MCOM Theses and Dissertations (2023)

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http://hdl.handle.net/11071/13369

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The Influence of brand equity on performance of companies listed on the Nairobi Securities Exchange in Kenya
(Strathmore University, 2023) Nganga, E. W.
There are a number of challenges facing companies listed in Nairobi Securities Exchange in Kenya. In order for these companies to succeed in a competitive market, it is paramount that they develop a brand that will give them a unique identity. Brand equity is a key factor in enhancing the attraction and retention of customers which in turn enhance the performance of the company. With numerous studies showing brand equity enhances organizational performance, listed companies have continuously posted bad performance over the past five years. The main objective of this study was to establish the influence of brand equity on performance of listed companies at the Nairobi Securities Exchange in Kenya. The specific objectives were: to establish the influence of brand loyalty, brand awareness, brand associations, perceived quality and other proprietary brand assets on performance of listed companies at the Nairobi Securities Exchange in Kenya. The study was anchored on the Brand Equity and Balanced Score Card models. A descriptive research design was applied in conducting the study and population of study was all the listed companies at the NSE in Kenya. A total sample of 132 respondents was drawn from the 64 listed companies at the NSE in Kenya. Primary data was collected through a structured questionnaire which contained closed ended questions. The data collected was inspected for completeness and coded in Statistical Package for Social Sciences (SPSS) Version 26 for analysis. Data collected was analysed using descriptive statistics, correlation and regression analysis. The study established that brand loyalty, brand association, brand awareness, perceived quality and other proprietary brand assets explains a significant variation in organizational performance. The study concluded that brand loyalty, brand awareness, brand association, perceived quality and other proprietary brand assets have a statistically significant effect on the organizational Performance of listed companies at the NSE. The study recommends for the adoption of strategies that enhance brand equity at the NSE to enhance performance of the companies. However, study is limited in scope as it focused on the Nairobi Securities Exchange in Kenya hence the insights and findings of the study is unique in the context of NSE listed companies as opposed to generalization of the base of understanding for the whole population of Companies in Kenya or across the world.
Operational resilience as a mediator between digitalisation and sustainable performance of fast-moving consumer good firms in Nairobi County
(Strathmore University, 2023) Wambua, G. N.
Since 2019, trade tensions between the US and China and Brexit-related trade uncertainty contributed to a decrease in global industrial production. The COVID-19 pandemic, the Suez Canal blockage in 2021, and the conflict between Russia and Ukraine in 2022 further intensified supply chain disruptions and raised concerns about essential business services on a global scale. Supply disruptions faced by organizations and supply chains can be both external, such as natural disasters (e.g., earthquakes), and man-made disasters (e.g., terrorism), as well as internal, originating from within the boundaries of the supply chain. This study aimed to examine the role of operational resilience in mediating the relationship between digitalization and the sustainable performance of fast-moving consumer goods (FMCG)- food and beverage firms in Nairobi County. The food and beverage sector occupy the highest percentage; 42% in the FMCG industry making it the biggest sector. The specific objectives of the study were to determine the relationship between digitalization and sustainable performance, the relationship between digitalization and operational resilience, the relationship between operational resilience and sustainable performance, and the mediating effect of operational resilience on the relationship between digitalization and sustainable performance. The study was guided by the resource-based view theory, stakeholders’ theory, and the disruption profile framework. The unit of analysis was supply chain managers or coordinators working in the FMCG industry. An explanatory research design was adopted, and purposive and convenient sampling methods were used to select participants. The study followed a positivist research philosophy and employed a quantitative approach to analyze the interaction between the study variables. The population of the study comprised FMCG manufacturing firms operating in Nairobi County. Data were collected using questionnaires, and the validity and reliability of the questionnaire were ensured through appropriate testing. The collected data were analyzed using descriptive and inferential analysis techniques to gain insights into the research objectives. By adopting this research design and methodology, the study aimed to contribute to the understanding of the relationships between digitalization, operational resilience, and sustainable performance in the FMCG industry in Nairobi County. The structural equation modeling (SEM) through SmartPLS revealed a positive and statistically significant relationship between digitalization and sustainable performance in FMCG companies. The study further found that digitalization positively relates to operational resilience. In addition, the study found that operational resilience significantly contributes to sustainable performance. Finally, it was found that operational resilience significantly mediates between digitalization and sustainable performance. Thus, all the hypotheses were supported. These findings suggest that digitalization and operational resilience play significant roles in improving the sustainable performance of FMCG companies in Nairobi County. The study concluded that organizations with higher levels of digital integration and platform capabilities are likely to achieve better sustainable performance outcomes. The research recommended that organizations should establish key performance indicators (KPIs) and metrics to monitor the impact of digitalization efforts on sustainable performance. Regularly tracking and analyzing these metrics will provide valuable insights into the effectiveness of digital initiatives and enable data-driven decision-making.
The Relationship between performance management and retention of millennials in startups in Kenya
(Strathmore Univesity, 2023) Wanda, S.
Performance management and employee retention have attracted interest among scholars. Research reveals that companies that do not employ retention strategies when managing their human resources face challenges with employee turnover. In order to sustain competitive advantage in the private sector, startups need to take on key aspects of performance management. This research aimed at determining the relationship between performance management and retention of millennials in startups in Kenya. The specific objectives were to determine the relationship between performance appraisal and retention of millennials, to establish the relationship between rewards and retention of millennials, and lastly; to establish the relationship between training and retention of millennials. The researcher focused on startups because they are growing at a fast rate and are technology-based entities making them a good fit for millennials who are tech-savvy. To underpin the study, the researcher adopted the organizational justice theory and Herzberg’s two-factor theory. The research design was correlational in nature. Study participants were selected using simple random sampling focusing on millennials employed in startups in Nairobi. The study’s sample was 134 startup companies. Data was collected through a questionnaire in Google Forms and 127 responses were received. Statistical Packages for Social Sciences was employed to analyze the data collected while applying simple and hierarchical regression models, and Spearman’s correlation coefficient to establish the relationships and associations among the study variables. Before data collection, the researcher obtained Strathmore University’s Ethical Clearance and a research license from NACOSTI. The findings from the correlation results established a positive and significant association between each of the four variables. Results from the simple regression model depicted a significant relationship between the independent variables and the dependent variable. However, the hierarchical regression results established that only rewards had an actual significant influence on retention of millennials in the presence of the other two variables of performance appraisal and training. Therefore, although high retention is observed in circumstances of high improvements in the identified performance management aspects, it is only rewards that keep millennials on the job. Hence, the researcher recommends startups consider increasing rewards whether financial, non-financial or social rewards in order to retain their millennial employees. Also, startups should conduct detailed focused research on why performance appraisal and training have little influence on retaining millennials when the variables are all combined. Further areas proposed for study are exploration of specific types of rewards; whether, financial, non-financial or social rewards and to ascertain which is significant in motivating millennials and increasing their retention. Keywords: Performance management, performance appraisal, rewards, training, employee retention, startup.
Assessing the relationship between performance and the directors’ remuneration in the Kenyan commercial banks
(Strathmore University, 2023) Lagat, H.
According to the agency theory, directors who represent shareholders may profit from the company by paying themselves high remuneration. Managers who get a set salary as their sole form of remuneration have no motivation to grow shareholder value because they are not entitled to any of the resulting gains. By making a portion of an executive's remuneration based on the company's financial performance, this incentive problem can be mitigated. The study was guided by agency and tournament theories. In Kenya, Companies Act (2015) requires that the directors’ remuneration should be based on the firm performance and that details of the directors' benefits should be included in the company's annual financial statement's notes. The study's objectives were first to determine the forms of directors’ remuneration; the second objective sought to examine compliance with the Companies Act, 2015 using key performance indicators namely return on assets, return on equity, liquidity, capital adequacy and credit risk, and lastly evaluate the non-financial characteristics to be considered in determining directors' remuneration. Both positivism and post-positivism research philosophies were used in the study and a multiple regression analysis covering the period 2015 and 2021 was also conducted. The study was both quantitative and qualitative and data was gathered using questionnaires for the case of non-financial data and annual reports for the case of financial data. To ensure reliability and affordability, the researcher used google forms to set up the questions and the link was shared with the respondents via email. Having thoroughly recognized all the sources, this study guarantees originality in the definition of the research and chosen content. The study findings indicated that executives receive retirement/ pension benefits, insurance benefits as well as bonuses while non-executive directors receive sitting allowance, travelling allowance, and a monthly fee. The findings showed that return on assets had a positive and significant impact on directors’ remuneration; capital adequacy and liquidity had a negative and significant effect on the directors’ remuneration; while return on equity and credit risk had no significant effect on directors’ remuneration. The findings further indicated that non-financial characteristics are critical in determining the directors’ remuneration. Finally, bank size is a significant factor when it comes to directors’ remuneration. The study recommends banks’ management should review policy on directors’ remuneration. Based on the findings, there is very weak relationship between bank performance and directors’ remuneration. The Central Bank of Kenya should review the Compliance Act (2015) to ensure that the directors’ remuneration is not exaggerated at the expense of shareholders. The banks’ management should strengthen the use of non-financial characteristics as determinants of directors’ remuneration. In particular, the study should focus on experience, qualifications, past track record, leadership skills, attitude and age. Keywords: Directors’ Remuneration, Performance and Non-Financial Characteristics
Effectiveness of forensic accounting practices in prevention of money laundering in County governments of Kenya
(Strathmore University, 2023) Araka, G. K.
The main goal of this research was to ascertain the efficacy of forensic accounting in boosting money laundering prevention within Kenyan county governments due to the significant expansion of money laundering activities there, which has impacted service delivery and money circulation in rural regions. The specific goals were to determine how much the use of forensic accounting practices influences the prevention of money laundering in County governments, the effectiveness of money laundering management tools in preventing money laundering in County governments, and the impact of forensic accounting knowledge and skills on the prevention of money laundering. The research was carried out in Kenya with a particular emphasis on the western Kenyan county administrations. The sample size was 245, and the target population was the 592 county workers that included the top management officials of the selected counties. A descriptive research approach was adopted for this investigation. The research also used a stratified sampling method and a multiple frame sampling procedure to choose its sample from the study population. The study discovered that using forensic accounting methods will improve county governments' understanding of money laundering in Kenya. The findings also reveal a link of 0.243 (p0.001) between forensic accounting expertise and the ability to detect and regulate money laundering. A significant association was found, since the estimated t-value (3.236) was larger than the significance threshold (t-value = 1.96). The results of this study strongly showed that an increase of only 1% in forensic accountants' capacity to identify and prevent financial crimes would result in an increase of just 0.24 percentage points in the efficacy of controls over money laundering. The findings showed a 0.213 (p=0.002) correlation between forensic accounting knowledge and money laundering detection and control. The 3.368 t-value exceeded the 1.96 threshold for statistical significance. For every unit gain in forensic accounting knowledge, money laundering prevention and control rose by 0.213 percentage points. Kenya's county governments prevented and controlled money laundering via money laundering management tools, forensic accounting rules, skills, expertise, and strong internal controls. Strong internal controls moderate the coefficient of determination for how effectively an organization avoids and controls money laundering from 55.1% (R-Square = 0.551) to 57.9% (R-Square = 0.579). Money laundering decreases 19.6% if strong internal controls are enhanced by one unit (= -0.196, t = -3.826, p-value = 0.0000.05). Thus, Kenya's county governments' anti-money-laundering management technology is limited by strong internal controls. In order to advance the global trend of money laundering prevention and control, the research advised national and local governments to create regulations that support forensic accounting discipline. To aid in the creation of organizations' anti-money laundering policies, it is critical that the county government create and put into place a robust money laundering control plan.

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