17 research outputs found
The Influence of the External Environment on the Performance of Publicly Quoted Companies in Kenya
No full textThe Influence of the External Environment on the Performance of Publicly Quoted
Companies in KenyaThis study investigated the effect of the external environment on corporate performance. Based
on a survey of 23 companies listed on the Nairobi Stock Exchange, three environmental
dimensions of complexity, dynamism and munificence were used to describe Kenya’s business
environment. Performance implications of these environmental dimensions were then examined.
The study reports that for the surveyed companies, varying degrees of external environmental
complexity, dynamism, and munificence exist which tend to be mostly manifested in economic
factors, competitive rivalry, market factors, technological factors, regulatory factors as well as
threat of new entrants. Consequently, these factors appeared to have great influence in the
companies’ strategic decision making. However, the overall results for the effect of external
environment on corporate performance were statistically not significant. Based on the findings,
implications of the study and suggestions for further study are presented
Product Innovation and Performance of a Kenyan Medium Sized Company
No full textInnovation has been touted to be the central catalyst of entrepreneurship. This view has dominated research in start-ups as well as small and medium enterprises. Therefore, the relationship between innovation and firm performance has been a subject of interest to many researchers and policy makers. Through a longitudinal approach, this study investigated the influence of product innovation on the performance of Haco Tiger Brands, a medium sized fast-moving consumer goods (FMCG) company in Kenya’s East Africa market. The study looked at the product innovation activities within the company for a period of 7 years for a total of 35 products across the five major brand categories of the company. Using a secondary data capture form, data on sales revenues for both the company and innovated products for the past 7 years was obtained. Data on the innovated products launch time and type of innovation was also obtained. Using time series and linear regression analysis, the results indicate that the total company sales revenues less innovation grew at a slower rate of 50% as compared to growth when product innovation sales revenues were included in the total company sales revenues accounting for a faster sales growth rate of 76%. The influence of product innovation on performance was statistically significant (p<0.05) accounting for 92.19% variation in performance. These findings provide irrefutable empirical basis that product innovations have significant revenue growth rates, hence the need for managers of medium sized companies to invest in research and development to sustain product innovation and spur growth. The results sit well within theory and other empirical studies with additional contribution to methodology. Based on the study limitations, further areas for research have been suggested
Factors that affect development of affordable housing in Nairobi County
Full text linkA Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business SchoolThe challenge of affordable housing remains front and central not only in developing but also in established economies. It is however more pronounced in the former than the latter countries given the economic hardships faced by a relatively higher population. In Kenya, recent developments – such as the 2018 signing of a memorandum of understanding (MOU) between the United Nations Office for Projects Service and the Government of Kenya indicate that initiatives are in place to address the challenge in the near future. However, despite government efforts, there are still over 2.2 million households without affordable housing. The author appreciates that such mainstream factors as inaccessibility to bank financing, prohibitive cost of building materials and government taxation are well researched. However, the impact of factors such as access to alternative financing options, use of nascent building technologies and unconventional government interventions, remain unaddressed. The objectives of this research therefore were; to establish the impact of alternative financing methods on provision of affordable housing in Nairobi County, to determine the impact of modern building technologies on provision of affordable housing in Nairobi County and to assess the impact of government interventions on the provision of affordable housing in Nairobi County. The researcher sought to collect data from 87 registered property developers in Nairobi County using structured questionnaires and to apply the use of multiple linear regression to assess the relationship between the variables. Given the three considered factors, access to alternative financing had the highest impact on the provision of affordable housing with modern building technologies presenting as the second most influential factor. Contrary to the researcher’s expectations and extant literature, government interventions were deemed to be of trivial and unverified impact – at the 95% confidence level – on the provision of affordable housing in Nairobi County
Organizational Resources and Performance of Kenyan State Corporations
Full text linkOrganizational resources have been posited to influence organizational performance. However, this position has been largely tautological with need for more empirical grounding. The postulations of resource based theory confer a significant effect of resources on organizational performance only when they possess some strategic characteristics. In spite of this postulation, comparative management advances an argument that management is sensitive to the context in which it is practiced; hence empirical testing of the postulation is inconclusive. This study tested the influence of organizational resources on the performance of Kenyan state corporations. Through a crosssectional descriptive survey, data on resources and performance were obtained from 63 Kenyan state corporations and analyzed using both descriptive and inferential statistics. The findings report a statistically significant relationship between aggregated organizational resources and performance. However, organizational resources could only explain 8.3 percent of performance of Kenyan state corporations. Results of the independent effect of disaggregated organizational resources indicated statistically significant effect of tangible, human and intangible resources on performance. Statistically not significant results were reported for the effect of organizational capabilities on performance. The findings provide partial empirical support for the Resource Based Theory by supporting the postulations that resources possessed by an organization influence performance by establishing the independent contributions of each resource to performance. It has offered direction for dayto- day managerial practice as well as policy direction at both organizational and government levels. At managerial level, practitioners may consider strengthening resource integration, renewal as well as recombination for stellar performance. Government policy should be focused towards encouraging resource acquisition, integration, configuration, and combination that would have a stronger influence on performance. From the limitations of the study, areas for further research have been pointed out
An Interrogation into Strategy-Technology Linkage at the Department of Immigration Services, Kenya
Full text linkThere exists a debate on the nature of strategy-technology linkage. Consensus is lacking on whether strategy informs technology, whether technology informs strategy, whether strategy and technology develop independently but match at a later stage, and whether there is no linkage between strategy and technology. This study aimed to find out the extant nature of strategy-technology linkage at the Department of Immigration Services, Kenya. Through a case study research design, primary data were obtained through personal interviews using a structured interview guide. The interviewees were top level managers comprising of the Director of Immigration Services and Assistant Directors of Immigration Services in charge of regions namely: Coast, Eastern, North Eastern, South Rift/Nairobi, North Rift/Western and Nyanza. The study also made use of secondary data from documents in the Department. The data gathered were then analyzed using thematic content analysis. The findings revealed presence of strategytechnology linkage at the Department of Immigration Services, Kenya. The nature cuts across the four thematic areas, but leans more towards strategy informing technology. Incidences supportive of the finding that technology informs strategy, strategy and technology develop independently but match at a later stage and no linkage between strategy and strategy were found but not as recurrent as those of strategy informing technology. The study findings largely support postulations of Configuration and Resource Based theories. The study concludes that strategy informs technology at the Department of Immigration Services, Kenya. For policy making, the study recommends the Department of Immigration Services expends more effort to develop a robust strategy that will inform appropriate technology with selective juxtapositions of technology informing strategy where necessary. For practice, the study recommends strategy-technology linkage that fits the environmental setting with a keen eye on the ever changing environment. The study acknowledged limitations on the contextual setting, design, data collection and analysis methods. The design was a case study which means findings might not be generalized. Data collection was through interviews and analysis was through content analysis, both viewed as largely subjective. Interviews were administered to only the top management within the department. Lower cadres were not represented. The study suggests for further research on the subject through different contextual settings, different designs and different instruments
Challenges of Implementing Consortium Strategy in Development Projects at ViAgroforestry, Kenya
Full text linkConsortium strategy involves an arrangement in which organizations develop, utilize and amalgamate structures, cultures, and operational systems to support competitiveness in delivery of service in a dynamic environment. This study sought to investigate challenges of implementing consortium strategy and measures to mitigate the challenges at ViAgroforestry, Kenya. Through a case study design both primary and secondary data were gathered through personal interviews and analysis of relevant documents respectively. Content analysis was used to analyze data. The study established that, both internal and external factors affected effective consortium strategy implementation at ViAgroforestry. The external factors that affected strategy implementation included social-cultural, political, economic, and technological factors. The internal factor included leadership and management styles, competency of employees among the partner organizations, lack of employee commitment to consortium operation, lack of adequate financial resources, unclear implementation guidelines and inconsistency in deployment of employees to support consortium. The mitigation measures to deal with the challenges include building employee competencies and confidence, setting up and reinforcing clear guidelines for selecting, recruiting and exiting partners in the consortium, mobilization of adequate financial resources, enhanced integration of Information Communication Technology (ICT) within the operating systems, and democratic style of management among partners. It was recommended that ViAgroforestry, Kenya should align organizational structure, provide adequate resources, build employee competencies and set and reinforce clear guidelines for operations while integrating ICT in its operations for effective consortium strategy implementation. In view of the limitations of the study, further research has been suggested on evaluating performance of consortium strategy implementation at ViAgroforestry, Kenya
Strategic Leadership and Organizational Performance: A Critical Review of Literature
Full text linkEffective strategic leadership is considered as a major ingredient for the successful performance of any organization operating in the ever dynamic and complex environment of the 21st century. In the context of information uncertainty and resource scarcity, strategic leadership is required to confront the reality of environmental turbulence and a continuous need for appropriate organizational change in order to achieve performance goals. Most of the conceptual and empirical studies have shown that strategic leadership actions significantly influence performance. Despite its importance, studies have demonstrated that the influence of strategic leadership on organizational performance is contingent upon situational constraints or random effects. To date, very little empirical research has analyzed the direct and indirect relationship between strategic leadership, external environment, organizational change and performance. This paper seeks to unearth this research gap by critically reviewing relevant conceptual and empirical literature to bring out the possibility that the external environment and organizational change could influence the relationship between strategic leadership and organizational performance. The paper advances the emerging postulations which anchor a conclusion that the direct effect of strategic leadership on performance is contested and hence inconclusive due to possible moderating and mediating influence of the external environment and organizational change respectively. It is hoped that the paper’s postulations would guide empirical research in various contexts to hasten addressing of the extant knowledge gaps
Response Strategies by Commercial Banks to Economic Changes in Kenya
Full text linkDynamic environment changes impact on organizations goals and objectives and this makes it difficult for organizations to remain viable. To be able therefore to stay ahead of competition, it’s imperative for the organizations to continually scan the environment so that the organizations adjust their strategic responses to accommodate the demands of the environment. The appropriate response strategies guarantee a competitive edge that ensures the organizations remain relevant. This study examined the strategies used by commercial banks in Kenya to respond to changes in the economic environment. A sample of thirty five banks was used and primary data collected using questionnaires administered to the managers of the banks who are responsible for developing response strategies. Secondary data was obtained from the banks’ existing bank publications and annual reports. The study established that the commercial banks have been able to respond to the changes in their environment through retrenchment strategies which involved cutting operating costs and divestment of non-core assets. They have also responded to the environment using various investment strategies which contrast with retrenchment and as such firms perceive these changes as opportunities to invest, innovate and expand into new markets in order to achieve or extend a competitive advantage. It was also established that ambidextrous strategies have been used where organizations combine incremental change with discontinuous change, or the exploitation of existing resources to improve efficiency. This occurs through exploration of new sources of competitive advantage and innovation. It is recommended that in order to stay ahead of competition, commercial banks should continuously scan the environment aggressively and speed up implementation of various strategies. Key words: Response strategies, commercial banks, economic changes
Firm-Level Institutions and Performance of Publicly Quoted Companies in Kenya
No full textFirm-level institutions constitute the internal organizational environment which define the context in which
strategic decisions are made and implemented. Effective and successful strategy implementation requires apt
institutionalization of the strategy. Logically, firm-level institutions have an indirect effect on corporate
performance through their direct effect on strategy implementation. In this study, a direct effect of the firm-level
institutions on corporate performance was investigated. Based on a survey of 23 companies listed on the Nairobi
Stock Exchange, ten firm-level institutions were captured under two broad dimensions of administrative systems
and resource competencies. Performance implications of these firm-level institutions were then examined. The
study reports that for the surveyed companies, most of the firm-level institutions were manifest to a large extent.
The results also indicate that a very strong positive relationship exists between firm-level institutions and various indicators of corporate performance. However, the overall results for the effect of firm-level institutions on
corporate performance were statistically not significant. The results partially concur with pertinent theories as
well as similar empirical studies. Based on the findings, implications for theory, methodology, and managerial
practice as well as areas for further study are identified
Exploring Resources and Performance Relationships in Commercial Enterprises: An Empirical Perspective
No full textJournal article AbstractDespite a growing body of literature on firm performance, explaining why firms in the same industry and markets
differ in their performance remains a fundamental question within strategic management field. Researchers have
attributed differences in firm performance to resources owned by a firm but the results remain fragmented and no
consensus has yet emerged. Therefore, the debate is still open and this study sought to contribute to the debate and
address extant gaps. This study investigated the influence of organizational resources on performance of insurance
companies in Kenya. The study was based on a survey of 46 insurance companies in Kenya. The study reports that both
tangible and intangible resources have a statistically significant influence on non-financial performance of insurance
companies in Kenya. However, there were mixed findings as regards the individual influence of resources on various
firm performance indicators. Intangible resources evidenced statistically not significant results individually but when
combined, they had a statistically significant influence on non-financial performance. The reverse was true for tangible
resources. Based on the findings, implications of the study and suggestions for further study are presented
