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    Effect of Non-Monetary Factors on Employee Retention in the Banking Sector of Kenya

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    A Research Project Submitted to the Chandaria School of Business in Partial Fulfillments of the Requirement for the Degree of Masters of Business AdministrationThis study sought to investigate how non-monetary factors affect employee retention at Prime bank, KCB and Chase bank. The research questions for this study were; what is the effect of job security, on employee retention in banks, in Kenya? What is the effect of career growth opportunities and career development, on employee retention in banks, in Kenya? What is the effect of Job flexibility, on employee retention in banks, in Kenya? The research adopted a descriptive research design in order to examine the situation as it currently exists. The target population of 800 respondents for this study included the employees of Prime Bank, Chase Bank and KCB. The stratified simple random sampling technique was used as it was effective for the study. A sample of 30% was considered adequate for the generalization of the findings to the whole population resulting into 239 respondents however only 220 responded thus giving a 92% response rate. The tool used to collect the data was a structured questionnaire. The data was then summarized, classified, coded and tabulated. The statistical package for social sciences (SPSS) data analysis software was used to analyze data based on descriptive and inferential statistics. The study also used a correlation analysis to establish the relationship between the dependent variable and the independent variables. Quantitative data was presented using tables. The study revealed that there was uncertainty of respondents feeling secure in their present jobs. Many however disagreed that they are stressed on the job because of lack of security. Majority also disagreed that they foresee having destabilized income in next 12 months; neither did they indicate that they expect job redundancy and reorganization of the firm to affect their jobs, nor have announced redundancy within the same period. A Pearson correlation analysis done to establish the relationship between the dependent variable (Employee retention) and job security, revealed a weak positive relationship between the variables though not significantly. A Pearson correlation analysis was done to establish the relationship between the dependent variable (Employee retention) and career growth opportunities, the results еstаblishеd a positive relationship between the variables. Thеrеforе, an increase in career growth opportunities results in a slight improvement of employee retention. The research analyzed the relationship between the dependent variable (Employee retention) and career growth. The results showed that only 3.1 % of the variation in employee retention was explained by the variations in career growth. The findings revealed that there is flexibility to manage work and non-work interests. Respondents also denied that they face difficulty in adopting a flexible working arrangement due to lack of support. A Pearson correlation analysis was done to establish the relationship between the dependent variable (Employee retention) and job flexibility, the results established a weak positive relationship between the variables (r=0.074, p>0.05). Thеrеforе, an increase in job flexibility results in slight improvement in employee retention. The study concluded that employees in the banking sector are uncertain of their job security in their present jobs. This cuts across the variety of contract terms offered to them. This has resulted in commitment not varying with the permanence of their contracts. Most bankers are yet to achieve what they want to achieve in their careers, and as a result, a huge percentage would want to work at a higher level position and are prepared to move to other work areas to develop their career. Many banks lack options for change in their work environment and denial of such leaves employees feeling like the firm lacks growth opportunity. The study recommended that banks need to ensure that employees are secure in their present job. This can be done by having well laid out terms and condition in long term and short term contracts. There should be set out career growth and development paths so as to ensure employees achieve their career goals. They should also continue offering flexibility, so as to allow employees to manage their work and non-work interests. Future studies may be done to explore other variables that may impact employee performance such as employee loyalty, employee emotions, corporate culture and values. Moreover, other studies could also study other banks as well

    Effects of Automation on Performance of Commercial Banks in Kenya: A Case of National Bank of Kenya

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    A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)This research assessed the effects of automation on performance of commercial banks in Kenya with particular reference to National Bank of Kenya. The study begun by determining the automated systems that are being used by the commercial banks. It further proceeded to evaluate the organizational strategic alignment towards automation and concluded by determining the effects of automation on organization performance. The research design that this study employed was descriptive research design. Stratified sampling technique was used to obtain a preferred sample that provided a high representation of the entire population. Data was collected using structured questionnaires which were administered to the obtained sample of 98 National Bank head office employees. Data from the completed questionnaires was coded, edited and entered into IBM SPSS version 22.0 statistical software prior to data clean up, after which, validation tests were carried out to eliminate anomalies. Thereafter, Data analysis was carried out using descriptive statistics using measures of central tendency such as Mean, Median, Mode, Standard Deviation and Variance. In addition, inferential statistics such as regression and correlation were also carried out to determine the relationship between variables. Finally, the results were then presented in form of tables and figures clearly indicating the frequencies and percentages. Results obtained showed that the bank continuously automated its systems as new technologies emerged. Findings showed that the bank automated its core systems such as ATMs, Mobile banking and Internet banking. The bank customers accessed these systems and utilized them to carry out their personal transactions. Findings revealed that the bank’s strategic plans were well aligned towards automation. Technology was considered as an important aspect in the alignment of information systems with business strategy. The organizational structure was noted to have played a role in enabling the bank gain a competitive advantage towards automation of systems and support of effective organization controls. The bank’s organization culture was identified for boosting innovativeness as well as enhancing the commitment amongst staff which increased the success of system automation. Results also showed that Top management provided the strategic vision and direction towards system automation while ensuring that there was cooperation amongst staff and all stakeholders involved in automation. The study concluded that the bank was of the view that by adopting automated systems, both customer service level and customer relationship improved for the better leading to organization performance. The performance of National bank varied across the years as return on assets and return on equity increased and decreased in some years. The study found that there was a strong positive correlation coefficient as shown by correlation factor of 0.816 and regression analysis showed an increase in the 3 variables would result to a positive increase on performance. The study proceeds to conclude that automation enhanced better service quality, provided constant and consistent service availability, led to the elimination of errors and data redundancies and finally, led to time saving due to fast service delivery. System automation opened up a world of opportunities for the customer, gave the bank a better competitive edge in the industry, enhanced customer satisfaction, customer loyalty, and increased revenue due to reduced marginal costs hence, higher profit margins. The study recommended that the bank should continuously automate its systems as new technologies emerge since by adopting automated systems, both customer service level and customer relationship improved for the better. The study recommended that the bank should incorporate and invest in technology since technology was noted as an important aspect in the alignment of information systems with business strategy. The study recommended that the banks should automate all its services since automation enhances service quality, constant and consistent service availability, elimination of errors and data redundancies and time saving due to fast service delivery

    National Security and the Metamorphosis of Terrorism: the Al-Shabaab Threat

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    Thesis Submitted to the School of Humanities and Social Sciences (SHSS) in Partial Fulfillment of the Requirement for the Degree of Master of Arts in International RelationsThis study seeks to examine the relationship between terrorism and security. The topic of the study is the metamorphosis of Al-Shabaab and the challenges of maintaining national security in Kenya. The objective of the study is to find out how Kenyan national security is challenged by the change in Al-Shabaab’s attacks; the death of Al-Shabaab’s leader and finally; the switch from explosives to AK-47s. The research follows a descriptive design and is conducted as a case study. The data is collected from the news archive of the Daily Nation and consist of reports from Al-Shabaab attacks in Kenya from 2011 until 2015. The study makes the following main conclusions: firstly, the change in Al-Shabaab’s attacks is clearly posing a major challenge for Kenyan security forces because Al-Shabaab has proven to be so innovative that every attack appears to be unexpected. Al-Shabaab always seems to be a step ahead of Kenyan security. Secondly, the loss of Godane has not proven to break down Al-Shabaab as previously anticipated. Rather, Al-Shabaab has only posed a bigger threat to security in Kenya after the loss of Godane. Lastly, after Al-Shabaab started using AK-47s the number of victims in each attack has risen drastically. Attacks show that the use of AK-47s instead of grenades poses a whole new challenge to Kenyan security forces. In sum, the metamorphosis of Al-Shabaab attacks over the past four years has proven to be a major security challenge for Kenya

    The Effects of International Relocation on Adolescents’: Symptoms of Depression, Anxiety, Suicide Ideation and Self Esteem Development

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    A Thesis Submitted to the School of Humanities and Social Sciences in Partial Fulfillment of the Requirement for the Degree of Master of Arts in Clinical PsychologyRelocation has been known to have potential adverse effects on children and adolescent’s psychological well-being (Fail, Thompson & Walker, 2004; Mok, Web, Appleby & Pedersen, 2016), as well as positive personal gains (Pollock & Van Reken, 2010). This study examined the relationship between international relocation(s) during the formative years of one’s life, and psychological well-being in adolescents at an international high school in Kenya. Fifty high school students were sampled by convenience. Specifically, the level of depression, anxiety, suicide ideation and selfesteem were measured using questionnaires; Beck’s Depression Inventory, Beck’s Anxiety Inventory, the Suicide Behavior Questionnaire-Revised and the Rosenberg’s Self-Esteem Scale. A demographic questionnaire was administered to gain some more details from the participants. To provide deeper insight to the topic, one focus group was arranged with the goal of retrieving information not revealed by the questionnaires. Ten percent of the participants felt miserable or hated moving, 34 percent adjust after a while, and the majority find moving ok or finds it exciting. This study found no relationship between frequency of international relocations and depression, (r(47) = .15, p = .29), anxiety,(r(47) = .09, p=.53), suicide ideation (r(48) = -.183, p = .20), and self-esteem, (r(48) = -.09, p = .54). The focus group revealed a more complex view on international relocation; it was difficult to leave friends behind, change schools, and uproot one-self, but it was also exciting to experience new cultures, learn new languages and meet ne

    The Effect of Innovation on Sustainable Competitive Advantage (Client Satisfaction) In the Hospitality Industry in Kenya: A Case Study of the Safari Park Hotel

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    A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA)The general purpose of the study was to find out how innovations affect sustainable competitive advantage (client choice and value) in the hospitality industry in Kenya on the basis of a study of a five star hotel, the Safari park hotel. The specific objectives of this study was aimed at determining how product innovation, process innovation and service innovation affected sustainable competitive advantage. A descriptive research was adopted because the study was aimed at collecting information from respondents on their perceptions sustainable competitive advantage at Safari park Hotel. The target population for this study was 1000 daily hotel clients who frequent visit Safari Park Hotel owing to work or leisure reasons. The sampling technique was purposive random sampling technique and from the initial target population of 1000, a sample size of 285 was arrived based on Yamane‘s Formula (Yamane, 1967). Out of the total of 285 questionnaires awarded only 200 were filled and returned giving a response rate of 70%. Further, a correlation approach was adopted as the study was seeking to describe relationship between sustainable competitive advantage and the independent variables (product innovation, process innovation and service innovation. Analysis of the first objective revealed that to great extent respondents acknowledged that Safari park has differentiated the products to suit customer needs. While the products offered differ from competing models in the market. In addition, respondents noted that they are willing to a great extent make small sacrifices in order to keep using food and beverages by this. Analysis of the second objective indicated that to a very great extent, the quality of services and products provided by this hotel is improving. The respondents also acknowledged that they are always satisfied by the delivery method used by the hotel and the level of food hygiene has been getting better. On the other hand, to a moderate extent respondents noted that they intend to use the service provided by this hotel forever. While the hotel managers are always willing to adjust their supply to the clients‘ needs. Analysis of the third objective revealed that to a great extent staffs are always in uniform for easier identification and the hotel provides outstanding customer service to the clients. It was also revealed that the hotel has acquired modern cars for safer transportation of the clients. It was also revealed that to moderate extent Safari park has availed multiple payment options which are faster and secure and most respondents are loyal to the brands v associated with this hotel. It was also established that to a little extent the installed environmental friendly devices have improved the level of hotel ambience and the customer relationship management tool is always active and customized to client‘s needs. The study concluded that Safari park has differentiated the products to suit customer needs, and this has been done by ensuring that the hotels products are unique compared to competing models in the market. The study also concluded that quality of services and products provided by this hotel is improving and as such, Safari park, which is a world renowned hotel has been able also to always satisfy its clients by the delivery method and the level of better food hygiene. Finally, the study concluded that the firm has done major investment including the acquisition of modern cars for safer transportation of the clients as well as availed multiple payment options which are faster and secure. On the other, hand installed innovative communication apps have not made a big impact on communication between the client and the employees. The study recommended that Safari park as a hotel has been need to maintain the differentiation of its the products to suit customer needs. This ensures the products offered remain unique and differ from competing models in the market. It was also noted that Safari park hotel need to maintain its delivery method to guarantee customer retention. In addition, the firm also need to ensure quality standards of services and products are continuously improved and well maintained. The hotel needs to ensure its assets are up to date by the acquisition of modern assets to ensure clients satisfaction. The study recommends that there is a need to carry out the same study in other hotels in Kenya as this study indicates that innovation only influences about 5% of competitive advantage. It is significant to do further research on strategies that can be adopted to tap to the sources of competitive advantage that can lead to drastic growth

    CTW - 13 April 2018 

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    A Campus Weekly Magazine by the Marketing and Communications Department of USIU- Afric

    The Impact of Employee Motivation on Quality of Service Offered To Corporate Banking Customers: A Case of Equity Bank

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    A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirements for the Degree of Masters in Business Administration (MBA)The general objective of this study was to assess the impact of employee motivation on quality of service offered to banking customers. The study was guided by specific research objectives which sought to determine the impact of work environment on quality of service offered to banks customers, to determine the impact of employee training and development on quality of service offered to banks customers and to determine the impact of employee empowerment on quality of service offered to banks customers. In order to аddress the reseаrch problem the study used descriptive reseаrch design. The populаtion of this study comprised of 120 employees of Equity Bаnk who deаl with corporаte clients, this wаs аt their Heаd office in upper hill Nаirobi. А sаmple of 60 respondents wаs obtаined using the Yаmаne (1967) formulа, strаtified sаmpling wаs obtаined by strаrified sаmpling. Primаry dаtа wаs collected mаinly through аdministrаtion of pre-tested structured likert scаle questionnаires in the field. Both close ended аnd open ended questions will be used in the questionnаire. The collected dаtа wаs first checked for completeness аnd аccurаcy then coded before being stаtisticаlly аnаlyzed using the Microsoft Excel progrаm аvаilаble in Microsoft office аnd the Stаtisticаl Progrаm for Sociаl Scientists (SPSS). The following stаtisticаl tools were employed in the аnаlysis, frequency tаbles, cross tаbulаtions, аnd percentаges. Correlаtion аnаlysis will аlso used to estаblish relаtionships. Tаbles, pie chаrts аnd bаr grаphs wаs used to present the dаtа to enаble eаse in the understаnd аbility, аnаlysis аnd interpretаtion of the results. A Pearson correlation analysis was done to establish the relationship between the dependent variable (quality service) against employee work environment and the findings revealed a strong positive correlation between quality of service and work environment, psychological environment and social work environment. All the variables were significant thus indicated that an increase in combined variables of work environment, psychological environment and social work environment lead to an increase in quality service. A Pearson correlation analysis was done to establish the relationship between the dependent variable (quality service) against excellent service training and the findings revealed a strong positive correlation between quality of service and training, and iv excellent service training. All the variables were significant implying that an increase in combined variables of excellent service training lead to an increase in quality service. A Pearson correlation analysis was done to establish the relationship between the dependent variable (quality service) against benefits of empowerment and the findings revealed a strong positive correlation between quality of service and empowerment, and benefits of empowerment. All the variables were significant therefore an increase in combined variables of empowerment leads to an increase in quality service. The study concluded that office building in the banks is well set with ample space allowing for the offering of quality service to customers. In addition, the work environment has been designed such that the employees have reach to free flow of exchange of information. Secondly, the bank also ensures that training is offered whenever a new product or service is introduced thus increase efficiency and management of time. The improved organizational skills are linked to the caliber of training offered. Finally, employees are currently not satisfied with the personal involvement in decision making concerning their job performance although employee empowerment not only enabled them to deal with the needs of modern global business, but they have also been able to feel vital to the success of the organization as well as build trust and promotes effective communication. The study recommends that the firms should look for other areas that the staff would like changed. This can be done by seeking employee‟s opinion on the same. Secondly, there is a need to do regular training to ensure that all the employees have good knowledge of the products and services offered at the bank, and to minimize costs related to trainings, the banks ought to ensure employees have the requisite qualification to do their job. Finally, in order not to reduce employee‟s job morale, the institutions need to ensure that there is minimal interference by the management on the performance my job. Further studies need to be undertaken in other banks so as to be able to establish whether the issue affects other banks. There is also a need to undertake a similar study with the customers as the target population so as to minimize any biases on the response

    Effect of Corporate Governance on Financial Performance of Companies Listed in the Nairobi Stock Exchange: Case of Commercial and Services Firms in Kenya

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    A Research Project Report Submitted to the Chandaria School of Business in partial fulfillment of the Requirement for the Degree of Master of Business Administration (MBA)The main objective was to determine the effect of corporate governance on financial performance of Nairobi Security Exchange (NSE) listed commercial and services firms. The specific objectives of the study included; to determine the effect of board size on financial performance of NSE listed commercial and services firms; to establish the influence of CEO duality on financial performance of NSE listed commercial and services firms; and to evaluate the effect of board composition on financial performance of NSE listed commercial and services firms. This study adopted a correlational research design. The study target population was the NSE listed commercial and services firms. The data was sourced from the listed firms’ published annual statements for the period 2012 to 2016. The data was both quantitative and qualitative secondary data. In analysing quantitative data, the study used descriptive statistics while qualitative data was analysed using content analysis. In addition, multiple regressions were used to determine the significance of each independent variable in affecting the financial performance of the said firms. From the study findings, financial performance as measured using ROA constantly significantly increased over the study period. The average board size increased as follows; from four to nine over the five-year period which was a transformation of the firms from small to large board sizes. The listed firms had large board sizes which were beneficial for their corporate performance because they have diverse expertise to help make better decisions, and are harder for their powerful CEOs to dominate. The trend of CEO duality among the twelve NSE listed commercial and services firms reduced over the five years. The reducing number of firms with CEO duality allowed for separation of power and functions between their chairmen of the board, a non-executive director and their CEOs their executive directors while it increased accountability. The number of non-executive directors was significantly higher than executive directors over the five-year period which ensured board independence in character, judgment and action in the management of the NSE listed commercial and services firms. The regression analysis established that board composition contributes most to the financial performance of NSE listed commercial and services firms followed by board size and CEO duality respectively. The study concludes that the three corporate governance practices (board size, CEO non-duality and board composition) adopted significantly influence financial performance of NSE listed commercial and services firms. The study recommends that the management of NSE listed commercial and services firms should constantly monitor the board size to ensure there is smooth coordination within the board, that there is no free riding by individual directors, its efficiency in decision making remains optimal and that CEO dominance is not allowed which are the challenges with large board sizes. The NSE listed commercial and services firms’ management should continuously review the roles of the CEO and the chairman to ensure both remain effective in their roles due to the ever-changing market dynamics and to safeguard shareholder value. NSE listed commercial and services firms should seek to ensure greater diversity of non-executive board members and continuous supervision of executive board members to reduce the risk of the company through rigorous checks and balances

    Effect of Knowledge Management on Competitive Advantage in the Real Estate Sector: The Case of Pam Golding Properties

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    A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirements for the Degree of Master of Business Administration (MBA)This study’s impetus stems from the realization that the real estate industry in Kenya is currently rife with challenges, despite property pundits auguring its promising future. For real estate firms to remain relevant, research is necessary to investigate the use and management of Knowledge and its effect as a source of Competitive Advantage. The general objective of this study was to investigate the effect of knowledge management (KM) on the competitive advantage of real estate firms. This research was guided by four specific objectives: 1) to determine the dimensions of knowledge management employed by real estate firms in Kenya, 2) to determine the effect of information technology in KM on competitive advantage 3) to determine the effect of leadership style in KM employed on competitive advantage and 4) to determine the effect of organizational structure in the KM employed on competitive advantage in real estate firms. The research design selected for this study was a descriptive research to identify and explain association between variables. The target population for the study were all the fifty employees of Pam Golding Properties (PGP), Kenya. Fifty questionnaires were distributed and 46 responded obtaining a 92% response rate. The study employed Spearman’s correlation and multiple linear regressions for analysis. Data collected utilized SPSS (version 24) software and analysis done gave both descriptive and inferential statistics. Following analysis, results were presented in tabular and chart form and descriptions given. Analysis of the first objective which was to examine the dimensions of knowledge management applied in the firm, revealed that at PGP Kenya, there was a clearly defined system of KM that was widely understood and utilized by both employees and management. However, PGP does not share information with other RE industry players for better knowledge management. The second objective established that employees used technology tools to create, share and store knowledge. Critical to note was that IT in use contributed to enhanced knowledge and eased decision making. Analysis of the third objective seeking revealed that the organization’s leadership embraced an open-door policy and enhanced free knowledge sharing through dialogue and feedback. Many respondents however, strongly agreed that little if any awards or promotions were given for knowledge creation or enhancement. The fourth objective showed that PGP’s organizational structure facilitates task accomplishment according to KM services. This study concludes that PGP Kenya has acknowledged that they viewed KM to be a major strategic imperative for staying competitive in the industry. The firm’s investment in budgetary allocation, staff trainings and IT infrastructure has had impetus from this realization. The main motivator for PGP implementing KM was quality service delivery, competitive advantage sustenance and client acquisition and retention. PGP has enjoyed competitive advantages in innovation, quality service and employee efficiency because of investing in KM. However, it also concludes that PGP could stand to benefit more from KM if it incentivized knowledge creation among employees. From the study it can be inferred that KM has benefited the firm and not only enhances efficiency leading to competitive edge but also delivers expertise to the firm by giving the firm’s agents, the opportunity to focus on its key competencies. This study recommends that real estate firms invest more in KM systems; not only on internal information sharing but liaise with related and supporting industries e.g. banking, to capture and share knowledge that would be vital in alignment of knowledge to business strategy for both industries, ultimately contributing to profitability and performance. The study further recommends that RE firms should strike a balance between people and technology elements of KM. A good technology-based KM system need not be complicated or capital-intensive, in so far as it could serve the core business by providing internal information within a group and sharing customer-specific information with clients. It should further be noted that the best tools and processes alone cannot achieve a KM strategy. Ultimately, KM aims to free up professional ‟valuable” time to focus on creating thoughtful and innovative approaches. For further studies, there is a need to undertake a study to establish the barriers involved in KM implementation between related/supporting industries fundamentally in knowledge sharing in order to bridge the gap between industries

    Factors Affecting Growth of Construction Organizations in Nairobi

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    A Project Report submitted to the Chandaria School of Business in partial fulfilment of the requirement for the Degree of Masters in Business Administration (MBA)The study purposed to identify the factors affecting growth of construction companies in Kenya. The research questions were as follows. What are the internal factors that affect the growth of construction companies in Nairobi? What are the external factors that affect the growth of construction companies in Nairobi? What Strategies are implemented by the construction organizations to ensure success in a developing economy? Descriptive research design was used. The population in this study was 5 companies in the roads and bridges and 25 construction companies in Nairobi that are registered with the National Construction Authority. The sample size was 13 construction companies in the building sector in Nairobi and 2 companies from the rail and road industry in Nairobi. The data was collected by structured questionnaires. Data was analyzed using descriptive statistical techniques by generating frequencies, mean and standard deviations. Inferences were made using Spearman’s rank correlation analysis techniques. The results were presented in tables. The study established that there was a statistically significant correlation between internal factors and growth of construction organizations. Of high importance were: technology in construction, client financial ability, and cost and revenue management. In terms of external factors affecting growth of construction companies, all the factors were highly important except social factors, but only two of the Political, Economical, Social, Technological, Ecological and Legal (PESTEL) factors were statistically significant. These are: economic factors and technological factors. There was a strong positive correlation between growth of construction organization and expansion through concentration, expansion through integration, expansion through diversification and expansion through internal strategies. The study concluded that growth of construction organizations was affected internal factors such as technology used in construction, client’s financial ability, cost and revenue management, profitability of projects, leadership and ownership, magnitude and size of projects, and goals and objectives of the organization. All the external factors except social factors potentially affected growth of construction companies although only the impact of economic factors and technological factors were significant to growth of construction organizations in Kenya. Construction organizations in Kenya mainly pursued internal strategies to ensure growth and success. This included sense of urgency and timelines, cost control and entrepreneurial planning. The study recommended that construction organizations should invest on new and adequate technological equipment. They should undertake regular environmental scanning with emphasis put on how emerging technology in the industry can be leveraged to enhance growth. Constant attention should be paid to the economic environment in order to provide timely information regarding investment decisions. Construction organizations can consolidate their internal strategies with other expansion strategies such as diversification, integration or concentration. Future researchers can explore how construction organizations can pursue growth through backward integration due to its high importance in the construction sector

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