporate social responsibility in Kenya. The study concluded that economic and ethical social responsibility has a significant positive effect on corporate social responsibility. Also, it was concluded that environmental and legal social responsibility aspects have insignificant influence on the corporate image of firms. The study recommends that the national government should develop guidelines to guide the certification of corporate social responsibility efforts within commercial corporations. Further, it is recommended that commercial corporations should strengthen their implementation of social responsibility activities which will be vital to extending the corporate image of the firms.
Effect of cash dividends on market share price of firms listed in the Nairobi Securities Exchange
(Strathmore University, 2021) Micere, Antony Njogu
Shareholders invest by buying shares in particular organizations due to the benefits that their investments will bring, which is in form of capital gains or dividends such as cash dividends paid as interim or final dividends. The study deepens overall understanding of information content and signaling theory with specific focus on cash dividends. The objective of this study is to determine the effects of cash dividend paid on market share prices. The variables used to develop the study are interims and final cash dividends, market share price and control variables. The study took into consideration of all the firms listed in the Nairobi Securities Exchange from year 2009 to year 2019. Primary data and secondary data were used to provide valid and reliable findings. Primary data were collected directly from the businesses to determine the considerations made by firms before payment of dividends. Data was collected from primary sources by use of a questionnaire and also from secondary sources by review of annual reports and other disclosure documentations. Correlation research design involving descriptive statistics analysis was used to analyze and interpret the data. Findings from the study revealed that there is a positive and significant relationship between cash dividends paid and share market prices. The study established that listed firms consider several factors before payment of cash dividends. Findings from the study showed availability of cash as the main factor considered by organizations before payment of cash dividends. Other factors were also considered before cash dividends disbursements. The study concluded that the dividend payout of listed firms in the Nairobi Securities Exchange impacts share prices. The study recommends that listed firms should be keen on dividend payments they adopt during financial periods as the share price is influenced by the dividend pay-out made by the firm.
Influence of financial accountability on financial sustainability of Non-Government Organizations in Nairobi County, Kenya
(Strathmore University, 2021) Wanjohi, Humphry
NGOs play an important part in Kenya's health care system, public governance, social aid and welfare, conservation, economic growth, and development by contributing around Ksh. 80 billion to the country's GDP each year. Most local NGOs in Kenya still lack a strong financial base, and as a result, many of them run out of money after only a few years. This study therefore seeks to establish the influence of financial accountability on financial sustainability of non‐government organizations in Nairobi County, Kenya. Specifically, the study sought to examine the influence of financial planning on financial sustainability of non‐government organizations in Nairobi County, Kenya. To establish the influence of financial monitoring and evaluation on financial sustainability of non-government organizations in Nairobi county, Kenya. To assess the influence of financial controls on financial sustainability of non-government organization in Nairobi county, Kenya. This study was anchored on resource mobilization theory and resource dependency theory. The study adopted a descriptive survey research design. The target population which was the unit of analysis was NGOs in Nairobi County, Kenya. According to the Nairobi County 2018 report, there are 325 registered NGOs in Nairobi County. From the unit of analysis, the research identified the unit of observation which was the 989 employees from the NGOs selected. The study sample size was 285 respondents which was picked using stratified random sampling. The questionnaire was the selected instrument or tool for data collection for the study. Quantitative data was collected and analyzed by the use of descriptive statistics, this include; percentages, means, standard deviations and frequencies. The information was displayed by use of bar charts, tables, graphs and pie charts. Partial regression was done to establish the influence of financial accountability on financial sustainability of non‐government organizations in Nairobi County, Kenya. The study found that financial planning was statistically significant to financial sustainability of non‐government organizations (β=0.446, p=0.001). The study found that financial monitoring and evaluation had a strong positive correlation with financial sustainability of non‐government organization (β=0.501, p=0.001). The study revealed that a strong positive correlation between financial controls and financial sustainability of non‐government organizations (β=0.459, p=0.000). The study recommends that the management of NGOs should work on improving financial planning with the aim of improving financial sustainability of the NGOs. The study also recommends that the management of NGOs should work on improving practices of financial monitoring and evaluation. This can be done by conducting frequent financial monitoring and evaluation activities. The study recommends that the management of NGOs should improve on their financial control’s practices. This can be done by using efficient communication systems and holding individuals in the organization accountable.
Fraud risk management techniques and financial performance: the case of Savings and Credit Cooperative Organizations in Kenya
(Strathmore University, 2021) Wangu, Muriuki Cicily
According to Duffield and Grabosky (2011), fraud is a deceptive act that involves the deliberate distortion of the truth or the false representation or concealment of a material fact in order to gain an unfair benefit over some other in an effort to achieve something of cost or deprive a person else of their right. The objective of the study was to investigate the effect of fraud risk management techniques on financial performance of SACCOS in Kenya. The research aimed to identify the three aspects fraud risk management techniques which include preventive, detective and responsive techniques. The researcher used descriptive research design under the positivism research philosophy. Questionnaires were employed to collect data from a sample of 545 SACCOS, 176 deposit taking saccos and 370 Non-deposit taking SACCOS. The study collected quantitative data and analyzed it using descriptive analysis methods. Inferential statistics such as correlation and regression analysis were used to show the relationship between the dependent and independent variables. The three independent variables explain 77.6% variations in financial performance. The study demonstrates a great reliance on fraud risk management techniques to curb fraud occurrence. The majority agree that applying fraud risk management techniques, controls, monitoring, and reporting supports faster fraud prevention and detection. The study's findings are that most fraud risk management techniques are believed to be closely and positively related to the competitive advantage of Non-Deposit and Deposit SACCOs in Kenya. These findings have a positive impact on the fraud lifecycle theory. Fraud in SACCOS has reduced in Deposit taking SACCOs suspected fraud is at 7.3% while Non-Deposit taking SACCOs which is at 3.8% showing financial performance has improved since in the past couple of years. In line with the important findings of the study, recommendations for policy and practice were made. Non-Deposit and Deposit SACCOs rely heavily on applied fraud risk management techniques, which they have put in place following worldwide best practices.
The Effect of organizational culture on performance of employees in private universities in Kenya
(Strathmiore University, 2021) Onyango, Brenda Pamela
Culture is a key factor in achieving organizational goals and objectives. The main objective of this study was to determine the influence of organizational culture on employee performance in private universities in Kenya. The specific objectives were: to establish the effect of mission trait, adaptability trait, involvement trait and consistency trait on performance of employees in private universities in Kenya. The research study was anchored on Schein's model of Organizational Culture and the Goal-setting theory. A descriptive research design was used in conducting the study. Population of study was all the private universities in Kenya. A total sample of 196 respondents was drawn from the 14 private chartered universities in Kenya. Primary data was collected through a structured questionnaire which contained closed ended questions. The data collected was inspected for completeness and recorded in Statistical Package for Social Sciences (SPSS) Version 24 for analysis. Data collected was analyzed using descriptive statistics, correlation analysis and regression analysis. The results were that there was a positive correlation between involvement, consistency, adaptability and performance. However, there was a weak correlation between mission trait and performance of employees in private universities in Kenya. Further there was a strong coefficient of determination between culture and performance. This study contributes to theory by building on the theoretical framework such as Denison model and improving on the understanding of culture, and the possible effect that culture traits could have on employee performance. Empirically, the study guides management practices by diagnosing culture traits as the initial stages of managing people effectively. The findings of this study were limited to the culture traits by Denison and employee performance adopted by the researcher. The study was also limited to data collected using cross sectional survey, yet organizational culture may be affected by technological advancements, unprecedented occurrences and time which may affect how business is carried out in organizations. The response rate was limited by the conditions of COVID-19 pandemic.
Effects of business model innovation on competitive advantage of apparel stores in Nairobi County
(Strathmore University, 2021) Ogombo, Ochiko Rodgers
Business model innovation lacks clarity on common definition and conceptualization mechanisms among scholars. There is also a dearth of empirical evidence that reveal the effects of business model innovation on competitive advantage of apparel stores in Nairobi County. This study bridged this gap and enriched strategic management literature by providing meaningful insights on the relationship between business model innovation and competitive advantage of apparel stores in Nairobi County. The study was grounded on Resource based view theory which enabled the study to understand how apparel stores adopt and exploit business model innovation as their intangible resource to achieve competitive advantage and Porter's generic strategies which enabled the study to determine the competitive strategies that apparel stores employ to improve their market competitiveness. Positivism research philosophy was adopted to ensure data collected was independent from researcher and reliable to support study findings. Descriptive research design was used to illustrate the unique characteristics of the sampled population. Quota sampling \vas adopted, to classify sample size based on constituency location of the apparel stores while convenient sampling was applied to the identified quotas to determine the study's sample size. Structured questionnaire was used on a sample of 307 apparel stores to collect data which was analyzed using spearman correlation analysis and regression analysis. Descriptive statistics were also used as part of analysis techniques. The study findings established business model innovation positively affected the competitive advantage of apparel stores in Nairobi County. Value creation business model innovation had a positive significant effect on differentiation strategy and insignificant effect on cost leadership competitive strategy. Value proposition business model innovation had a negative effect on cost leadership strategy and positive significant effect on differentiation strategy. Value capture business model innovation had a positive effect on cost leadership strategy and positive effect on differentiation competitive strategy. The study suggested further studies to be done on business model innovation concept li1 relation to other business management disciplines such as organization culture~ organization structure, corporate strategy and leadership. The study adopted convenient sampling technique which presented probability of biasness especially when respondents chose to take part in the sh1dy while others refused to participate. The study data collection process was also affected by COVID-19 pandemic. Collecting data became a challenge as sh1dy respondents were cautious of their health safety. This affected the overall response rate achieved during data collection process.
An Evaluation of the role of credit risk management on profitability on commercial banks in Kenya
(Strathmore University, 2021) Gachini, Emmy Nyambura
The effective management of risk is an important part of an inclusive approach to management of risk and is needed to ensure longevity of any banking institution. This study sought to examine credit risk management and its effect on the profitability of commercial banks in Kenya. Specifically the study addressed the following objectives, to examine the effect of Credit risk identification, the effect of Credit Risk Monitoring on profitability of listed commercial banks and to examine Credit risk analysis and its effect on profitability of their banks. The study was guided by three main theories namely Risk Management Theory, Information Asymmetry Theory and Agency Theory. This study adopted a quantitative research design, which helps in establishing the direction and magnitude of causal relationships. Measurements are taken on each variable over two or more distinct time periods which allowed to measure changes in chosen variables over time. The study found that different commercial banks consider credit risk identification, credit analysis and assessment, credit scoring mechanism, and risk monitoring and that credit analysts use the univariate accounting based credit scoring systems to compare key accounting ratios of specific clients versus industry ratios to show how a client's ratio differs from the industry standards or trends. At 5% level of significance and 95% level of confidence, capital adequacy ratio, loan to deposit ratio, non-performing loans ratio, management efficiency ratio and the net profit were all significant on profitability of commercial banks in Kenya. The study concluded that risk monitoring assists the banking administration to detect errors in good time and that internal auditors are greatly involved in the risk identification process where risk trigger questions are mostly used as identification methods. Statistically, there was a significant relationship between the effects of credit risk management and financial performance of commercial banks in Kenya. The study recommends that commercial banks should enhance usage of credit risk control practices in credit risk management to a very great extent.
The Investigation of the relationship between fraud risk management practices and firm value on Kenya listed companies
(Strathmore University, 2021) Moindi, Enock Nyagwencha
All organizations can be victims of fraud incidents in one way or another. Listed companies play a key role in the economic development of a country. The study investigated the relationship between the Fraud risk management practices and fim1 value of the listed companies in the Nairobi Security exchange, Kenya. Fraud risk management practices are part of the governance function of an organization that looks at the management of fraud risks in a company with the intention of mitigating, detecting and responding to the risks before occurring, when they occur and after occurring. The study collected data by use of a 5-point Linkert -scale questionnaire. The data on firm value (Tobin’s Q) from the audited financial statements of the companies as provided on the 2017-2018 investor handbook by NSE was collected. Confirmatory factor analysis was conducted to test for construct validity of the data. The correlation findings revealed a positive and significant relationship between fraud risk management practices (corporate governance fraud risk practice, Preventive FRMP and Responsive FRMP) and firm value (Tobin's Q). Other correlation findings indicated that detective FRMP and firm value show a positive but not significant relationship. The regression findings established that corporate governance fraud risk management practices have a positive and significant effect on firm value. But preventive, detective and responsive fraud risk management practices have a positive and not significant effect on fi1m value. While the relationship between firm size and firm value is negative and significant. The leverage and firm age have a positive and not significant effect on firm value. The study recommends an enhanced adoption of a devoted board and top management review of fraud incidents, whistleblowers, having an effective fraud department, implementing anti-fraud policy and a comprehensive ethics program. Other recommendations include; enhanced training on fraud risks, enhanced performance appraisal of fraud prevention, enhanced whistleblowing hotline system, progressive sanctions, disclosing the results of internal investigation to the regulator, prosecution of the fraud offender and recovery of the stolen funds.
The Influence of intrinsic motivation on employee performance in public organizations in Kenya
(Strathmore University, 2021) Nyaga, Agatha Ngithi
The purpose of this study was to establish the int1uence of intrinsic motivation on employee performance in public organizations in Kenya. Intrinsic motivation is important not only with a view to satisfy the needs and e::hrpectations of individual people who work in the public service but also create a feeling of belonging and commitment among the employees. Low motivation in public organizations has been cited as a major factor in Africa's human resource crisis, non-monetary motivators that foster team and organizational commitment are employee recognition, employee development, participatory environment, job security and job autonomy. A descriptive research design was adopted which \vas deemed to be the most appropriate since it permitted the researcher to describe the characteristics of the variables mentioned in the study. The research targeted employees of 65 public organizations in Nairobi County-Kenya which due to various constraints, due to Covid 19 pandemic restrictions only employees of 25 organizations were sampled. 375 employees were sampled using stratified random sampling. Primary data was collected by means of a structured questionnaire,which was self-administered. The data collected ·was analysed using descriptive statistics with the help of Statistical Package for Social Sciences (SPSS) to achieve the objectives of the study. Simple regression analysis and correlation analysis were used to analyse data. The study found that employee development, recognition, job autonomy and employee achievement motivation had significant and positive effect on employee performance. The study recommended that the overall management of public organizational input greater emphasis on recognition and non-monetary reward programs to attain higher employee performance. The management should also give the employees the autonomy to do their jobs which will improve employee attitude and in tum enhance employee performance. The study concluded that employee development has a positive effect on employee performance and that motivation inf1uences job performance but they there are many challenges associated with motivation that are essential to optimize employee performance. This study only focused on employee performance; future studies could focus on both employee and firm performance.
The Relationship between unsystematic risk and returns at the Nairobi Securities Exchange
(Strathmore University, 2021) Omeri, Daniel Nyangwono
This study sought to assess the relationship between unsystematic risk and returns in the Kenyan stock market by looking at firms that are listed at the Nairobi Securities exchange. Unsystematic risk is a factor that investors consider when making investment choices. Whereas institutional investors diversity to minimize this risk, retail investors are exposed to unsystematic risk since they hold single stocks. This fanned the basis of this study as it sought further to explain the role that unsystematic risk plays in the determination of stock rettm1s at the Nairobi Securities Exchange. The period of study \vas between 2010 and20 19 with the objectives of examining the trend of unsystematic 1isk, investigating the forecasting ability of unsystematic risk on stock returns, and determine the optimum portfolio for an investor at the Nairobi Securities exchange. Portfolios were formed using a purposive sampling method as securities were organized in ascending order of their unsystematic risk values and portfolios selected in the increasing order of the unsystematic risk values. To calculate unsystematic 1isk, CAPM was used to control for firm-specific risk, which was determined as the standard deviation of the residuals from regressing excess rettm1s. This study adopted a positivism research philosophy and a quantitative research design. Secondary data was used in the study and was collected using a data capture sheet. The study used trend analysis, regression analysis, and a mean-variance model to analyze data. Three diagnostic tests, tests for normality, stationarity, and autocorrelation were conducted to ensure that the findings don't lead to a spurious regression. From the result of the trend analysis, value-weighted unsystematic risk showed an insignificant trend for the period of study. The study revealed that unsystematic risk is negatively related to the stock market rectums and cannot forecast stock market returns at NSE. Furthermore, an investor needed a portfolio of between 17 to 22 securities to achieve an optimum p01tfolio at Nairobi Securities Exchange. This study contributes to the existing knowledge of the relationship between unsystematic risk and stock market returns in developing and emerging capital markets.

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