MBA Theses and Dissertations (2020)

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Access to digital Nano-credit and the economic welfare: a case study of the low-income earners in Nairobi County
(Strathmore University, 2020) Oyier, Jared Odhiambo
Digital nano credit has gained prominence in Kenya because it serves the portion of the population which has not been reached effectively by commercial banks. The requirements for qualification are relatively relaxed as compared to those of the commercial banks; they also process loan request faster than most of the commercial banks. The justification for the study is premised on the fact that little attention has been devoted to study the impact of digital nano credit on the economic welfare of the recipients. Moreover, the existing empirical evidence is inconclusive in the direction of the association. Therefore, the study sought to find out the impact of access to digital nano credit on the economic welfare of the low-income earners in Nairobi. The supplementary objective of the study included; investigating the factors considered by digital nano credit companies before they issue digital-nano credit and how the usage of digital nano credit affect the economic welfare of the low-income earners. The study was anchored on three theories; the neoclassical theory of welfare, restriction of opportunities theory of poverty and the individual deficiency theory. The research used a cross-sectional survey research design to collect and analyze the data. Purposive stratified random sampling technique was used to select a representative sample size of 196 respondents from the population. Data was gathered through a structured questionnaire on a target sample size across the 17 sub-counties in Nairobi. The response rate for the study stood at 85.71%. The study found that there is a statistically significant positive relationship between economic welfare, access to digital nano credit, usage of digital nano-credit, the age of the breadwinner, household income. The size of the household was found not to have a negative relationship with economic welfare; however, this relationship was not statistically significant. The study also concluded that there is a constant level of economic welfare which is not affected by access to digital nano credit. The study also confirmed the assumptions of the neoclassical theory of welfare and restrictions of opportunities theory. However, the results of the study do not support the assumptions of the individual deficiency theory. The research, therefore, proposes that the government should regulate the issuance of digital nano credit and engage in market correction policies which can ensure that micro businesses are adequately supported to grow. Finally, the study suggests that an independent study should be undertaken to assess the impact of digital nano credit to the performance of sole proprietorship micro businesses.
An analysis of key drivers for the implementation of digital literacy programs in Kenyan universities
(Strathmore University, 2020) Kamau, Everline
With the continuous growth in technological advancement within the country, the implementation of the digital literacy program was expected to be seamless within the education sector. However, to date, institutions of higher learning have been unable to assimilate digital learning in their content delivery comprehensively. The purpose of this study was to examine the key drivers of digital literacy implementation within private and public universities in Kenya. The specific objective of the research was to establish the effect of staff skills and competencies, ICT infrastructure, and strategic planning on the digital literacy implementation within universities in Kenya. The research was grounded on the technology diffusion theory as well as the resource-based view theory. The study used a descriptive research design. The target population for the study was made up of 40 universities within Nairobi County comprising of 12 public universities and 28-privately-run universities. The study sampled three respondents within each of the universities. The study sample size was 94 respondents. The research utilized primary data, which was collected using a structured questionnaire. The study adopted a drop and picked method in the data collection. The data was coded into SPSS 23 for analysis. The study relied on both descriptive and inferential analysis. The study obtained a response rate of 60% of the survey. The results of the indicated there 45.9% of changes in digital literacy implementation is determined by the ICT infrastructure, strategic plans, and staff skills and competencies. The research concluded that having adequate ICT infrastructure, skilled and competent staff, and effective strategic planning positively influence digital literacy implementation. The study recommends that universities should improve investment in internet connectivity, ICT infrastructure, cloud computing, strategic planning, as well as forming strategic alliances with telecommunication firms and digital learning service providers.
Analysis of value chain and performance of leather companies in Kenya
(2019) Karinga, Kennedy Mwari
The performance of a company is the core aspect for management and shareholders as it is a measure of success or failure and usually guides decision making within that business. Value chain analysis is a fundamental approach to conducting internal analysis of a company since it is a systematic examination and analysis of the specific activities or functions through which a firm can create value and realize growth in margins. Analysis of the value chain has significant impact on decisions regarding performance of the company or industry as the activities of the value chain have a bearing on costs. This study’s objective was to analyze the value chain and performance of the leather companies in Kenya. The study used a descriptive research design and a census was conducted on five leather processing companies in Kenya. The study collected primary data gathered using structured questionnaires through interviews and analyzed using descriptive statistics. The research yielded both qualitative and quantitative data. The study found that the leather value chain in Kenya has three main levels of participation i.e. the raw hides and skins level, tannery level and finished leather products level. Additionally, the study concluded that the highest average gross and net margins were realized at finished leather product level, followed by the tannery level and the raw material level had the lowest gross and net margins in the value chain. Combined activity analysis of the value chain indicated that the combination would result in the lowest margins on gross margins and net margins across all value chain levels. The leather value chain in Kenya can be profitable for the investor who specializes at particular levels of activity. Cost control is invaluably critical in production planning and processing resulting in maximization of margins.
An Assessment of mergers and acquisitions motivation and framework adherence vis-à-vis value creation among internet service providers in Kenya
(Strathmore University, 2020) Mudhune, Beatrice A.
Mergers and acquisitions (M&A) are a key growth and expansion strategy being embraced by many organizations especially in the telecommunication sector. M&A in organizations are usually guided by the top executives and management. The success of the M&A depends on the executives and top management’s understanding of the M&A framework required to be applied taking into consideration the M&A goals and objectives. The framework used to execute pre and post M&A is very crucial to ensure buy-in from all stakeholders both internally and externally for business continuity and sustainability, while maintaining brand confidence, trust and loyalty. The purpose of this research was to analyze the mergers and acquisitions framework of the Internet Service Provisioning sector in Kenya in light of standard literature-derived framework - the Watson Wyatt Deal Flow Model. A three-fold analysis approach was applied – descriptive statistics, content analysis and Mann- Whitney U Test as an inferential statistics tool. Findings indicate that strategic, market and economic reasons were found to be the main drivers of mergers and acquisitions. Additionally, the pre and post implementation periods were the most ineffectively executed. In summation, M&As in Kenya are rarely informed by a defined framework and minimal stakeholder involvement is evidenced in the process. The resulting situation is therefore a shortfall in anticipated benefits of the M&As. It is recommended that companies in the space consider switching to a defined implementation process.
An Assessment of the factors that influence the level of indebtedness of mobile borrowing micro entrepreneurs in Nairobi County, Kenya
(Strathmore University, 2020) Karungu, Mary Wangui
The proliferation of mobile lending applications has greatly impacted on the ease of access to credit amongst borrowers in Kenya. The advent of M-PESA in 2007 brought immense transformation in respect to mobile money transfer and paved the way for the development of the mobile lending platforms. One of the major problems that MSMEs face is the lack of financing. This has been worsened by the interest rate capping which has made banks more reluctant to lend to them. Left with very few borrowing options, access to mobile lending platforms seems to be an ideal solution to the problem. There has, however, been an increase in the number of people negatively listed on the Credit Reference Bureau for default on mobile loans. There is therefore need to understand whether and how mobile lending has impacted on the level of indebtedness of micro-entrepreneurs in Nairobi City County. Thus, the researcher proposed to assess the effect of mobile loan borrowing on the level of indebtedness among micro-entrepreneurs in Nairobi City County. The specific objectives of study involved; evaluating the influence of demographic factors on the level of indebtedness of the borrowers; establishing the relationship between behavioural factors and the level of indebtedness of the borrowers’ and evaluating the relationship between financial literacy and the level of indebtedness. The study embraced a descriptive and correlational study design through a quantitative survey to evaluate the study questions. The target population involved 224,668 micro-entrepreneurs operating in Nairobi City County and through Yamane Formula; a total of 400 respondents were sampled. Data analysis sought to establish if any relationship existed between the variables via Statistical Package for Social Sciences. The quantitative analysis was conducted by use of descriptive and inferential analysis techniques. Data representation utilised graphs in form of pie charts and tables for means, standard deviation, variances, and correlation coefficients. The study was able to obtain a 71% response rate with the majority of the respondents being over 26 years. The findings of the research indicate that the mobile loan borrowing factors have a positive relationship with the level of indebtedness as indicated by Adjusted R2= .716. The study concludes that behavioral factors, terms and conditions as well as demographic factors have a positive effect on the level of indebtedness. The research recommends that there is need for more regulation to be introduced in the mobile lending industry as well as introduce requirements that can integrate mobile lending into the financial sector. The study further recommends that the management of the mobile lending firms should enhance their screening process and promote better financial literacy.
Assesssing the relationship between service quality and satisfaction of customers : a case study of Kenya Power Limited
(Strathmore University, 2020-06) Luusa, John
The global general trend in the provision of electrical services by distribution companies is one emphasizing customer centric ity, efficiency and diversification of services. This move derives impetus from the observation that customers of utility services are appreciative of value-add services and that this appreciation translates into brand loyalty. The local context in Kenya however differs from most western countries in that Kenya Power and Lighting Company exercises a monopoly in the distribution of electricity services. It is thus the main aim of this study to assess whether customers of the rendered services, given the growing importance of customer-centricity in service rendering, are satisfied with the company's offerings. The specific objectives of the study are as follows; to establish the extent to which communication techniques influence customer satisfaction with service delivery by Kenya Power in Nairobi County; to establish how reliability of power supply influences customer satisfaction with service delivery by Kenya Power in Nairobi County; to determjne how cost of electricity influences customer satisfaction with service delivery by Kenya Power in Nairobi County; to determine how innovation of new products influences customer satisfaction with service delivery by Kenya Power in Nairobi County. The primary data was collected through a structured questionnaire via an e-survey platform targeting Kenya Power residential customers residing in Nairobi County. The calculated sample size for this population came to 384 respondents and the research was able to obtain a 72.4% response rate. A subsequent ordinary least squares multiple regression was run to assess the relationship between the variables highlighted in the obj ectives. Findings from the simple linear regression models indicated that communication techniques were the most impactful on overall customer satisfaction with a beta coefficient of 0.58 with the model explaining 18.9% variability in customer satisfaction. Reliability, cost of electricity and innovation, respectively, were also considered significant predictors as assessed through simple regression models. Innovation was the least impactful contributor to overall customer satisfaction. Cost and innovation were however not considered significant predictors in the multiple regression model. The study concluded that it was therefore apparent that improving communication techniques would result in a market increase in customer satisfaction. Reliability of service had the second highest impact on customer satisfaction. A unit increase in reliability scores was associated with a 0.250 lowering of dissatisfaction among clients. This finding was significant at the 95% confidence level. It was therefore inferred that reliability was the second most important construct in affecting customer satisfaction. The study recommends that Kenya Power consider leveraging on core systems that will enable them to seek knowledge on the information requirements of their consumer base as communication techniques play a critical role in their satisfaction.
The Association between working capital management and financial distress by listed firms in Kenya
(Strathmore University, 2020) Mwariri, Moses
The objective of this study was to assess the association of working capital management practices and financial distress of firms publicly listed at the Nairobi Security Exchange (NSE). The specific objectives of the study was; to establish the influence of cash management practices on financial distress of firms publicly listed in the Nairobi Security Exchange (NSE), to determine the extent to which receivable management practices influence the financial distress of firms publicly listed in the Nairobi Security Exchange (NSE), to investigate the influence of payable management practices on the financial distress of firms publicly listed in the Nairobi Security Exchange (NSE) and; to determine the influence of inventory management practices on financial distress of firms publicly listed in the Nairobi Security Exchange (NSE). The total population of this study will be all the 67 publicly listed in Kenya. Purposive sampling was adopted in selection of 25 firms listed in manufacturing and related sectors. Collected data was analysed through descriptive and inferential statistics. Descriptive statistic included mean, minimum, maximum, standard deviation, skewness and kurtosis. Inferential statistics included Pearson correlation and regression modelling. Data was analysed using Stata 14. Study findings documented that cash conversion period had negative association with financial distress of listed companies in NSE. ARP had inverse and significant influence on financial distress of listed non-financial companies in NSE. Inventory conversion period had negative and significant association with financial distress of listed companies in NSE. Accounts payable period had positive and significant association with financial distress of listed companies in NSE. Control variables had mixed association with financial distress of listed companies with firm size, tangibility and annual growth rate affecting financial distress negatively while leverage and board size had positive association with financial distress. The study concludes that there is need for listed companies in NSE should increase their accounts payable periods should to minimize likelihood of facing financial distress. This approach would release financial resources to meet urgent needs, should decrease their inventory conversion period. This would aid in management minimizing storage costs though it may lead to stock-outs in situations when there is an increase in lead time. To enhance prompt payments of good and services listed companies should provide discounts and appealing terms to those paying in cash. There is need for listed companies to develop measures aimed at managing accounts receivables through creation of avenues for earlier repayment by invoice discounting and delayed payment to allow the company make short term investments which would be beneficial to respective companies. Prompt receipt of payments would enable listed company’s opportunities to purchase short term treasury bills and corporate bonds which would diversify their investment portfolio and minimize risk. There is need for development of mechanism aimed at minimizing attributes of cash conversion cycle or increase of financial health status of listed companies. Listed companies should be encouraged on acquisition of assets, decrease in reliance with borrowed capital and decrease of their board size.
Competitive strategies and the financial sustainability of commercial banks in Kenya
(Strathmore University, 2020) Owaga, Beatrice
There is a limited examination of the effect of competitive strategies on the financial sustainability of commercial banks which created an empirical gap that this research was premised. The current study sought to establish the effect of competitive strategies on the financial sustainability of registered banks in Kenya. The focussed on the effect of innovative strategies, differentiation, and marketing strategies on financial sustainability. The study was anchored on the theory of competitive advantage and the innovation diffusion theory. The study adopted an explanatory research design with the unit of analysis being the 41 registered commercial banks in Kenya. The sample respondents were 94 respondents drawn from the commercial banks. The study utilized a structured questionnaire in the data collection with the collected data being analyzed using descriptive and inferential statistics. The findings of the study indicated that there is a positive relationship between competitive strategies and the financial sustainability of commercial banks. The study results show there is a significant association between innovative strategies, marketing strategies, and the financial sustainability of commercial banks. The study found an insignificant positive effect of diversification strategies on the financial sustainability of commercial banks. The study recommends that commercial banks should invest more in technological infrastructure to drive digital banking. The research further recommends that commercial banks should foster customer relationship building and market positioning strategies. The study also recommends that commercial banks should review their operating environment to ensure that diversification efforts undertaken by the bank meet the customer gaps existing in the institutions.
Critical success factors for timely completion of World Bank projects in Kenya
(Strathmore University, 2020) Odhiambo, Kefa Seda
Road infrastructure remains an important ingredient to the economic development of Kenya as most transport is through this medium. The government has earmarked improvement of road infrastructure as an important part of its vision 2030. However, lack of financial and technical capacity has resulted in the Kenyan government seeking assistance from the World Bank to finance its road projects. This study analysed the critical success factors for the timely completion of World Bank projects in Kenya. The general objective of the study was to examine the critical success factors influencing timely completion of World Bank financed road projects implemented by Kenya National Highways Authority (KeNHA). The pragmatic research philosophy was used and descriptive research design was adopted. The 340 World Bank-sponsored road projects implemented by KeNHA selected through purposive sampling of trunk road projects were the target population of the study. The sample for this study was 20 projects which included completed and ongoing projects that have achieved 50% completion in the 2017-2020 fiscal years. The unit of observation was 52 managerial staff engaged in the execution of selected 20 projects. The data was collected through emailing of structured questionnaires and face-to-face key informant interviews. The descriptive statistics used in analyzing the quantitative data were frequency distributions, mean, and standard deviation. Spearman rank correlation was used to determine the association between independent and dependent variables. The data was presented in tables and figures and supported by an interpretation from the researcher. The study was able to reach 51 respondents from the survey. The results revealed that that project design, institutional environment, project management training, project coordination, and project monitoring all had a positive and statistically significant correlation with timely completion of projects. The study, therefore, concludes that limitations and challenges in the project design phase are more likely to contribute to timely completion of World Bank donor funded projects. That institutional environment of World Bank-funded road projects had the least effect on the timely completion of road projects. That project coordination of activities was the most critical success factor contributing to timely completion of World Bank-funded road projects with project monitoring becoming the third most critical success factor contributing to timely completion of World Bank-funded road projects. The interviews supported the findings from the survey. These findings cement the importance of stakeholder theory in executing projects as communication and information sharing between parties in a project contributes to timely completion by improved coordination in monitoring, design, skills management, and planning of projects. It is this study’s recommendation that independent project design consultants should be engaged in project design before the works begin. In regard to project coordination, the study recommends that land acquisition to be done immediately after designs are complete and prior to commencement of construction works and the challenges incurred during land acquisition will be avoided and this will enable the project to be completed on time, budget and quality. In reference to project monitoring, that this process should be continuous and ongoing and not based on milestones but rather on schedules to be able to identify any time creep that may occur during the course of a project.
Determinants of digital technologies adoption among small scale farmers in Kenya - a case of Embu and Kirinyaga Counties
(Strathmore University, 2020) Kiarie, Hussein
Despite the fact that Kenya is a regional innovation hub with the increasing digitalization of the various sectors within the economy, the adoption of technology within the agriculture sector has not been at par with the rest of the economy. This study sought to examine the determinants of the adoption of digital technologies within the agriculture sector. The study sought to establish the effect of resource capability, managerial capability, extension services, and socioeconomic factors on digital technology adoption. The study was grounded on the technology organization and environmental framework. The study adopted a descriptive research design with the population of the study being drawn from Small-Scale commercial farms in Embu and Kirinyaga County. The sample population for the study was 387 participants with a quantitative research instrument being utilized in the study. The study adopted a drop and pick method in the data collection process. The collected research data was analyzed using descriptive and inferential statistics. The analyzed data was presented using tables, charts, and bar graphs. The research was able to obtain a 93% response rate. The results of the study showed that, to some extent, most of the farmers were utilizing the various technological farms in their day to day farming activities. The study concludes that 18.5% of changes in the adoption of agricultural technologies was determined by the, household income, household size, gender farmer’s age, farming experience, education of the farmer, level of resource capability, managerial capability, and access to extension services. The research recommends that the government should enhance research and development, which will support the introduction of modern technologies. The study recommends that farmers should enhance their collaboration and pooling of resources to support their capacity to adopt new agricultural technologies.
Determinants of financial performance of commercial bank Fintechs in Kenya
(Strathmore University, 2020) Kachumbo, Elizabeth
The main objective of this research was to investigate the determinants of financial performance of commercial banking Fintechs in Kenya. Three specific objectives of the study were: to assess the effect of capital adequacy on the financial performance of commercial Banking Fintechs in Kenya; to assess the effect of size of customer base on the financial performance of commercial Banking Fintechs in Kenya; to assess the effect of size of loans advanced to customers on the financial performance of commercial Banking Fintechs in Kenya. The theoretical foundation of this study was guided by four theories: Innovation Diffusion theory, Technology Acceptance model, Resource Based theory and Schumpeterian Innovation theory. Philosophical approach was positivism while panel data research design was employed. The population of the study was 33 banking Fintechs and 10 commercial banks used as a control sample in Nairobi, Kenya. Purposive sampling method was used to select the 33-commercial banking Fintechs and 10 traditional commercial banks in Kenya during the study period of years 2014-2018. For data collection, secondary data related to capital adequacy, size of loans advanced and total customer base was used. Content validity was applied with data reliability measured using data from audited financial statements. To comply with research quality of data collected, diagnostic tests were conducted. Panel data analysis method where STATA data analysis software was used, anchored data analysis. The findings showed that capital adequacy (-0.352) has significant and negative relationship with financial performance of commercial banks. This implies that for every increase by one unit of capital adequacy, financial performance of Fintechs decreases by 35.2%. Findings established that customer numbers (-0.194) has significant and negative relationship with the financial performance of commercial banks. The study findings revealed that size of loans advanced (-0.028) has a negative but no significant relationship with financial performance of commercial banks in Kenya. The study concluded that the existence of significant effect of capital adequacy and number customer indicate that the two variables are important indicators of financial performance of commercial banks after the entry of commercial banking Fintechs. In addition, conclusion was made that the insignificant relationship between size of loan and financial performance of commercial banking Fintechs may translate to nonperforming loans or loan defaults. This in essence may lead to decrease in financial performance of commercial banks. The study recommended that the disruptive effect of commercial banking Fintechs has enormous impact on the financial performance and volume of revenue of commercial banks in Kenya. The study recommends that it is necessary to establish the specific attributes of capital adequacy and number of customers that contribute to the significant effect on performance of commercial Banking Fintechs in Kenya. Since size of loans advanced has no significant effect on financial performance of commercial banks, it is important to establish other specific attributes associated with loans advanced that affect financial performance of commercial banking Fintechs. The major contribution of the current study was that previous studies have used multiple regression analysis and descriptive analysis while the current study had employed panel data analysis technique.
Determinants of organizational performance of small and medium manufacturing firms in Nairobi County
(Strathmore University, 2020) Uwase, Delphine
Small and Medium Enterprises (SMEs) are vital contributors to the GDP growth, employment levels, and social welfare of Kenya. The manufacturing sector is a critical component of the government’s economic development agenda. However, in the recent past, SMEs in the manufacturing sector have witnessed a continuous trend of poor performance, which has caused deterioration in their development, as well as business closure. The current study sought to build on available literature. It examined the critical determinants of organizational performance of SMEs in the manufacturing sector in Nairobi County. The study specifically examined how organization structure, technology ability, and management competency affect organizational performance. The theories that guided the study were the dynamic capabilities theory and the teleological theory and the study adopted a descriptive survey research design, with a quantitative focus. The target population was the 503 registered SMEs in the manufacturing sector in Nairobi County. The research sampled 223 of those SMEs and considered one management personnel per firm as the respondents. Thus, the sample size for the study was 223 managers. The study utilized a structured questionnaire, and the instrument was pretested on 10% of the sample. The study obtained an 83% response rate and the collected research data was coded into SPSS. Descriptive and inferential statistics were used to analyse the collected data. The findings were graphically presented. The results of the regression analysis showed that 51.1% (R2= .511) variation in the organizational performance of the SMEs could be determined by their organization structure, their technological capability and their management competency. The research concluded that a unit change in organization structure would lead to a 52.6% change in performance; a unit change in technology capability leads to a 13.4% change in performance; and a unit change in management competency leads to a 5.3% change in performance. The study recommends that the management of the SMEs should increase investment in putting processes in place and in continuous restructuring, which will enhance firm coordination and foster employee collaboration. The study further recommends that SME management should encourage all cadres of employees to be highly innovative and technologically savvy. The study notes that more research is required to explore why and how the research determinants affect performance; to see how the research variables affect one another; and how they relate when other measures of performance are assessed. Finally, there should be more research conducted on the determinants of organizational performance of SMEs in other sectors.
Effect of accelerator programs on business success among technology startups in Kenya
(Strathmore University, 2020) Mugambi, Wanjiku Muthoni
Accelerator programs in the developed world have had tremendous success in nurturing startups to the point where these organizations have gone on to be large global organizations operating in multiple jurisdictions, hiring thousands of employees, increasing their valuations and enriching employees and investors alike. However, despite the high number of accelerators/incubators/hubs in Africa (>500), the continent is yet to witness this level of growth for startups operating in this region. So far, only one startup on the continent, Jumia Group, has achieved unicorn status. Many startups going through accelerator programs are closing shop on a frequent basis and continue to struggle to raise additional funding necessary to help them get to their next level of growth. The main aim of this research study was to establish how accelerator programs influence start-ups’ business success among tech startups in Kenya. Specifically, the study sought to; determine the relation between accelerator seed funding on Start-ups’ business success, analyse the relationship between technical guidance offered by accelerators on start-ups’ business success and to establish the relationship between strategic guidance offered by accelerators on start-ups’ business success. The research adopted the resource-based view theory and the diffusion of innovation theory. This research used a cross sectional descriptive survey research design. The study population was 42 employees in the accelerators, six from each of the 7 accelerators located in Kenya. Data was from 36 of the 42 giving a response rate of 85.71%. The study used primary data obtained from the original sources using questionnaires. The questionnaires were administered online via Google forms. Data obtained using questionnaires was converted from simple responsive into a quantitative form to be useful in the analysis that was done using statistical package for social sciences (SPSS). This process generated descriptive statistics which included frequencies and percentages and inferential statistics. A multiple linear regression model was used to show the relationship between the dependent and independent variables. The study findings reveal that seed funding influenced tech startup business success positively. Results also demonstrate that technical guidance influenced tech start-up business success positively. Further, results illustrate that strategic guidance influenced tech start-up business success positively. The regression and correlation results support the results as there existed a positive and significant relationship between seed funding, technical guidance, strategic guidance and tech start-up business success. The study recommends the need for having more accelerator programs offering seed funding, technical and strategic guidance as this will boost tech start-ups business success. The findings of this study will help managers to focus on critical success factors for success within their organizations hence improving the performance of their businesses. The finding that accelerator programs contribute more to success implies that managers will need to focus more on these strategies if they are to improve their business success. The main limitation of the study was that it covered only three aspects of accelerator programs and so there are other areas that require research.
The Effect of corporate governance mechanisms on the operational performance of small and medium-sized enterprises in Nairobi
(Strathmore University, 2020-11) Ranka, Moses
Entrepreneurial firms require good operational performance to achieve full profits potential of the business. They also require inputs on business operations, good strategy and best practices in the industrial sector. In order to realize this, good corporate governance practices are vital in assisting SMEs (small to medium‐sized enterprises) in improving on their operational performance. The issue of corporate governance has been a growing area of management research especially among SMEs firms. The limited studies in the area with respect to SMEs have focused mainly on developed economies. This study therefore sought to examine the effects of corporate governance on the operational performance of SMEs. The study specifically assessed the adoption of corporate governance structures among SMEs by testing for the effects of formal board, board roles, board competency and audit committee on the performance of SMEs. The main objective of the study was to determine the effect of corporate governance mechanisms on the operational performance of SMEs in Nairobi. The specific objectives of the study were to examine the influence of the existence of SME board on the operational performance of the SMEs in Nairobi; to establish the effect of board roles and mandates on the operational performance of the SMEs in Nairobi; to determine the effect of Board Managerial competency on the operational performance of the SMEs in Nairobi and to establish the effect of audit committee on the operational performance of the SMEs in Nairobi. The study target population was drawn from 83 selected managers of SMEs in Nairobi. The sourced data was quantitative primary data. In analyzing quantitative data, the study used descriptive statistics. In addition, regression analysis was used to determine the significance of independent variables affecting the operational performance of the SMEs. The results of the study indicated that corporate governance mechanisms sampled on the study had a positive influence and significant on the operational performance of the firms except for the formal board which was not significant. The regression analysis established that audit committee contributes most to the operational performance of SMEs followed by board competency, board roles and formal board respectively. The study recommends that the management of SMEs should monitor the size of the board to ensure there are smooth coordination; board duality and composition, which are very important to operational performance of the SMEs. Finally, the study also recommends that SMEs should hold committee meetings regularly and they should be keen on the audit committee composition. The main contribution of this study to knowledge lies in the effort to strengthen the corporate governance of SMEs in order to positively help in improving the operational performance of firms.
Effect of Corporate Social Responsibility activities on brand awareness of tea manufacturing firms in Bomet County
(Strathmore University, 2020) Mitey, Florence Chepkoech
The concept of Corporate Social Responsibility has been growing among business communities in recent years. There have been questions as to whether there is any benefit to organizations engaging in CSR activities which are sometimes viewed as costly to the organization. From most empirical literature, firms’ CSR activities do have positive impact on company’s brand image, recognition or reputation which leads to higher performance through more purchases. This study sought to analyze the effects of corporate social responsibility (CSR) activities on brand awareness by looking into the CSR activities carried out by tea manufacturing firms in Bomet County. Specifically the study will determine the effect of education CSR on brand awareness of tea manufacturing firms in Bomet County, establish whether health CSR affects brand awareness of tea manufacturing firms in Bomet County and determine the effects of environmental CSR on brand awareness of tea manufacturing firms in Bomet County. The study adopted a descriptive approach and the researcher administered questionnaires to 60 middle level and top level management of tea manufacturing firms using census technique. Using multiple regression analysis and correlation analysis, the primary data was examined to determine the relationship between CSR activities and brand awareness. Findings indicated a lack of evidence of CSR impact as perceived by members of the public albeit high level of engagement in CSR as perceived by company staff.
Effect of equity modes of market entry on performance of multinational insurance companies in Kenya
(Strathmore University, 2020) Karissa, Gloria K.
Globalization has made it easy for companies to do business in other jurisdictions and this has been made possible using various market entry modes leading to an influx of multinational organizations into the developing nations cutting across various sectors. The decision to enter a foreign market and the mode of market entry is very important as it will determine the failure and success of an organization with several studies being done on organization performance and the extent to which market entry strategies have played a part. These studies have however been limited to various sectors such as manufacturing, private equity firms with some being done in other countries and not Kenya. This study intended to examine the effect of equity modes of market entry strategies on the performance of insurance companies in Kenya and was limited to multinational companies within the Kenyan insurance industry. It mainly sought to find out whether the type of market entry strategy is chosen by a particular multinational has an effect on the performance of the company and the type of effect it has. The research focused on the resource-based view theory and the balanced scorecard framework. The investigation used a descriptive research design with senior management from the 15 multinational insurance companies in Kenya as the unit of observation. Data was collected by means of a structured research questionnaire. The pilot results indicated that the study constructs were reliable for explaining the research problem. The data collected was examined in detail using descriptive and inferential statistics with results presented in tables and graphs. An 83% response rate was obtained. The study recommends the need for insurance firms to leverage on strategic alliances and direct investments to improve their performance. Further to this, insurance firms ought to improve their joint venture efforts in order to foster their competitiveness.
Effect of firm capabilities on the non-financial performance of fast-moving consumer goods firms in Nairobi metropolitan area
(Strathmore University, 2020) Mwazo, Judith
Whereas the global consumer goods market has been expanding with the changes in the income level and overall global connectedness, locally, most of the firms within the fast-moving consumer goods industry have been exiting the market or scaling down operations. Several authors have investigated the causes behind this trend, but most have focused on financial performance. Consequently, this study sought to examine the non-financial performance of the firms operating within the fast-moving consumer goods (FMCG) industry in the Nairobi Metropolitan Area. The study specifically examined the effect of managerial capabilities, marketing capabilities, resource capabilities, and technological capabilities on the non-financial performance of these FMCG firms in the Nairobi Metropolitan Area. The study was primarily grounded on the dynamic capabilities theory and the stakeholder theory. The study adopted a positivist research philosophy and utilized a quantitative approach in analyzing the interaction between study variables. The population of the study was 263 FMCG firms operating within the Metropolitan Area. The unit of observation was159 senior-level managers drawn from the FMCG industry. The study employed a structured research questionnaire deploying electronic data collection through Google forms to ensure respondents' accessibility. The collected study data were analyzed using descriptive and inferential analysis. The study's main limitation was getting access to qualified respondents since the data collection was carried out during an ongoing global pandemic. However, this was countered with the use of digital data collection methods, which were more effective in situations where physical contact was impossible. The study found a moderate and positive effect of managerial, marketing, and technological capabilities on the FMCG firms' non-financial performance. The study also found a strong positive effect of resource capabilities on non-financial performance. The research concluded that firm capabilities had a positive and significant effect on firm capabilities on the non-financial performance of fast-moving consumer goods firms. The study concluded that managerial capabilities, marketing capabilities, resource capabilities, and technological capabilities significantly influence non-financial performance. The study recommends that FMCG firms integrate digital technologies into their marketing activities and product development from these findings. Further, FMCG firms should improve investment in emerging technologies and the professional development of their personnel. The study also recommends that FMCG firms should regularly review their internal structure to ensure it is supportive of efficient decision making and communication within the firm. Further research is necessary to determine the relationship between external capabilities and FMCG firms’ performance in Kenya.
Effect of information technology integration on lean production: a case of Nestle Kenya
(Strathmore University, 2020) Mbula, Susan
Lean production in the business improves productivity and competence by that business stability and profitability can be achieved per the recent trends in the business management and technology. Lean production cannot achieve the organizational goals alone. It need some support such as strategic planning, leadership and techno logy. Successful lean implementation can be done by using the information technology in enterprise, by integrating the lean and IT, misalignment can be eliminated which results in exact product output with least waste. By integrating lean and IT. An enterprise maintains their financial data, client orders and purchasing. The broad research objective was to investigate the effect of information technology integration on production in Nestle· Kenya. Specific objectives included; determining the effect of I IT integration on lean external IT integration on lean production in Nestle· Kenya, and also determining the role of knowledge management on the two relationships. An ex post facto and causal research design was adopted because it established the cause and effect relationship. The target population were all the employees of Nestle Kenya, numbering 70. The study employed primary data which was collected by use of a close ended questionnaire. It was a case study because entailed analyzing one firm, Nestle' Kenya. It was a cross-sectional study since data was collected across several units in a uniform timeframe. Data was analyzed through SPSS and interpretation through quantitative methods as per objectives and questions of the research. The study utilized descriptive statistics to gauge the existence of IT integration and utilization of lean management in Nestle ' Kenya. The researcher employed inferential statistics. Which included correlation analysis, simple linear regression, and hierarchical multiple linear regression to analyze data collected during the study. The study established that there is a significant association and relationship between both internal and external IT integration and lean production. Finally, the study established that knowledge management does not play a significant moderating role on the two relationships. The study established that internal IT integration had a positive significant association with lean production implementation and a significant positive effect on lean production. The study makes recommendations to the policy makers in the ministry of trade and industrialization, KAM, KNCCJ. Other bodies, practitioners in the industrial sector, and consultants to implement both internal and external IT integration in order to boost LP implementation. Thus, the stakeholders should engage IT in human resource management, customer credit procedures. Product development and research risk management systems and ERP systems. Additionally they should engage IT in customer relationship management and marketing processes. In addition, they should divide lead time in a supply chain into electronic ordering in limitation lead-time and physical material movement lead-time share demand and inventory data with suppliers/distributors to shorten the order processing to select most appropriate supplier. The study makes further recommendations that there should also be focus on knowledge management when utilizing IT integration to augment lean production.
Effect of regulations on growth of construction companies in Kiambu County Kenya
(Strathmore University, 2020-10) Wathua, Charles Kigwe
The increase in demand for better housing, infrastructure development, and office facilities has mainly contributed to the boom in the construction industry in Kenya. This has led to unprecedented growth in urban development in Counties in proximity to the capital city. This development has, however, faced regulatory challenges owing to the shoddy craft and lack of compliance within some of the construction firms. This research sought to found the impact of regulations on the growth of construction firms in Kiambu County. The research specifically examined the effect of environmental laws, building regulations, and registration requirements on the growth of the firms. The research was anchored on the growth of firm theory and the public interest theory. The study adopted a positivist research philosophy with a cross-sectional descriptive survey being utilized. The focus of the study was the 162 firms registered within Kiambu County under category NCA1-NCA5. The study adopted a census survey of the 162 firms. The research relied on primary data that was collected using a structured questionnaire. The study pretested the questionnaire with 16 construction firms that were not involved in primary research. The collected research data was edited and coded into SPSS 25 for subsequent analysis. The study relied on quantitative data analysis techniques with descriptive and inferential analysis being adopted. The study findings were presented graphically using charts, bar graphs, and tables. The study was able to obtain a 77% response rate among the sampled construction firms. The findings of the study indicated that 18.2% of the variations in construction growth is determined by regulations. The study concludes that there is a positive association between building regulations, registration requirements, environmental laws, and the growth of construction firms. The study recommends that construction firms should actively review their regulations and ensure compliance to sustain their growth. The study further recommends that county governments should be given an active role in accrediting and regulating contractors.
The Effect of service quality on customer satisfaction among hotels in Nairobi County, Kenya
(Strathmore University, 2020) Mutinda, Joy Musyoka
Customers’ expectations are ever growing and ever changing hence service providers have to find ways of inventing, developing and providing new and better service offers, better service delivery mechanisms. In the current highly competitive hospitality industry environment, it is not only essential to know the significance of service quality but to also identify suitable operational strategies that ought to be implemented to achieve desired service quality goals. The general objective of the study was to establish the influence of service quality on customer satisfaction among four star and five-star hotels in Nairobi County. The anchoring theory of this study is Expectation Disconfirmation Theory (EDP). This study used a descriptive research design specifically cross-sectional survey with the sample size of 385 customers of the four star and five-star hotels in Nairobi County. The non-probability sampling technique specifically convenience sampling was adopted in the selection of the study sample. The study collected primary data using semi structured questionnaires. Quantitative data collected was analysed by use of descriptive statistics, Pearson R correlation was used to measure strength and the direction of the linear relationships between variables. Multiple regression models at 5% level of significance was used to establish the relationship between service quality dimensions and customer satisfaction. The study found that tangibility positively and significantly influences customer satisfaction among hotels in Nairobi County; reliability has a positive significant influence on customer satisfaction; responsiveness has positive significant influence on customer satisfaction in Nairobi County; assurance has a positive significant influence on customer satisfaction among hotels in Nairobi County; and empathy has a positive significant influence on customer satisfaction among hotels in Nairobi County. The study recommends the hotels to ensure that their facilities are visually appealing to its customers and this includes ensuring its employees are neat. Improved tangibility of services will enhance customer satisfaction and therefore their loyalty. It is also the responsibility of the management of the hotel to ensure that its employees are well conversant with the hotel and services provided so that they can help guests and respond to their requests/queries. The study findings can be used by policy makers to encourage hotel managers to enhance the service quality dimensions due to their positive impact on customer satisfaction. The study results can be used by individuals conducting other researchers and scholars to add their body of work by using similar variables with a different methodology. It provides a foundation to those who want to conduct research in a similar field. The study results can be used by hotel owners to elevate their customer satisfaction scores by enhancing their processes and practices. The study was limited by respondents’ reluctance to participate in the study due to identify and confidentiality fears. However, the researcher assured them that the information they provide was solely for academic reasons and therefore was to be kept confidential. The information was stored in the university database so that only authorised individuals can access it.

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