African Journal of Business and Management (AJBUMA)
The journal accepts original papers from disciplines in business, management and closely related areas. Papers are peer reviewed before publishing.
African Journal of Business and Management
MODERATING INFLUENCE OF FIRM SIZE ON THE INTERRELATIONSHIP BETWEEN FRAUD RISK MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF MICROFINANCE INSTITUTIONS IN KENYA
Efforts to curb fraud are viewed as critical investments for financial institutions due to the significant threat posed by this vice and the liquid nature of their products. To address this menace, financial institutions, including microfinance institutions (MFIs), have implemented fraud risk management practices. While larger financial institutions can afford comprehensive measures to curb fraud, MFIs often rely on less sophisticated practices despite being the most susceptible to financial improprieties. Furthermore, evaluating the overall effect of these practices on financial performance is critical to assessing their effectiveness. The objectives of this study were twofold: first, to determine the effect of fraud risk management practices on the financial performance of microfinance institutions in Kenya; second, to examine the moderating effect of firm size on the relationship between fraud risk management practices and the financial performance of MFIs in Kenya. The study was anchored in the fraud management lifecycle theory and the market power and efficiency structure theories. It focused on twelve deposit-taking microfinance institutions operating in the Nairobi region of Kenya between 2016 and 2020. The study adopted a descriptive research design, using cross-sectional data computed from the average financial results for the five-year period from 2016 to 2020. Purposive and stratified random sampling methods were used to select a sample of 281 respondents, including finance, ICT, operations, audit, and litigation managers and staff. Descriptive and inferential statistics were employed to analyze the data. The results revealed that fraud risk management practices had a positive and significant effect on financial performance by reducing incidents of fraud. Regarding firm size, the study concluded that firm size had a significant moderating effect on the relationship between fraud risk management practices and the financial performance of large MFIs. In contrast, the moderating effect on the relationship between fraud risk management practices and the financial performance of small MFIs was insignificant. The study concluded that, to enhance financial performance, MFIs should implement fraud risk management practices, given their positive and significant impact. The study recommends that MFIs invest substantially in fraud risk management to reduce fraud incidents and improve financial performance. Additionally, the management of microfinance institutions should continually evaluate and update their practices to stay abreast of evolving fraud tactics. Regarding firm size, the study recommends that MFI management strategically invest to increase earnings and market share to capitalize on the benefits of fraud risk management practices associated with economies of scale Keywords; Fraud Risk Management Practices, Financial Performance, Fraud Management Lifecycle Theory. Firm Size
Copyright (c) 2025 African Journal of Business and Management (AJBUMA)
E-LOGISTICS PRACTICES AND SUPPLY CHAIN PERFORMANCE OF FAST-FOOD OUTLETS IN NAIROBI CITY COUNTY, KENYA
This study investigated the influence of e-logistics practices on Supply Chain Performance (SCP) of fast-food outlets in Nairobi City County, Kenya. The study examined the utilization and effect of key components: e-warehousing, e-inventory management, e-transportation, and e-information management, that streamline operations, reduce costs, and improve service quality. In Kenya’s fast-food sector, where timely deliveries and real-time decision-making are crucial, adopting these digital solutions can optimize resource utilization, enhance responsiveness, and strengthen competitive advantage. This study focused on the influence of e-logistics practices on supply chain performance. Two objectives guided the study: to find out the extent of e-logistics utilization and to establish the influence of e-logistics practices on supply chain performance of fast-food outlets in Nairobi City County, Kenya. The resource based view and the diffusion of innovation theory were the anchoring theories. Descriptive research design was adopted and primary data collected from all the 46 fast food outlets, with a 76% response rate. Data was analyzed using descriptive statistics and regression analysis. The study found that the firms have adopted e-logistics practices from moderate to a large extent. Further, the study found that e-logistics practices had a strong positive influence on supply chain performance of the fast-food outlets. All the e-logistics practices considered were significant predictors of supply chain performance. An R-Square value of 0.874 indicates that 87.4% of the variance in supply chain performance is explained by the e-logistics variables in the model, demonstrating a strong explanatory power. The study concluded that e-logistics practices have led to improved supply chain performance. In line with the RBV, e-logistics practices presents an opportunity for investing resources to build business capabilities that can give the firm competitive advantages like efficiency and environmental excellence. E-logistics provides real-time tracking of shipments, inventory, and overall supply chain processes. By optimizing routes, reducing delays, and minimizing inventory holding costs through better forecasting, e-logistics significantly improve supply chain performance. The study recommends the intensification of e-logistics practices among fast food outlets. The study suggests future researchers should consider broadening the scope to other sectors, counties and countries for a compressive view of the influence of e-logistics practices on supply chain performance. Key words: E-Logistics Practices, Supply Chain Performance, Fast-Food Outlets, Nairobi City County, Kenya
THE EFFECT OF DEMOGRAPHIC CHARACTERISTICS ON THE RELATIONSHIP BETWEEN PERCEIVED SERVICE QUALITY AND CUSTOMER LOYALTY AMONG PASSENGERS OF RAILWAY TRANSPORT SERVICES IN KENYA
The purpose of this study was to find the effect of demographic characteristics on the relationship between perceived service quality and customer loyalty among passengers of railway transport services in Kenya. The study employed pragmatism paradigm and descriptive, convergent mixed methods research design. Proportional stratified random sampling procedure was employed in picking samples from each railway service provider. Stratified sampling ensured all the subgroups were represented in the sample. A sample size of 357 respondents was realized through the use of simple random sampling. The study population comprised all railway customers who had frequently used passenger services in Kenya. A self-administered questionnaire was employed to gather data. Pilot study was carried out to test questionnaire reliability and validity. Descriptive and inferential statistics was employed to analyze quantitative data. Thematic analysis was used to analyze qualitative data. Factor analysis tested convergent validity, divergent validity and construct validity. The study findings hypothesized that there was no significant moderating effect of demographic characteristics on the relationship between perceived service quality and customer loyalty (p-value>0.05, ΔR2 = 0%). The study concluded that Demographic characteristics have no significant moderating influence on the relationship between perceived service quality and customer loyalty. The relationship did not improve upon the introduction of interaction term and it was not positively and statistically significant (Pvalue≥ 0.05). Keywords: Perceived Service Quality, Demographic Characteristics, Customer Loyalty, Railway Transport Services, Kenya
A Mineral Resource Governance and Policy Frameworks in Africa
Mineral resources are important contributors to the global economy and societal wellbeing. Directly, they provide employment, revenue and taxes through the extraction, processing and sale of minerals. Indirectly, they are essential to all modern industries, including energy, manufacturing, construction, biotic and abiotic resource extraction and agriculture. The principle that ‘one cannot understand the value of what they have until they measure it’ is particularly relevant with critical raw materials (CRMs). CRM is a concept that categorizes select resources (mainly minerals and metals) as critical in the sense that, at a national level, they are essential and difficult to replace, and their supply is prone to disruption. It is becoming increasingly recognized that the continuity of civilization and living standards as some have envisioned them in the future is constrained by the quality and quantity of various minerals. National-level strategic planning, including energy policy, foreign relations policy, geopolitical operations, national defense, education and infrastructure planning, among others, all require knowledge of the requirement and supply of raw materials towards a practical strategic implementation. Hence, a national CRM framework is essential for a prosperous, productive and stable future. To effectively manage the supply and use of CRMs, it is important to comprehend both their formal (e.g., economic) and informal (e.g., social and environmental) values, and to measure and monitor these values effectively over time. This study examines international practices and methodologies as components of a comprehensive CRM framework. We then propose a prototype CRM framework for East African Countries particularly in Kenya where such a framework is not in place. All CRM frameworks feature one or more rating schemes to identify the degree of criticality of raw materials. The actual rating metrics are divided into dimensions (or factors), such as socio-economic importance, technological importance, environmental, social and governance risks. Such dimensions are important due to the following reasons. Delineating criticality from non-criticality: by rank-ordering CRMs based on various factors, a country can identify which ones are the most important for its economy, industry and national security. This information can help policymakers prioritize the development of domestic production and secure a stable supply of CRMs. Assessing resource sustainability and supply stability: by rating CRMs based on environmental, social and ethical factors, a country can assess the sustainability of its resource use and identify areas for improvement. This information can help policymakers develop strategies to mitigate resource depletion, and supply chain disruption, minimize negative environmental and social impacts, and promote responsible resource management. Supporting informed decision-making: an ordered ranking of CRMs provides quantitative and qualitative information to governmental bodies, industry and other stakeholders to support informed decision-making, including strategic planning. This information can help stakeholders make informed choices about the sources and types of CRMs they use and the sustainability of their resource use. Promoting transparency and accountability: adopting suitable business ethical dimensions, such as through a corporate social responsibility framework, enables a country to promote transparency and accountability in its resource use and supply chains. This approach can help reduce illicit financial flows, corruption, and abuse of power, while increasing trust and confidence in the resource sector. Innovation and investment opportunities: a CRM framework enables a nation to establish policy conditions that foster innovation and investment in key activities such as measuring, monitoring, sustainability, extracting, responsible processing, and efficient use of CRMs. Findings from this study underscores the necessity of a structured CRM framework in Kenya to effectively manage the complexities of resource management, economic ground, and sustainability. Integrating these frameworks into national policies can enable Kenya to secure a sustainable, economically viable, and environmentally responsible future. Such strategic initiatives are important for national security, industrial policy, structural transformation, and economic stability, as well as aligning with global initiatives for responsible sourcing and climate change.
CRMs, Kenya Ranking, Circular economy Mineral resources Policy, ESG
Salim Juma Mwalimu,Gadiel Munyambo Maghanga
Copyright (c) 2023 African Journal of Business and Management (AJBUMA)
INFLUENCE OF PARENTAL LEVEL OF EDUCATION ON THE TRANSITION RATES OF PUPILS FROM PRIMARY TO SECONDARY SCHOOLS IN MUKURWEINI SUBCOUNTY, NYERI COUNTY, KENYA.
Parental level of education entails the extent to which parents acquired education. The objectives of the study were; to determine the extent to which educated parents influence transition rates of pupils from primary to secondary school in Mukurweini sub county; to determine the extent to which semi-educated parents influenced transition rate of pupils from primary to secondary school in Mukurweini sub county; To assess the extent to which uneducated parents influenced transition rate of pupils from primary to secondary schools in Mukurweini sub county.The study was guided by the Ecological Systems Theory and the Schlossberg’s (1998) transition theory. The study used mixed methods approach. The target population for this study comprised of 65 head teachers and 65 class 8 class teachers. Using the Central Limit Theorem, 30 percent of 130 respondents were selected to give a sample of 40 respondents, of whom 20 were head teachers and 20 class 8 class teachers. Stratified sampling was applied to create 4 strata based on the number of educational divisions in Mukurweini sub-county. The quantitative findings of the study were presented using tables whereas qualitative findings were presented thematically and in narrative forms. The findings of the study revealed that indeed parental level of education influence pupils’ transition rates from primary to secondary school which shows that parent’s level of education had a lot of impact on schooling of children because children from educated parents successfully transit to secondary schools. Key Words: Parent, Level of Education, Transition rate.
EXPLORING ERP SYSTEM CAPABILITIES FOR INVENTORY ACCURACY IN SUPERMARKET CHAINS: THE EAST AFRICAN SUPERMARKETS
Inventory accuracy is critical for the survival and success of supermarket chains, and there is increased search and application for new solutions and modern technologies to achieve operation inventory accuracy. Accuracy of inventory management is vital for the success of supermarkets for example, it results into lower inventory investment, ensures customer satisfaction and maintain profitability for the supermarket. This is because inventory accuracy enables supermarkets to avoid stock-outs, overstocking and unnecessary carrying costs. This paper aims to explore and describe inventory ERP systems and their capabilities in the achievement of inventory accuracy in supermarket chains hinging on continuous improvement theory and Technology-Organization-Environment (TOE) model. An empirical investigation, using a qualitative case study design was conducted. Collective case study approach was used studying cases of two leading supermarkets (C-ug and N-ke) in Uganda and Kenya. Data was obtained by interviewing two key informants from each supermarket (ERP system controller and stores Manager). Content Analysis and Multiple Response Analysis were used to analyze unstructured questions and structured questions respectively. The findings indicated that an ERP system operates through the integration of internal sections of the supermarket and external players such as the suppliers. Secondly, it was found that a good ERP system should be user friendly, fit for the nature of business of supermarkets with key security features for better functioning in supermarket chains. Finally, the study provides that ERP systems have great capabilities for achieving inventory accuracy in the operations of supermarket chains through real-time inventory monitoring, automated notifications about the status of the goods and the stock levels, provision of demand reports on products and automated inventory tracking In this study, a case study approach was taken when studying the capabilities of ERP in supermarket chains on two supermarkets hence the findings need to be validated by widening the scope of the supermarket chains. Most Previous research takes a wholistic approach when examining the influence of ERP on inventory & warehousing and supply chain disregarding its direct impact on inventory accuracy yet other inventory management Technology applications such RFID have been largely tested on inventory accuracy hence the need to test ERP capabilities on inventory accuracy. Keywords: Supermarket Chains, ERP system capabilities, Inventory Accuracy, East African Supermarkets.
Copyright (c) 2024 African Journal of Business and Management (AJBUMA)
THE EFFECT OF INFORMATION QUALITY ON THE RELATIONSHIP BETWEEN CORPORATE INFORMATION TECHNOLOGY STRATEGY AND SERVICE DELIVERY OF STATE CORPORATIONS IN KENYA
The study sought to establish the moderating effect of information quality on the relationship between corporate IT strategy and service delivery of state corporations in Kenya. The unit of analysis was 178 state corporations in Kenya. Descriptive methods were used to collect and analyze data on the study variables. Structured questionnaire was used to collect primary data while secondary data was collected from annual performance reports of the state corporations. Out of 178 targeted response only 120 positively responded making an adequate response rate of 67.4% for investigation. The analysis established that 68.2% of changes in service delivery were accounted for the changes in information quality, corporate IT strategy and interaction term. In conclusion this study found statistically significant effect of information quality on the relationship between corporate information Technology and service delivery of state corporations in Kenya. The findings of this study added to the body of knowledge in the area of service delivery of state corporations by emphasizing on information quality and corporate IT strategy. On the basis of these findings it is important that national government to develop appropriate policies to support corporate information quality that is embedded on new technologies to foster customized services for profitability and growth. Keywords: Corporate Information Technology strategy, Information Quality, Service Delivery, State Corporations and Kenya:
DETERMINANTS OF CORRUPTION IN EAST AFRICAN COMMUNITY STATES
The East African Community states present high levels of corruption. Corruption is a daunting hindrance to sustainable development, education, health care and poverty reduction. It is a great impediment to the Sustainable Development Goals and is one of the main factors that has prevented poor and developing countries from catching up with the developed ones. In the effort to curb the vice, there has been unending debate and there is no consensus on the true determinants of corruption. According to the World Bank although corruption is an international issue affecting all countries of the world at different degrees, the determinants of corruption are not the same in all countries.This necessitated a study to establish the determinants of corruption. The specific objective of this study was to establish the determinants of corruption in the East African community states. The study employed non-experimental research design using extended Becker theory of crime. The study employed system generalized methods of Moments estimation technique to establish the determinants of corruption. The findings revealed that economic growth is one of the important determinants of corruption. The other determinants include government effectiveness, rule of law and human capital. Keywords:
EFFECTIVENESS OF EMPOWERMENT LEADERSHIP'S ROLE ON JOB INVOLVEMENT REINFORCEMENT THROUGH A MEDIATOR ROLE FOR STRATEGIC THINKING SKILLS IN THE EDUCATION SECTOR OF KAKAMEGA COUNTY, KENYA
The mediator role for leaders' strategic thinking skills in the relation between the empowerment leadership and job involvement is investigated. The empowerment leadership's dimensions have been adopted (ideal, participation in decision-making, training, media, showing interest and interaction with the team) based on the leader's strategic thinking skills and adopted on (cogitation, systemic thinking and paraphrasing). This has been based on adopting on the job involvement taken as mono- dimensional. Kakamega County was the preferred research field. The instrument for data collection was a self-administered questionnaire that covered a target population located in 239 high schools in the county. Analysis assertive factor (structure equation's modeling), descriptive statistics, correlation analysis, regression analysis and path analysis to specify direct and indirect effect were applied. The study sets out a number of conclusions, the most important was that the strategic thinking variable increases the whole effect for the empowerment leadership variable on the job involvement in the education environment in Kakamega County. The research has proposed appropriate recommendations. Keywords: Empowerment Leadership, Job Involvement, Strategic Thinking.
THE EFFECT OF CUSTOMER SATISFACTION ON THE RELATIONSHIP BETWEEN PERCEIVED SERVICE QUALITY AND CUSTOMER LOYALTY AMONG PASSENGERS OF RAILWAY TRANSPORT SERVICES IN KENYA
The purpose of this study was to find the effect of customer satisfaction on the relationship between perceived service quality and customer loyalty among passengers of railway transport services in Kenya. A descriptive cross-sectional survey design and a pragmatism paradigm were used. Proportionate stratified random sampling technique was used to pick samples from each railway service provider. Simple random sampling was used to select a representative sample size of 357 respondents for the study. The study population comprised all railway customers who had frequently used Madaraka Express, Nairobi Commuter Rail, Kisumu Safari Train and Nairobi-Nanyuki Train passenger services in Kenya. Primary data was collected by a selfadministered semi-structured questionnaire. Data was analyzed using descriptive and inferential statistics. Stepwise regression analysis was carried out to test the research hypothesis. The results showed that customer satisfaction significantly and partially mediated the relationship between perceived service quality and customer loyalty (p-value<0.05, β= 0.400). The study contributes to the existing literature by revealing the partial mediating influence of customer satisfaction on the relationship between perceived service quality and customer loyalty. The study recommends that policy makers should embrace perceived service quality to enhance customer loyalty and gain competitive advantage. Managers should use the study results to establish perceived service quality dimensions and customer satisfaction attributes for customer loyalty realization. Future studies may use longitudinal research design to establish causal relationship between perceived service quality and customer loyalty over a period of time. Keywords: Perceived Service Quality, Customer Satisfaction, Customer Loyalty, Railway Transport Services, Kenya.
ENHANCING SALES PERFORMANCE OF TEA PACKERS IN KENYA: THE ROLE OF EXCLUSIVE DISTRIBUTION CHANNEL STRATEGY
Organizations yearn to develop effective distribution of goods and services. This is also true for agricultural produce such as tea. A significant proportion of the local tea is distributed by Kenya Tea Packers Limited (KETEPA), which is a subsidiary of the Kenya Tea Development Agency (KTDA). KETEPA is expected to develop mechanisms to guarantee increased sales performance of tea products. Exclusive distribution is expected to improve the sales performance of tea products. Therefore, the study sought to examine the role of an entire distribution strategy on sales performance. The study adopted a correlation research design and collected quantitative data using a structured questionnaire. Data was collected from 221 sales staff dealing with tea product distribution. The theory of Channel Control was used to explain the relationship between study constructs. Findings revealed that exclusive distribution significantly influences the performance of tea products. It is against this backdrop, that managers are expected to develop strategies, policies and procedures for exclusive distribution to foster the sale performance of tea products. Key Words: Exclusive Distribution, Distribution strategy, Sales Performance.
IMPROVING SERVICE DELIVERY THROUGH ELECTRONIC COMMUNICATION IN PUBLIC HOSPITALS IN KENYA
Quality healthcare service delivery has a significant influence on customer satisfaction, the burden of meeting health service costs, and the recovery of patients. Therefore, health facilities should make use of electronic health management systems to improve the quality of their service delivery in administration and patient care. The purpose of carrying out this study was to establish how Service Delivery can be improved through Electronic Communication in Public Hospitals in Kenya. A pragmatic research paradigm was employed coupled with Descriptive and correlational research design. The target population was all the 1207 professional staff working in Moi Teaching and Referral Hospital Eldoret and Kenyatta National Hospital Nairobi as well as 1841 outpatients treated in both hospitals between January and May 2020. To select the 341 respondents of the research, a stratified random sampling technique was used. The researcher used secondary and primary data. Semistructured questionnaires were distributed to the respondents to allow for the collection of primary data. Qualitative data was analyzed with the help of thematic analysis. Inferential and descriptive statistics were used in the analysis of quantitative data. Descriptive statistics that were used include mean, percentages, frequencies, and standard deviation. Inferential statistics that were used are multiple regression analysis, correlation analysis, and univariate regression analysis. From the findings, the utilization of electronic communication had a positive influence on service delivery in public hospitals in Kenya as indicated by the regression coefficient of 0.715 (p-value=0.000). This implies that a unit improvement in the utilization of electronic records management would lead to a 0.715 improvement in service delivery in public hospitals in Kenya. Since the p-value (0.000) is less than the significance level (0.05), the null hypothesis was rejected and hence utilization of electronic records management has a significant influence on service delivery in public hospitals in Kenya. It can be recommended that health facilities in Kenya should improve the utilization of personal digital assistants, social media platforms, and local area networks to improve service delivery through reduced queuing and turnaround time. Key Words: Electronic communication, Service Delivery, Public Hospitals.
GROWTH OF HORTICULTURAL EXPORT MARKET: THE IMPLICATION OF QUALITY CONTROL PRACTICES AMONG SMALL SCALE FARMERS IN SOUTH RIFT, KENYA
The inclusion of rural smallholder farmers in the export of horticultural products has two major implications: increased household income through a promising global market, which is a catalyst for productivity, cumulatively growing Gross Domestic Product (GDP) and foreign exchange. So far, there are an estimated 2500 smallholder farmers who participate in the export of horticulture in Kenya .As a result, the current study sought to establish the nexus between quality control practices by the small holder farmers and the growth of the horticultural export market in Kenya. The study collected quantitative data using a structured questionnaire from a sample of 334 smallscale horticultural farmers who were randomly selected. Validity and reliability tests were performed before the main study. Then, descriptive and simple linear regression was used to analyze the data. Quality control practices can be measured through the Pre-production measures, Production and post-production control measures. Findings indicated that there was a statistically significant relationship between quality control practices and the growth of horticultural export markets. It was however observed that, there are weak quality control practices among the farmers which lead to non-conformities of products. This implies that the exports from Kenya become less attractive and make the smallholder farmers less competitive. Key Words: Quality Control Practices, Production, Contractual, Growth, Export , Markets.
STRATEGIC PLANNING SYSTEMS AND SUSTAINABLE URBAN ROAD INFRASTRUCTURE DEVELOPMENT AMONG TOWN COUNCILS IN UGANDA
This investigation aimed to explore whether strategic planning systems significantly influence the advancement of sustainable urban road infrastructure within Ugandan Town councils. The strategic planning systems were delineated into six components, encompassing planning tools, planning resources, consideration of internal and external factors, resistance to planning, and functional coverage. Grounded in the socio-technical systems theory, the study adopted a positivist philosophical approach, employing a descriptive cross-sectional survey design. The target population comprised established Town councils in eastern and central Uganda as of July 1, 2022. The results revealed a statistically significant positive correlation between strategic planning systems and sustainable urban road infrastructure development (R-value = 0.589, R-squared = 0.346, F statistic = 14.837, p < .001). Encouraging and enhancing the utilization of strategic planning resources and tools during the strategic management process could foster the development of sustainable urban road infrastructure. Further research encompassing diverse urban landscapes, varied performance metrics, and longitudinal designs could contribute to extending the generalizability of these findings. Key words: Strategic planning systems, sustainable urban road infrastructure development, Town Councils, Uganda.
The Influence of Competence Based Evaluation on Employee Productivity, Mombasa County Government, Kenya
A key Factor to achieve competitive advantage in an organization is mostly through Human Resource. A workforce with the best talent is essential for organizational success. Employee competencies have been associated with individual skills to fulfill organizational expectations to achieve goals that are set by the top management of an organization. Employee performance is very important because of the attainment of organizational goals and objectives can be evaluated by the performance of the Human Resource. This research paper focuses on the how employee performance is directly influenced by their competencies. Expectancy and human capital theories were used to support the research. Expectancy Theory states that not only does performance rely upon the greatness of efforts applied but also on variables such as a person’s ability and Personality. Human capital theory Grey Becker (2010) points that human capital is the set of productive knowledge and abilities a worker has. In adopting the methodologies, a descriptive research design is used to bring out the relationship- between the variables used in the study. In carrying out the Research, a total target of 43 employees of different cadres of the Mombasa County task force was involved. Primary data collected using Questionnaires was used. Data analysis constituted quantitative techniques that are shown by the use of charts, tables, and graphs. The research will extend to the body of knowledge in Human Resource Practices. Policy makers in Counties will use the findings to effectively and efficiently undertake organizational decisions on matters to deal with employee competence based evaluation and performance Management practices in aligning them to policies that will help promote prosperity in the Counties through increased performance.
Employee Performance, Data Analysis, Productive knowledge
DETERMINANTS OF FINANCIAL INCLUSION OF WORKING WOMEN IN UGANDA
This study sought illuminate the determinants of financial inclusion among working women. The two objectives of this investigation were to establish the effect of financial literacy on financial inclusion and the effect of self-efficacy on financial inclusion among working women in Uganda. The empowerment theory and the social cognitive theory underpinned the study. A correlational cross-sectional design was used. Using the recommended Krejcie & Morgan table at a 5% level of significance, a sample size of 384 is derived and used from a population of 327,930 working women (+15 years) in all the five divisions of Kampala district in Uganda. A closed-ended structured questionnaire was used to obtain the primary data. Pearson correlation analysis was done to find out how the study variables are related. The hypotheses were subjected to empirical validation through the utilization of Multiple Regression Analysis. The results show that Financial Literacy positively and significantly (B=0.383, β= 0.365, p<0.01) affected Financial Inclusion. Additionally, the results confirm that self-efficacy positively and significantly (B=0.091, β= 0.114, p<0.05) affected Financial Inclusion. Thus, the results of the validation of study hypotheses led to their rejection. The researchers recommend that the government of Uganda should intentionally design policies that empower working women to be financially literate like approving training curricula that have content of financial literacy focusing on financial behaviour, financial skills and financial attitudes. Additionally, initiatives that target working women to build their self-belief to use the existing financial services such as use of role models should be supported. Keywords: Financial Literacy, Self-efficacy, Financial Inclusion, Working Women, Empowerment Theory and Social Cognitive Theory.
OPERATIONAL INNOVATION PRACTICES EFFECT ON PERFORMANCE OF MANUFACTURING FIRMS: EMPIRICAL EVIDENCE FROM FIRMS IN KENYA
The concept of firm performance was premised on operational innovations. The interplay of these factor's dimensions contributes towards the firm's performance outcome. The factors, which include innovations in the marketplace, products, processes, and technologies, make up operational innovation. Thus, achieving ultimate performance requires that the manufacturing firm remains at the market's competitive edge by applying innovative technology manifested through markets, processes, and products. This study focused on the performance of Kenyan manufacturing firms and operational innovational practices relationship. Positivism criteria are used because it revolves around scientific laws and principles that increase the reliability of the investigation's findings for generalization. A descriptive research design was adopted, which entailed collecting data from many firms, and therefore was the best approach to increase the survey reliability. The number of firms involved in the study was 182, all with active Kenya Association of Manufacturers (KAM) affiliation. The firms were put into 14 subcategories of manufacturing based on the product they manufacture. Statistical Package for the Social Sciences (SPSS) and smart PLS4 tools were used for data analysis. Also, using regression analysis, the results revealed that operational innovation practices significantly influences manufacturing firms’ performance in Kenya. While looking at the effects of the dimensions of operational innovation on firm performance, the results indicated that process innovation had the most significant impact while technological innovation had the least. The outcome revealed which operational innovation is significant and should be focused by the operation managers during product design to gain competitive edge in the industry. Keywords: Firm Performance, Market Innovation, Operational Innovation, Process Innovation, Product Innovation.
CAPITAL STRUCTURE, PROFITABILITY, GROWTH AND FIRM VALUE: A CRITICAL LITERATURE REVIEW
Future research preparations and development of in-depth exploration forms the key objective of the independent study paper. The paper sought to answer this research question; what is the effect of capital structure, profitability, and growth on firm value. Aim of this paper was to determine the effect of capital structure on firm value, the effect of profitability and growth on the relationship between capital structure and firm value and the joint effect of capital structure, profitability, and growth on firm value. It discussed several empirical studies aimed at establishing research gaps. It discussed major theories namely; pecking order theory, market-timing theory, trade off theory and Modigliani and Miller theory. Trade off theory by Myers asserts that striking the balance of costs and the associated advantages of leverage improves the firm’s value and profitability. Firms, which are more profitable, can use debt financing which fosters growth and value. From empirical evidence, association between capital structure, profitability, growth, and firm value is mixed. Capital structure and value is still a puzzle due to differing theoretical perspective and conflicting opinions. The conceptual framework consist the explanatory variable which is capital structure as parameterized by debt to equity ratio, debt ratio and debt to capital ratio, moderating variable is growth as measured by revenue growth, market share growth and assets growth. Intervening variable is profitability as indicated by return on assets, net profit margin, and return on equity. Value is the response variable as measured by Tobin’s Q. Synthesis of the review was by defining research objectives and literature search. The key findings from the review was the empirical mixed evidence and the concepts of capital structure of entities, profitability, growth, and firm value have not been widely studied. The review concludes no conclusive findings due to inconsistencies in the outcomes, which calls for more research. Further, critical review of existing theories is critical in contributing to the contemporary debate. Additionally, more robust statistical tools and techniques are critical in the analysis of data with an aim of solving the puzzle. This review will be of great benefit to industry practitioners engaged in determining capital structure choices especially on the need by firms to decide and keep up optimal financing structure important to shield them against risks. Further synthesis of literature is key in confirming existing theoretical and empirical linkages.
THE ROLE OF NETWORKING AND TECHNOLOGY ADOPTION ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL TRAINING AND PERFORMANCE OF SMALL AND MEDIUM MANUFACTURING ENTERPRISES IN NAIROBI COUNTY, KENYA
Entrepreneurs hold a critical role in the economic growth of any nation because they maximize the use of the factors of production for the benefit of society, create jobs, foster innovation, raise living standards, and develop underdeveloped areas. The general objective of this study was to determine how entrepreneurial training, networking and technology adoption jointly affect performance of SMEs in the manufacturing sector. The study adopted the positivist philosophy and a descriptive research design. The population of the study comprised 504 SMEs in manufacturing sector in Nairobi County and surveyed through a semi-structured questionnaire with the help of key informants in these firms. The researcher used both descriptive statistics and inferential statistics to analyze the collected data, specifically regression analysis for hypotheses testing. The joint effect of entrepreneurial training, technology adoption and networking was found to significantly influence firm performance. The study recommends that, as SMEs in manufacturing increasingly advances its profile in national economic planning, there is an apparent need to make sure that maximum attention is given to its long-term production and market expansion potential. Such an approach necessitates a comprehensive strategic plan for the future of the industry – partly for the explanations given earlier in the study. Such a study would increase the empirical knowledge in the subject matter while also extending the generalizability of the study findings. Key Words: Entrepreneurial Training, Technology adoption, Networking, Firm Performance, Manufacturing SMEs.
INTERPRETIVE STRUCTURAL MODELING OF FACTORS INFLUENCING PUBLIC PROCUREMENT BID DISPUTES IN KENYA
Requests for review in public procurement allow aggrieved bidders to challenge award decisions of procuring entities thus boosting accountability and transparency. However, bid disputes often delay service delivery and lead to parties incurring costs as they argue their cases. Past studies have discussed factors that influence bid disputes broadly without examining how they relate. Through Interpretive Structural Modeling (ISM), a hierarchical structural framework of factors that shape public procurement bid disputes in Kenya was developed. Matrice d’Impacts Croisés Multiplication Appliquée á un Classement (MICMAC) analysis helped establish the driving and dependence powers of these factors. This paper identified 23 factors that influence public procurement bid disputes through literature review and content analysis of decisions of bid disputes handled by Public Procurement Administrative Review Board (PPARB), the high court and court of appeal. It was established that value of contracts, devolution of PPARB services, bidders’ past performance and regulatory changes (the independent enablers) had low dependency and high driving power and were, therefore, regarded as fundamental factors that influence public procurement bid disputes in Kenya. It was recommended that the model advanced in this research be replicated in different contexts to help grow the model into a theory. Key Words: Public Procurement, Bid Disputes, Interpretive Structural Modeling.
PERCEIVED GENDER DIFFERENCES IN THE SOCIAL SUPPORT AND COGNITIVE ENGAGEMENT OF DAY SECONDARY SCHOOL STUDENTS IN KAKAMEGA COUNTY, KENYA
The latent factor modelling that addresses the significance of social support from parents, teachers and peers with respect to adolescent cognitive engagement has effectively been utilized leading to the use of structural equation modelling as the main analysis, the hypothesised model was tested. Results revealed that the structural models differed for female and male models. Also, the findings support self-efficacy beliefs and behavioural engagement as two mediators in the relation between social support and cognitive engagement for girls, but only self-efficacy was a mediator in this association for boys. Implications of the study are discussed in relation to Bandura’s social cognitive theory. Keywords: Social Support, Teacher Support, Parental Support, Self-Efficacy, School Engagement.
STRATEGIC LEADERSHIP AND STRATEGY IMPLEMENTATION IN COMMERCIAL BANKS: SOUTH SUDAN PERSPECTIVE
The main objective of the study was to establish the influence of strategic leadership on strategy implementation in commercial banks with specific reference to South Sudan. The subsequent hypothesis was that there is no significant relationship between strategic leadership and strategy implementation. The research was anchored on the Upper Echelon theory and Dynamic Capabilities Theory. The study applied positivism philosophy and cross-sectional research design. The population of the study was all the thirty (30) commercial banks in South Sudan and therefore census survey was utilized. Primary data was collected using semi-structured questionnaires. Data was analyzed using inferential statistics specifically regression analysis to test the hypothesis. The findings of the study showed that strategic leadership significantly influences strategy implementation. The study recommends that shareholders of the commercial banks need to unlock the value of their investment through effective strategic leadership by improving the management and development of strategic areas of capacity building and management policies that would be geared towards enhancing strategy implementation and also develop a framework for adoption by commercial banks, designed to address strategy implementation challenges that continue to hinder realization of key objectives. Key Words: Strategic leadership, strategy implementation, commercial banks, South Sudan perspective.
PROJECT MANAGEMENT AND PERFORMANCE OF SMALLHOLDER IRRIGATION PROJECTS: A CASE OF LOWER KUJA IRRIGATION PROJECT IN MIGORI COUNTY, KENYA.
Irrigation is considered to ensure food security in areas experiencing depressed rainfall. About 40% of world food is grown under irrigation (Asian Development Bank [ADB], 2015). However, increase in area under irrigation has led to conflict over land and water resources. Consequently, countries like Mexico, Chile, India, Philippines and Columbia are adopting irrigation management transfer to enhance farmer management of irrigation projects (Siebert et al., 2005). The Government of Kenya constructed Lower Kuja Irrigation Project in 2015 comprising 15 individual smallholder irrigation projects using irrigation management transfer approach. This approach entailed organisation of farmers into a water users association responsible for coordinating farmers’ activities. Thus, the study sought to assess the influence of project organisation on performance of smallholder irrigation projects. The study framed the alternate hypothesis in the form H1: There is a significant relationship between project organisation and performance of smallholder irrigation projects in Migori County. The study was anchored on Citizen Empowerment Theory by Burns et al., (1994). The theory provides a basis for engagement of project beneficiaries in project organisation. The study adopted pragmatism as a philosophy, and used cross sectional and correlational research design. By means of Krejcie and Morgan (1970) Tables, the study selected 341 respondents from a sampling frame of 2,815 registered members of the 15 smallholder irrigation projects that make up Lower Kuja Irrigation Project using systematic random sampling technique. Data was collected using questionnaire and classified using a 5-Point Likert Scale. Data analysis used descriptive statistics (means and standard deviation), and inferential statistics (Pearson’s regression analysis at p-value of 5% significance level). The findings show that regular election of leaders (4.196) is the most addressed aspect of project organisation, while enforcement of bylaws (3.967) is the least addressed aspect. The results also show that: r = .781, r2 = .610, F [5, 331] = 103.651, Fc = 2.2413, p<0.000<0.05. Hence, the study accepted the alternate hypothesis (H1), and concluded that project structure,endorsement of constitution, enforcement of bylaws, regular election of leaders, and holding of periodic meetings have significant influence on performance of smallholder irrigation projects. Consequently, the study recommended that Migori County formulate policies that support project organisation in smallholder irrigation projects. The study also recommended creation of bylaws sub-committees in smallholder irrigation projects. Further, the study recommended research on influence of project organisation on performance of smallholder irrigation projects using longitudinal and experimental research design. Keywords: Critical Factors, Citizen Empowerment Theory, Irrigation Management Transfer, Migori County, Project Organisation, Smallholder Irrigation.
THE ROLE OF INTERNAL CONTROLS AND CAPITAL STRUCTURE IN THE RELATIONSHIP BETWEEN GOVERNMENT OWNERSHIP AND FINANCIAL PERFORMANCE OF STATE ENTERPRISES IN KENYA
The primary objective of this study was to examine the impact of government ownership, internal controls, and capital structure on the financial performance of state enterprises in Kenya. The theoretical framework employed in this study encompassed various theories, including the Agency Theory as the foundational theory, complemented by the Management Control Theory, Trade-Off Theory, and the Public Choice Theory. A positivist philosophy was adopted, along with a longitudinal research design, to investigate the subject matter. The study population consisted of 62 state enterprises, and secondary data was utilized for analysis. The researcher employed both descriptive and inferential statistics to analyze the collected data, employing regression analysis and other statistical tests to test the formulated hypotheses. The combined influence of government ownership, internal controls, and capital structure was determined to have a significant impact on financial performance. The implications of these findings are expected to provide valuable insights for managerial practitioners within state enterprises, facilitating their comprehension of the integration of various factors affecting financial performance in the midst of a challenging economic environment. Furthermore, it underscores the significance of effectively managing core business processes to foster investor confidence within the country. In turn, the government bears the responsibility of ensuring economic stability, thereby facilitating the provision of internal controls and an appropriate capital structure through interventions that support investors in generating dividends from their investments in state enterprises. Key words: Government Ownership, Internal Controls, Capital Structure, Financial Performance, State Enterprises in Kenya.
EXTERNAL FACTORS AND EXTENDED ENTERPRISE RESOURCE PLANNING SYSTEM USAGE OF FIRMS IN KENYA’S MANUFACTURING INDUSTRY
This research was carried out with the aim of establishing effect of the external factors on eERP system usage among manufacturing firms in Kenya. It is a global trend that Extended Enterprise Resource Planning (eERP) system integrates a business firm with its supply chain partners for better organizational firm performance. However, it is a concern that past studies have given contradicting results on what factors lead to or what determines the usage of eERP in firms. The aim of this study was to discover the external factors that contribute towards the usage of eERP system usage in the manufacturing industry in Kenya. The external factors that were investigated are infrastructure like stable electricity power, stable network and reliable internet, others include vendor support, competition, and government support and their effect on eERP system usage. The research design adopted was the descriptive cross sectional research design. The population was made up of the manufacturing firms from the various 13 manufacturing sectors in Kenya. The sampling technique used was stratified proportionate sampling whereby a sample was obtained from each of the strata of the manufacturing sector. Consequently, data was collected in 269 out of 903 manufacturing firms. The descriptive data analysis was done and inferential data analysis techniques was carried out too using logit model, probit model and linear regression model concurrently so as to test the study hypothesis. The findings indicated that, electric power, reliable network and reliable internet influence eERP system usage, whereas linear regression analysis indicated that only reliable network, and reliable internet had an influence on eERP system usage. These findings are expected to inform the government in enacting policy that ensures all firms in the manufacturing industry use eERP systems and have electricity, reliable networks and internet as they seek to drive Kenya’s development and economic growth to a Growth Domestic Product (GDP) of 15 percent by 2022 in support of Kenya’s big 4 agenda. The main limitation of the study was that it was a cross sectional study which was done at one specific point in time. In future, a longitudinal study could be carried out to study and document improvements in the external factors for eERP system integration in a firm’s supply chain. Keywords: eERP system, electricity, reliable network, internet, manufacturing firm, Kenya.
MAKING PRE-SERVICE TEACHERS BETTER: THE PERCEIVED IMPACT OF THE PRACTICUM IN THE UNDERGRADUATE TEACHER PREPARATION PROGRAMME
Pre-service Bachelor of Education (Arts) teachers indicate a benefit of having a practicum in their teacher preparation programme. Yet, with a shortage of highly effective education teachers, there is limited research about the effectiveness of practicum experiences on preservice education teacher’s preparation. The study examined preservice education teacher’s perception of acquiring a practicum experience in their undergraduate programme and determine if there was a gain in clinical expertise. Pre-service teachers were evaluated using the Clinical Evaluation Continuum (CEC) at the beginning and end of their practicum; reflections were gathered regarding their perception of the value added experience. Results showed gains in clinical expertise, knowledge, and approval for the practicum. Key Words: Clinical Evaluation Continuum; practicum.
EFFECT OF PROFITABILTY ON THE RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND VALUE OF NON-FINANCIAL FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE
Capital structure is critical in the determination of the survival and the firm values since it aids in describing how their finances are raised through equity, debt or firms combining equity and debt. It is argued that debt use is beneficial provided that the acquisition rates are favorable and the monies are well utilized. Current research aimed at assessing the influence of profitability on the relationship between capital structure and the value of non- financial firms listed at the NSE. The research was anchored on trade off theory and positivism philosophy. This study utilized panel data of the twenty- nine listed entities. The research relied on secondary data from the published reports which were availed from various websites of the twenty- nine non-financial firms. Collection of data was from 2013 to 2020. Descriptive statistics and inferential statistics were employed. Descriptive statistics was used in the analysis to aid in deep understanding of the specifics of collected data. Prais Winsten Panel regression was utilized in the inferential analysis. The study confirmed that equity ratio and firm value were positively related and statistically significant and the link between debt ratio and value was negative and significant. This implies that, there is a real relationship and it’s unlikely that it’s a one-off occurrence. The study further found no intervention of profitability in the link between capital structure and value. This study supports the need for injecting more money inform of equity instead of relying heavily on borrowed funds. Study further recommends that; entities should avoid very high levels of debt since it exposes them to financial distress. Keywords: capital structure, profitability, firm value, Nairobi securities exchange.
THE EFFECT OF MERGERS AND ACQUISITIONS STRATEGIES, RISK MANAGEMENT, INSTITUTIONAL CHARACTERISTICS ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
The objective of this paper was to examine the joint effect of mergers and acquisitions strategies, risk management and institutional characteristics on the financial performance of commercial banks in Kenya. Synergies theory, resource-based view theory, agency theory, and concentration theory were used to achieve the study's objectives. A correlational descriptive research design with cross-sectional data analysis and positivism paradigm was used to accomplish the study’s objectives. The thirty Kenyan commercial banks that had undergone mergers and acquisitions by 2017 formed the population of the study. The data was gathered from publicly available financial statements, which were split into two; three years before and three years after mergers and acquisitions, with the transaction year been excluded. To determine the mathematical connection among the variables in the study, multiple regressions were used. The results of the study showed that jointly mergers and acquisitions strategies, risk management and institutional characteristics did not influence the financial performance of commercial banks before mergers and acquisition. The study result also indicated that mergers and acquisitions strategies, risk management and institutional characteristics influenced the financial performance of commercial banks after mergers and acquisitions. The findings of the research provide answers to the inconsistences found in the prior reviewed studies by empirically testing the study variables thus contributing to knowledge by providing new insights based on the variables studied. The research findings contribute to the theory by revealing the relationship among the supporting theories. Synergies theory results to increased value of the firm, where agency theory highlights possible misuse of free cash flows and guides on solutions to avoid the agency problem ,while resource based view supports mergers and acquisitions strategies as a means of mopping excess cash flow by combining homogenous resources for competitiveness. The research findings further contribute to the policy and practice in the sense that; the insights will help decision-making processes geared toward targeted outcome. The study results are limited to variables of the study and hence a recommendation of similar study using other attributes in varied context and scope. Key words: Mergers and acquisitions strategies, risk management, institutional characteristics, financial performance, commercial banks .
THE EFFECT OF DIGITAL TRANSFORMATION ON HIGHER EDUCATION DURING COVID-19 PANDEMIC. A CONCEPTUAL LITERATURE REVIEW
COVID-19 Pandemic has brought about an abrupt change in people’s lives. Lecturers and students have been forced to change their teaching and learning approaches to e-learning methods due to closure of higher education institutions and disruptions of academic programs. Social distancing and confining movements have significantly disrupted traditional teaching and learning methods. The Covid-19 crisis has offered a chance to embrace digital learning approaches in higher education. Digital transformation has rejuvenated teaching and learning processes during Covid-19 pandemic. The tremendous adversities caused by Covid-19 has forced students and lecturers to use digital technologies in tackling learning adversities. Digital transformation has enormously affected higher education which ultimately has led to creation of innovative learning opportunities. This concept paper begins with a critical literature review on the concepts of digital transformation, higher education and Covid-19, followed by theoretical framework. Subsequent section discusses digital transformation and higher education concepts and their relationships. This is followed by literature review summary and research gaps and concludes with conceptual model and the study hypotheses. The concept paper also describes the effects of digital transformation on higher education during Covid-19 pandemic. Keywords: Digital Transformation, Higher Education, Covid-19 Pandemic and e-Learning.
THE ROLE OF ENTREPRENEURIAL TRAINING ON PERFORMANCE OF SMALL AND MEDIUM MANUFACTURING ENTERPRISES IN NAIROBI COUNTY, KENYA
Matching entrepreneurship to performance strategy has long been a cornerstone of entrepreneurship research. Small and medium enterprises (SMEs) are the backbone of many economies all over the world through creation of employment opportunities as well as wealth for entrepreneurs. The general objective of this study was to determine the influence of entrepreneurial training on performance of SMEs in the manufacturing sector in Nairobi County, Kenya. The variables considered in this paper are entrepreneurial training conceptualized as an independent variable and anchored on human capital theory and SMEs performance as the dependent variable. The study adopted the positivist philosophy and a descriptive research design. The population of the study comprised 504 SMEs in manufacturing sector in Nairobi County and surveyed through a semi-structured questionnaire with the help of key informants in these firms. The researcher used both descriptive statistics and inferential statistics to analyze the collected data, specifically regression analysis for hypotheses testing. The study found a positive and statistical influence of entrepreneurial training on performance of SMEs in manufacturing sector. Managers must take cognizance of the fact that their main duty revolves around isolating the exact needs of the market and deciding on the best training needs and thus, suitable and effectively implemented entrepreneurial training are necessary to effectively guide the placement of existing resources in pursuit of desired firm goals. The study recommends a comprehensive entrepreneurial training framework for the future of the industry and suggests a similar research be conducted based on other components of the production industry like construction as the unit of analysis. Such a study would increase the empirical knowledge in the subject matter while also extending the generalizability of the study findings. Key Words: Entrepreneurial Training, Firm Performance, Manufacturing SMEs, Kenyan perspective.