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- ItemDeterminants of carbon finance uptake and its role in deployment of renewable energy projects in Kenya(Strathmore University, 2018) Baimwera, BernardCarbon finance has been advanced as a strong financial mechanism to help the world transition to low carbon development, in the face of ravaging climate change. Projects that sequester greenhouse gases from the atmosphere are eligible to accrue carbon finance, either through sale of carbon credits in the designated carbon markets or through other flexible mechanisms. This thesis analyzed the determinants of carbon finance accrual in renewable energy projects, in the context of a low and middle income country, Kenya. The aim was to explore the role played by carbon finance in promoting the deployment of renewable energy, as envisaged in the international climate agreements, for a country with a reportedly enormous renewable energy potential. While carbon finance use in renewable energy has been extensively analyzed in developed countries, low and middle income countries, especially those in Africa, have received considerably less attention. In an attempt to address this gap, the thesis analyzed the determinants of carbon finance uptake in renewable energy projects registered under the Feed-in-Tariff scheme of the Kenyan government. Renewable energy projects were selected because prior evidence shows that a significant percentage of carbon finance is targeted to these projects, because of their emission reducing abilities. Triangulation of methodology, including the use of questionnaires, interviews and analysis of policy documents, was used to collect and analyze qualitative and quantitative data from renewable energy projects and other carbon business stakeholders on their understanding, uptake and determinants of carbon finance accrual in renewable energy projects. In addition to analyzing the determinants of carbon finance uptake, the study uncovered the constraints of accessing carbon finance and the challenges renewable energy developers face in the country. The evidence and analyses presented reveal that the size of the renewable energy project, the carbon market affiliation of the project and the level of low carbon technology employed in the project are significant determinants of carbon finance flows into the projects. At the same time, lack of capital to develop renewable projects to completion, primarily the absence of financial instruments from local banks and high transaction costs to meet carbon credits generation were identified as the main constraints in accessing carbon finance by the developers. The analyses also reveal low levels of understanding and awareness of the carbon finance uptake, suggestive of the low levels of uptake that were uncovered by the study. Based on these findings, the research recommends for the creation of a framework to educate and create awareness to local renewable energy developers on the existence and processes of accessing carbon funds from international carbon markets. There is also need to develop financial instruments to cater for risk investments with environmental benefits like those in renewable energy in the Kenyan capital market.
- ItemThe influence of relationship marketing, social performance management and firm-it characteristics on customer retention by microfinance institutions in Kenya(Strathmore University, 2018) Nyongesa, Stella Anne KasobyaRelationship marketing strategies are widely recognized by marketing managers as key in managing customer relationships. However, customer retention continues to be a challenge for many businesses including microfinance institutions in Kenya, implying there could be other factors affecting the outcome of relationship building efforts. This study sought empirical evidence on the moderating role of social performance management and firm IT characteristics in the association between relationship marketing and customer retention. Previous studies concentrated more on establishing a direct association between relationship marketing and customer retention, neglecting to establish the moderator effects on the strength of this direct association. Against this background, the study sought to establish the influence of relationship marketing on customer retention; extent to which firm IT characteristics influence the relationship marketing-customer retention association; assess the degree to which social performance management affects this association; and determine the joint effect of these variables on customer retention. Four hypotheses were formulated and using a descriptive cross-sectional design, with a population of 55 Kenyan microfinance institutions and 41,007 customers of these institutions, relevant data were collected from 48 employees and 492 customers using semi-structured questionnaires, and analyzed using descriptive and inferential analysis. Results showed relationship marketing characterized by communication and shared values plays a critical role in retaining customers. Further, a statistically significant positive association between relationship marketing and customer retention as well as between social performance management and customer retention was found, while firm IT characteristics had a statistically insignificant, weak and negative relationship with customer retention. Social performance management had a statistically significant strong moderating effect; however firm IT characteristics had a negative moderating effect. Finally, the joint effect was statistically significant. Theoretically, this study contributes to relationship marketing knowledge base by providing a model which explains the role of moderating factors in the relationship marketing–customer retention theoretical framework. The study provides empirical evidence supporting a more complex structure of the relationship marketing-customer retention link from a developing country context using customers’ and employees’ perspectives. The study also extends on the theory of corporate social performance by providing evidence on the role of social performance management in a business. Practically, the findings suggest marketers should combine relationship marketing with social performance management practices for optimum customer retention results. Despite technology not being a significant predictor of customer retention, institutions should not overlook technology adoption in building successful relationships. Policy formulation may focus on social performance reporting by microfinance institutions. The study was limited by use of fewer relationship marketing factors, the quantitative approach employed placed a constraint on obtaining in-depth insights of respondents which could provide deeper meaning to their responses, only a relatively small population of MFIs was accessible and furthermore, the variables were investigated in a business-to-customer setting. Future studies could address these limitations.
- ItemLending technologies and benefits of small and medium enterprise lending: a multiple case study of commercial banks in Kenya(Strathmore University, 2017) Muriithi-Ollows, Lilian WanguiA review of research on bank financing reveals that banks can either engage in transaction and/or relationship lending when financing firms. However, when dealing with small and medium enterprises (SMEs), studies suggest that relationship lending is the suitable methodology due to the information opacity of these firms while transaction lending is preferred for larger firms which are considered more information transparent. Studies also suggest that there are mutual benefits to be gained by both borrowers and lenders when they engage in relationship lending yet most studies emphasize demand side or borrower benefits and largely ignore lender benefits. With the increased interest in the SME sector by commercial banks, it is important to determine supply side or lender benefits if lenders are to continue serving these firms whether by use of the relationship lending method or any other suitable method. The main objective of this study was to determine the benefits that commercial banks gain and the role played by the relationship the bank has with the customer, when they finance small and medium enterprises. Data was collected through semi structured interviews conducted with SME bank managers who work closely with SMEs and analysed using content analysis. The study finds that commercial banks employ both relationship lending and transaction lending when dealing with the SME customer but more importantly establishes that relationship lending is only employed together with transaction lending. This leads to the suggestion of the use of the term “relational transaction lending” when referring to the use of relationship lending as it is always employed together with transaction lending. The study also establishes how soft information is processed for use in the SME lending decision and finally, articulates fourteen benefits that commercial banks are enjoying from engaging in SME lending. In summary, this research has made three significant advances to knowledge through the use of a qualitative research methodology. The development of a conceptual framework for borrower knowledge processing in SME lending; the development of a conceptual framework for the interplay between transaction and relationship lending methodologies resulting in the proposal of the use of the term relational transaction lending and, the establishment of the benefits generated from engaging in SME lending by commercial banks in Kenya.
- ItemBuilding sustainable business development services: empirical evidence from KenyaOtieno, HellenThe aim of this study was to explain sustainability of Business Development Services (BDS) in Kenya. The study was conducted through the use of Grounded Theory methodology on eleven BDS providers, two BDS facilitators and one donor agency and four small enterprise (SE) entrepreneurs. Data collection and analysis took 12 months spread between the months of May 2008 and August 2010. The study established that BDS Providers venture into business for different motives. The motives were classified into three as extrinsic, intrinsic and philanthropic motives. The study established that there are BDS Providers who venture into and sustain their businesses mainly for intrinsic and philanthropic motives. The study showed that while it is true that BDS Providers strive to recover costs and possibly make profits, this is not the major reason why some stay in business. The study showed that there are multiple conceptions of “sustainability” depending on providers’ strategic response; background characteristics; start-up motives; ability to identify and close gaps; situational forces; perception of the business and the meaning attached to business. These multiple conceptions of “sustainability” affect the way continuity is pursued and sustained. BDS becomes sustainable in the traditional economic sense of covering costs when the provider manages to identify and fill at least 9 specific demand and supply side gaps. The gaps relate to awareness, value, trust, quality, capacity, willingness to pay, appreciation, ability to pay and perception. BDS Providers identify and close the gaps in their market using a number of strategies. The strategies were client, product, price, simultaneous collaboration and competition, trial and error and diversification which differ by situational context. The study showed that filling some of the gaps requires collaboration among service providers. Filling other gaps require the action of the industry as a whole. The study further showed that perception of the providers is a major factor that influences how they do business and whether they stay in business. The study offers a number of theoretical contributions which have both theoretical and practical implications. First BDS philanthropy suggests that evaluation of performance and/or success should not be based purely on mercantile principles but should also combine the socio-cultural impact of the business. It also suggests that the measure of success should not be generalized across business sectors or within a business sector. Philanthropic motives may also justify spending public resources on such people because they have a mission to impact on others. Regarding perception, the study recommends that policy makers should take a deliberate effort to improve perception of potential opportunities in small-scale businesses.
- ItemThe influence of employee cultural orientation on the relationship between strategic human resource management practices and the performance of large foreign multinational manufacturing organizations in Kenya.(Strathmore University, 2012) Dimba, Beatrice Akang'oThe purpose of this study was to establish the relationship between strategic human resource management (SHRM) practices, cultural orientations, the age of the firm, employee motivation and firm performance in large foreign multinational manufacturing companies in Kenya. The following five specific objectives were addressed by the study: establish the relationship between SHRM practices and firm performance; determine the extent to which the relationship between SHRM practices and employees’ motivation depends on employees’ cultural orientations; determine if the relationship between SHRM practices and employees’ motivation is dependent on the age of the firm; establish if the relationship between SHRM practices and firm pertbrmance is mediated by motivation; gauge the relationship between employees’ motivation and firm performance. A conceptual framework was developed to link SHRM practices, cultural orientations, the age of the firm, employees’ motivation and firm performance in large foreign multinational manufacturing companies in Kenya. The respondents were HR managers, marketing managers and production managers, and non-management employees working in 50 foreign multinational companies (MNCs) which are members of the Kenya Association of Manufacturers (KAM). The data were collected using questionnaires developed by Hofstede (1980a) and Huselid (1995) and modified by the researcher. Hofstede’s instrument contains measures of employee cultural values and cultural beliefs found in the workplace, whereas Huselid’s instrument contains measures for SHRM practices, motivation and performance. The questions presented to the respondents captured all the study variables: SHRM practices, cultural orientations, firm age, motivation and performance. The interview method was used to contextualize research findings and to explore issues of interest in greater detail with a view to adding qualitative value to the data obtained using questionnaires. The major findings of the study were: (1) all the variables of SHRM practices except recruitment and selection were positively and significantly correlated with performance (range r 0 to r 0.4); (2) the relationship between SHRM practices and motivation did not depend on employee cultural orientations in the case where cultural beliefs (R2 = 40%) were considered, but depended on employee cultural orientations as measured by cultural values (R2 = 30%); (3) the relationship between SHRM practices and motivation depended on the age of a firm (R2 = 30%); (4(i)) motivation mediated the relationship between SHRM practices and firm performance (R2 = 30%); and (4) motivation had an effect on firm performance (R2= 10%). The study concluded that the applicability of Western models of SHRM practices in MNCs in Kenya needs further investigation. It also supports the notion that cultural orientations affect the relationship between SHRM practices and employee motivation, and hence, firm performance. Consequently, the study recommends that: (1) further research be carried out to establish the applicability of models of SHRM practices formulated in the Western nations in developing countries; (2) future researchers use longitudinal research design to obtain more interesting and revealing results of cultural orientations. Major findings and conclusions of the study are discussed in view of their implications for managerial policy and practices and future research.