MBA Theses and Dissertations (2016)

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Analysis of challenges faced by women entrepreneurs in accessing finance in Kenya - a case of women entrepreneurs in Nairobi Central Business District
(Strathmore University, 2016-06) Kabukuru, Aiddah
Access to adequate and affordable credit for businesses remains one of the key challenges to economic development in Kenya despite efforts by various stakeholders. This study sought to analyze the challenges faced by women entrepreneurs in accessing finance in Kenya and focuses on Nairobi central business district. the study was guided by the following specific objectives: to determine the extent to which literacy levels of women entrepreneurs affect their access to finance in Nairobi central business district; to determine the extent to which the number of lending institutions available affect access to finance by women entrepreneurs in Nairobi central business district; to determine the extent to which collateral requirements by financial institutions affect access to finance by women entrepreneurs in Nairobi central business district; and to determine the extent to which interest rates charged by financial institutions affect access to finance by women entrepreneurs in Nairobi central business district. In order to undertake the study a descriptive survey was used. The target population was drawn from the female owned enterprises in Nairobi central business district. A sample size of 400 women entrepreneurs was used in the study. Primary data was collected from the proprietors/managers of the enterprises aided by a semi-structured questionnaire. Data pertaining to the objectives of the study was analyzed using descriptive statistics. In order to evaluate the relationship between the independent and dependent variables, multiple regression was undertaken. The study findings indicate that majority of the women entrepreneurs had attained at least a tertiary level of education. It validated that lack of collateral is the most significant constraint to women entrepreneurs in Nairobi in accessing loans despite different social economic characteristics. The study also found that number of lending financial institutions as not being a significant constraint in accessing finance for women entrepreneurs in the CBD. The study recommends risk free line of credit to banks by governments and non-governmental organizations. The study also recommends that financial institutions partner with non-governmental organizations and the government in obtaining low interest rates funds for onward lending to women entrepreneurs. Further studies may be carried out examining a wider area, including other urban areas and rural areas. The study also focused only women entrepreneurs but further studies may be done with a focus on financial institutions.
An analysis of factors affecting customer satisfaction at Safaricom outlets in Nairobi Central Business District
(Strathmore University, 2016) Omwenga, Peter Mosoti
In the present day mobile telephony business that is characterized by cut-throat competition from different players, the concept of customer satisfaction has become a critical success factor that is expected to lead to stronger competitive position and consequently to a larger market share and profitability. The research aimed to establish the factors affecting the level of customer satisfaction of Safaricom Customers in Nairobi, Kenya. Using the descriptive research design, the study sought to establish the factors affecting customer satisfaction at Safaricom (K) Limited. The constructs that defined the level of customer satisfaction in the study were the product features, product differentiation, and perception of fairness in the prices charged on the firm products as well as customer service. The data was collected from the Safaricom customers visiting the three Safaricom shops in Nairobi CBD. The study used descriptive research design and the questionnaire was the main instrument of data collection. The study established that the firm’s product features, capacity to differentiate its products, perception on the fairness of the firm’s product pricing and also customer service practices affect the level of customer satisfaction within customers visiting Safaricom Outlets within the Central Business District. The study findings were that the capacity of Safaricom to differentiate its product offering from the other competitors acts as a source of competitiveness to the firm due to the product being able to meet a particular need of the customers. The study found that Safaricom should enhance its rewards scheme to its customers since the strategy was found to increase customers’ level of satisfaction. Further, the study found that the level of customer service at Safaricom influences customer satisfaction and it was recommended that more customer agents and support points be opened outside the CBD. The limitation of the study included the sample selection procedure in which the narrow and specific focus of the scope means that the results are limited to Safaricom Ltd may not translate to other industry and national contexts. For the recommendation, the study set that the firm enhances the features of its product to have a seamless interface with different financial institutions without compromising the security of the customers’ deposits.
Analysis of factors affecting succession management of family-owned enterprises in Nairobi County
(Strathmore University, 2016) Gitiche, Paul Mwangi
Succession Management is an important event in the life of a family enterprise. The strategies employed in the succession have been observed to have a significant influence on the survival and performance of family businesses. Against the background of minimal research on family-owned business succession in Kenya, coupled by the important position the family enterprise holds in the economy, this study aimed at determining factors affecting succession management in family-owned enterprises within Nairobi County. The study was guided by the following variables; founder leadership style, mentorship programs and successor attributes. A descriptive research design was used in the study. The population of interest was based on the number of family-owned businesses operating in Nairobi County. A quota sampling method was used to select samples for the study. Based on a confidence level of 95%, a representative sample size of family-owned enterprises operating in the County was determined. Structured questionnaires were used to collect the relevant data for the study. Descriptive survey designs were used in the study. The data analysis was both quantitative and qualitative. This study informed best practices in family enterprise succession to ensure smooth transition in management of family-owned businesses. In the analysis of the founder’s leadership style influence on succession management, over 73% of respondents believed that it does to a great extent. 78% of the respondents indicated that successor to their respective organizations had been proposed and most of them viewed the successor attributes as an important factor influencing succession management in family-owned enterprises in Nairobi County. Family-owned business should enhance professionalism in the running of family businesses. Also, providing training for those in leadership positions including the founders, on the value and necessity of succession management would increase the likelihood of a stronger commitment to succession process.
An analysis of the factors influencing the supply of private label brands by National Brand Manufacturers in Kenya
(Strathmore University, 2016-03) Chotaliya, Bhavika Chandrakant
Kenyan supermarket retailers are expanding their product portfolio by outsourcing store brands to local manufacturers under their design and specifications in a phenomenon known as Private Label Brands (PLB). Research on this subject reveals that this new trend is posing a threat to National Brand (NB) manufacturers due to the remarkable growth of PLB and favorable consumer response. However, research from the manufacturer’s perspective and the growth of the PLB concept has received limited global attention with no available studies on the Kenyan market. This study rationally examines economic, strategic and market factors, influencing the supply of Private Label Brands by the National Brand manufacturers with an aim of recommending win-win strategies for the stakeholders. The study used a descriptive survey design characterized by a systematic collection of data from respondents through questionnaires. The collected data is analyzed using factor analysis technique, correlation, and hypothesis tests. The three categories of factors had an influence on the supply of PLB with the cost of production, negotiation and bargaining power and shelf space allocation emerged as prominent sub factors. The empirical study confirms the existence of a strong relationship between the Kenyan retailer and manufacturer; nevertheless, pricing and low volumes were perceived as constraints. This study is limited by only three factors namely: economic, market and strategic paving way for an in-depth analysis of other factors existing in the Kenyan market.
Analysis of the perceptions of the role of the Youth Enterprise Development Fund in fostering the growth of youth enterprises - a case study of youth enterprises in Nairobi county
(Strathmore University, 2016-05) Wahito, Agnes
The need to improve the economic status of the youth in any country has come to be a major preoccupation of many governments. The Kenyan government has in recognition of this set up the Youth Enterprise Development Fund whose objective is to facilitate the disbursement of funds to the youth enterprises. The objective of the study was to analyze the perception of the youth entrepreneurs who have benefitted from their Fund as to whether it has fostered the growth of their enterprises. The Youth Enterprise Fund was set up to take advantage of the growing capacity and interest of the youth to engage in entrepreneurship. This study therefore, sought to evaluate the role of the Fund in encouraging the growth of enterprises in selected constituencies in Nairobi County. The study used descriptive research design. The population of the study was 588 Nairobi youth groups that have benefitted from YEDF. The study used systematic random sampling technique in which researcher selected every fifth group in the list data provided thus arriving at 118 youth groups. The study used primary data which was collected through self-administered questionnaires. The data were analyzed using Statistical Package for Social Sciences (SPSS) software and presented using tables and figures. The study also employed inferential statistics to establish the relationship between the study variables and perceived growth of the youth enterprises. The study found out that complementary services were being offered by the YEDF to the youth enterprises in order to equip them with the necessary skills to run their enterprises successfully. The study found out that access to finance from YEDF exposed youth enterprises to better business opportunities, created employment for the youth and easier access to government funding for businesses growth. The study concluded that there is a positive relationship between complementary services, access to finance and perceived growth of youth enterprises. The study recommends that for YEDF to be more effective in empowering young entrepreneurs, more emphasis should be put in giving more training in entrepreneurship skills to youth before and after accessing the loans. The study further recommends that there should be an increase in the amount given to youths as a start-up loans from the youth enterprise development fund in order to give the youths a wider range of opportunities for investment.
An analysis on the use of social media advertising to advance brand popularity : a case of fine dining restaurants in Nairobi
(Strathmore University, 2016) Oyoo, Joseph Ogidi
In the modern day world numerous social media sites and applications have been developed that are being used worldwide. In the year 2015, both Facebook and Gmail announced that they have reached an active audience of 1 billion people each. This creates a key target market audience for corporates, small firms and even individuals. This study sought to find how fine dining restaurants have leveraged on the popularity of social media sites locally to create brand popularity through its advertisement drives. The study was guided by the following objectives; to determine the extent of social media advertising usage in creating brand popularity of fine restaurants in Nairobi, to examine the influence of social media advertising on the brand popularity of fine restaurants in Nairobi and to find out the challenges of social media advertising in creating brand popularity of fine dining restaurants in Nairobi. The theoretical foundation for the research was premised on the hierarchy effects theory. The study adopted a survey research design targeting both employees and clients of fine dining restaurants in Nairobi. The target population for the study comprised 390 restaurants in Nairobi, from which the study targeted 10% of the restaurants. The respondents included the managers, operations manager, communications manager and at least 10 customers in the restaurants. The sample size for the study was 135 respondents. The researcher further collected primary data using semi-structured questionnaires. Descriptive statistics were presented using charts, frequencies and percentages while inferential statistics were presented using correlation and regression analysis. The study findings established that social media advertisement has been on the rise and has been adopted in fine dining restaurants also as a channel for meeting customers. Social media adoption was found to be more effective in increasing brand popularity than the traditional media. Findings also showed that social media advertisement has a significant and positive effect on brand popularity. It is also a cost effective channel of advertisement. The study therefore recommends that fine dining restaurants should embark on social media advertisements so as to increase their brand popularity. Also, there is need for the fine dining restaurants to implement strategies for advancing social media usage as the advertising channel which is also efficient and cost effective. It is also recommended that fine dining restaurants should utilize all available social media advertisement channels to reach every class of individuals across different age groups.
Assessment of factors determining the performance of bank-led agent bank businesses in Kenya : case of Kiambu County
(Strathmore University, 2016) Kiburi, Michael Mungai
Although agent banking has been common in Kenya in the recent past, its success factors have not been studied in depth as the industry is still young. As such, this study aims to investigate the factors determining the performance of Bank-Led Agent Bank Business in Kenya. The specific objectives include determining the extent to which financial factors, operational factors and management factors affect the performance of bank-led agent banking businesses in Kenya. This was an exploratory study in design and targeted all the bank agents operating within the rural areas and major towns of Kiambu County of Kenya. A stratified sampling method and structured questionnaire were used to select the sample and collect data respectively. Both descriptive and inferential statistics were used to analyse the data. The findings show that the performance of agent banking business measured by profits was good; investors in the business did not think of quitting because of the promising nature of the business. Insecurity (robbery/theft were the main reasons for quitting). Amongst the recurrent expenses affecting profits of agent banking businesses include electricity bill and a monthly rent bills. Onetime costs include the cost of acquiring a transaction device and contingency costs. Availability of capital is an extremely important financial factor that affects the performance of agent banking business (p<0.05). There is a positive statistically significant relationship between the number of employees and profits made by an agent banking business (p<0.05). There is a positive slightly statistically significant relationship between the capability to manage business finances and the profits of agent banking businesses (p<0.05).The management of core business had an insignificant relationship to the performance of agent banking business (p>0.05). The study concludes that agent banking considerably increases the number of customers frequenting a store. The performance of agent banking in Kenya is significantly determined by mobile network coverage and security of agent banking environment. The ability of an agent manager/owner to borrow funds is an extremely important determinant of the agent’s performance while management of core business, capability to manage business finances, and business management capability were important factors to the performance of agent banking. Availability of adequate capital and having adequate number of employees significantly enhances the profits agent banking businesses make. The capability to manage business finances slightly affects the profits of agent banking while the manner of management of core businesses of agent banking in Kenya does not influence profits. The study proposes similar studies in different geographical areas be conducted to eliminate generalisation biases arising from region-specific variables.
An assessment of integrated financial management information system implementation towards effective management practices in Nairobi and Lamu Counties
(Strathmore University, 2016) Njeru, Patrisio Njiru
Following implementation of a devolved county government in Kenya in 2010 which followed devolving huge resources, adoption of Integrated Financial Management Information Systems (IFMIS) has been seen instrumental towards effective county management practices. These devolved resources need to be managed prudently for the citizens to enjoy the fruits of devolution. This study sought to assess the contribution of IFMIS on the effectiveness of management practices of Nairobi and Lamu Counties. The specific objective of the study was to; determine the influence of budgeting process automation on effective management practices; to establish the influence of automated county services on effective management practices; to establish whether computerized human resource management has increased effective management practices; and to establish the influence of automated procurement and disposal processes on effective management practices in Nairobi as the biggest County and Lamu being the smallest county. To achieve these objectives, a correlational research design was used with the study population being employees in the county mandated and tasked with the implementation of IFMIS. Primary data was collected and analyzed using SPSS to generate descriptive and inferential statistics to describe the study results. The findings in this study revealed that IFMIS contributes significantly to the effectiveness of county management practices with p<0.05 in human resource management (51.6%), service delivery (49.4%), budgeting process (38.7%) and procurement (18%). The study concluded that IFMIS id an important too for effective county management practices and recommended areas for further research among them; establish a model for testing and evaluating the level of success in the implementation of IFMIS and to establish the role of end users on the level of success in the implementation of IFMIS in the County Governments.
An assessment of market and macro factors that affect forecasting in fast moving consumer goods companies – a case study of Glaxosmithkline
(Strathmore University, 2016) Haria, Binita Rishi
Forecasting creates an estimation of future demand. Forecasting enables businesses to survive and companies to compete in today’s market, by coming up with new advantages, as global competition grows stronger. Despite the vitality of forecasting, GlaxoSmithKline is facing forecasting–related challenges, whereby even after forecasting demand and supply, and reviewing on a monthly basis, a shortfall is experienced month on month and hence consumer dissatisfaction. The purpose of this study was to assess the market and macro factors that affect forecasting in GlaxoSmithKline. The specific objectives were to assess the effects of different market factors and macro factors on forecasting at GSK. Cross sectional research design was used with the population as employees of GSK who are directly involved in product forecasting. The population included production planning team members, sales, marketing team members; demand forecasting team members and the distribution team of GSK. Data collection involved the use of a structured questionnaire which was administered to the respondents by the researcher. Both descriptive and inferential statistics were used for data analysis. The reliability tests of the research instrument were carried out and the overall Cronbach’s alpha for market factors which were the independent factor was (0.894), macro factors which were the intervening factor was (0.921) –and accurate market forecasting which was the dependant variable was at (0.943). The findings of the study were that macro factors significantly impacted forecasting at GSK. Market factors impacted on forecasting in GSK, though not rated as highly as macro factors. The study concluded that macro factors like the political indicators, consumer’s purchasing power, seasons, promotions, holidays and festivals greatly impacted on forecasting at GSK. The study also concluded that the methods GSK uses to make up for inaccuracies included the use of historic data and reviewing the forecast to cater for the changing trends. The recommendations of the study were that GSK should assess the various political actions that may affect the future forecasting of products. For accuracy in forecasting, GSK should consider the impacts of consumers buying behaviour, competition from similar products, availability of cheaper substitutes, recency effects and consumer purchase power. An area for further research was need for a study on the effectiveness of the forecasting team in undertaking accurate forecasting of products at GSK.
Assessment of the contribution of East African Community common market protocol to the economic growth of Kenya
(Strathmore University, 2016) Emily Thaara Njuki
Kenya considers Regional Economic Communities (RECs) such as the East African Community (EAC) as a facilitator for economic growth. However, the EAC regional integration process has achieved less than envisioned by EAC Common Market Protocol. The general objective of this study was to assess the contribution of East African Community common market protocol to the economic growth of Kenya. Specifically the study sought to: assess the contribution of the movement of labour and persons on the economic growth of Kenya, evaluate the contribution of the movement of capital on the economic growth of Kenya, explore the contribution of trade on the economic growth of Kenya and evaluate the challenges affecting the implementation of the Common Market protocol. The study employed an exploratory research design to establish the causal and effect between the variables. The population of study included 187 officers in senior management level working at the: State Department of East Africa Community, Directorate of Commerce and 3 companies operating across the East African region listed in the Nairobi Stock exchange. The primary data was collected and analyzed to complement the secondary findings and to confirm pragmatic coherence. The study found that movement of the persons and labour, capital, and intra EAC trade have positive influence on economic growth of Kenya, with trade making the highest contribution. The study findings revealed that movement of capital has negative influence on economic growth of Kenya owing to small capital inflow to Kenya from EAC in relation to the big capital outflow. The study also found that the EAC CMP is engulfed by a myriad of challenges requiring immediate and concerted effort by the EAC partners. The study further recommends further research on the implementation of foreign direct investment as an internationalization strategy by Kenyan firms in the East African Community, and on the challenges in harmonizing non-trade barriers under EAC Market Protocol.
Big data dimensions’ contribution to competitive advantage of firms in Kenya’s Communication Service Provider industry
(Strathmore University, 2016-05) Nsubuga, Alan Lule
Research has been done and thesis have been written in the field of competitive advantage by prominent authors such as Michael E. Porter, Allan Afuah, Douglas Laney, to name but a few, albeit nothing yet has been done to cover how the various dimensions of big data contribute to competitive advantage in Communication service provider (CSP) industry. Competitive advantage as defined by Michael E. Porter has two forms, namely, lower cost and differentiation. Competition through limit pricing in today’s competitive Kenyan market is only yielding low margin revenues and Communication service providers are keenly looking inside their organizations for new ways to differentiate themselves from their rivals. One way to gain competitive advantage, has been to utilize an already existing resource (big data) that is continually being collected in their systems. In this thesis, we evaluated how each big data dimension contributes to competitive advantage of a CSP by either bringing down cost or leading to differentiation of a CSP against its rivals. To achieve that, the study explored a couple of objectives, firstly, it determined the existence of dimensions of big data in the Communication service provider. Then, evaluated each dimension of big data and its contribution in gaining competitive advantage and finally, evaluated the benefits of big data and its analysis for CSP in Kenya. To answer the research questions that emerged from the study, a survey was carried out through oral interviews and questionnaires given to correspondents in the business analytics and finance, marketing and information technology departments of various CSPs. The data collected was then analyzed through the deployment of inferential statistics, factor analysis and principal component analysis, these methods of analysis were used to make an inference with regards to which dimension has the highest explanatory power on competitive advantage among CSPs. The study, through analysis found that volume was the big data dimension with the highest explanatory power on competitive advantage for a CSP in Kenya.
Board characteristics and firm performance : evidence from Kenya
(Strathmore University, 2016) Chemweno, Eliud Cheruiyot
The board of directors is charged with the responsibility of facilitating changes that support the mission of the organization to realize its vision. In the recent past, a number of organizations listed in the NSE have collapsed with the board of directors taking the blame. However, for the boards to execute their functions effectively there is a need for exclusive competency that contributes to the sustainability of the organization in the long run. Therefore, given the importance of any board, it is vital to identify and assess their characteristics and its consequent impact on organizational performance. This study explored the relationship between board characteristics and organizational performance. In common with similar studies, board characteristics is operationalized by six variables, namely audit committee independence, board size, board expertise, board independence, board gender diversity and board diligence. Performance is measured by return on assets (ROA2). The sample for the study is the 42 companies which were continuously listed in the Nairobi Securities Exchange between 2010 and 2014. Data for analysis comprised company-specific data as well as published information from the annual reports.. The choice of five year period for this study was informed by two reasons. Firstly, it is the medium term following the revision of Corporate Governance rules with guidelines issued in 2002 being revised in 2010. Secondly, the new constitution,2010 provides in Chapter 6 on Leadership and Integrity a number of key governance provisions that are applicable to the private sector.. The study used Fixed Effects Model (FEM) in estimating the hypothesized relationship between board characteristics and firm performance. Hypotheses were tested at 1%, 5% and 10% significance levels. From the study results, it was revealed that organizational performance was significantly influenced by board independence while other board characteristics were found to be statistically insignificant. The study further found that the firm characteristic with significant moderating effect were firm size and firm leverage.
Determinants of customers’ choice of service provider in the mobile industry in Kenya
(Strathmore University, 2016) Maburuka, Ismail Ramadhan
Despite price reductions, availability of a wide range of products and value added services provided by telecommunication players in the Kenyan market, and establishment of Communication Authority of Kenya by the government of Kenya to regulate telecommunications operator’s activities, there is still a wide gap in market share in subscriptions and revenues between Safaricom Company Limited, and other players in the market. This study investigated the factors that determine a customer’s choice of mobile services provider in Kenya. Simple random sampling technique was applied to select a sample size of respondents picked from the county of Nairobi. Data was collected from the respondents using structured questionnaires. Descriptive and causal research designs were used in analysis of the data. The design was ideal in describing the characteristics of the large targeted sample used in the study. The research applied both quantitative and qualitative data analysis. The results of the study established that price and network quality are the two critical factors that subscribers consider important in their choice of a mobile service provider. Price came out as the factor that impact the choice of mobile service provider the most. Service quality came out as having a low significance in the choice of a mobile service provider by the subscribers. The study established that the key reasons given by the respondents for having a second mobile service provider is because of cheaper products and services, mobile money transfer services and clear network. Mobile service providers should implement sound pricing strategies, as the respondents indicated pricing as the most important determinant of their choice of mobile service provider. The results from this study will inform the mobile service operators on the critical factors that influence customers’ choice of mobile operators so as to develop sustainable strategies for growth of their mobile industry. Further research efforts can be done to examine the factors that determine customers’ choice of MSP in other counties in Kenya, the behavioural intentions of consumers on service providers to match consumers’ overall behavioural patterns with decision-making criteria of the service providers, and demographics influences on customers’ choice of service provider. The study was limited to Nairobi County. The study can be carried out in peri-urban and rural areas to enable service provider formulate policies and strategies specific to the regions in line with the preferences of the customer in the different regions.
Effect of digital financial access to credit on growth of small and Medium Enterprises in Nairobi County-Kenya
(Strathmore University, 2016-06) Okiro, Sheila
Players in the SME sector are experiencing challenges accessing formal loans through traditional banking procedures and this is affecting growth of SMEs. However, digital platforms have provided SMEs with an opportunity to access loans to finance their businesses. The purpose of this study was to analyze the effect of digital financial access to credit on growth of small and medium enterprises in Nairobi County, Kenya specifically. The study employed a descriptive and causal research design that relied on questionnaires as the main research instrument. The county of Nairobi was stratified into 17 constituencies then proportional sampling procedure was employed to determine sample size in each strata. Simple random sampling was then employed to select the target sample units. In total, the study was able to draw in the participation of two hundred and thirty one participants drawn from across the county. The study findings reveal that the level of uptake of access to credit on digital platforms was 45.0%. The perceptions of SMEs towards digital financial platforms contributed negatively to credit access via digital platforms. Most of the respondent who had not accessed any credit facility via a mobile phone associated digital financing options with high costs. Statistical outcomes reveal that there was a weak but significant relationship between the extents of business growth in terms of turnover associated with the frequency of access to credit on digital financial platforms. Also there was a significant positive relationship between access to credit via digital platforms and business growth in terms of cash flow. As such the greatest effect of access to credit was on cash flow which in turn influenced business growth. The common challenges associated with access to credit via digital platforms were inability to keep pace with technological advancement, lack of confidence in mobile platforms, lack of interaction with service provider staff during loan application, low credit levels, short loan repayment periods and high loan interest rates. The study findings show that potential for SMEs to take advantage of the opportunities presented through digital financing remain largely untapped. Negative SME perceptions are also a hindrance to increased access to credit via digital platforms. This study is particularly important for SME operators in making informed decisions on accessing credit on digital platforms. The digital loans increase the data available on SMEs for financial service providers thereby improving their future chances of accessing more loans and of higher amounts. The credit service providers will also have increased awareness of the potential market for the provision of digital credit to SMEs. In view of the increased players in the financial services sector brought about by entrenchment of digital platforms the study will also highlight the business opportunity in digital lending to SMEs. Increased competition for provision of digital credit services to SMEs would eventually lead to better structured and priced products.
The effect of loyalty programs on customer patronage of supermarkets in Nairobi County
(Strathmore University, 2016) Wathigo, Peter
Customer loyalty programs are a common strategy adopted in business to increase customer value and achieve competitive advantage. This study sought to investigate the effect of loyalty programs on customer patronage of supermarkets in Nairobi County. The research sought: to analyze the effect of loyalty programs on consumer patronage of supermarkets; establish the influence of perceived value of loyalty programs on patronage behaviour and to determine the mediating role of supermarket’s service quality on loyalty program effects. Descriptive research design was used. Questionnaires were administered to a sample of 384 supermarket loyalty card holders from Nairobi County’s four administrative divisions namely: Nairobi West, Nairobi East, Nairobi North and Westlands. Stratified sampling technique was used. The sampling unit was all consumers with a supermarket loyalty card. Data was analyzed using Chi-square tests and hierarchical regression analysis. The results showed that after accounting for consumer demographics, convenient location and service quality, loyalty programs explained 5.7% of the variability in customer patronage of supermarkets to a statistically significant degree (p<.05). It was concluded that loyalty programs positively influenced patronage behaviour of consumers towards supermarkets in Kenya, although the degree of influence was relatively small. Perceived value of loyalty program rewards moderated patronage behavior of card holders to supermarkets. Generally, loyalty programs were not that important to card holder’s shopping experience although they conferred a sense of prestige as card holders felt special. Instead, convenient location was a more important store attribute that determined patronage behavior. It was recommended that supermarkets need to be more innovative at their rewards program offerings. Loyalty schemes should provide instant gratification to customers. Supermarkets should exploit the sense of prestige conferred by the loyalty cards through appropriate brand positioning strategies. Supermarkets that do not enjoy strong brand identity should reallocate resources away from loyalty schemes to improving store attributes such as speed of service and staff responsiveness as well as location convenience. Further studies could focus on the contribution of loyalty schemes to the operational efficiencies of supermarkets in Kenya.
Effects of cultural intelligence on employee performance in international humanitarian sector of Kenya
(Strathmore University, 2016-05) Ngugi, Joyce
The purpose of this study was to determine the effects of cultural intelligence (CQ) on employee performance in the context of international humanitarian organizations in Kenya. Samples of 86 employees from 6 international humanitarian organizations working in the regional headquarter offices that are based in Nairobi were the respondents for the survey. A Survey design involving an online self-reporting questionnaire system was used. A questionnaire developed by Ang et al. (2007), was utilized for measuring CQ and addressing each of the four CQ dimensions. Performance questionnaire was developed from various literatures with additional questions added in. A pilot test was conducted to test the validity and Cronbach’s alpha was used to test the internal reliability. Factor analysis was used to identify which of the four dimensions of CQ have a stronger effect on employee performance. T–test, F-tests and R2 (square) were utilized. Correlation analysis and multiple regression analysis were used. It was found that all the four dimensions of CQ (metacognitive, cognitive, motivational and behavioral) have a positive relationship with performance. Metacognitive and motivation CQ were found to have a significant influence on performance, followed by behavior CQ. Cognitive CQ was not found to have a significant effect on employee performance. The moderating role of employees’ level of position against the effect on CQ and performance relationship showed an increase in the output of performance with increase in level of position, being the additional significant value this study brings to the literature of CQ. Employee performance was conceived to be a combination of task performance and contextual performance. The four dimensions of CQ account for up to 63.9% of employee performance. This suggests that international humanitarian organizations should consider selecting the CQ components as a competency for hiring, developing employees and to include CQ as one of the key competencies for enhancement such as through cultural training.
Evaluating how industry collaboration affects growth of business incubators in Nairobi County
(Strathmore University, 2016) Nyangau, Innocent Nyakwara
Business incubators play a great intermediation role that enable SMEs to thrive and meaningfully contribute to economic growth. Business incubators like other firms go through a process of growth moving from a formative to a transcendental stage where they greatly impact the society and industries they serve. This process of growth of the firms is influenced by a myriad of factors, among them is the level of collaboration between players in its industry. While the impact of collaboration on the growth of firms has been documented in Europe and the America’s this has not been articulated within African and/or Kenyan environment and in particular in the incubation industry context. The study objective was to establish both the forms of growth of business incubators within Nairobi and the nature of collaboration practiced by these incubators in order to evaluate the effect of collaboration on the growth of these business incubators. This study utilised a qualitative design and data was collected through structured interviews to gain an in-depth knowledge and understanding on how incubators were collaborating and the impact this had on their businesses. A total of 20 participants were contacted and data was collected from 17 respondents which corresponds to an 85% response rate. Through qualitative data analysis the study established that indeed collaboration was yielding growth for business incubators through the transfer of knowledge and capacity building, the creation of strategic alliances allowing incubators to diversify products and markets, to reduce cost of operation and increasing awareness of business incubations which has attracted resources to the industry. The immediate implications of these findings is the need to develop a clear and concise strategy that will promote business incubation as an avenue for socio-economic development enabled by the expansion of the operating environment further accelerating growth of business incubators.
Evaluation of critical factors affecting pricing of real estate among low income people in Nairobi, Kenya
(Strathmore University, 2016) Amatete, Bryson Webuye
Development, pricing and subsequent ownership of real estate in Kenya has been dynamic and occasionally economically volatile while experiencing strong market forces driven by factors such as demand, supply, fiscal environment, cost of land, cost of capital, and other salient factors such as consumer tastes and preferences. However, it is one sector in which the dominant players are the middle or high income earners. The majority of the low income earners do not participate in the development, subsequent pricing, and acquisition or ownership of real estate. This study sought to determine the critical factors that drive real estate pricing and how these factors subsequently influence pricing of real estate among the low-income earners in Kenya. The research applied exploratory research design and a causal approach. The target population for this study was 509 respondents comprising of employees and practitioners of the production group and the public infrastructure group. The study adopted non-probability approach to sampling with purposive sampling as the selected approach. This study used a stratified random sampling method to select 219 respondents. Simple random sampling technique was used to select the sample from each stratum. The study collected primary data from the sampled organisations and/or groups using structured questionnaires. Descriptive statistics were used to analyze relevant data that was collected for an exploratory study. Also inferential statistical methods such as factor analysis, correlation analysis, chi square test and multivariate regression analysis were applied to analyze the data and draw the relevant inferences with regard to the study. The study found that construction cost, financial market dynamics, macroeconomic determinants and structural characteristics were the major determinants of acquisition and ownership of real estate among the lowincome earners
An examination of the effect of energy price regulations (2010) on the alignment of retail petroleum prices in Kenya to international prices
(Strathmore University, 2016-06) Lisero, Andrew
In response to increasing inflation in the mid-2000s, the Government of Kenya proposed and in some cases re-introduced price controls in various sectors including energy sector. In the petroleum sub-sector the reintroduction of the price controls was widely expected to reduce the tendency of oil marketing companies to quickly adjust petroleum prices upwards when international oil prices are rising and to lower prices slowly when international prices are falling. However since the introduction of the energy price regulations in 2010, the expected outcome has not been tangible. This study investigated the long term relationship between retail petroleum prices in Kenya and the international crude oil prices in an attempt to assess the effectiveness of price controls in aligning local petroleum prices to international prices. The study used multivariate time series analysis of monthly retail prices of the three main petroleum products used in Kenya and international crude oil prices for the period July 2006 and June 2015 to model the long term relationship between the variables. The study confirmed that a long term relationship exists between international crude oil prices and the retail petroleum prices for the products under review (premium motor spirit, automotive gas oil and illuminating kerosene) both before and after introduction of price controls. The study found only a slight increase in responsiveness of the retail prices of illuminating kerosene and premium motor spirit to changes in international prices after the introduction of price controls and a slight decrease in the response rate in the case of automotive gas oil. Given these findings, the study recommends alternatives to price controls including boosting competitiveness in the retail petroleum sub sector and using the current retail petroleum price formula published by the Energy Regulatory Commission (ERC) as an indicative guide to consumers on optimal prices. Additionally, the study recommends further investment in the underlying infrastructure supporting the energy sector including refining, storage and distribution to achieve efficiency and cut prices.
An examination of the relationship between marketing mix strategies and organizational performance of automobile companies in Nairobi county - a case of Car and General (K) Ltd
(Strathmore University, 2016-06) Nansubuga, Prossie Mutebi
Globalization, stiff competition, threat of new entrants, power of customers, threat of existing customers, these are some of the challenges affecting the performance of automobile companies in Kenya. Using marketing mix strategies to determine the performance of Car & General (K) LTD in terms of market share, sales growth and brand awareness, the research was able to determine the extent he marketing mix strategies affected performance of an organization. The research adopted a descriptive and exploratory design. Using purposive sampling, forty three key informants from Car & General (K) LTD were selected to answer a structured questionnaire. Using Pearson Correlation analysis to test the strength of the relationship between variables, the data collected was analyzed and findings revealed that product, price and promotion had a positive correlation of 0.734, 0.534 and 0.696 respectively. Placement however had a significant negative relationship with organizational performance with r giving us -0.361. The results revealed that there is strong relationship such that the predictors identified in this study are great influencers of performance of the organization in terms of sales growth. Implications of adopting marketing mix strategies in a global market significantly improved sales growth performance leading to overall improved organizational performance in a competitive environment.

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