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Electronic Banking Channels as a Strategy for Gaining Competitive Advantage in Banking Services: A Case of Kenya Commercial Bank
No full textA Research Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Master’s Degree in Business Administration (MBA)This study focused on assessing electronic banking channels as a strategy for gaining competitive advantage in banking services in Kenya Commercial Bank (KCB). The specific objectives that guided the study included: to highlight the key factors of e-banking as a competitive advantage tool at KCB, to determine the relationship between e-banking application and competitive advantage of KCB, to establish whether customer preferences influence electronic channels of banks, and to establish challenges and propose solutions to tap opportunities and solve the identified challenges at KCB.
This study used the descriptive research design. The population for the study was all the staff working at KCB whose total number was 235. The sampling frame came from the official list of employees working at KCB in 2017. The study used stratified sampling technique. For the sample size, the study selected 70% of the total population to be the representative which brought the sample size to 165 respondents. Primary data was collected using a self-administered questionnaire attached as Appendix I. Completed questionnaires were analyzed using Statistical Package for Social Science (SPSS). The study used statistical frequencies and percentages for analysis. For likert questions, the study employed the use of means and standard deviations to show the strength and the degree in response differences. Inferential analysis was conducted which entailed Pearson correlation coefficient used to examine the nature of relationships between study variables in terms of significant and insignificant factors. Multiple regression analysis was also be used to show the strength of existing relationships between the study variables, and data was presented using tables and figures.
The study shows that e-banking has become a full-fledged delivery and distribution channel at KCB as a financial products and service. Internet banking is convenient and reduces bank queuing as well as reducing geographical barriers. E-banking at KCB contributes to varying models of cash withdrawals and cash management, and it provides customers with the interactivity that attracts them to utilize the functions of e-banking. KCB consumers understand the meaning and functionality of the security features of e-banking, even though they still have doubts about the trust ability of e-banking privacy policies. KCB assures its customers’ security through provision of privacy statement and information about the security of the shopping mechanisms, and the use of encrypted data packets.
The company’s technical direction and framework for technology is based on development service that is determined by its ICT strategy. ICT strategy supports the strategic objectives of the organization involving development of new and improved products and service capabilities. KCB’s large investments in complex ICT systems have increased its efficiency in creating entry barriers in the market and it is also used to reduce the cost of doing business by reducing transaction costs to both suppliers and customers. E-banking has ensured that KCB policy makers are focused on the growing demand in ICT skills, that they are constantly taking corrective steps to prepare the required numbers and quality beforehand. The e-banking strategy at KCB also focuses on being the low cost producer in the market. The bank emphasizes on the employment of highly experienced staff in online banking, development and refining of existing products and investment in organizational learning.
Electronic banking systems at KCB provide easy access to banking services, and thus leads to higher levels of customer satisfaction and retention. E-banking at KCB has reduced the loan processing time as borrowers loan applications are viewed by the loan processing and loan approval authority simultaneously. Tele-banking (telephone banking) has allowed consumers at KCB to call the bank with instructions to pay certain bills or to transfer funds between accounts. ATM services at KCB has significantly increased productivity during banking hours and they are a cost-effective way of achieving higher productivity per period of time. Personal Computer Banking has allowed KCB customers to perform a lot of retail banking functions by providing its consumers with the convenience of conducting many banking transactions electronically using the Internet.
Security of information is one of the biggest concerns of KCB’s customers who make use of e-banking, since they face the security risks of having unauthorized access into their banking accounts. As a bank, KCB provides a comprehensive explanation of their policies to their e-banking customers, and their consumers have the right to opt out of certain parts of giving the bank their personal information which makes doing business over the Internet challenging for them. Breaches of security and disruptions to the system’s availability can damage KCB’s reputation, and their reliance on new technology to provide services makes security and system availability the central operational risk of their e-banking. KCB’s security practices are regularly tested and reviewed by outside experts to analyze network vulnerabilities and recovery preparedness, and their challenge is in the form of capacity planning that would address the increasing transaction volumes and new technological developments that take place more often.
KCB should pay special attention to convenience by providing its customers with electronic banking service at points which can be easily accessible. For instance, some ATMs should be installed in supermarkets, learning institutions and medical centers. The bank can also offer mobile applications that can be downloaded and be used in smartphones to allow users to access banking services from their gadget
Social Media Factors Influencing Consumer Buying Intention: A Case Study Of United States International University-Africa Students
No full textResearch Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration (MBA)The aim of this study was to investigate the social media factors affecting the consumer buying intention. The study was guided by the following research objectives; Finding out how perceived value influence consumer buying intention. To examine how perceived risk affects the consumer buying intention and to establish how trust influence the consumer buying intention among university students who are consumer of social media services in United States International University-Africa.
The study used a descriptive research design. The population for this study comprised of 6550 graduate and undergraduate students in United States International university- Africa. Stratified random sampling technique was used to acquire a required sample size. The sample size for the study was 377 students. Primary data collection through self -administered questionnaires was used. The study used quantitative tools such as measure of central tendency which includes mode, median, mean, Standard Deviation, frequencies and percentages. Correlation and regression were also used to describe the degree of relationship between variables used. To achieve these, the study used SPSS program. The findings were summarized and presented inform of tables and figures.
The first research objective sought to find out how perceived risk affects the consumer buying intention amongst United State International University students. The study confirmed that there is a low financial risk in buying products and services or acquiring information about products and services through social media platforms. It also confirmed that the probability of getting poor-quality products and services as well as the probability of wasting a lot of time on buying products and services through social media platforms is low. The study further indicated that leaking of privacy in purchasing products and services was not significant and customers would hardly get under social pressure in purchasing products and services. Finally the probability of harming physical and psychological health by purchasing products and services through social media platforms is low.
The second research objective sort to establish how trust influence consumer buying intention. The study confirmed that many of customers find it hard to trust information in the social media sites as well as the friends they interact with online. The study further indicated that the social media platform used were not trustworthy however the customers will share their good
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experience with their friends about buying products or acquiring information on social media platforms.
The third research objective sought to find out how value influence consumer buying intention. The study indicated that when customers acquire information about products and services on social media platforms they get to know their quality and function better. It further indicated that customers can find products and services that are more suitable for their personal quality and styles as they also save a lot of time and energy acquiring information about products and services on social media networks.
The study concluded that customers to do not perceive risk as a hindrance to the online buying. The financial risk, privacy disclosure, time invested and harm that may be incurred by the customers are not significant to their online buying of products and services. Further, trust based on the information, friends and social media platforms used are key aspects that affects the customer buying intention. Finally, customer perceives value on the products and services they get online, the quality that suits their style and the time they invest acquiring information about the products and services o social media networks.
The study recommends that those who are offering product online should not be worried about the issues of risk since it has no significant correlation with consumption. The study also recommends that the necessary policies to govern the social media activities should be implemented. It further recommends the firms to align their value proposition so as to achieve a sustainable competitive advantage. Lastly other sectors and variables be studies so as to have a more conclusive empirical evidence on the subject
Factors That Influence New Product Development in Commercial Banks in Kenya
No full textA 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)Certain factors have illustrated its effects on New Product Development. The purpose of this study was to investigate the factors that influence New Product Development in Commercial banks in Kenya. This study also provides results of whether the variables such as Strategy, Research, and Resource availability have significant effect on new product development by Commercial banks in Kenya. The researcher used descriptive research to understand the effect of strategy, research and resource availability on new product development. The research focused on a population of 79 product development officers in tier 1 banks where a census was conducted. A questionnaire with 31 questions was used to collect data and the Statistical Package for Social Science (SPSS) software was used by the researcher to run a descriptive and inferential statistics which included discriminant and convergent validity as well as structural model estimation.
The study findings revealed that strategy is positively and statistically significant to new product development in commercial banks in Kenya. The path coefficient was positive and significant at the 0.05 level (β=0.318, T-value =3.144 p<0.05). The positive relationship means if, strategy increases by 1, new product development will increase by 0.318. The study findings therefore indicated that if strategy is incorporated in commercial banks in Kenya, it will lead to improved new product development. Commercial banks in Kenya need to incorporate new product development in their mission and strategic planning. This will help the players and stakeholders make opportunity identification an ongoing process and redirect their strategic plan real-time to respond to market forces and new technologies.
The study findings revealed that research is positively and statistically significant to new product development in commercial banks in Kenya. The path coefficient was positive and significant at the 0.05 level (β=0.214, T-value =2.278 p<0.05. The positive relationship means if research increases by 1, new product development will increase by 0.214. The study findings indicated that if the commercial banks put more effort in research, the resulting consequence will be an increase in new product development. Commercial banks should therefore focus more on the voice of the customer and give attention to their future needs while developing new products. This will enable them gain a competitive advantage in the industry.
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Resource Availability was found to have a positive and statistically significant relationship with new product development. The path coefficient was positive and significant at the 0.05 level (β=0.210, T-value =2.631 p<0.05). The positive relationship means if, resource availability measures increases by 1, new product development will increase by 0.210.It was also notable from the study findings that most commercial banks invest adequately to promote new product development by making budgetary allocation, training their staff to carry out their duties as well as making resource provisions should a new opportunity come onto the horizon. Commercial banks should therefore adopt a culture of allocating resources for new product development
Impact of Corporate Entrepreneurship Strategy on Growth of Business Organisations: A Case of Safaricom Limited
No full textA Research Project Proposal Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The aim of the study was to examine impact of corporate entrepreneurship strategy on growth of business organisations focusing on Safaricom (K) Limited. The study aimed at answering the following research questions: what is the effect of innovation on business organizations? What is the effect of risk taking on business organizations? What is the effect of proactiveness on business organizations?
The research methodology adopted was the descriptive research method. It focused on three groups namely middle and upper level management and operatives for Safaricom (K) Limited departments. Research used stratified random sampling technique and sample size of the study was 143 staff. Data collection was done by structured questionnaires. This data was analyzed through the descriptive statistics, correlation and regression analysis using SPSS Version 21. The findings were presented in tables and figures and researcher‟s own interpretation.
The correlation results showed that there was a positive and significant relationship between innovation (r = 0.298; p < 0.000), risk taking (r = 0.199; p < 0.017) and proactiveness (r = 0.119; p < 0.025) and business growth at Safaricom (K) Limited. The regression analysis showed that innovation (β = 0.378, p < 0.005) had the greatest effect followed by proactiveness (β = 0.212, p < 0.005) and risk taking (β = 0.378, p < 0.005) on business growth at Safaricom (K) Limited.
This study therefore concludes that innovation has the greatest effect on business growth, followed by proactiveness and risk taking had the least impact on business growth at Safaricom (K) Limited.
The study therefore recommends that Safaricom (K) Limited should endeavor to enhance their process innovations to improve the organization‟s forms and knowledge, policies and procedures in distribution applications, products, channels and consumers‟ needs, preferences and expectations; that Safaricom (K) Limited should encourage risk taking among its staff, project teams and managers to enable the organisation capture new markets in the telecommunication sector in Kenya and that Safaricom (K) Limited should enhance its proactive tendency in searching for emerging technologies, markets and opportunities in the growing telecommunications sector in Kenya
Change Management Communications: A Case of Ps Kenya’s Orion Project
No full textThe purpose of this study was to analyse the effect of change management communications teams in influencing staff motivation in a change process using PS Kenya’s ORION project. The study analysed whether a change management communications team can positively influence motivate staff to participate in a change process. The research questions interrogated how change management communications affects motivation, how the composition of the change management communications team affects motivation by staff in a change process and the challenges that affect change management teams during a change process.
In the research methodology, we employed a descriptive study methodology because it attempts to describe or define a subject, in this case, the change management teams’ effect on motivation in a change process. The population studied was PS Kenya staff which was undergoing an ERP change management process and the sample frame consisted mostly of staff from support departments because they are constantly engaging with the ERP. A total of 86 staff was sampled for the study using questionnaires. Data analysis was carried out using both traditional and non-traditional statistical methods using SPSS software.
From the study, the role of communication in change management was found to be very crucial in creating a positive attitude about the change among employees in an organization. The use of various ways of communication such as use of branding, events, special sessions, emails, milestone celebrations and other media of communication breaks monotony and helps to keep people engaged. Secondly, the study found that instituting change management communication team influences the extent to which employees are kept alert and updated on the progress of the change. In addition, the study found that having a team in change of communication provides a link and way of communication and platform for sharing feedback between the employees and the change steering committees. Lastly, the study found that the process of changing in an organization is bound to be affected by challenges such as resources, expertise, heavy tasks, and low employee productivity among others. However, the severity of these challenges of the change process depends on the extent to which the senior management team is supportive, involved and how it addresses the concerns emanating from the change process.
The study concluded that change management communication influences the motivation of the staff about a change process. The role of communication in change management is very crucial in creating a positive attitude about the change and different channels of communication such as branding, events, special sessions, emails, milestone celebrations helped to keep the employees engaged and involved in the change process. The study also concluded that constitution of a change management communication team and even the composition of the team influences the degree to which staff members get motivated by the change process. Finally, the study also concluded that the process of managing a change in an organization is faces challenges and that the senior management of the organization plays a very crucial role in addressing the challenges through support, keeping staff updated on the progress, being involved in the change process and also solving problems and addressing any concerns arising from the change process.
The study recommends that organizations undergoing change institute change management communication medium to link the change and the people so as to change their attitudes and increase their adaptation to the change. The study also recommends that change management communication teams be highly representative of everyone in the organization so that the staff from each category is linked with the change process. In addition, a recommendation is made to put in mechanisms that balance between tasks from change process and the normal organizational duties. With regards to further areas of research, as this study focused on one organization, it is recommended that similar studies be done in other organizations in both public and private sectors’ and working under different contexts and environments to reveal more on the effect of change management communication
The Impact of Islamic Banking on Economic Growth: A Case Study of First Community Bank in Kenya.
No full textA Research Proposal Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to investigate the impact of Islamic Banking on economy growth in Kenya. This study was guided by the following research questions. To establish impact of Islamic banking theories on economy growth. To establish the effectiveness of Islamic banking tools on economy growth and lastly to establish the various risks of Islamic banking on economy growth.
The study used a descriptive research design .The target population was 50 employees from the various departments at First Community Bank in Kenya. These include Marketing, Operations, Research and Development, Sales, Customer service and Risk. The research adopted stratified random sampling technique which enabled sufficient representation of the desired data across the population. From the target population a sample size of 25 customers was obtained. The main method of data collection was through the use of questionnaires which were easier and effective to use by the researcher. Data analysis was done through the use of tables, graphs and charts. Descriptive statistics were used to describe features of the data and presentation was done through the use of tables and charts.
On Profit and Loss sharing theory majority of the respondents agreed that the theory contributed to economy growth. Majority of the respondents were of the opinion that they more attracted to interest free products under the Islamic Banking. And lastly on Trust Financing theory, majority of the respondents agreed that they were able to acquire intensive capital assets for their businesses through Trust Financing. Findings on effectiveness of Islamic banking instruments showed that the elements influenced the economy growth in Kenya. Majority of the respondents felt that Isalamic banking were highly exposed to mark-up risk.
The study concluded that Islamic banking theories contribute to economy growth. The Islamic banking theories help to foster economic development by encouraging equal income distribution and which results in greater benefits for social justice and long-term growth.The study also concludes that the Islamic banking instruments contributed to economic growth. The Islamic banking instruments have enabled banks to grow in terms of customers this is due to the conducive terms of the instruments.Finally, the study concluded that Islamic Banking was
influenced by a number of risks. he Islamic banks are exposed to the risk of losing entire invested capital as their products are not fully secured.
The study recommends that study concludes that the Islamic profit sharing concept helps to foster economic development by encouraging equal income distribution and which results in greater benefits for social justice and long-term growth. The study also concluded that banks in the country should embrace an Interest Free environment which ensures a level playing field among market participants This helps to allow the economy to expand and helping to alleviate poverty.Finally, the study concluded that Islamic banking lacks uniform standards of credit analysis as banks have no appropriate standard of credit analysis hence heavily exposing their products. Banks should be more aware of the related banking risks associated within Islamic Banking and address how to counter them
Factors Affecting the Performance of Businesses Owned By Female Entrepreneurs in Kenya
No full textA Research Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)This study was carried out to examine the factors that affect the performance of businesses owned by female entrepreneurs in SMEs. It also examines the characteristics of these entrepreneurs in their enterprises and the ability of the entrepreneurs to operate their businesses at maximum performance. A sample of 60 entrepreneurs was taken for the study using simple random and stratified sampling. The questionnaire collects information on the entrepreneurs’ demographic profiles, the characteristics of the female entrepreneurs running their own enterprises, and the optimization of business performance. After data collection, simple statistical techniques, such as percentages and tables, as well as descriptive statistics like standard deviations and mean were used for data analysis.
The findings of the study demonstrate that the personal characteristics of female entrepreneurs in the SMEs affects the performance of their businesses. It also indicates that lack of own operating premises, stiff competition, financial access, inadequate access to training, access to raw materials and access to technology were the key economic factors that have an influence on the performance of the business owned by female entrepreneurs in Kenyan SMEs. The study also found that social acceptability, conflicting gender roles, and networking with outsiders were the major social factors that affect these entrepreneurs.
Based on the findings, the following recommendations have been made: female entrepreneurs should be given training so that they can run their business more strategically so that they can contribute to the economic growth of the country. The government should also put up policies and make financing more available to encourage more young people and women to set up businesses
Impact of Digital Promotions on Consumer Privacy: A Case Study of United States International University - Africa
No full textA 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 general objective of the study was to determine how digital promotions infringe on
consumer privacy. The study was guided by the following three specific research objectives; to determine ways in which social media marketing has affected consumer privacy, to evaluate the impact of direct internet marketing on consumer privacy and to determine the impact of mobile marketing on consumer privacy.
The research methodology, which was adopted was as follows. The study deployed a
descriptive research design to explore or find out ‘how’ digital marketing has affected
consumer privacy. The target population for the study comprised of United States
International University – Africa (USIU-A) students of which 233 were sampled for the
study. The study used stratified random sampling technique to ensure that students at every level education are given an equal chance of participation in the study. A structured
questionnaire was used to collect the relevant information from the students. This study used the quantitative method of data analysis, as such both descriptive and inferential statistics where be used. Microsoft Excel and Statistical Package for Social Sciences (SPSS) program version 21 were used to analyze and present the collected data.
The study established that “permitting Third-Party access of shared information” and
“secondary use of shared information” were the most important privacy concern issues for
respondents and that “collection of personal information” and “misuse of shared
information” were the least important concerns of the respondents. The study found that
“secondary use of shared data” and “intrusive marketing emails” were the most important
privacy concerns for the respondents when using the internet and that “improper emails” and “cookies” were the least important. The study also found that “surveillance by marketers” and “inappropriate marketing news from mobile service providers” were the most important privacy concerns with regard to mobile marketing and that “intrusive texts messages from marketers” and “inappropriate calls from marketers” were of the least importance to respondents.
The study found that digital promotions and consumer privacy were positively associated. It found that Pearson correlation coefficient between social media marketing and consumer privacy and so was that between direct internet marketing (independent variable) and consumer privacy as well as that conducted between mobile marketing consumer privacy.
It found that the total variability of the models indicated by R Square was .050 suggesting
that 5% of the variance (or change) in the model could be explained by social media
marketing, direct internet marketing and mobile marketing. It established that the general
equation for the consumer privacy was = 2.428 + .132 Social Media Marketing + .209 Direct
Internet Marketing - .142 Mobile Marketing.
In conclusion, the study contends that social networking sites including Foursquare,
Facebook, LinkedIn, Google+ and Instagram do collect personal information with or without subscribers’ awareness. It also concludes that direct internet marketing is equally guilty of violating consumer privacy rights. That marketers have acquired consumers’ email addresses and communicated to them without their consent something which contravenes the idea of permission marketing, where marketing communication is based on consumers’ issuance of permission or consent to receive marketing information. It further concludes that the rapid advancement of mobile technologies has provided a more encompassing and powerful means of surveillance, which creates an open boundary structure with a high degree of information permeability.
The study recommends that; (i) the government of Kenya should strengthen existing laws
on consumer protection (ii) The government of Kenya should enact policies to properly
regulate the use of internet in Kenya (iii) The Kenyan Parliament should define new laws
that address the issue of consumer privacy in mobile marketing (iv) Researchers and
Academicians should conduct more research, and (v) Researchers should also study ways in which consumer privacy impacts on digital promotions
The Effect of Macroeconomic Factors on Financial Development of Commercial Banks in Kenya
No full textA 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)The aim of this study was to determine the effect of macroeconomic factors on financial development of commercial banks in Kenya. The development measure of commercial banks used was the Liquid liabilities (LL), the ratio credit to the Private Sector (CPS), Commercial-Central Bank Assets (CCBA) and commercial bank Deposits (CBD) which was regressed against the macroeconomic variables including GDP growth rate, the exchange rate (US dollar), the money supply (M3). Inflation (CPI) and Lending Rate of the sampled commercial banks.
The period of the study was ten years from June 2006 to June 2016. The study employed quarterly secondary data which was obtained from the Central Bank of Kenya. Kenya National Bureau of Statistics and published quarterly financial statements from commercial banks selected in the sample. Analysis of the data made use of computer software 'e-views' version 7.0 to analyze the data. Given that the study model is a multivariate, the study used multiple regression technique in analyzing the relationship between the selected macro-economic factors and the financial development of commercial banks in Kenya.
The financial development of commercial banks as measured by the above 4 ratios was found to be positively correlated with GDP growth rate, money supply (M3), lending interest rate of individual commercial banks and inflation, and negatively correlated with exchange rate. The findings confirmed the researcher's priori expectation that these key development factors would be both positively and negatively correlated with the independent variables.
The rest of the paper is organized as follows: chapter one covers introduction to the study by addressing issues related to background of the study, statement of the problem, study objective and the significance of the study; chapter two focuses on literature review; chapter three is about the research methodology; chapter four covers data findings; and lastly chapter five addresses discussion of the findings, conclusions and recommendations.
The researcher concludes that there is a positive association between macro-economic factors and financial development of Commercial Banks in Kenya. From the results obtained, the researcher recommended that that favorable macroeconomic environment seems to stimulate higher profits. Specifically, the macroeconomic environment (proxied by GDP growth, M3 and inflation) is observed to have a positive impact on bank development. Higher growth rate of GDP seem to have a strong positive impact on the development measure. The justification of this study was to provide more information to policy makers on the effects of on economic growth in Kenya, so as to make informed decisions. Lastly the researcher recommended that this study can be extended to include the whole of banking sector and not just commercial banks. The study may also be extended to cover other fields of development measurement such as effectiveness, economy, prudence and soundness of commercial banks in other countries, which can allow for generalization of the findings to the whole industry
An Investigation on the Need for Strong Home (Country of Origin) Presence for All Multinational Corporations: A Case Study of Comcraft Group
No full textA Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement of the Degree of Masters in Business Administration (MBA)The general objective of the study was to determine the need for strong home (country of origin) presence and if multinational corporations have an obligation to their country of origin to retain a strong home presence. The study was guided by the following research questions. To what extent does the country of origin benefit from an MNC retaining a strong home presence? To what extent does the host country benefit from an MNC active presence? To what extent does an MNC benefit from retaining a strong home presence?
A descriptive study with mixed methodology design was used for the study. The target population comprised of 50 management level employees of the Comcraft Group in Nairobi – Head Office and 40 director level officers from the Ministry of Industry, Trade and Cooperatives Kenya. The sample size of the study was 45 respondents comprising 25 management staff of the Comcraft Group in Nairobi and 20 director level officers from the Ministry of Industry, Trade and Cooperatives Kenya. Data was collected using a structured questionnaire and an interview guide. Descriptive statistical techniques were used to analyse quantitative data while content analysis was applied to qualitative data. Inferential analysis was performed using Spearman’s rank correlation technique at 0.05 significant levels.
The results showed that concerning to what extent country of origin benefit from an MNC retaining a strong home presence, a statistically significant positive correlation was found between local MNC strong home presence and government satisfaction with benefits, importance of benefits to the country, impact of government policy and stakeholder involvement in policy development.
With regards to the extent the host country benefit from an MNC active presence, results showed MNC active presence in host country was significantly correlated to foreign investment benefits.
In terms of the extent an MNC benefit from retaining a strong home presence, Comcraft’s strong home presence in Kenya was significantly correlated to its satisfaction with benefits, importance of benefits derived from Kenya government and impact of benefits on Comcraft operations.
It was concluded that country of origin enjoys a number of benefits from an MNC retaining a strong home presence, suggesting the need for all MNCs to retain a strong home presence in their country of origin. A strong home presence leads to the creation and retention of jobs directly through employment opportunities to citizens and indirectly through business transactions with the MNC. Further, through the MNC’s CSR activities, the government of the country of origin enjoys relief from the MNC’s involvement in the eradication of social and environmental problems in the sectors of interest to MNC. Host country benefits from an MNC’s active presence mainly through foreign direct investment and to a lesser extent, better foreign relations. MNCs also benefit significantly by maintaining a strong home presence.
The study recommended that the government of country of origin should create policies that promote ease of doing business in order to make the country attractive for MNCs to retain a strong home presence. The government should also initiate measures that reduces the cost of doing business in the country with respect to the quality and cost of energy, taxation policies to avoid double taxation as well as security of both physical and intellectual property. In order to derive meaningful benefits from an MNC’s active presence in the host country, the government of host countries should liberalize their economies and come up with policies that cut down on government bureaucracy and reduces legal risks to foreign investors. MNCs should consolidate their market power in the country of origin by maintaining a strong home presence and by leveraging on the goodwill they accrue from corporate responsibility activities. Other case studies in other countries could be conducted to establish whether the need for strong home presence is context specific