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2024 

 

The Influence of organizational culture and 

values in financial crimes prevention among 

technological multinational organizations 

in Kenya. 
 
 

Wambura, James Chacha  
Strathmore Business School  
Strathmore University 
 
 
  

 

 

Recommended Citation 

Wambura, J. C. (2024). The Influence of organizational culture and values in financial crimes prevention among 

technological multinational organizations in Kenya [Strathmore University]. 

http://hdl.handle.net/11071/15572 

 
 

 
 

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The influence of organizational culture and values in financial crimes prevention 

among technological multinational organizations in Kenya 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

James Chacha Wambura 

 
 
 
 
 
 
 
 
 
 

Submitted in partial fulfillment of the requirements for the Degree of 
Masters of Commerce at Strathmore University 

Strathmore Business School 
Strathmore University 

Nairobi, Kenya 
 

February, 2023 



ii 
 

Declaration and Approval 

Declaration 

I declare that this work has not been previously submitted and approved for the 
award of a degree by this or any other University. To the best of my knowledge and 
belief, the proposal contains no material previously published or written by another 
person except where due reference is made in the thesis itself. 
 
James Chacha Wambura [Name of Candidate] 
 
 

Approval 

The proposal of James Chacha Wambura was reviewed and approved by: 
 
Dr. James McFie (Supervisor) 
 

 
 
24th March 2024 
 
Strathmore Business School 

 

 

 

 

 

 

 

 

 

 

 

 



iii 
 

Abstract 

The unique cultural and regulatory obstacles that multinational technology 

businesses operating in Kenya encounter may have an impact on their vulnerability 

to financial crimes. Comprehending these distinct elements may facilitate the 

creation of more potent preventative measures. This study examined the influence of 

corporate culture and values on financial crime prevention in technology 

multinational organizations (TMOs) in Kenya. The specific objectives were: firstly, to 

determine the influence of organizational culture and values on financial crime 

prevention in technology multinational companies; secondly, to determine how 

dominant company values and culture influence financial crime prevention amongst 

those technology multinational companies; thirdly, to determine how the 

predominant culture of the TMO can be promoted amongst the workforce to assist 

financial crime prevention within the technology multinational companies and 

fourthly, to assess the moderating effect of corporate governance on the relationship 

between corporate culture, values and financial crime prevention. The study was 

supported by three theories: Compliance Theory, Rational Choice Theory, and the 

Theory of Convenience. The study employed a descriptive research design where 

the target population was made up of employees from across the three TMOs 

(Google, Microsoft, and Oracle) operating in Kenya. The study employed the 

purposive sampling technique to select 18 participants as the sample size. 

Qualitative data was collected through interview protocol, with the data being 

collected in January 2024.  Qualitative data was analyzed using thematic analysis. 

The study’s findings showed that corporate culture and corporate values influenced 

financial crime prevention at TMOs operating in Kenya. Also, corporate governance 

had a moderating effect on the relationship between the independent and dependent 

variables. Financial crime prevention is positively impacted by a number of elements 

of corporate culture, which entails giving employees a voice, long-term vision, 

raising the level of communication transparency, social responsibility and corporate 

values such as maintaining high ethical standards. The study's results inform the 

development of best practices and policies for financial crime prevention in 

technology multinational firms in Kenya and can be used to evaluate the 

effectiveness of existing policies and regulations in the country.  

 

 

 

 

 

 



iv 
 

Table of Contents 

Declaration and Approval ........................................................................................................................... ii 

Declaration ......................................................................................................................................................... ii 

Approval ............................................................................................................................................................. ii 

Abstract ......................................................................................................................................................... iii 

Lists of Figures ............................................................................................................................................ vii 

List of Tables .............................................................................................................................................. viii 

List of Abbreviations .................................................................................................................................. ix 

Definition of Terms...................................................................................................................................... x 

Acknowledgement ...................................................................................................................................... xi 

CHAPTER ONE ............................................................................................................................................ 1 

INTRODUCTION TO THE STUDY .......................................................................................................... 1 

1.1 Background to the study .............................................................................................................................. 1 

1.2 Problem statement ..................................................................................................................................... 12 

1.3 Research Objectives .................................................................................................................................... 14 

1.3.1 Main Objective ........................................................................................................................................ 14 

1.3.2 Specific Research Objectives ............................................................................................................... 14 

1.4 Research questions ..................................................................................................................................... 14 

1.5 Scope of the study ...................................................................................................................................... 15 

1.6 Significance of the study ............................................................................................................................. 16 

1.6.1 Implications to policy ............................................................................................................................... 16 

1.6.2 Implications on Industry Leadership ........................................................................................................ 16 

1.7 Chapter Summary ....................................................................................................................................... 17 

CHAPTER TWO: LITERATURE REVIEW .............................................................................................. 18 

2.1 Introduction ................................................................................................................................................ 18 

2.2 Theoretical Literature Review ..................................................................................................................... 18 

2.2.1 Compliance Theory .................................................................................................................................. 18 

2.2.2 The Rational Choice Theory ..................................................................................................................... 21 



v 
 

2.2.3 Theory of convenience ............................................................................................................................. 23 

2.3 Empirical Literature Review ........................................................................................................................ 26 

2.3.1 Corporate culture and financial crime prevention ................................................................................... 26 

2.4 Conceptual framework ............................................................................................................................... 34 

2.5 Summary of Research Gap ......................................................................................................................... 35 

2.6 Chapter Summary ....................................................................................................................................... 39 

CHAPTER THREE: RESEARCH METHODOLOGY ............................................................................. 40 

3.1 Introduction ................................................................................................................................................ 40 

3.2 Research Philosophy ................................................................................................................................... 40 

3.3 Research Design ......................................................................................................................................... 41 

3.4 Population and Sampling ........................................................................................................................... 42 

3.5 Sampling Procedure.................................................................................................................................... 42 

3.5.1 Sample size determination ...................................................................................................................... 42 

3.6 Data Collection Methods ............................................................................................................................ 43 

3.6.2 Data Collection procedure ....................................................................................................................... 44 

3.7 Pilot Study................................................................................................................................................... 44 

3.8 Research Quality......................................................................................................................................... 44 

3.8.1 Reliability ................................................................................................................................................. 44 

3.8.2 Validity .................................................................................................................................................... 45 

3.9 Data Analysis .............................................................................................................................................. 45 

3.9.1 Operationalization of the variables ......................................................................................................... 47 

3.10 Ethical considerations............................................................................................................................... 50 

CHAPTER FOUR ........................................................................................................................................ 52 

DATA PRESENTATION, ANALYSIS, AND INTERPRETATION ..................................................... 52 

4.1 Introduction ................................................................................................................................................ 52 

4.2 Response Rate ............................................................................................................................................ 52 

4.3 Demographic Characteristics of the Participants ....................................................................................... 52 

4.9 Thematic Analysis ....................................................................................................................................... 55 



vi 
 

4.9.4 Objective 3: To assess the moderating effect of corporate governance on the relationship between 

corporate culture, values and financial crime prevention. ............................................................................... 74 

4.10 Discussion of results ............................................................................................................................ 75 

CHAPTER FIVE .......................................................................................................................................... 80 

SUMMARY, CONCLUSION AND RECOMMENDATION ................................................................. 80 

5.1 Introduction ................................................................................................................................................ 80 

5.2 Study Summary .......................................................................................................................................... 80 

5.3 Conclusion .................................................................................................................................................. 82 

5.4 Study Recommendations ............................................................................................................................ 84 

5.4.1 Policy recommendations ......................................................................................................................... 84 

5.4.2 Recommendations to Industry Leadership .............................................................................................. 84 

5.4.3 Recommendations to Academia .............................................................................................................. 85 

5.5 Suggestions for Further Research ............................................................................................................... 85 

REFERENCES ............................................................................................................................................. 86 

APPENDICES ........................................................................................................................................... 100 

Appendix 1: Questionnaire ............................................................................................................................. 100 

Appendix II: NACOSTI License ......................................................................................................................... 105 

Appendix III: Ethics Clearance Form ............................................................................................................... 106 

 

 

 

 

 

 

 

 

 



vii 
 

 

 

 

Lists of Figures 

Figure 2.1: Dimensions influencing crime intervention in convenience theory .......... 23 

Figure 2.2: Conceptual Framework .................................................................................... 35 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



viii 
 

 

 

 

List of Tables 

Table 1.1: Costliest Frauds in Kenya (PwC, 2020) ......................................................................... 5 

Figure 2.1: Dimensions influencing crime intervention in convenience theory ....................... 23 

Table 2.1: Summary of gaps in literature ...................................................................................... 36 

Table 3.2: Operationalization of the variables ............................................................................ 49 

Table 4.1: Demographic Characteristics of the Participants ..................................................... 53 

Table 4.2: Respondents’ Demographic Characteristics .............................................................. 53 

Table 4.3: The Level of transparency in communication ........................................................... 57 

Table 4.4: The Adopted Values of TMOs ..................................................................................... 58 

Table 4.5: Leadership commitment to prevention of financial crime ..................................... 74 

Table 4.6: Familiar with organization's policies and procedures related to financial crime 

prevention........................................................................................................................................... 75 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



ix 
 

 

 

 

List of Abbreviations 

ACFE: Association of Certified Fraud Examiners 

FATF: Financial Action Task Force  

NACOSTI: National Commission for Science, Technology and Innovation 

PWC: PricewaterhouseCoopers 

TMOs: Technology Multinational Organizations 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



x 
 

 

 

 

Definition of Terms 

Corporate Values: The core principles and ethical beliefs that guide the decisions, 

behaviours, and actions of an organization and its employees (Hirsch, 2019).  

Corporate Culture: The shared norms, beliefs, behaviours, and practices that 

characterize an organization and influence its members' interactions and decisions 

(Graham et al, 2022). 

Financial Crime Prevention: The strategies, policies, and measures put in place by 

an organization to detect, prevent, and respond to financial crimes, including fraud, 

money laundering, and corruption (Achim & Borlea, 2020). 

 

 

 

 

 

 

 

 

 

 

 

 



xi 
 

 

Acknowledgement 

I am grateful to Dr. James McFie, my supervisor, for his invaluable input and 

patience throughout this research project. I am grateful to Dr. Mumbi, Dr. Mathuva, 

Dr.  Ndegwa and Prof.Henry Chalu for their reviews and constructive feedback 

through the defense phases. 

And to my girls, my cheerleaders, thank you. 

 

 

 

 

 



1 
 

CHAPTER ONE 

 INTRODUCTION TO THE STUDY 
 

This chapter comprises of various subsections that include the study background, 

problem statement, research study objectives, research questions, study scope and 

the study significance.  

Within contemporary economic environments, Technology Multinational 

Organizations (TMOs) grapple with a myriad of challenges, encompassing issues 

such as internal crimes that, persistently and over an extended period, have exerted 

a constantly detrimental impact on the seamless execution of their operational 

endeavours (Weiss & Wilkinson, 2018). Concurrently, an additional concern that 

looms large is the vexing spectre of non-compliance with the legislative frameworks 

established in the countries where these TMOs conduct their operations. This 

multifaceted challenge compels TMOs to navigate the intricacies of ensuring 

adherence to local legislation within the diverse spectrum of countries in which they 

operate, thereby introducing yet another layer of complexity to the landscape of 

their business operations. 

 

1.1 Background to the study 

 

Several notable instances of financial crime have occurred in recent years. In 2004, 

WorldCom faced a significant financial crime, wherein its assets were artificially 

inflated by $11 billion, leading to the loss of over 30,000 jobs and $180 billion in 

investor losses. An internal audit revealed fraudulent activities amounting to up to 

$3.8 billion (Babatunde, 2021). Another case involved Enron, resulting in the 

dissolution of the international accounting firm Arthur Andersen. Lucent 

Technologies Inc. also found itself in legal trouble, as federal regulators charged the 

company with a $1.1 billion accounting fraud. The allegations encompassed 

employee falsification of documents and engaging in undisclosed deals with 



2 
 

customers, leading to a fine of $25 million for non-cooperation imposed by the U.S. 

Securities and Exchange Commission (Amina, 2021).  

 

These examples illustrate the need for further research on the role of corporate 

culture in preventing financial crime. This study will examine whether such financial 

crime could have been prevented or minimised if the organizational values and 

culture were different. It is hypothesized that the amount stolen could be minimized 

if corporate culture in the affected organizations could be different, based on a 

positive ethos. In this context, the negative corporate cultural practices such as fraud 

could be avoided, hence minimizing instances of financial crimes. Research has 

shown that a strong ethical corporate culture, that emphasizes values such as 

integrity, accountability, and transparency, can reduce the likelihood of financial 

crime (Al-Swidi et al., 2021). However, little research has been done on the 

relationship between corporate culture and financial crime prevention specifically in 

TMOs operating in Kenya. This study aims to fill this gap in the literature by 

examining the corporate culture and financial crime prevention practices of Oracle, 

Google, and Microsoft in Kenya. 

 

Globally, the financial world has benefited greatly from the globalization of financial 

systems, the increase in trading volume, and the speed of communication 

technologies. Yet, financial crime has unfortunately grown and become more diverse 

(Ünvan, 2020). Therefore, it is becoming more crucial to combat financial crimes, 

which are frequently sophisticated and well-planned. It is necessary to implement an 

all-encompassing policy that should involve all facets of society to address the fight 

against this kind of crime, which has emerged as a severe threat (Ünvan, 2020). 

According to the Association of Certified Fraud Examiners (ACFE) report of 2018 

(Lamptey & Singh, 2018), fraud and financial crime-related activities have cost 

businesses around the world roughly 5% of their annual sales. Financial crime also 

negatively affects the share price, relationships with regulators, reputation and 

brand strength, business relationships, and staff morale (PricewaterhouseCoopers, 

2020). According to PricewaterhouseCoopers (PWC, 2020), financial crimes are on 



3 
 

the rise, notably in the field of cybercrime. The fact that policymakers, legislators, 

and organizations still find it difficult to reduce the frequency of financial crime 

serves as a reminder of the pressing need for improved access to the fragmented 

body of existing knowledge to guide best practices in the fight against financial 

crime. 

Regionally, Sub-Saharan Africa's financial industry is under serious threat from 

organised criminal gangs, financially driven nation-states, and individual hackers 

(Świątkowska 2020). The various risks faced by these companies consist of records 

theft, spying, interruption, extortion, and financial theft. These operations aim on 

using typically insufficient cybersecurity protections to alter the integrity of internal 

security controls and payment processing mechanisms. They rely on prior 

achievements against similar systems in the now more cyber-mature developed 

world. Malicious insiders have also demonstrated the will and capacity to take 

advantage of their access to privileged information and systems in order to steal 

from their companies. 

 

Much of the developing world has not seen an elaborate advancement of 

cybersecurity standards due to a variety of reasons, including political controversies, 

economic limitations, civil unrest, poor infrastructure, and a general lack of 

awareness. However, assessments of these factors differ greatly among participating 

states. The size and diversity of the continent make it challenging to determine the 

overall condition of cybersecurity in Africa, yet there are certain common problems 

that draw determined threat actors to African cyberspace.  Digital hygiene and 

public knowledge of cyber threats are generally lacking in Africa (Świątkowska 

2020). Disseminating security materials is a challenge due to factors including 

linguistic variety and differences in English language proficiency (Kabanda et al., 

2018). According to research conducted in 2019 (Świątkowska 2020), just 4% of 

information assurance specialists were based in Africa. Organisations' capacity to 

deploy appropriate cybersecurity policies and tooling was further hampered by an 

expected 100,000 cybersecurity professionals shortfall across the region by 2020 

(Bernard et al., 2020). Most developing nations rely on antiquated, inadequately 



4 
 

secured, unlicensed, or poorly managed information security assets (Świątkowska 

2020). The prevalence of pirated software in many African nations makes it more 

challenging to sanitise software before it is used: According to studies conducted in 

2017, 90 percent of software in Zimbabwe and 89 percent of software in Libya was 

pirated (Kshetri 2019). 

 

The issues presented by cyber threats, socioeconomic factors, and inadequate law 

enforcement are highlighted in the sub-Saharan African perspective on financial 

crime prevention among technology multinational corporations. Multinational 

corporations (MNCs) need to utilise efficacious approaches and tactics, like financial 

intelligence, risk prioritisation, technology and innovation, international 

collaboration, and public-private partnerships, to tackle these difficulties. 

 

Locally, Kenya's approach to preventing financial crimes in technology 

multinational corporations (MNCs) is diverse, incorporating legal frameworks, 

institutional measures, and organisational methods. Guidelines have been 

implemented by the Capital Markets Authority (CMA) to stop money laundering 

and financing of terrorism inside the capital markets industry. These policies cover 

things like customer verification, risk-based strategies, and reporting questionable 

transactions (PwC, 2020). Statista showed that in 2020, 3,488 cases of economic crime 

were reported to the Kenyan police (Cowlin, 2023). This represented a drop from the 

previous year, when 4,786 economic offences were reported. However, 2019 saw the 

highest number of economic crimes registered since 2010. PwC's 2020 Global 

Economic Crime Survey found that 58% of Kenyan respondents have experienced 

economic crime in one form or another (table 1.1) during the previous years (PwC, 

2020). 

 

 

 

 



5 
 

Table 1.1: Costliest Frauds in Kenya (PwC, 2020) 

Fraud  Rank Percentage (%) 

Procurement Fraud  1 15% 

Bribery & Corruption  2 14% 

Accounting/Financial Statement Fraud  3 14% 

Asset Misappropriation  4 12% 

Customer fraud  5 12% 

Money laundering & sanctions  6 12% 

Others 7 21% 

Total  100% 

 

Kenya has seen rapid growth in the technology industry in recent years, with TMOs 

such as Oracle, Google, and Microsoft establishing a presence in the country. 

However, the rapidly growing and changing nature of the technology industry also 

increases the risk of financial crime (Akinbowale et al., 2020). It is important for the 

TMOs operating in Kenya to have robust financial crime prevention policies and 

procedures in place, as well as a strong ethical corporate culture to deter illegal or 

unethical activities. TMOs operating in Kenya are subject to the same cultural and 

regulatory challenges as other multinational firms operating in Kenya, but with the 

added dimension of the fast-paced, ever-evolving technology industry. TMOs are 

some of the companies that are heavily reliant on innovation and rapid changes 

occasioned by technological advancement such as machine learning, satellite and 

drone technologies. Rapid changes occasioned by rapidly changing products 

introduce complexity in these products and present a challenge even to understand 

the products; for example, the different cloud-based offerings. Fraudsters are then 

able to exploit these gaps and weakness in the offerings.  TMOs operating in Kenya 

face unique challenges related to organizational culture and values. These challenges 

involve managing cultural diversity, balancing the values of the parent company 

with local cultural norms, and dealing with the unique regulatory environment in 

Kenya (Kariuki & Githinji, 2015; Mwaura & Othieno, 2018). These challenges can 



6 
 

impact the effectiveness of financial crime prevention measures and need to be 

considered in the context of TMOs in Kenya.   

 

Corporate culture plays a significant role in shaping the behaviour of employees 

within an organization and can have a direct impact on the prevention of financial 

crime. Across the technology sector, multinational organizations operating in Kenya 

have been subjected to increased scrutiny by different governmental and 

international agencies in recent years due to the increased potential for financial 

crimes. This study on the role of corporate culture in the prevention of financial 

crime in TMOs in Kenya aims to examine the influence of corporate culture on 

reducing financial crimes within these organizations. 

 

Strong organisational culture is crucial, even when additional steps are taken to 

ensure financial crime prevention, such as technological interventions. According to 

Deloitte (2014), financial crime prevention should start at the top and work its way 

down. The relationship between financial crime prevention and organisational 

culture has been the subject of several studies. However, there are few studies in 

Kenya looking at the relationship between financial crime prevention and corporate 

culture or values. Many scholarly articles in Kenya have examined the relationship 

between corporate or employee performance and organisational culture. For 

instance, Kising'u (2017) investigated how organisational culture affected 

commercial banks in Voi Sub-County's organisational performance. A questionnaire 

was used to gather data using the stratified random sampling technique. It was 

discovered that organisational performance is influenced by organisational culture. 

To reach a conclusion, the study sampled employees from a number of banks; 

however, the organisational cultures of the commercial banks may differ from that of 

the TMOs. 

 

Also, Ayugu's (2015) study at the Kenya National Examination Council (KNEC) was 

able to establish a connection between ethical behaviour and organisational culture. 

The study looked at various aspects that affect moral behaviour in businesses. The 



7 
 

descriptive design was used. Results indicated that an environment at work that 

values honesty and integrity and pushes employees to think about the moral 

implications of their decisions tends to reward moral behaviour. Ayugu's (2015) 

study, on the other hand, was distinct from this current one because it concentrated 

on ethical behaviour, which is a far more expansive idea than financial crime 

prevention. Moreover, the study was carried out in the field of education making it a 

challenge to generalize the findings on the Technology Multinational sector.  

 

According to Kimani's (2011) study on the fraud risk assessment plan in the context 

of Standard Chartered Bank Kenya, the bank should implement a six-step fraud risk 

management plan, incorporating development of an anti-fraud strategy. The bank's 

fraud specialist provided primary data, with a significant amount of secondary data 

being used as backup. The effectiveness of an anti-fraud culture in managing fraud 

risk was not shown by the study. Afande (2015) conducted research on the efficacy 

of regulatory policies in combating money laundering in Kenya. The study focused 

on two telecommunications service providers licenced to offer money transfer 

services and nine banks listed on the Nairobi Securities Exchange. Interviews and 

questionnaires were employed to gather primary data. The results showed that a 

variety of factors influenced Kenya's adoption of money laundering practices and 

that enforcing anti-money laundering regulations presented several difficulties. The 

study's scope was restricted to regulatory measures used in the fight against money 

laundering. 

 

1.1.1 Organizational culture  

Organizational culture encompasses a broad spectrum of elements that collectively 

shape the character of a workplace. It is comprised of the organizational 

expectations, core operational framework, and practices that collectively serve as 

guiding principles for all team members, thereby influencing the behaviour of 

individuals within the organization (Lobschat et al., 2021). From varying 

perspectives, organizational culture is seen as a repository of the beliefs and 

attitudes held by employees within the company, profoundly influencing the 



8 
 

decision-making and operational processes within the organization (Isensee, 

Teuteberg, Griese, & Topi, 2020). This complex interplay of values, practices, and 

employee attitudes creates a distinctive organizational identity, setting the tone for 

interactions, decision-making, and the overall work environment, ultimately 

influencing the success and effectiveness of the organization in achieving its 

objectives. 

1.1.2 Organization values  

On the other hand, organizational values refer to the identifiable beliefs and 

principles held by the people in the organization, and that help in driving a business 

forward (Cichosz, Wallenburg, & Knemeyer, 2020). Organizational values are useful 

in guiding the thinking and decision-making in organizations as well as the actions 

that define the course of the organizations (Cichosz et al., 2020).  The values inspire 

key identifiable attributes in the company like honesty, integrity, and fairness. 

Moreover, organization culture also encompasses beliefs, values and behaviour 

patterns that often drive the organizational members to make definite choices or 

decisions. Guerra et al. (2020) argued that organizational culture entailed norms that 

all organizational members perceived at their working environment as the norms 

often influence the behaviour of employees at the workplace, hence aiding in 

attaining the key goals of organizations. The culture of an organization is a set of 

ways in which organizational members relate or interact with each other and other 

relevant stakeholders (Isensee et al., 2020). Azeem et al. (2021) concluded that 

organizational culture was a cohesive bond that linked both the human and 

nonhuman resources as a unit, to enhance better teamwork and positive 

performance.  

 

Lam et al. (2021) explained that business managers often use organizational cultures 

to realize a disparity between organizations by comparing them with others.  

International Business Machines Corporation, Apple Inc. and Hewlett-Packard 

Corporation (HP) are some of the international TMOs operating around the world, 

with diverse corporate cultures incorporated in them. Apple Inc. adopts the culture 

of developing simple, elegant, and innovative customer products (Pathiranage et al., 



9 
 

2020). IBM on the contrary, focuses on long-term thinking and enhanced employee 

commitment (Christopher & Edwinah, 2022). HP is pegged on autonomy of its 

employees and innovation as key elements of its corporate culture. Organizational 

culture aids in offering a favourable corporate governance environment and proper 

management. The effect of an effective organization culture on the performance of 

organizations has been appreciated by various business managers over the years. 

For instance, Warren Buffet, one of the global entrepreneurs, stated that 

organizational culture was a key construct in organizational performance (Isenset, 

2020).  The position of corporate culture is key, with regards to its influence in the 

expected organizational output at the end of every financial year.    

 

1.1.3 Financial Crime  

Financial crime, as defined by the Financial Action Task Force (FATF), is any illegal 

act or attempt to evade legal requirements that involve the use of the financial 

system. This involves activities such as fraud, money laundering, bribery, and 

corruption. It can significantly damage an organization's reputation, financial 

stability, and legal standing. Financial crime has become a global concern, 

particularly with the rise in international terrorism, prompting inquiries into the 

financial origins and legitimization of gains from unlawful activities. Scholars have 

increasingly focused on financial crime in general, with money laundering emerging 

as a critical aspect (Trozze et al., 2022). The fundamental question guiding this field 

of study is multifaceted. Researchers explore not only the legal frameworks and 

regulations required to prevent these crimes but also alternative approaches 

involving behavioural and cultural factors. A prominent recent example is the 

Panama Leaks, underscoring that control mechanisms, governance, and regulatory 

frameworks alone are insufficient in deterring financial crime. This case highlighted 

the ongoing attempts by certain countries to attract investments through money 

laundering despite existing regulations. 

 

Nicholls et al. (2021) delved into the influence of culture on tax evasion, while 

Mahmud et al. (2021) focused on culture's impact on bribery. This current study 



10 
 

aims to broaden the understanding of the relationship between culture and values 

and financial crimes, to add to the existing scholarly works. Regardless of the 

specific type of financial crime, concealment, money legitimacy, and the 

perpetrator's ability to freely use the proceeds are critical elements. The global 

business environment is becoming increasingly complex and dynamic, and TMOs 

operating in Kenya are not immune to these changes. One of the major challenges 

that these organizations face is the risk of financial crime, which can have severe 

consequences for both the company and its stakeholders.  

 

 1.1.3 Technological Multinational Organizations (TMOs)  

According to Cohen (2018), multinational companies are those business enterprises 

that have operations in more than one country. It is beneficial to consider the 

operations of the companies' particular industries while analysing multinational 

technology corporations. Multinational companies are a mix of different people and 

cultures who normally need to embrace and accommodate one another’s culture to 

define and explore an effective operational medium for their profitability and 

sustainability (Verma et al., 2022). The effects of local culture on the multinational 

organizations might be gradual. Nonetheless, TMOs must realize this gradual 

process of adaptation and influence on the internal operation of the entity. 

Organizations need to seek to entrench their basic core values like transparency, 

honesty, integrity, and other values that may not be the same as the local values.  

 

This means that the management of TMOs must find a managed way to influence 

people socially while attempting to achieve the objectives of the organization. In 

their operations, the TMOs majorly develop and sell software to customers and offer 

patches and support to ensure the software stays updated. This often separates the 

TMOs from direct financial crimes since most fraud related attacks are often external 

attacks into the already sold systems, hence affecting only the customers. Despite the 

attacks, the customers still have confidence in the products developed and sold to 

them by the TMOs. The current study will utilize the fraud prevention aspect as 

opposed to other aspects in fraud risk assessment, due to its ability to thwart fraud, 



11 
 

discourage it, and sometimes even eliminate the need for expensive investigations. 

Further, prevention is usually the most economical part of a fraud risk management 

system. 

 

To mitigate these risks, TMOs in Kenya need to implement effective compliance 

programs that address financial crime. However, compliance programs alone are not 

sufficient to reduce financial crimes. The culture and values of an organization also 

play a critical role in deterring employees from engaging in fraudulent activities. 

Can a strong ethical corporate culture act as a deterrent to illegal or unethical 

activities, and promote compliance within an organization? This study aims to 

examine the relationship between corporate culture and financial crime prevention 

in TMOs operating in Kenya, specifically in Oracle, Google, and Microsoft. These 

three TMOs are relatively large and influential players in the technology industry. 

They are at the forefront of innovation and exert significant influence on the 

direction the technology industry takes as a whole.  

 

By examining how they approach financial crime prevention and how their culture 

may facilitate or hinder those efforts, we may be able to draw broader conclusions 

about what works (or does not) in this domain. Each of these companies has faced 

scrutiny related to financial crimes in the past. For example, Google has been fined 

billions of dollars by the European Union for antitrust violations; Microsoft has faced 

allegations of bribery in foreign markets; and Oracle has been involved in several 

high-profile lawsuits related to fraud and false advertising (Chirita, 2021; 

Roszkowska, 2021).  

 

Technological Multinational corporations in Kenya understand the value of 

corporate culture and values in their business operations. They have put policies into 

place to encourage honesty and diversity, alongside creativity. These businesses 

have also put in place stringent policies and processes, such as fraud prevention 

programmes, anti-money laundering initiatives, and adherence to national and 

international laws, to stop financial crime. For instance, Microsoft and Google Kenya 



12 
 

have put in place strong security measures, such as data encryption and protection, 

to thwart financial theft. Therefore, by studying how these companies have 

responded to these challenges and how their organizational culture may have 

contributed to or mitigated their risks, we may be able to glean insights that could 

help other companies avoid similar pitfalls. 

 

The definition of a criminogenic organisational culture is not widely agreed upon, 

which makes it challenging to pinpoint particular cultural components that help or 

impede the prevention of financial crimes. Additionally, there is a lack of conceptual 

clarity regarding the elements of organisational culture; research offers only vague 

definitions of the concept and fails to pinpoint the precise elements of organisational 

culture that have an impact on the prevention of financial crimes. Numerous 

research works depended on tiny sample sizes, which might not accurately reflect 

the organisation as a whole or other comparable organisations. This demonstrates 

that there is a methodological disparity between the research. Furthermore, a 

knowledge gap indicates that the precise cultural components that help or impede 

the prevention of financial crimes have not been sufficiently defined by study, 

making it challenging to create practical victimisation prevention initiatives. 

 

For the purpose of conducting a comprehensive yet manageable study, the 

researcher decided to concentrate on three randomly chosen corporations out of 

Kenya's twenty IT MNCs. The scope of this specific research study would not have 

allowed for the study of all 20 tech MNCs in Kenya. Inside the study's limitations, 

the researcher was able to carry out a more comprehensive analysis by focusing on 

three sample organisations. 

 

1.2 Problem statement 

The prevalence of financial crime, including activities such as fraud, money 

laundering and bribery in TMOs in Kenya, is a growing concern (PwC, 2020). The 

negative impact of financial crime on an organization’s reputation and financial 

stability can be severe due to loss of revenue especially when these organizations are 



13 
 

not able to recover quickly, to decreased investor confidence and to an increase in 

costs especially with legal and regulatory penalties. Traditional compliance 

programs may not be sufficient in preventing financial crime (Kuswati, 2020). For 

instance, as provided in the study background, in 2020, there were 3,488 occurrences 

of economic crime as reported to the Kenyan police (GoK, 2021; Cowlin, 2023). 

Therefore, in the rapidly evolving landscape of TMOs in Kenya, the effective 

prevention of financial crimes has become a concern (Hofmann & Jaeger‐Erben, 

2020).  These TMOs operate within a dynamic global environment, characterized by 

intricate financial transactions and cross-border interactions (Gaur, Ma & Ge, 2019). 

As technological companies continue to expand their operations and navigate 

complex regulatory frameworks, it is imperative to understand how their 

organizational culture and values impact their ability to proactively mitigate and 

address financial crimes.  

 

Further, most of the existing studies (PwC, 2020; Black & Green, 2019; Smith et al., 

2021; Murithi, 2013; Omar et al., 2015) have been based on banks and other financial 

institutions, with not much attention on TMOs. This has left a significant gap in 

terms of the relationship, if any, between organizational culture and financial crimes 

in various TMOs in Kenya. The studies also reveals methodological flaws, such as 

the fact that descriptive statistics are frequently used for data analysis, which may 

leave room for incomplete understanding of the connection between organisational 

culture and the prevention of financial crimes. Due to a conceptual gap, it is 

challenging to pinpoint particular cultural components that help or impede the 

prevention of financial crimes. There is also disagreement about what exactly defines 

a criminogenic organisational culture. Regarding the knowledge gap, little is known 

about how criminalising attitudes and beliefs permeate organisational hierarchies 

and affect employee behaviour in relation to financial crimes. 

The central research question that this study addressed is: What is the influence of 

culture and values on the effectiveness of financial crime prevention in Kenya? By 

investigating this relationship, this study seeks to provide valuable insights into the 

relationship between organizational cultural attributes and the implementation of 



14 
 

robust financial crime prevention measures, contributing to the enhancement of 

compliance, risk management, and ethical conduct within the Kenyan technological 

business sector. 

 

 

1.3 Research Objectives 

1.3.1 Main Objective  

The objective of the research was to determine the influence of organizational values 

and culture in financial crime prevention among technological multinational 

companies in Nairobi County, Kenya.   

 

1.3.2 Specific Research Objectives  

The specific research objectives of the study were: 

i. To determine the effect of corporate culture on financial crime prevention 

amongst technology multinational companies in Nairobi County. 

ii. To determine the effect of corporate values on financial crime prevention 

amongst the technology multinational companies in Nairobi County. 

iii. To assess the moderating effect of corporate governance on the relationship 

between corporate culture, values and financial crime prevention.  

 

1.4 Research questions 

The research sought to answer the following questions: 

i. What is the effect of corporate culture on financial crime prevention in 

technology multinational companies in Nairobi County?  

ii. What effect does corporate value have on financial crime prevention amongst 

the technology multinational companies in Nairobi County?  

iii. To what extent does corporate governance moderate the relationship between 

corporate culture, values, and financial crime prevention? 

 



15 
 

1.5 Scope of the study 

The research examined the operations of TMOs in Kenya, with a focus on how their 

culture and internal corporate values influence the prevention of financial crime. The 

scope of this research, therefore, was based on the need to determine the positioning 

and use of the culture by these companies. The geographical scope entailed TMOs 

operating in Nairobi County. The companies were Google, Microsoft, and Oracle.  

The companies were selected due to multiple factors as explained below. A total 

sample size of ninety employees from the three TMOs were chosen as the unit of 

observation.  

 

These companies have achieved significant success in their respective domains, 

making them influential and indicative of trends in the broader tech sector. Studying 

their cultures can offer insights into the practices that contribute to their success. The 

three TMOs’ corporate cultures have been shaped by their histories, leadership 

styles, and business strategies. Oracle is known for its focus on enterprise software, 

Google for its innovation and emphasis on employee well-being, and Microsoft for 

its evolution from a software-focused to a more broadly integrated technology 

company. By examining the diverse cultures of these companies, a broader 

understanding of the different approaches to organizational development was 

achieved (Azeem et al., 2021).  

 

Innovation is a hallmark of the tech industry, and Oracle, Google, and Microsoft are 

known for their innovative approaches to technology and business. Studying how 

these companies foster innovation and adapt to changing market dynamics can 

provide insights into cultivating a culture that embraces creativity while at the same 

time staying agile to prevent fraud. Given their technological expertise as part of 

their corporate governance, technological companies leverage advanced tools and 

technologies for various purposes, including fraud prevention. While the specific 

tools may vary, the emphasis on leveraging technology for monitoring and detecting 

anomalies in financial transactions or user activities can be applied in other 

industries. While the specific strategies for fraud prevention may vary based on 



16 
 

industry and organizational context, the overarching cultural aspects and principles 

from these tech giants can serve as a foundation for building a robust fraud 

prevention framework in other multinationals. The sampled respondents from the 

three TMOs were interviewed using the designed interview guide on corporate 

culture and financial crime prevention. The data was collected in January 2024.   

1.6 Significance of the study  

 1.6.1 Implications to policy 

This study could be used to inform the development of policies and regulations 

aimed at promoting strong ethical values and a positive corporate culture within 

TMOs in Kenya.  The researcher assumed that implementation of the findings from 

the study influences positively a better corporate culture across the sampled TMOs, 

by learning from their different cultures to reduce financial crimes. The study 

provided support for guidelines for ethical decision making, whistle blower 

protection, and the implementation of compliance programs. The findings of this 

study could be used to evaluate the effectiveness of existing policies and regulations 

and to identify areas where further action is needed to promote financial crime 

prevention. Advocacy for greater transparency and accountability in TMOs can be 

improved as a result of this study to help prevent financial crime. 

1.6.2 Implications on Industry Leadership 

The findings from this study highlighted the role of senior management in setting 

the tone for ethical behaviour and the need for effective communication and 

enforcement of these values throughout the organization. This could be used to 

inform management's decision-making on creating and implementing policies and 

procedures that promote ethical behaviour and financial crime prevention. The 

knowledge from this study helps managers to create a sustainable and responsible 

business environment and avoid reputational, legal, and financial risks. This can be 

used to bridge the practical gap for TMOs.  

 



17 
 

1.6.3 Implications to Academia  

The research adds to the corpus of knowledge already available in the areas of 

organisational culture, values, and the prevention of financial crimes. It gives 

academics the chance to investigate and broaden theoretical frameworks, create 

original concepts, and produce empirical data about the connection between 

corporate culture, values, and the prevention of financial crimes. This fosters a 

deeper comprehension of the subject matter and advances the field's intellectual 

growth. The intricacy of organisational culture and values impacting the prevention 

of financial crimes, however, might be better captured by using a bigger sample size 

and a wider variety of data gathering techniques.  

1.7 Chapter Summary  

The study's foundation is laid out in this opening chapter, which also covers the 

theoretical framework, outlines the methodology, discusses the issues, outlines the 

research objectives, defines the study's scope and limitations, emphasises the study's 

importance, and provides an overview of each subsection. The chapter lays the 

groundwork for the next chapters, which go into further detail on the research 

findings and analysis, by establishing the background and justification for 

examining the role of organisational culture and values in financial crime prevention 

among technological multinational organisations. 



18 
 

 

 

CHAPTER TWO: LITERATURE REVIEW 

2.1 Introduction 

Corporate culture and values are integral components of any organization, and have 

been found to play a significant role in the prevention of financial crime (Maulidi & 

Asnell, 2022). This literature review examines the research done on the relationship 

between corporate culture and values and financial crime prevention to better 

understand the mechanisms by which a positive corporate culture and strong values 

can contribute to a reduction in financial crime within an organization. The review 

scrutinizes divergent views from different authors on the role of corporate culture in 

prevention of financial crime specifically in TMOs operating in Kenya. 

 

2.2 Theoretical Literature Review 

The multi-theoretical framework of the literature review makes it possible to 

examine the study topic in a more comprehensive, intelligent, and original way. It 

produces a theoretical model that is more thorough and presents new directions for 

future research. Moreover, the procedure permits the investigator to expand upon 

the benefits of many theories to facilitate a more comprehensive analysis of the 

research subject. Thus, considering the issue from many perspectives helps to better 

grasp it. The researcher used a variety of theories to provide a more nuanced and 

contextualised explanation of the phenomenon they are studying. Several theories 

exist on the influence of corporate culture and values in the organization and can be 

related to financial crime prevention. 

 

2.2.1 Compliance Theory 

The notion of "compliance theory" was created by Amitai Etzioni in the late 1960s 

and early 1970s as a component of his larger social control theory framework. 

Compliance Theory posits that individuals will comply with the rules and 

regulations of an organization to avoid punishment and gain rewards.  Rules and 



19 
 

regulations have a significant role in creating the norms and expected behaviour 

inside an organisation, making them essential parts of corporate culture. The theory 

points to the immense role of rules and policies as being integral in shaping the 

behaviour of the employees in the organization. According to the theory, an 

organization with a robust compliance system in place and clear consequences for 

non-compliance will have a lower risk of financial crime. Etzioni Compliance theory, 

explains how companies manage and direct the behaviour of their members 

(Lunenburg, 2012).  

 

Kirimhan (2023) points out that one critique of compliance theory is the scant 

empirical data to back up its assertions. Moreover, although there exists some 

research bolstering the idea in certain scenarios, it needs comprehensive 

confirmation in a variety of regulatory environments. Additionally, there are worries 

that emphasising extensive compliance could result in lax enforcement and leniency, 

which could compromise the efficacy of rules. This might present chances for 

regulatory capture, in which entities subject to regulation have undue influence over 

the regulatory framework. 

 

According to the theory, successful compliance is obtained when the organization's 

aim, the employees involvement strategies, and the power it uses to influence 

behaviour are all in line with one another. Coercive, utilitarian, and normative 

capacities were highlighted as three that organizations can employ to influence 

members' behaviour. Order goals, economic goals, and cultural goals are the three 

main objectives that organizations pursue, according to compliance theory (Gibson, 

2014).  

 

Coercive power involves using force and terror to regulate behaviour, by imposing 

severe penalties on those who disobey business rules (Gibson, 2014). Utilizing 

extrinsic rewards to influence behaviour involves using utilitarian power. One 

example is raising salaries for staff members who follow business rules. This strategy 

focuses on employing rewards—either material or immaterial—to manipulate 



20 
 

people's behaviour. The degree to which people are involved in this method and 

how they view the benefits and the organization's values will determine how 

effective it is. The normative strategy involves the use of intangible rewards to 

influence behaviours including instilling moral principles, establishing high moral 

standards, and defining moral goals. The normative strategy, which uses intangible 

rewards to shape behaviour and impart moral ideas, is more closely linked to values 

than culture. This strategy is in line with values since it seeks to uphold and 

encourage particular moral standards and ideals within the company. It aims to set 

moral objectives and high standards that staff members are urged to follow. 

Although the normative strategy is anchored in the fundamental ideals that direct 

behaviour, it can gradually impact and develop an organization's culture. Through a 

focus on moral principles and the establishment of elevated moral standards, the 

organisation aims to mould the culture and motivate staff members to live up to 

those ideals in their behaviour and decision-making (Lunenburg, 2012).  

 

The direction that employees take toward the organization's exercise of power is 

referred to as involvement. Three categories of engagement were established by 

compliance theory: moral, calculative, and alienative involvement (Indik & Berrien, 

2008). Members of an orientation known as alienative involvement tend to separate 

themselves and do not share the organization's values. A case of applying utilitarian 

power is when behaviour is influenced by extrinsic rewards. This strategy focuses on 

employing rewards—either material or immaterial—to influence    

employees' behaviour. This strategy will work or fail based on how well employees 

participate, how they view the incentives, and how they align with the values of the 

company (Gibson, 2014).  

 

This theory clearly recognizes the pivotal role of leadership in shaping 

organizational culture and fostering a culture of compliance. Leaders set the tone for 

compliance by demonstrating commitment to ethical conduct, regulatory adherence, 

and accountability. They communicate expectations, allocate resources, and provide 

support to reinforce compliance efforts throughout the organization. Thus, the 



21 
 

theory was used to anchor the first and third objective of the study, with the 

variables corporate culture and corporate governance being supported by the theory.  

There is emphasis on accountability and responsibility on all level of the 

organization. Compliance theory has a profound influence on corporate culture by 

shaping norms, values, and behaviours related to ethical conduct, regulatory 

adherence, risk management, accountability, leadership, and continuous 

improvement. By embedding compliance principles into the organizational culture, 

organizations can foster a culture of integrity, trust, and sustainability while 

effectively managing legal and regulatory risks. Therefore, the theory was used to 

anchor corporate culture variable in this study.  

 

2.2.2 The Rational Choice Theory  

The philosopher Adam Smith proposed Rational Choice Theory in the 18th century. 

The theory posits that individuals engage in criminal activities, including financial 

crimes, after carefully weighing the potential benefits against the perceived risks of 

being caught and facing legal consequences. The theory provides a framework for 

understanding how individuals make decisions within organizations. It is crucial to 

highlight that organisational culture can influence decision-making processes 

through the development of incentives, norms, and values inside the organisation. In 

this way, people's decision-making processes may be impacted by the cultural 

context in which they operate, which may have an impact on how much they 

perceive the costs and benefits of particular options.  

 

Rational choice theory emphasizes the importance of incentives in shaping 

behaviour. In a corporate setting, incentive structures are designed to align 

individual interests with organizational goals and values. Employees are motivated 

to act in ways that are consistent with the organization's values when they perceive 

benefits or rewards tied to ethical behaviour. Rational actors within the corporation 

may choose to adhere to corporate values to maximize their own utility, especially 

when incentives are aligned with ethical conduct. 



22 
 

 

Rational choice theory is sometimes criticised for ignoring non-rational elements that 

influence behaviour, like feelings, moral principles, and social conventions 

(Zafirovski, 2018; Blau, 1997). These irrational elements may contradict the 

presumption of strictly rational computations and have a substantial influence on 

decision-making (Zafirovski, 2018). 

 

According to Cornish and Clarke (1986), rational choice theory rests on the 

assumption that individuals are rational actors who seek to maximize their self-

interest. They argue that potential offenders calculate the rewards and risks 

associated with criminal behaviour and make decisions based on their assessments. 

This decision-making process involves evaluating the potential monetary gains from 

financial crimes, the probability of being caught, the severity of potential 

punishments, and the personal factors influencing their choices. The theory 

highlights how organizations' internal controls and enforcement mechanisms can 

influence the perceived risks of committing financial crimes. Employees may be 

deterred from engaging in such activities if they believe the organization has 

effective monitoring and a high likelihood of uncovering misconduct. 

 

The theory was used to support corporate values variable that contribute to the 

formation of the organization's identity, influencing the behaviour and decisions of 

its members. Rational actors within the organization may internalize these values 

and incorporate them into their decision-making processes. They may act in ways 

that are consistent with corporate values to maintain a sense of belonging and 

alignment with the organization's identity. This alignment strengthens the 

organizational culture and reinforces the importance of corporate values in guiding 

behaviour within the organization. 

 

 

 



23 
 

2.2.3 Theory of convenience 

The Theory of Convenience in criminology was proposed by Marcus Felson, an 

American criminologist in 1990s as an extension of routine activity theory, focusing 

on how criminal opportunities arise due to changes in people's routines and 

behaviours. The theory was pegged on the significance of situational factors and 

everyday routines in place to create room for criminal behaviour.  Moreover, the 

theory informs how changes in modern lifestyles, societal and technological factors 

in influencing crimes through providing convenience or opportunities for criminals.  

 

Figure 2.1: Dimensions influencing crime intervention in convenience theory 

 

The Theory of Convenience posits that the core drivers behind white-collar criminal 

behaviour encompass motive, opportunity, and willingness. Represented in Figure 

2.1, these elements collectively form a spectrum of criminogenic factors influencing 

the probability of law violations. It is essential to note that while the model depicted 

in Figure 2.1 may not predict which individuals will engage in criminal activities 

beforehand, it can offer valuable insights into strategies to potentially decrease the 

occurrence of white-collar crimes. Specifically, this model highlights the potential for 

actions aimed at reducing organizational opportunities, aligning with the premises 

of convenience theory. According to Steden et al. (2013), criminogenic factors are the 

underlying causes behind the offenses committed by individuals engaging in 

deviant acts. They argue that by identifying and understanding these criminogenic 

factors through research, there is a prospect to mitigate the risk of criminal 



24 
 

behaviour. Their perspective further suggests that the likelihood of crime escalates in 

tandem with the intensification of these criminogenic factors.  

 

A fascinating question is raised concerning the relative significance of the three 

factors—motive, possibilities, and willingness—in relation to the incidence of white-

collar crimes. Notably, the possibility of crime exists even in the lack of a likelihood, 

and it can still occur in the absence of a purpose and willingness. Depending on the 

circumstances, these characteristics' importance could change for both individuals 

and organisations. Schnatterly, Gangloff, and Tuschke (2018) distinguished between 

factors that are influenced by these dimensions that are internal and external. 

Aspects such as salary, goals, and board expectations are examples of internal 

motivators. On the other hand, investor expectations, relative success, and 

competitiveness are examples of external motivators. Individual authority, 

organisational intricacy, and the existence of institutional regulations and audits are 

the main internal opportunity variables. 

 

Despite the fact that the theory has given important insights into how criminals 

make decisions, several issues and restrictions have been brought up. Critics contend 

that by emphasising opportunities and immediate environmental circumstances, the 

Theory of Convenience oversimplifies the decision-making process of offenders 

(Pickett et al., 2020). They contend that this restricted approach ignores other crucial 

elements like personal traits, societal effects, and long-term planning. 

 

Conversely, business culture and conventions, industry technicality, and wider 

macroeconomic concerns are examples of external opportunity factors. When it 

comes to willingness, industry norms and the effects of globalisation are examples of 

external influences, whereas commercial culture, control inconsistencies, and societal 

frameworks are examples of internal variables. This distinction shows how these 

internal and external influences interact to alter motive, possibility, and willingness 

mechanisms in different environments and circumstances to differing degrees.  

 



25 
 

Organisation culture and values are passed down from generation to generation of 

employees. The conveyance process has the potential to impact people's opinions of 

what is acceptable and deviant behaviour within the organisation. If there is a 

culture of convenience and cutting shortcuts, people may be more likely to engage in 

deviant behaviour for personal gain (Schnatterly et al., 2018). Furthermore, 

organizational culture defines norms and limitations for behaviour within the 

organisation. These standards can either prohibit or promote convenience-driven 

aberrant behaviour. If an organization prioritizes integrity, honesty, and ethical 

behaviour, it fosters a culture that discourages self-serving deviation. On the other 

hand, if the organisation focuses on short-term achievements and rewards, it may 

unintentionally encourage people to participate in deviant behaviour for personal 

gain. 

 

This theory is closely linked to financial crime prevention variable. The theory is 

anchored on stressing the importance of opportunity structure in facilitating or 

deterring financial crime. Individuals do conduct a cost-benefit analysis before 

engaging in financial crime. The theory of convenience suggests that when the 

perceived benefits of committing a financial crime outweigh the potential costs (e.g., 

risk of detection, legal consequences), individuals are more likely to engage in illicit 

activities. Preventive measures aim to alter this cost-benefit calculus by increasing 

the perceived risks and reducing the potential rewards associated with financial 

crime. The theory also underscores the importance of collaboration and information 

sharing among stakeholders in preventing financial crime. Preventive measures may 

involve fostering partnerships between public and private sector entities, sharing 

intelligence and best practices, and collaborating with law enforcement agencies and 

regulatory authorities to identify emerging threats and vulnerabilities and 

coordinate responses effectively. 

 

The theory of convenience provides valuable insights into the dynamics of financial 

crime and the design of preventive strategies. By reducing opportunities for crime, 

enhancing deterrence, promoting ethical cultures, and fostering collaboration and 



26 
 

information sharing, organizations and financial institutions can mitigate the risk of 

financial crime and protect their assets, reputation, and stakeholders' trust. 

However, it's essential to recognize that preventing financial crime requires a 

multifaceted approach that addresses both systemic vulnerabilities and individual 

behaviors. 

 

2.3 Empirical Literature Review 

2.3.1 Corporate culture and financial crime prevention 

Brown (2015) in his study investigated the role that moral disengagement plays in 

the justification of financial crime. The study's conclusions emphasised the value of 

favourable comparisons and demonstrated how people may "determine that the way 

they act seems somewhat appropriate by juxtaposition" as a result of hearing about 

outrageous accounting and reporting techniques. The emphasis of the current study 

is on the role that organisational culture plays in combating financial crimes. 

Although Brown (2015) does not specifically address organisational culture, his 

research on moral disengagement and positive comparisons can be understood as 

having something to do with the idea of organisational culture in general. 

 

Murphy and Free (2016) in their study on the relationship between corporate culture 

and rationalization found that a business culture that is receptive to unethical 

behaviour increases the chance of financial crime. An instrumental climate, which 

encourages decision-making in the individual’s or organization's best interests 

without regard for ethical concerns, is most conducive to rationalizing fraud. In such 

a scenario, employees can rationalize their actions through the belief that no one is 

watching. Additionally, social influence techniques used in business environments 

run the risk of assimilating staff members into unethical corporate values, beliefs, 

and conventions. Likewise, Suh et al.'s (2018) study lends credence to the notion that 

interpersonal signals from the workplace and colleagues may also significantly 

influence an employee's perception of suitable behaviour. 

 



27 
 

Okeke and Eiza (2022) in their study reported that internal controls and culture have 

a considerably bigger role to play in the fight against financial crime. Notably, a 

drastic change in culture and internal procedures is necessary, according to 

policymakers and the public, to restore public trust, increase worker recognition and 

motivation, combat the negative publicity many institutions have been receiving, 

and mend the reputational damage that has resulted from the situation. It would be 

useful, and necessary that the development of quality intervention frameworks 

geared towards preventing crime-related activities in the companies should come 

from within the organization (Okeke & Eiza, 2022). The culture of the organisation is 

closely linked to these kinds of intervention frameworks. Through the integration of 

organizational culture into the establishment of intervention frameworks, TMOs can 

devise customized and efficacious tactics aimed at curbing criminal activity. These 

frameworks have a greater impact and help to create an environment of integrity 

and compliance within the company when they are integrated into the culture and 

matched with values, ethics, leadership, and employee involvement. 

 

The subject at hand emphasises the role that organisational culture plays in stopping 

financial crimes. It is possible to apply Okeke and Eiza's (2022) findings, which 

highlight the importance of internal controls and culture in preventing financial 

crime, to the setting of technology multinational corporations. Furthermore, the 

focus of the current study is on how values influence organisational culture. 

Although Okeke and Eiza (2022) do not address values directly, their findings about 

the contribution of internal controls and organisational culture to the prevention of 

financial crime might be interpreted as having a connection to the idea of 

organisational culture and values more broadly. 

 

According to Mayhew and Murphy (2014) in their study on reporting choices and 

organizational culture as pertains to the manager-subordinate relationship, they 

discovered that participants excuse their transgression by shifting responsibility, and 

are substantially more likely to report incorrectly when given instructions to do so 

by an authoritative source. Likewise, managers who are committing fraud may try to 



28 
 

shift blame to subordinates. According to the study's findings, social dynamics 

matter in a workplace setting where employees are devoted to their managers and 

will go to great lengths to act in the business's best interests.  

 

Trompeter et al. (2014) did a thorough assessment of neutralisation studies and 

concluded that neutralisation (occurring prior to an unlawful act) and rationalisation 

(produced after an act has been committed) are distinguished by their time. It is 

arguable, nevertheless, whether this distinction matters in the case of financial crime, 

since other studies claim that culture and values can function both retrospectively (to 

lessen unpleasant sentiments after the event) and proactively (to predict guilty 

feelings).  

 

Omar et al.'s (2015) study concentrated on the connection between financial 

statement fraud incidence and corporate culture. The study examined empirical 

studies that were relevant to the research question through a methodical evaluation 

of the existing literature. The study defines financial statement fraud as intentional 

tampering of financial statements in order to mislead investors. The results show 

that an honest culture, especially among CEOs and other top officers significantly 

impact financial statement fraud. The likelihood of financial statement fraud is 

higher among company executives that put their own interests ahead of those of 

shareholders. But this study examined the relationship between organisational 

culture and financial statement fraud, which is only one type of financial crime. 

 

Tsai (2011) carried out research on the connection between job happiness, leadership 

behaviour, and organisational culture. A cross-sectional study was conducted with 

Taiwanese hospital nurses as the main subject. A well-structured questionnaire was 

used to gather data. The associations between leadership conduct, work satisfaction, 

and organisational cultures were examined using correlation analysis. The findings 

showed that job happiness and leadership behaviour were favourably and strongly 

connected with organisational cultures, and that job satisfaction and leadership 

behaviour were highly correlated with each other. One of the most significant factors 



29 
 

in determining whether an organisation is a happy and healthy place to work is its 

culture. Employees' recognition and acceptance of the organisational values can 

have an impact on their attitudes and behaviour at work when it comes to conveying 

and promoting it to them. 

 

Chang et al. (2019) found that a corporate culture that prioritizes compliance with 

laws and regulations is also positively associated with lower levels of financial 

crime. Values such as integrity and responsibility can also play a crucial role in 

shaping corporate culture and promoting ethical behaviour within organizations. 

Similarly, a study by Shim & Siegel (2010) found that organizations that prioritize 

these values and instill them in their employees are less likely to experience financial 

crime. A culture that promotes open communication and encourages employees to 

report any suspected fraudulent activity can also help to prevent financial crime 

(Persons, 2016).  

 

Lau & Leung (2018) posit as well that when the corporate culture is poor with no 

anti-fraud principles, it can create an environment where employees may be more 

likely to engage in fraudulent behaviour. According to the PWC Global Economic 

Crime and Fraud Survey (2022), a large percentage of respondents admitted to 

having fallen victim to economic crime. Financial crimes have a major influence on 

an organization's revenue. According to the survey, nearly 20% of businesses with 

yearly revenues over $10 billion reported losses of more than $50 million due to only 

one particularly disruptive occurrence. Contrarily, businesses with annual revenues 

under $100 million faced less fraud, with nearly a fifth of those businesses suffering 

losses of $1 million or more. Profits are frequently severely hurt by situations like 

breach detection and clean-up costs, compliance fines, and lawsuits. Consequently, 

damage to the company's reputation may continue for years. Lau & Leung (2018) 

argue that organizations that have a strong corporate culture that emphasizes 

compliance with laws and regulations have a better chance of deterring financial 

crime in the organization. It is against such backdrop that this study explores the 



30 
 

influence of organization culture and values on prevention of financial crime in 

TMOs in Kenya 

 

2.3.2 Corporate values and financial crime prevention 

Jamil et al. (2021) focused on the organizational values and norms that are linked to 

the existing culture and how they affect employees' stress levels as well as their 

identification with and loyalty to the firm. The study concentrated on the effects of 

pandemics on the levels of financial crime and different levels of regulatory 

compliance. The study did not, however, address the part that organizational culture 

plays in encouraging financial crime prevention. In their investigation of the Wells 

Fargo case in 2017, Zamry & Syafinaz (2019) found that employee misconduct not 

only affects specific departments but the organization. The current study can benefit 

from the use of Zamry & Syafinaz's (2019) findings about the organisational impact 

of employee misconduct. A culture that discourages unethical behaviour and 

encourages integrity must be fostered because of the impact misconduct has on the 

entire organisation. According to Zamry & Syafinaz (2019), organisations must take 

a comprehensive approach to addressing misconduct. This is consistent with the 

focus of the current issue, which is on how organisational culture and values can 

deter financial crimes. Organisations can reduce the likelihood of financial crimes by 

encouraging a culture of responsibility, openness, and moral behaviour. 

 

Taylor (2018) argues that the relationship between corporate values and financial 

crime prevention is complex and that it is not only cultural values but also the 

governance structures and compliance systems in place that play a critical role in 

preventing financial crime. Kariuki (2015) explained that stronger anti-fraud 

corporate values are not sufficient on their own in preventing financial crime. He 

argues that companies need to have in addition strong internal governance 

structures and regulatory oversight to prevent financial crime. The financial crisis of 

2008 exposed the inadequate attention paid by executives on the role of 

organizational values. However, the attention of the study was focused mainly on 

regulatory compliance and profit making.  The reported crisis was experienced in 



31 
 

companies including Lehman Brothers, AIG and the Royal Bank of Scotland. Little 

attention was paid to organizational culture and value and its influence on financial 

crimes (dishonesty) among the employees, despite its huge effect on the crisis. The 

identification, assessment, and mitigation of risks, particularly misconduct and its 

causes, require holistic and methodical techniques. 

 

A study by Black & Green (2019) found that operational stability is a critical concern, 

and financial crimes can disrupt normal business operations. They concluded that 

preventive measures help organizations maintain operational stability by reducing 

the likelihood of disruptions caused by investigations, legal proceedings, or financial 

losses. While financial crime prevention is a primary focus, it is essential to consider 

other aspects of fraud risk mitigation. This comprises of implementing internal 

controls, conducting regular audits, and promoting ethics and integrity within the 

organization (Smith et al., 2021). Effective employee training programs and the use 

of technology for fraud detection are also crucial components of a comprehensive 

fraud risk management strategy (Johnson & Brown, 2019). 

 

Murithi (2013) looked into the financial performance of Kenya's commercial banks 

following the implementation of anti-money laundering (AML) laws. It was based 

on information obtained from 31 commercial financial institutions via a 

questionnaire. The level of transaction screening, the frequency of reporting, and the 

comprehensiveness of the produced reports were utilised to evaluate how well AML 

requirements were being implemented. Murithi (2013) assessed the number of staff 

members who were suitably assigned to supervise bank transactions in order to 

determine the efficacy of the regulations’ execution. These included providing anti-

money laundering (AML) training to staff members, setting up a centralised 

customer account-opening centre, implementing a customer verification and 

screening programme, allocating resources to combat money laundering, and having 

an audit function in place to assess and evaluate compliance programmes. 

Furthermore, Murithi's (2013) research revealed no link between corporate culture 

and deterring financial fraud. 



32 
 

 

Johnson and Brown (2019) highlight that understanding the financial impact of fraud 

is crucial for organizations to develop robust risk mitigation strategies. Legal and 

regulatory compliance is a central aspect of financial crime prevention (Jones et al., 

2020). Scholars argue that a comprehensive understanding of regulatory frameworks 

is essential for organizations to establish effective preventive measures (Black & 

Green, 2019). Reputation management is another compelling reason to prioritize 

financial crime prevention. Davis (2019) stresses that instances of financial 

misconduct can erode trust among stakeholders, affecting an organization's 

reputation. Research in financial crime prevention contributes to the development of 

strategies that protect and enhance organizational image and stakeholder trust.  

 

In this research, financial crime prevention is prioritized due to its overarching 

impact on an organization's financial health, legal compliance, reputation, and 

operational stability. Krambia-Kapardis (2016) and Gao et al. (2015) emphasize the 

need for a holistic approach that comprises of understanding the financial impact of 

fraud, compliance with regulations, reputation management, and maintaining 

operational stability through preventive measures. A comprehensive understanding 

of these aspects contributes to the development of effective strategies for fraud risk 

mitigation in organizations. Organizational culture on the other hand, can have a 

significant impact on financial crime prevention (Li & Tang, 2011). A positive 

organizational culture, characterized by values such as integrity, accountability, and 

ethical behaviour, can deter financial crime and promote compliance with financial 

crime prevention policies and procedures (Krambia-Kapardis, 2016). On the other 

hand, a negative organizational culture, characterized by values such as disregard 

for rules and lack of accountability, can increase the likelihood of financial crime 

(Gao et al., 2015; Li & Tang, 2011). 

 

2.3.2 Corporate governance and financial crime prevention  

There is increasing recognition that leadership plays a crucial role in shaping the 

corporate culture and values of an organization. A study done by Johnson et al. 



33 
 

(2013) established that leaders who champion ethical behaviour and integrity are 

more likely to create a corporate culture and a set of values that also prioritize these 

behaviours. Additionally, Kim et al. (2017) found that leaders who actively 

communicate and reinforce the organization's values through training and other 

forms of communication are better able to create a corporate culture and set of 

values that prioritize integrity and ethical behaviour. 

 

The role of a company's audit committee is essential to financial oversight and 

corporate governance (Kim et al., 2017). While there may not be a direct link between 

the audit committee and organisational culture and principles, there are significant 

indirect linkages. For example, the committee's dedication to moral principles 

contributes to the entire culture of the organisation and supports the ideals of 

honesty, transparency, and responsibility. The audit committee monitors the efficacy 

of the company's internal controls, which are intended to assure legal and regulatory 

compliance while also protecting the company's resources. By emphasising the 

significance of effective internal controls, the committee helps promote a culture of 

transparency, risk management, and appropriate behaviour throughout the 

organisation (Kim et al., 2017). Therefore, the committee has the ability to modify the 

association between financial crime prevention and company culture. Internal 

control and financial reporting for the company are supervised by the audit 

committee, which is normally composed of independent directors with financial 

experience. The audit committee's installation of efficient controls and risk 

management procedures improves accountability across the entire company. Strong 

company cultures that encourage moral behaviour and adherence to legal 

requirements are more likely to have an engaged and vigilant audit committee that 

supports and upholds them. 

 

All things considered, the audit committee serves as a vital conduit between 

business culture and the suppression of financial crime. It guarantees the efficacy of 

internal controls, increases accountability, evaluates risks, and sets up reporting 

procedures (Kim et al., 2017). The audit committee's ability to play these 



34 
 

responsibilities can help to balance the connection between financial crime 

prevention and corporate culture, highlighting the significance of an ethical and 

compliance culture within the company. The existence of corporate governance can 

be considered part of an organization's culture, particularly when it comes to 

establishing a culture of financial integrity, transparency and responsibility. The 

formation and operation of an audit committee demonstrate the organization's 

dedication to good financial management and corporate governance. In this case, the 

culture of financial honesty, accountability, openness, and responsible governance is 

greatly enhanced by the existence of an audit committee. Subsequently, it shapes 

people's attitudes and behaviours within the company and establishes expectations 

for how the company handles finances. 

 

The corporate governance plays a pivotal role in shaping corporate culture and 

values by promoting ethical conduct, strengthening internal controls, enhancing 

accountability, upholding compliance standards, fostering trust and confidence, and 

encouraging continuous improvement. Its efforts contribute to the development of a 

culture characterized by integrity, transparency, and responsible governance, which 

in turn enhances the organization's reputation, resilience, and long-term success. 

 

 

 

 

2.4 Conceptual framework 

The dependent variable, financial crime prevention, refers to the outcome or effect 

that is being measured in the study. Financial crime prevention measures can be 

assessed by the number of financial crime incidents reported. The independent 

variables, corporate culture, and values, refer to the variables that are being 

manipulated or measured to determine their effect on the dependent variable. The 

corporate culture was itemized as the level of employee training, financial crime 



35 
 

prevention approaches and policies and procedures. The corporate values are 

comprised of integrity, transparency, and ethical behaviour. 

 

Independent Variables                                                            Dependent Variable 

 

 

 

 

 

 

 

 

 

                            

                                                                   Moderator variable 

Figure 2.2: Conceptual Framework (Source: Researcher, 2023) 

2.5 Summary of Research Gap  

A noticeable research gap exists concerning the impact of company culture and 

principles on financial crime prevention in TMO large corporations operating in 

Kenya, despite the fact that the body of literature on the subject is expanding. 

First, most research on the topic of corporate culture and financial crime prevention 

has been done in developed nations, which leaves a vacuum in our knowledge of the 

potential effects that Kenyan-specific cultural and economic characteristics may have 

on the relationship between organisational culture and financial crime prevention in 

TMOs doing business there. Hofstede's cultural aspects are essential for 

understanding varied workplace cultures in a more comprehensive way. Power 

distance, individualism vs collectivism, masculinity vs femininity and uncertainty 

Corporate Culture   

• Flexibility 

• Inclusiveness 

• Mission 

• Consistency  

Corporate Values 

• Transparency 

• Integrity 

• Innovation 

• Accountability 

Financial Crime 
Prevention  

• Risks 

identified  

• Degree of 

clarity and 

integrity 

• Level of 

adherence to 

laws and 

regulations  

Corporate 

governance  



36 
 

avoidance are key cultural dimension constructs that are rich in building the current 

study, to understand the varied views of corporate culture and financial crimes. 

Second, there is a lack of research specifically examining the role of corporate values 

in financial crime prevention in TMOs in Kenya. While the literature generally 

suggests that values such as integrity and compliance can help to prevent financial 

crime, it is unclear how these values may be translated and implemented in the 

Kenyan TMO context. 

Third, the literature on financial crime prevention in TMOs in Kenya is limited, with 

a lack of studies examining the specific strategies and processes that these firms use 

to prevent financial crime. This research gap leaves a lack of understanding of how 

TMOs operating in Kenya are addressing financial crime prevention, and what 

specific challenges they may face. Finally, most of the research has been done on 

financial crime prevention in the banking sector and not much is known about the 

specific challenges and strategies used in other sectors such as telecommunication, 

manufacturing, and other service sectors. 

In summary, there is a need for further research on the influence of corporate culture 

and values on financial crime prevention in TMOs in Kenya. This research could 

help to fill the gap in understanding how cultural and economic factors unique to 

Kenya may influence the relationship between corporate culture and values and 

financial crime prevention and could also provide insight into the specific strategies 

and processes that these firms use to prevent financial crime. 

Table 2.1: Summary of gaps in literature 

Author 
(year) 

Topic  Methodolo
gy 

Results Research 
gap 

Contributio
n of the 
current 
study 

Yamen et 
al. (2017). 

The 
National 
culture's 
influence on 
financial 
crime. 

The study 
is based on 
a cross-
country 
analysis.  

According to 
the findings, 
financial 
crime rises in 
nations 
where the 
population 
exhibits low 

There was no 
clear 
indication of 
the interplay 
on how 
cultural 
elements mix 
with legal 

The current 
study 
themes as 
identified 
provides a 
direction on 
how 
regulatory 



37 
 

levels of 
individuality, 
high levels of 
masculinity, 
low levels of 
uncertainty 
avoidance, 
and low 
levels of a 
long-lasting 
orientation. 

and 
regulatory 
frameworks 
to impact the 
prevention 
and 
identification 
of financial 
crimes. This 
showed a 
contextual 
gap 

framework 
and 
corporate 
standards 
influence 
financial 
crime 
prevention.  

Tsai 
(2011)  

The 
connection 
between job 
happiness, 
leadership 
behaviour, 
and 
organisatio
nal culture. 

Cross-
sectional 
survey was 
the main 
method 

The results 
demonstrated 
that 
leadership 
conduct and 
work 
satisfaction 
had a 
substantial 
correlation 
with one 
another and 
were 
positively 
and strongly 
correlated 
with 
organisationa
l cultures. 

The study 
fell short in 
describing 
the causation 
and 
directionality 
of the 
connections 
among 
organisation
al culture, 
leadership 
style, and 
work 
satisfaction. 
This revealed 
a 
methodologi
cal gap.  

The current 
study 
conducted 
correlation 
and 
regression 
analysis to  
provide key 
relationship
s between 
variables of 
the study.  

Jamil et 
al., (2021).  
 

The effects 
of 
pandemics 
on the 
levels of 
financial 
crime and 
different 
levels of 
regulatory 
compliance. 

Descriptive 
research 
survey 
design was 
used.  

This study 
discovered 
an increase in 
cybercrime 
but a 
decrease in 
physical 
crime when it 
came to 
financial 
crime 
tendencies. 
However, 
this analysis 
found that 

The variables 
used might 
vary 
throughout 
organisations
, which 
makes it 
difficult to 
generalise 
research 
results and 
create 
frameworks 
that apply to 
all 

In-depth 
analysis was 
done in the 
current 
study to 
comprehend 
the 
standards 
and values 
of the 
organisation
. This 
involved 
collecting 
information 



38 
 

regulatory 
compliance 
was not at a 
sufficient 
level. 

organisations
. This 
revealed a 
contextual 
gap in the 
study.  

on 
employee 
experiences 
and 
perspectives 
through 
questionnair
es and 
interviews. 

Banik & 
Lin, 
(2019) 

Business 
and morals 

Exploratory 
research 
design was 
used.  

Business, 
ethics, and 
economic 
progress are 
closely 
related. 

The survey 
might not 
have 
included a 
representativ
e sample of 
the TMOs 
landscape 
because it 
only looked 
at a small 
number of 
Chinese 
businesses. 
The study 
revealed a 
methodologi
cal gap.  

The current 
study 
includes the 
TMOs 
representati
on results.  

Hazaea et 
al., (2020) 

The impact 
of internal 
audit 
quality on 
the financial 
decision-
making 
process 

Descriptive 
research 
design was 
used.  

The calibre of 
corporate 
governance 
through 
internal 
auditors has 
a positive 
and 
substantial 
influence on 
financial 
decision-
making. 

The study 
did not show 
how the 
internal 
audit 
process's 
efficacy was 
impacted by 
the 
frequency of 
audit 
committee 
meetings. 
This revealed 
a conceptual 
gap in the 
study. 

It is key that 
corporate 
governance 
and 
organizatio
n leadership 
considers all 
corporate 
structures to 
ensure 
proper 
governance 
an 
allocation of 
resources. 



39 
 

Charlopo
va et al. 
(2020). 
(pp. 39-
59). 
Emerald 
Publishin
g 
Limited. 

The 
justification
s used by 
fraudsters 
for financial 
crimes. In 
Corporate 
fraud 
exposed 

Cross-
sectional 
study 

Since 
organizationa
l silos and 
hierarchical 
structures 
might result 
in a greater 
number of 
"moral 
disengageme
nt" 
mechanisms, 
the idea of 
anti-
rationalizatio
n is probably 
particularly 
significant in 
organisationa
l settings. 

The majority 
of the study's 
content was 
theoretical, 
with 
minimal 
empirical 
work done to 
confirm the 
variable 
correlations. 
This revealed 
a conceptual 
gap.