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The Effect of customer perceived value on loyalty: a case of customers of commercial banks in Kenya
No full textFull - text thesisIn Kenya, the banking system is confronting a multitude of challenges. In order for these institutions to succeed, they must provide paramount value that will give them a distinct character. With today's globalized world and a smart population, it is extremely tough to stay up with industry developments because clients may easily learn about what is going on around the world in a fraction of a second. The challenge is that the bank's lack of successful competitive tactics in recent years has resulted in falling market share, client loss, and a detrimental impact on the bank's profitability. Consumer perceived value is an important aspect in establishing client loyalty. The main objective of this study was to determine the effect of perceived value on customer loyalty to Kenyan commercial banks. The specific objectives were to determine the impact of emotional value, social value, quality value, and pricing value on customer loyalty to Kenyan commercial banks. The study's foundations were the equity theory and the social exchange theory. The study was carried out using a descriptive research design. The target population of this study comprised of the customers of the 9 NSE listed commercial banks in Kenya. A standardized questionnaire with closed-ended questions was used to collect primary data. The collected data was examined for completeness before being coded in Microsoft Excel and SPSS for analysis. Descriptive statistics, correlation analysis, and regression analysis were used to analyze the data collected. The findings revealed a positive correlation between emotional value, price value, social value, and customer loyalty. However, there was a negative correlation between quality value and customer loyalty in Kenyan commercial banks. Furthermore, there was a relatively substantial correlation between culture and performance. This study contributes to theory by expanding on theoretical frameworks such as equity theory and social exchange theory to improve understanding of perceived value and its potential impact on consumer loyalty. Empirically, the study could help management practices by assessing perceived value as the first stages of efficiently managing customer loyalty. The findings from this research were limited to Sweeney and Soutar's perceived values and the customer loyalty adopted by the researcher. The study was also limited to data acquired via cross-sectional survey, despite the fact that customer loyalty may be altered by unprecedented occurrences and time, which may affect how customer perceive an organization. The decreased physical interaction due to online banking adoption limited the response rate
The Influence of 4Cs of marketing on purchase intention of Over-The-Counter medicine in tier one supermarkets in Nairobi County
No full textFull - text thesisThe Global over-the-counter market size is expected to grow by 7.09% annually according to Euromonitor International. Serving up to 50% of the demand in the region, Kenya has the largest over-the-counter pharmaceutical industry in Eastern and Southern Africa. To provide easier and more widespread access to pharmacy services, governments in many nations have deregulated the retail pharmacy sector. Due to this deregulation, new medicine distribution channels have been able to enter not only pharmacies but also supermarkets. This study's objectives aimed to assess how the elements of the 4Cs (customer, cost, convenience, and communication) of marketing can influence the purchase intention of over-the-counter medicine in Kenya, focusing on tier-one supermarket customers in Nairobi country. The study was anchored on the theory of Hawkins’s impulse buying and the 4Cs of the marketing framework. A descriptive cross-sectional research design was used for the study using a quantitative method. The study adopted a non-probability sampling approach of convenience to select customers visiting the supermarket over-the-counter category with the permission of the supermarket's management. The sample size was 384 customers from tier-one supermarkets. A pilot test was administered to ensure the respondents understood the questionnaire. Questionnaires were issued to the customers and used for data collection as designed by the researcher. Descriptive and inferential statistical methods were used to analyze the data and establish if a relationship exists between the 4Cs elements and customer purchase intention. Correlation analysis and regression findings showed a positive and significant relationship between customer, convenience, and communication on Purchase Intention. These implied that as customer, convenience, and communication increase by a single unit, there is an increase by one unit in the purchase intention of OTC medicine in tier-one supermarkets. Conversely, the study found a negative and significant relationship between cost and Purchase intention. These implied that as cost is reduced by a single unit, the purchase intention increases by one unit in the purchase of over-the-counter medicine in tier-one supermarkets. Therefore, Marketing managers should use customer-oriented 4Cs of marketing approach to meet customer needs. Commercial managers in tier-one supermarkets need to share feedback with the marketing managers of over-the-counter medicine to give insights into what the customers need to influence a positive purchase intention. The study was limited to supermarket customers in Nairobi County only. Future researchers need to include the voices of the consumers purchasing their OTC medicines within the other non-urbanites regions for generalizability and get their feedback on how the elements of the 4Cs could influence their purchase intention
Determinants of tax evasion among individual taxpayers and moderating role of demographic factors in Nairobi Metropolitan area, Kenya
Get PDFFull -text thesisThis study was motivated to establish the determinants of tax evasion and moderating role of demographic factors of age and level of education among individual taxpayers in Nairobi, Kenya. This was precisely addressed by four specific objectives; namely, to establish the influence of behavioral, administrative and economic factors on tax evasion among individual taxpayers in Nairobi Metropolitan area, Kenya, besides establishing the moderating role of age and level of education. The study was anchored on the Economic Deterrence Theory, Theory of Planned Behaviour, the Classical Growth Theory and the Social Identity Theory. The study was guided by the descriptive correlational research design. The target population was individual taxpayers based in the Nairobi Metropolitan area, Kenya. Based on anecdote data, the target population comprised of 10,411,220 people living in the five counties of Nairobi Metropolitan area, Kenya, namely, Nairobi, Machakos, Kajiado, Kiambu and Murang’a. The total sample size of the individual taxpayers to be randomly sampled were 768. A structured questionnaire was used to collect data. A pilot test was carried out of 78 individual taxpayers before the main data collection exercise in order to assess the reliability and the validity of the questionnaire. Cronbach’s alpha test was used assess the reliability of the questionnaire. The factor analysis model was used by the study to assess the construct validity of the survey tool. Descriptive and Multinomial Logistic regression models were used to show the effect of behavioral, administrative and economic factors on tax evasion among the individual taxpayers in Nairobi Metropolitan area, Kenya, and how age and level of education moderates the relationship between the factors and tax evasion. Results showed that; there is a significant negative impact on the likelihood of major tax evasion for every one-unit increase in the behavioral factors score; for every one-unit increase in the administrative factors score, the odds of major evasion decrease by a big margin; when the economic factors score increases by one unit, the odds of major evasion increased greatly. Additionally, results revealed that age and education moderate the relationship between behavioral factors and tax evasion; between administrative factors and tax evasion; but do not significantly moderate the relationship between economic factors and tax evasion. It is concluded that enhancements in taxpayer behavior, such as increased compliance, ethical tax practices, adherence to religious principles, and positive tax morale, substantially reduce the probability of engaging in major tax evasion. It is recommended that policymakers should promote ethical tax practices and enhance taxpayer behavior through targeted education campaigns and community programs that emphasize compliance, and positive tax morale.
Key words: Tax morale, Tax evasion, Classical Growth Theory, Tax Compliance, Tax Incentive
Effect of company specific characteristics on the adoption of emerging technologies in finance functions: case of non-financial companies listed in Kenya
Get PDFFull - text thesisOver the past decade, corporations have taken advantage of low-cost and efficient technologies to automate their finance departments in a bid to gain a competitive advantage through lowering administrative overheads, improving risk management, and ensuring that data that is required for decision-making by business leaders is provided on a real-time basis to ensure quick decision making. The study aimed to assess the level of usage of emerging technologies in the finance function of listed non-financial companies in the Nairobi Securities Exchange (NSE), identify company features and the type of emerging technologies adopted, and identify opportunities for the application of emerging technologies and challenges that hinder the adaption of the emerging technologies. Leveraging the Diffusion of Innovation Theory and Technology Organization Environment Theory, data on company characteristics was collected from primary data sources through a questionnaire administered to the Chief Finance Officers and secondary data from audited financial statements of 34 listed non-financial companies to assess the influence of company characteristics on the adoption of emerging finance technologies through the use of a binary logistic regression model. The findings indicated that the level of usage of emerging technologies in the finance function of listed non-financial companies in the NSE is at the initial phase of development with 21.7% of the companies having adopted the use of emerging technologies. The binary logistic regression model analysis found that company profitability, ownership concentration and ownership concentration and CFO tenure had a negative, relationship with the adoption of emerging finance technologies whilst company liquidity, size age, board independence, number of employees in the finance department, and CFO age had a positive relationship with the adoption of emerging finance technologies and none of the independent variables had a significant relationship with the adoption of the emerging finance technologies. The study also revealed a significant lack of enthusiasm among listed non-financial companies to identify opportunities for adopting emerging finance technologies, citing challenges such as insufficient IT infrastructure, limited awareness of functionalities, and a skills gap, and recommends that Companies invest in foundational tools and necessary talent to reap the potential benefits. This research contributes to the literature on technological innovation and breaks new ground by focusing on non-financial companies listed on the NSE
The Effect of devolved governance on the delivery of health services in Wajir County, Kenya
Get PDFFull - text thesisOne of the key components of the Kenyan constitution is the concept of devolution which emphasizes the bringing of crucial services closer to people at the grassroot level. Devolved governance has been endorsed as a means of reducing inefficiencies when delivering healthcare services besides enhancing responsiveness to community needs. Wajir County was among the counties ill equipped to provide quality health services under the devolved governance structure. Even though studies had demonstrated the connection between devolved governance systems and improved delivery of services including healthcare, county governments in Kenya still grappled with inadequate capacity and resources to effectively deliver. Fewer current studies had been undertaken to examine the impact of devolved governance on health services in resource-deprived Arid and Semi-Arid counties such as Wajir. This study sought to address this gap by assessing the effect of devolved governance on the delivery of health services in Wajir County. The study determined the effect of devolved health staffing, devolved health financing and devolved hospital leadership/management on delivery of health services in Wajir County. The study was anchored on the systems theory and the theory of fiscal federalism. A convergent parallel research design was applied. Target population consisted of county health officials namely 33 county health management team members and 126 public health facility managers. 5 county health management team members were purposively sampled while a census of the 126 public health facility managers was taken. The primary data used was collected using an interview guide and a questionnaire. To analyze the data, qualitative and quantitative techniques were used. Data from interviews was analyzed using content analysis while quantitative data was analyzed through descriptive and inferential. A multiple regression model was used to show the relationship between the study variables. Qualitative findings were presented using narratives and appropriate verbatim quotes while quantitative findings were presented using charts and tables. The study established that devolved health staffing, devolved health financing and devolved hospital leadership/management positively and significantly affected health services delivery in Wajir County. Devolved hospital leadership/management was found to have the largest effect on the delivery of these services. The study therefore, concluded that devolved governance had a positive significant effect on the delivery of health services in Wajir County. Improved devolved governance would boost the delivery of health services in this county. Several recommendations for improvement were proposed. The study recommended that the county government should progressively increase funding to public health facilities. Increased budgets for recruitment of additional staff and facilitating their capacity development were also recommended. Formation of independent hospital management boards, institution of diversified motivation incentives for staff and adoption of efficient funds disbursement mechanisms that incentivized public health facilities to deliver quality and efficient health services were also recommended. It was expected that study findings would serve as a foundation for future studies
Effects of exchange rate volatility on Kenya-China bilateral trade
No full textFull - text thesisDeveloping countries are often associated with trade deficits; Kenya is no exception. Since independence, Kenya has prominently experienced trade deficits, with Kenya's leading partner, China, accounting for over 30% of this trade deficit. Among the factors influencing a country's trade balance, exchange rates are considered fundamental in affecting the level of trade. Despite this, only a few studies have explored the effect of the volatility of exchange rates on trade and trade balance in Kenya, and even fewer studies have examined this relationship by considering Kenya and its leading trade partner, China. This study explored the impact of USDKES volatility and the ensuing implications for this bilateral relationship. Contrary to previous studies in Kenya, this study used disaggregated categorical commodity data to explore Kenya's exchange rate-trade balance nexus. The study was anchored on a positivist research philosophy and employed a descriptive correlational design. The study used the Garch (1, 1) model to model volatility. The ARDL was used to determine the short-run and long-run effects of the exchange rate volatility on imports, exports, and trade balance. The trade data used was for the period ranging from 2005 to 2022. The study's results pointed to an adverse effect of exchange rate uncertainties on imports from China and no significant impact on exports and the bilateral trade balance. The study recommends that the government employ exchange rate policies to reduce the trade deficit level. Additionally, exchange rate policies can promote economic growth in Kenya
Influence of business environmental factors on the rate of cloud computing adoption by commercial banks in Kenya
Get PDFFull - text thesisCloud computing as a technology has received considerable attention in research and is making a significant impact on organizations globally. This is all attributed to the agility it provides in the provisioning of technology services for business operations and adapting to industry changes thus offering avenues for boosting profitability. However, in spite the benefits, the rate of adoption of the technology varies across regions and industries, with some such as the financial services sector though an early adopter has been reported to have low adoption rates, for example, approximately 20 - 40 percent in Kenya. The financial services sector which includes the banking sub-sector, significantly contributes to the global and local economy (approximately 5.5% of the nominal Gross Domestic Product in Kenya in 2022), and views cloud computing as a technology that can unlock capabilities that lead to business transformation thus essential to adaptability. Therefore, this study aimed at assessing how the business environmental factors influence the rate of cloud computing adoption by commercial banks in Kenya. It specifically examined how vendor support, competitive and trading partners’ pressure influence adoption rates. The study was based on a descriptive design anchored on two theories, that is, Diffusion of Innovations and the Technology, Organizational and Environmental framework. Structured questionnaires were distributed to respondents with different roles in all 39 licensed commercial banks to collect the primary data while secondary data was collected from reports of previously concluded studies from the Central Bank of Kenya. Quantitative methods of data analysis, that is, both descriptive and inferential statistics were utilized. The response rate obtained was 62%. Factor analysis and subsequently, ordinal logistic regression found that competitive and trading partners’ pressure negatively influence the rate of cloud computing adoption. More specifically, price competition in the industry and competitive products offered by trading partners only on cloud platforms respectively were the factors that had a significant influence. While two factors associated with vendor support were found to positively influence the adoption rate, that is, the provision for architectural support and the requirement for cloud vendors to provide access to 24/7 cloud support irrespective of severity of the cases. In the last period of one year, the adoption rate was reported as 33% and 40% for general use cloud computing services and business-critical services respectively by the commercial banks in Kenya. There were limitations in the study related to the unavailability of the respondents and the political unrest experienced during the period of data collection, however mitigations such as electronic data collection were implemented. The study recommended that cloud vendors should consider building awareness about their support offerings and tailoring solutions for the banks. Trading partners should consider other incentives or approaches, for example, where there is mutual benefit to be realized, for purposes of adoption of the technology. The findings from this study provide additional insight into what specific aspects of vendor support, competitive and trading partners’ pressure influence the rate of cloud computing adoption, for example, competition on price was found to have a significant negative influence on the adoption rate. It also could provide insights to assist the banks to improve their agility in industrial and customer changes and become more operationally efficient.
Keywords: cloud computing, rate of technology adoption, cloud in commercial banks, cloud in Kenya, business environment, DOI, TO
Factors influencing employee turnover intention in family-owned agribusinesses in Kitui County
Get PDFFull - text thesisEmployee turnover has for long been a problem and costly affair for many organizations. Numerous studies on the reasons for employee turnover have been carried out with major focus on corporates. Whereas family-owned firms face challenges like limited opportunities for non-family employees, family feuds affecting workplace, and preferential treatment for family members, there is scarce information on turnover intention in family-owned businesses specifically those in the agricultural sector. Agribusinesses are faced with retention problem primarily due to the challenging agricultural environment. The study objectives were to investigate the influence of demographic factors, organizational factors and external factors on employee turnover intention in family-owned agribusinesses. The study anchors on two theories; The Adam’s Equity Theory and Herzberg’s Two Factory Theory. A descriptive research design approach was employed. The study was undertaken in three sub-counties within Kitui County; Mwingi West, Mwingi North and Mwingi Central. Data was collected using questionnaires. The study has a target population of 297 employees engaged by family-owned agribusinesses within the study area. 271 employees representing 91.2% of the population responded. Data was analyzed quantitatively using regression by examining the direction and significance of the coefficients. This focused on the theoretical interpretation of these findings. Multiple regression was applied to find correlations between variables under investigation and discussing how the variables were positively or negatively associated in addition to explaining the implications of these relationships in a theoretical manner. The study had several limitations. To start with, the research was constrained by a relatively small sample size, which limited the generalizability of the findings beyond the specific agribusinesses in Kitui County. In addition, the study relied on self-reported data from employees to assess factors influencing turnover intention. This introduced response bias which affected the accuracy and reliability of the results. The study findings show that of all the demographic characteristics, only marital status, salary in Kenya Shillings and tenure had statistically significant effects on employee turnover intention in family-owned agribusinesses in Kitui County based on Levene statistic and Pearson correlation. Furthermore, analysis of variance shows that organizational factors and external factors could statistically and significantly predict turnover intentions among employees in family-owned agribusinesses in Kitui County. This was reiterated by regression coefficients that marital statuses, organizational factors (Pay/remuneration/other benefits, nature of work/job stress, supervision, work environment and organization commitment) and, external factors (perceived alternative employment opportunities and job-hopping) were statistically significant. This shows that family obligations influenced turnover intentions. Also, the work environment and external allures influenced decisions to quit or remain in employment. The study recommends that it is important to have a favourable work environment to motivate employees to remain in employment in family-owned agribusinesses in Kitui County. Family-owned agribusinesses in Kitui County should put in place policies that guarantee adequate employee remuneration to support both individual and family needs. At the same time, these businesses should proactively compare their compensation and benefits with other industry peers to mitigate talent attrition to competitors. Likewise, they should enforce conducive workplace conditions and offer opportunities for personal development to ensure a favorable work environment. Further, implementing continuous benchmarking and improvement policies will enhance the family-owned agribusinesses' attractiveness to potential employees
Assessing the impact of COVID-19 on bank specific factors and credit risk management of Kenyan banks
No full textFull - text thesisThe global financial crisis of 2007 – 2009 was considered the most serious global economic crisis until the COVID-19 pandemic hit in 2020. The COVID-19 pandemic added to the difficult operating environment which occasioned high default rates, hence an increase in credit risk. The main objective of the study was to determine the impact of COVID-19 on bank specific factors that influence credit risk management of commercial banks in Kenya. The bank specific factors studied are liquidity, bank size and age of the bank. There is little empirical evidence on how banks responded with regards to credit risk management during COVID-19 pandemic and studies have also failed to highlight whether the relationship between bank specific factors and credit risk management was the same before and after COVID-19 pandemic. This study was anchored on asymmetric information and credit risk theories. The research philosophy implemented in the study was the pragmatism philosophy and the research design implemented was mixed method research design which combines both qualitative and quantitative research methods. Questionnaires were used to collect primary data and administered through google forms while secondary data was sourced from the annual reports for the period 2019 to 2021. The study’s target population was all the 39 commercial banks in Kenya. The study period was 2019 to 2021 since the study focuses on before and after COVID-19. The data analysis used descriptive statistics, diagnostic tests, correlation, and multiple regression analysis. The study established that bank size, age of the bank and ownership structure do not significantly influence credit risk management before and after COVID-19 except for liquidity ratio where a significant change was noted after COVID-19. The findings of this study can be used by banks’ management and scholars to help them understand the relationship between bank specific factors and credit risk management. The study recommends that commercial banks in Kenya should take stringent measures in implementing credit assessment processes and comply with all established lending requirements to improve financial performance. The bank management should closely monitor the restructured loans and implement debt collection
Effects of dynamic capabilities on performance of travel firms in Nairobi County
Get PDFFull - text thesisOver the recent past, the global business environment has been marked by intense competition and dynamism, with businesses being compelled to adapt and realign their resources as well as capabilities in order to attain superior performance. In Kenya, the travel industry within the tourism sector has been subject to instability, rapid technological shifts and changing consumer preferences. Consequently, in spite of heavy investment in marketing capabilities, travel firms have continued to face dismal performance. It was therefore important for the travel firms to develop and maximize on dynamic capabilities so as to attain superior performance in the wake of such environmental dynamism. This study examined the effects of dynamic capabilities on the performance of small and medium-sized travel firms in Nairobi County, with the moderating effects of firm characteristics. The study was anchored on the Resource-Based View and the Dynamic Capabilities Approach. This study utilized judgement sampling where primary data was collected through self-administered questionnaires. The research population consisted of 350 tour operators and travel agents, from which a sample size of 129 was under study. The research response rate was approximately 56%, which accounted for 72 out the 129 travel firms in the sample space. Descriptive data was presented using bar graphs and pie charts. Data analysis was done through Spearman’s rho correlation analysis and multiple regression analysis. The research established that there was a significant positive relationship between dynamic capabilities, namely innovation capabilities, learning capabilities and resource reconfiguration capabilities, and the performance of small and medium-sized travel firms in Nairobi County. The moderating variable of firm characteristics (firm age and firm size) had significant effect on the relationship between dynamic capabilities and firm performance, and therefore moderated the relationship