MCOM Theses and Dissertations (2017)

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An Analysis of the effect of business diversification on the financial performance of Commercial Banks in Kenya
(Strathmore University, 2017) Kitisya, Daniel Tamale
This study sought to investigate the effect of business diversification on the financial performance of commercial banks in Kenya. The study was based on the fact that the banking sector in Kenya is highly regulated with significant business restrictions and attendant disclosures which have created incentives for the banks to diversify. However, the effect of business diversification on financial performance remains inconclusive with diverse studies finding minimal or no relationship while others finding positive significant effect. The study used a mixed research design where descriptive and quantitative research designs were used. The population for this study was all the forty two commercial banks in Kenya. Sources of data were both secondary and primary where quantitative techniques were used to undertake data analysis. To determine the relationship that existed between the variables, both multiple regression analysis and chi-square tests were adopted. The study found that business diversification significantly positively affected how the commercial banks in Kenya performed. The exact effect was however established to be largely dependent on bank-size. Business diversification significantly improved financial performance for small banks. Under medium sized banks category, only location diversification affected financial performance in a significant manner. For large banks all the four forms of business diversification did not have a significant effect on their financial performance. Respondents perceived business diversification to positively affect financial performance of commercial banks in Kenya to a moderate extent. The study was limited by examining financial performance by use of the CAMELS model in a developing country and being conducted in a single industry. Further, CAMELS was measured using a constructed index by data being obtained from the commercial banks’ annual audited reports. The study highlighted the need to develop business diversification strategies specifically tailored for each of the tiers of commercial banks with a focus on all forms of diversification for small banks, location diversification for the medium-sized banks and enhancement of existing forms of diversification among large commercial banks.
Analysis of the factors influencing customer adoption of internet banking in Nairobi
(Strathmore Univerity, 2017) Njeru, Agnes Karimi
The adoption of internet banking as a platform for offering banking services is on a steady rise globally. The purpose of this study was to examine the factors influencing customer adoption of internet banking in Kenya. The study utilized an Integrated Model Framework to investigate the factors that influence customer adoption of internet banking in Kenya. Variables were drawn from traditional models that offered separate and theoretically sound constructs, namely; Theory of Perceived Risk, Technological Acceptance Model, Theory of Planned Behavior, Theory of Reasoned Action, Diffusion of Innovation Theory and the ABC Model of Attitudes. The scope of the research was Kenyans who held an account with any of the commercial banks in Kenya between March and April 2017. Questionnaires were distributed to customers either inside banking halls or while entering or leaving the banking hall in sampled bank branches. A sample size of 384 customers was used. Data was analysed using SPSS software where various data analysis techniques including Descriptive statistics, Pearson’s Correlation Coefficients and Multiple Regression Analysis were employed. Results revealed that 47.1% of the respondents had adopted internet banking (IB) as of April 2017. Similarly, only 14.5% of the respondents had used IB frequently enough to infer full adoption. The model used in this study explained 40.9% of the variance in Adoption of Internet Banking in Nairobi. Further, Perceived Risk Facets, Diffusion of Innovation Factors, Technological Acceptance Factors, Planned Behavior Factors and Attitude were found to be predictors of Adoption of Internet Banking by customers in Nairobi. Perceived Risk Facet was found to be a negative predictor of internet banking adoption while all the other factors were found to be positive predictors of internet banking. The research may give some guidance to banks, KBA, CBK, Government of Kenya and other policy makers. For instance, policy makers may want to come up with policies and systems that mitigate risk associated with IB use thereby increasing its adoption and use. This research attempted to fill the knowledge gap existing regarding factors influencing customer adoption of internet banking in Kenya. The study suggests further research in the area to explore more factors that can explain the customer adoption of IB in Kenya as the overall research model did not explain most of the variance in the adoption of IB, suggesting that other factors exist that could account for adoption of IB in Kenya.
An Assessment of the determinants of portfolio performance of Investment groups in Kenya
(Strathmore University, 2017) Manthi, Muthoka Eric
The purpose of this study is to assess the determinants of portfolio performance of investment groups in Nairobi County of Kenya. The five specific objectives were addressed. The first specific objective was to assess the influence of asset allocation on portfolio performance of investment groups in Nairobi County of Kenya. The second specific objective was to assess the influence of market timing on portfolio performance of investment groups in Nairobi County of Kenya. The third specific objective was to assess the influence of security selection on portfolio performance of investment groups in Nairobi County of Kenya. The fourth specific objective was to assess the influence of gender composition of the management team on portfolio performance of investment groups in Nairobi County of Kenya. The fifth specific objective was to assess the influence of size of membership on portfolio performance of investment groups in Nairobi County of Kenya. This study employed a descriptive research design. The target population was 148 investment groups in Nairobi County of Kenya registered with KAIG. A sample of 96 investment groups was drawn from the population using systematic sampling. Data was collected using a questionnaire. Descriptive statistics, correlation analysis and multiple regression analysis were used to analyse the data. To be more precise, asset allocation, market timing and security selection, gender composition of the management team and size of membership were the independent variables and portfolio performance was the dependent variable. The study found that asset allocation policy, security selection and size of membership were the only significant determinants when explaining the performance of investment groups. In addition, market timing and gender composition of the management team were found to be insignificant. The finding of this study suggest that investment groups ought to invest in index funds mainly comprised of treasury bills unless the management team has the necessary skill to realize high risk adjusted return from investments. Investment groups ought to start with a small size of membership and increase group size steadily to maintain group coordination and motivation of current members.
An Assessment of the holiday anomaly in the Nairobi Securities Exchange
(Strathmore University, 2017) Kamau, John Waweru
The presence of security market anomalies provide an opportunity that market participants can exploit. Studies done in Kenya have identified the presence of holiday anomaly. Based on these studies, the first objective of the study sought to establish the effect of each of the eight Kenyan holidays to the holiday anomaly. The study used closing share prices which were derived from the NSE website for the period 2010-2015. From the results of the test carried out, the study established that the eight different holidays affected the holiday anomaly differently. The state holidays exhibited higher return than the religious holidays. The study also sought to establish which sectors in the NSE were more prone to the holiday anomaly. A test of equality of mean was carried out to determine whether the mean returns for the different sectors during the holiday were significantly different. The findings of the test conducted indicated that there was no single sector that was more prone to the holiday anomaly than the other. In addition, the study sought to investigate the perception of the trading market participants in regard to market anomaly and specifically to the holiday anomaly. This information was derived from the trading market participants using questionnaires. The findings from the analysis established that majority of the trading market participants had knowledge of security market anomalies though only a few had knowledge of the holiday anomaly. Those who had knowledge of security market anomalies had designed trading strategies that enabled them to earn superior returns. The results of the study contradict the efficient market hypothesis since study has established the holiday anomaly is present. The result of the study also indicate that the eight different Kenyan holidays affect the holiday anomaly differently. The results further indicate that there is no sector in the NSE that is more prone to the holiday anomaly than the other.
Assessment of the influence of corporate risk disclosure determinants on the share returns of listed companies in Kenya
(Strathmore University, 2017) Musyoki, Simon Nguva
Despite corporate risk disclosures (CRD) being widely encouraged and gaining increasing concern by regulators and market participants, the determinants of those disclosures remains relatively unknown. Concerns have been raised by scholars, practitioners and other market participants regarding the relevance of increasing CRD by listed companies in Kenya. This study sought to assess the influence of CRD determinants on share return of listed companies in Kenya. This study used descriptive research design and multiple regression analysis to determine key determinants of the level of CRD and the influence on share return. Using a disclosure index comprising 37 information items, the study employed content analysis of audited financial reports to determine the level of CRD by 36 listed companies in Kenya over the period 2008-2014.To corroborate the results, questionnaire data obtained the managers’ perspective. Six hypothesis were tested from the regression results .The findings revealed a relatively low level of CRD with listed companies disclosing more business risk and less credit risk .The finding revealed a positive relationship between the level of CRD and stock returns of listed companies in Kenya .The study highlighted the need for companies to increase the level of disclosures by revealing the factors influencing the level of corporate risk disclosures. The findings revealed that the level of corporate risk disclosure is significantly and positively influenced by the type of auditor, institutional equity ownership concentration and negatively influenced by existence of audit committee and the board composition. The study highlighted the need for degree of caution in choosing the type of auditor. Since the study relied extensively on disclosures provided by companies in the audited financial statements as established using content analysis, a study of disclosures using other publications like internal management reports may be necessary. Further study may also be necessary to assess the relevance of corporate risk disclosure involving more listed companies over an extended period of time. Despite the study assessing relevance of CRD in a single country setting, it contributes to the extant literature on relevance of CRD in a developing country.
Determinants of quality of financial reporting among semi -autonomous government agencies in Kenya
(Strathmore University, 2017) Abang’a, Albert Ochien’g
The study was conducted to establish the quality of financial reporting before and after the adoption of International public sector accounting standards (IPSAS- accrual) among semi-autonomous government agencies in Kenya, and to establish the influence of specific Semi-Autonomous Government agencies (SAGAs) characteristics on such quality. The specific SAGAs characteristics includes size of SAGAs, leverage, liquidity, audit committee size, profitability, and age of SAGAs. The research was conducted through pre-adoption (2011 to 2013) and post adoption (2014 to 2015) period. Data was analyzed using paired sample T-Test, descriptive statistics and stepwise regression analysis. The findings indicated that financial reporting quality improved after adoption of IPSAS. The regression results showed that the size of SAGAs as measured by log of assets, age of SAGAs, and liquidity are associated at statistically significant level to financial reporting quality. The implication of this study is that policy makers should stipulate strict adherence to IPSAS standards by practitioners so as to achieve quality of financial reporting. They should also recommend that larger units of SAGAs are broken down to smaller administrative units so that they can easily be administered to increase efficiency of administration. Implication by practitioners is to pay much attention on liquidity ratio since it has a positive association to financial reporting quality. They should also find ways to enable younger semi-autonomous government agencies establish systems in place to achieve financial reporting quality. There is a need for academic scholars to extend this research by examining other characteristics among SAGAs that may have influence on the quality of financial reporting. This study act as the foundation for future research by providing empirical evidence on financial reporting quality and its association to specific characteristics among SAGAs in Kenya. The study was limited to government Parastatals that apply IPSAS accrual method of accounting (SAGAs). This may make it difficult to generalize the findings to entire public sector. The study also included 3 years before adoption of IPSAS and two years post adoption. Three years before adoption and three years after adoption would have been more appropriate to study financial reporting quality. The study recommends future research to consider incorporating all public sector entities in the study of financial reporting quality as well as adding other variables that may influence quality reporting.
The Drivers of audit report lag by listed companies in Kenya
(Strathmore University, 2017) Owino, Fredrick J. Otieno
Despite the time taken by external auditors to release the audit report (herein referred to as the auditor report lag, ARL) being regarded as a significant qualitative aspect of timely financial reporting, little known about the determinants of ARL in listed companies in developing economies. This study sought to investigate the determinants of ARL in companies listed in Kenya. A descriptive research design was used to study the auditor-related factors, company-specific factors and corporate governance factors affecting ARL. Two-stage panel least squares regressions were performed to establish the drivers of ARL. The study focused on a ten-year period from 2006 to 2015. The findings revealed that auditor type was the most significant auditor related factor that was associated with ARL. In terms of company-specific factors, the return on assets (ROA) was significant and negatively associated with ARL. In terms of industry sector, the study found that listed companies in the banking sector had lower ARLs. Similarly, companies in the manufacturing sector had lower ARLs. The study found that listed companies in the investment sector had longer ARLs. Next, the study found that listed companies with a higher corporate governance score had shorter ARL. The findings revealed that there exists auditor-specific, company-specific and corporate governance influences on ARL. To corroborate findings from secondary data, semi-structured questionnaires were used. The findings from the questionnaires demonstrated that alongside auditor-, company- and corporate governance-related factors, there are also regulatory factors influencing ARL. The findings should be of interest to managers, auditors and policy makers because these results may help the assessment of the influence of such variables on improving the timeliness of audit reports. Despite the study focusing on ARL in a single country-setting, it contributes to the sparse literature of drivers of ARL in developing countries.
Effect of price volume momentum on stock returns at the Nairobi Securities Exchange
(Strathmore University, 2017) Otinga, Noah Keya
The purpose of the study was to examine the existence of price volume momentum. The period of study was between 2011 and 2016 and was divided into 2011-2013 and 2014-2016. The study also went further to analyze the behavior of trading volume and stock returns on a nonlinear basis. Finally, the study assessed perception of trading participants on price volume momentum. The existence of momentum returns was assessed using the Jegadeesh and Titman methodology in which portfolios were formed based on past returns as well as past volume. Momentum returns were measured as the difference between winner and loser portfolio for every holding period. From the analysis, momentum returns were found to exist at the NSE even though in the short run, three to six months. A bivariate momentum strategy that was formed using trading volume and returns was not found to report higher returns as compared to a univariate strategy. The relationship between trading volume and stock returns was tested using granger causality and impulse response. A nonlinear relationship was found to exist between trading volume and returns, with the relationship moving from returns to stock volume, with index returns being more responsive as compared to stock returns over the period of analysis. Lastly, the trading market participants had varying views as far as price and volume momentum is concerned. From the analysis, a lot of attention is paid to price momentum as compared to the volume momentum arguing that trading volume can be due to the disposition effect. The findings of this study indicate that investors stand a chance to make better returns when they buy into the winning stock and go short on the losing stock. However this can only happen in the short run, over a period of three to six months. Secondly, investment managers can use the findings of the second objective to advice investors since price-volume momentum has been traced at the bourse. Focusing on the trends in trading volume can help predict the future performance. For the market regulators the findings of this study are key as far as market efficiency is concerned. Momentum returns exist at the bourse even though in the short run, if compared to momentum returns reported in the developed markets which report momentum returns up to a period of five months. This implies that NSE is not efficient if compared to the developed markets. The study contributes to the existing knowledge on price volume momentum, where momentum returns have been found to exist in the short run three to six months, as well as the relationship between trading volume and stock returns, impulse response results indicate that even though the relationship between the variables moves from stock and NASI returns the effect is short lived up to five days after which no significant change is seen
The Effect of stock market liquidity on stock returns of companies listed on Nairobi Securities Exchange
(Strathmore University, 2017) Kahuthu, Lilian Wangechi
The main objective of this study was to determine whether stock market liquidity has an effect on stock returns of companies listed at the Nairobi Securities Exchange from 2012 - 2016. This study looks at both the width and depth aspects of liquidity measured by bid-ask spread and turnover rate respectively. The study adopted a quantitative research design with the population of the study consisting of all the 64 firms currently listed at the Nairobi Securities Exchange and the 23 trading participants registered by the CMA. Purposive sampling was adopted and panel regression model was used to analyze data from 50 companies listed on the NSE selected. Descriptive analysis was used to analyze data on perception of market participants on liquidity collected through questionnaires. Empirical findings show that market depth was found to be insignificant to stock returns while market width was found significant. On the other hand, most market participants perceived both market width and depth to be significant to stock returns but only to a moderate extent. Generally, from the inferential analysis liquidity was found to be significant but not the main predictor of stock returns. These findings were further supported by the descriptive analysis on market participants’ perception. These findings should be of interest to investment managers and policy makers on decisions regarding stock investments on the NSE.
Effects of financial leverage on stock returns of non-financial companies listed in the Nairobi Securities Exchange
(Strathmore University, 2017) Tangut, Juliet Chelagat
The aim of this study was to find out the effects of financial leverage on stock returns of non-financial firms listed on the Nairobi Stock Exchange. Secondary and primary data was used for analysis. Financial statements and reports of the listed firms was the source of the secondary data and questionnaires were used to collect primary data for analysis. Panel data pertaining over the period 2002-2016 and STATA statistical software was used to perform the panel regression analysis. Actual stock returns and leverage figures in form of debt ratio, debt equity ratio and firm characteristics of size and growth are used in the calculations. The results indicate the variables debt ratio and debt equity ratio are significant determinants of stock returns for the firms under consideration but negatively affect returns. This implied that the more debt the firms used as a source of finance they experienced low returns on stock. The study also found the relationship between Size and stock returns to be positive and significant affected the investor’s returns on stock. The results concludes, in contrast with a majority of fundamental theories, that there is a negative relationship between leverage and stock returns which indicate that investors are not being compensated for the extra risk they are taking on when investing with high-leveraged firms. Several previous empirical studies has come to the same conclusion. The findings also revealed that most investment managers considers a company’s debt ratio and debt equity ratio before investing on their stock and size of a firm as a very significant factor in deciding on their investments. As the scope of study is limited to the non-financial firms and the sample size is small, the findings of the study must be interpreted with caution and the results may not be generalized for all listed firms. These findings should be of interest to investment managers and policy makers on decisions regarding stock investments on the NSE.
Effects of firm capability on organizations’ competitive advantage: the case of Kenyan banking Industry
(Strathmore University, 2017) Wamburu, Martin Njoroge
Successful organizations recognize the importance of firm capability and realize that their survival is dependent on how well they respond to the changes in the business environment. This study sought to establish the impact of firm capability for competitive advantage in the banking industry in Kenya. To accomplish this objective, data was drawn from 129 respondents from the senior management of the 43 commercial banks in Kenya (as at 31st December 2016) who were targeted as the principal respondents. A self-administered questionnaire was used as the major tool of data collection to capture data on managers' opinions on capability development at commercial banks ensuring competitive advantage is attained. Descriptive research design and regression analysis was preferred for analysis and presentation of findings. In this case, data was evaluated and presented in form of textual/content analysis. The study sought to establish the effect of firm capability (financial capability, marketing capability and technological capability) on the competitive advantage of commercial banks. Primary data was collected from top, middle and lower level managers of the commercial banks using semi-structured questionnaires. The collected data was analyzed using descriptive statistics such as means and standard deviations. The results of the study were presented in tables and figures and then compared to existing literature. The relationship between firm capability and competitive advantage was tested using regression analysis. Goodness of fit of the regression model to the data collected was tested using analysis of variance (ANOVA). The study established that the top, middle and lower level managers of the commercial banks strongly agree that financial capability, marketing capability and technological capability allow commercial banks to achieve competitive advantage. Regression analysis revealed that there is a strong relationship between competitive advantage and firm capability evidenced by an R-value of 0.717. The study also found out that firm capability accounts for 51.4% of the total variance in banks competitive advantage. The study recommends that commercial banks in Kenya should focus on improving their financial capability through tight budgets, overhead cost control and cost minimization in several areas such as service, sales, marketing and research and development. Banks should also enhance their technological capability if they are to enjoy competitive advantage. The main limitation of this study was the use of a questionnaire as the only data collection tool. Future studies with additional resources could attempt the cross- verification by use of multiple sources and further extend the study.
Evaluation of determinants on the financial performance of retirement benefit schemes in Kenya
(Strathmore University, 2017) Owinyo, Judith Atieno
The main objective of this study was to evaluate determinants on the financial performance of retirement benefit schemes in Kenya. The specific objectives were: to establish the effect of determinants on the financial performance of retirement benefit schemes in Kenya and to investigate the perception of stakeholders regarding determinants on the financial performance of retirement benefit schemes in Kenya. This study used quantitative design to determine the financial performance relationship with determinants of performance. The population for this study were the 1262 retirement benefit schemes registered with the Retirement Benefit Authority, RBA by close of 2013. Simple random sampling was used and Fishers formula was used to come up with sample size of 48 private pension funds. The study used primary and secondary data. The secondary data is quantitative in nature and was collected from the annual financial statements of the pension funds. Primary data was both qualitative and quantitative in nature and was collected using questionnaires. The study findings revealed that age of contributors, leverage of fund, contributions received, fixed income investment, equity investment, offshore investment, fund liquidity does not have an influence on the financial performance of retirement schemes. The study recommended that future studies focus on corporate governance practices as determinants of the financial performance of retirement benefit schemes in Kenya.
Influence of competitive strategies on performance of insurance firms in Kenya
(Strathmore University, 2017) Mukya, Charles Mutisya
The key objective of this study was to investigate the influence of the competitive strategies on the performance of insurance companies in Kenya. The study examined the effect of the three generic competitive strategies (cost leadership, differentiation and focus strategies) on the performance of insurance companies within the Kenyan market. The study was based on Porter's generic theory and the resource based theory. Descriptive cross-sectional design was utilized which covered the 55 registered insurance companies. Using the questionnaire, primary data was collected and analyzed. The study also used descriptive statistics and correlation analysis to show the relationship between the dependent and the independent variables. The study established that cost leadership, differentiation and focus strategies influence the performance of insurance companies positively. Though the cost leadership strategy did not register significant influence on the performance of the insurance, the companies that pursued the differentiation strategy and the focus strategy reported the greatest influence on organizational performance compared to those that do not. Therefore, the study recommended that the insurance companies need to pursue focus strategy since it seemed to have the greatest influence on performance of the insurance companies. The study also recommended that insurance companies can benefit through the lessons learnt so as to tailor their products, focus on the right target market, among others. In this way, they are assured of improving the organizational performance and therefore stand in a better position to serve their intended clients in the best way possible. The limitation of the study was that it only focused on the insurance companies and yet there are other players in the industries such as the agents, brokers and the reinsurance companies. Future studies could therefore focus on the wider coverage in order to assess the effect of the competitive strategies applied by all the players on the overall performance of the insurance industry.
The Influence of contractor relationships on total quality management practices in the construction industry in Kenya
(Strathmore University, 2017) Njenga, Robert Chege
This study investigated the influence of contractor relationships on total quality management practices in context of the Kenyan construction industry. The study was guided by five specific objectives: to establish total quality management practices among contractors in the Kenyan construction industry; to analyze influence of contractor-client relationship on total quality management practices among contractors in the Kenyan construction industry; to analyze influence of contractor-subcontractor relationship on total quality management practices among contractors in the Kenyan construction industry; to analyze influence of contractor-supplier relationship on total quality management practices among contractors in the Kenyan construction industry; to examine barriers to total quality management practices among contractors in the Kenyan construction industry. The study was premised on Juran’s, Deming’s and Six Sigma theories on total quality management. This study applied a cross-sectional research design. The target population for the study is 5,777 contractors as registered by the National Construction Association (NCA) in Nairobi County. The sample size was established at 197 contractors. The study adopted stratified random sampling procedure. A structured questionnaire was used to collect data for the study. Data analysis techniques used were central tendency (mean, standard deviations, percentages), correlation and regression analysis using SPSS Version 22. The data was presented in tables and charts and researcher’s interpretation. The findings showed that contractor-client relationships had the most significant effect on TQM practices, customer focus and management was the most practiced TQM principle and procedural barriers are a hindrance to TQM practices in the construction industry in Nairobi County. The study concludes that contractor relationships have a positive effect on TQM practices in the Kenyan construction industry. The study recommends that customer focus and management should be the focus of contractors in practicing total quality management in their work. Through collaborating and cooperating with the client during the construction process means that contractors can be able to meet the client quality requirements thus achieving total quality management.
The Influence of cross-cultural management practices on organizational performance: a study of multinational corporations in Nairobi
(Strathmore University, 2017) Miriti, Brian Mawira
Cross-cultural management has turned out to be an issue of concern and in need of urgent addressing especially for multinational corporations that want to succeed in the global market. The dynamics of this phenomenon are different in the developed economies in contrast to developing economies. This study had the objective of exploring the influence of cross-cultural management practices on organization performance among multinational companies operating in developing economies the case being Nairobi, Kenya. The specific objective of the study was to firstly identify the type cross-cultural management practices used by multinational corporations in Kenya and secondly to determine how these practices influence the organization performance. Primary data was collected using questionnaires. The target population were 43 the multinational corporations which had their Africa regional headquarters in Nairobi County. Descriptive statistics, correlation analysis and regression analysis were used to analyse the data. Recruitment and selection, training and development and employee participation were examined against organization performance specifically employee satisfaction. The findings from the results showed that recruitment and selection, and training and development were significant in influencing employee satisfaction. Employee participation was however found to be insignificant. The study concluded that the adoption of cross-cultural management practices was critical in improving organization performance of multinational corporations. This study recommended that multinational corporations need to adopt recruitment and selection, and training and development which will ensure that they manage cultural diversity and have high levels of organization performance. The limitation of this study was that the study considered only the multinational corporations in Nairobi County. This research suggested that future research should explore a longitudinal research design so as to provide an assessment of the influence of cross-cultural management practices on organization performance over a period of time.
Influence of customer relationship management capabilities on performance of Commercial Banks in Kenya
(Strathmore University, 2017) Githinji, Lisa Nyambura
The purpose of this study was to investigate the influence of customer relationship management capabilities on the performance of commercial banks in Kenya. The study aimed to establish whether customer relationship management capabilities such as human resource capabilities, information technology capabilities and business architecture capabilities influence the performance of commercial banks. The performance measures used were non-financial measures which were assessed from the employees’ perspective. The target population was 41 commercial banks regulated by the Central Bank of Kenya. A descriptive and correlational research design was used. Semi-structured questionnaires were distributed to a sample size of 111 employees who work in the 37 commercial banks in Nairobi County. The data was analyzed using the Statistical Packages for Social Sciences (Version 16). Regression analysis was used to establish the relationship between customer relationship management capabilities and organizational performance. The findings established that the most dominant customer relationship management capability used by commercial banks was the human resource capability where building relationships with customers was emphasized on. Both the information technology and human resource capabilities had a significant positive effect on organizational performance. Based on these findings, the human resource capabilities should be enhanced by training employees on how to improve their skills and competencies by developing more profitable and sustainable relationships with customers. Additionally, information technology combined with the people skills would further improve the organizations effectiveness in service delivery. This is because the technological innovations provide suitable infrastructure to employees to increase their responsiveness to customer queries, increase their productivity and reduced the amount of time required in dealing with a large pool of customers. The study had its limitations. The use of a descriptive cross-sectional research design reduced the generalizability of the results. Future research should address these limitations by corroborating with a longitudinal research design and increasing the industries with which the study was conducted. Replication of the study to other industries could serve as a useful reference for future research.
Influence of e-recruitment practices on employee retention in multinational corporations in Nairobi County
(Strathmore University, 2017) Tsuma, Polsa
Competition for rare talent and high levels of employee turnover over employee retention presents firms with human resource challenges. In order to acquire and retain intelligent capital within a competitive market for competent and skilled candidates, firms need to develop and adopt recruitment practices that favor their employee retention levels. This study‟s purpose was to analyze the relationship between E recruitment practices and employee retention among multinationals in Nairobi County. The objectives that guided the study to determine the nature of this relationship were; to identify E recruitment practices adopted by multinational corporations, to establish the levels of employee retention among multinational corporations and to analyze the influence of E recruitment practices on employee retention in multinational corporations. The study was anchored on the resource based view of the firm (RBV) to explain the value of retaining valuable talent as a source of competitive advantage, the theory of reasoned action (TRA) to explain the decision by human resource managers to adopt E recruitment practices and the unified theory of acceptance and use of technology (UTAUT) to explain adoption and continued use of E recruitment practices. Primary data was collected using questionnaires administered to the human resource managers of the firms under study. The target population was 217 multinational corporations based in Nairobi County. Data was analyzed using descriptive statistics, correlation and multiple regression analysis. Corporate websites, commercial websites and social network sites were the E recruitment practices used to analyze their influence on each employee retention variable which were; self selection, early work adjustment and employee turnover. Results showed that corporate websites were significant in explaining all the employee retention variables. Social network sites were relevant in explaining self selection while commercial websites were not significant in any case. The findings drawn from the study should allow human resource managers to have an understanding of the relationship between E recruitment practices and employee retention and an insight on which practices to focus on to gain competitive advantage.
Influence of e-services on customer satisfaction: a case of fast food restaurants in Nairobi county
(Strathmore University, 2017) Gachuru, Christine
The issue of assessing the impact of e-services on customer satisfaction has emerged as an area of strategic importance for e-marketers and Website managers and now there is a growing interest within the restaurant sector. Studies conducted on E-services show that these E-services help in building customer satisfaction, others disagree with this while others show that there is no relationship between the two constructs. The purpose of this study was to examine the relationship between customer satisfaction and E-services by looking at the level of customer satisfaction against the different types of E-services offered by the fast food restaurants.The data was collected using convenience sampling and a questionnaire was administered to fifty customers who frequent these fast food restaurants in Nairobi that target the upper to middle class citizens. The data was analyzed using descriptive statistics, multiple regression and correlation analysis. The data analyzed the various objectives of the study which were; to identify the types of E-services that often used by fast food restaurants, the factors that influence customer adoption of E-services in the fast food restaurants and the extent to which these E-services affect customer satisfaction.The findings established that the most popular E-service is the online ordering platform due to the convenience it provides. The study offered further information into the factors that influence customers’ adoption of E-services. The major factor identified in the study to influence adoption of E-services is security. Using the regression and correlation analysis, all three E-services were identified as having a positive relationship to customer satisfaction.The research was not without limitations. The selection of the study variables was not exhaustive. The population was limited to one location and the use of a descriptive cross-sectional research design, put constraints on the generalizability of the results. Future research should seek to address these limitations by inclusion of a wider population sample, use of a longitudinal research design and broadening the industry with which the study was conducted. Replication of the study to other industries could serve as a useful reference for future research.
The Influence of mass customization capabilities on operational performance of multinational manufacturing firms in Kenya
(Strathmore University, 2017) Njaramba, Faith Njambi
The manufacturing sector in Kenya is faced with stiff competition from local and international sources. Customer needs are not only dynamic but also heterogeneous hence a firm must find ways to provide goods that match the needs of a target market at a given time. In order to survive, manufacturing firms need to build mass customization capabilities that will enable them to meet dynamic and diverse customer needs for a particular market. The purpose of this study was to analyze the influence of mass customization capabilities on operational performance of multinational manufacturing firms in Kenya. The specific objectives included: to examine the extent of adoption of mass customization capabilities by multinational manufacturing firms in Kenya, to assess the influence of solution space development on operational performance of multinational manufacturing firms in Kenya, to establish the influence of robust process design on operational performance of multinational manufacturing firms in Kenya and to assess the influence of customer choice navigation on operational performance of multinational manufacturing firms in Kenya. Data was collected by use of questionnaires from the target population of 93 multinational manufacturing firms in Kenya. Descriptive statistics, correlation analysis and multiple correlation analysis were used to analyze the data. Results showed that solution space development was the most widely adopted mass customization capability followed by robust process design then customer choice navigation as evidenced by their overall mean scores. On influence of each mass customization capability on operational performance, solution space development and robust process design were not statistically significant in explaining changes in operational performance while customer choice navigation had a significant positive influence on operational performance. Results on the synergetic influence of mass customization capabilities on operational performance however showed that customer choice navigation and robust process design had a significant positive influence on operational performance while solution space development was not statistically significant. The study however had limitations, in that it was cross sectional and therefore was not expected to capture mass customization capabilities developments and operational performance changes that come with the passage of time since these variables are not static.
Influence of pricing strategies on consumer purchase decision: a case of supermarkets in Nairobi County
(Strathmore University, 2017) Njeru, Illuminata Mbuya
This study sought to address the gap in the literature concerning how pricing strategies influence consumer purchase decisions. The first objective of the study was to find out the extent to which Everyday Low Pricing Strategy and High-Low pricing strategy have been adopted in the supermarkets in Nairobi County. The second objective was to establish the extent to which Everyday low pricing strategy influences consumer purchase decisions in Nairobi County. Finally, the third objective was to determine the extent to which High-Low pricing strategies influences consumer purchase decisions in Nairobi County. Data was collected using questionnaires. The target population of this study was customers of four major supermarkets in Nairobi County. Random sampling technique was used to obtain representative sample. The study aimed at getting 315 respondents. Descriptive statistical methods were used to analyze the data. To establish if a relationship exists between pricing strategies and consumer purchase decision regression and correlation analysis was used. Results showed that pricing strategies were significant in explaining product choice, store choice, purchase amount, and purchase timing. The findings generated from the study should provide marketing managers with an understanding of the relationship between pricing strategies and consumer purchase decision in the Kenyan context and give them insights on which pricing strategies they should concentrate on in order to gain competitive advantage. Since this study only looks at two pricing strategies and their influence on consumer purchase decision, future research should examine different types of pricing strategies for example rapid skimming strategy, slow skimming strategy, rapid penetration strategy, slow skimming strategy and their impact on consumer purchase decision and also explore alternative methods of analyzing the data.

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