Firms In Kenya Research Articles

Supplier Visibility in Supply Chain Network and Firm Performance: A Study in Kenya’s Manufacturing Sector

The aim of this study was to establish the effect of supplier visibility on the performance of manufacturing firms in Kenya. The study was anchored on supply chain planning theory. The study utilized a cross-sectional research design. The target population was 561 respondents drawn from the 187 large manufacturing firms in Kenya. Using a stratified random sampling, a sample of 228 respondents was selected. A questionnaire was used to collect data for the study. The data was analyzed using SPSS version 27. The findings revealed that supplier visibility was not effectively embraced among the manufacturing firms in Kenya. The results further revealed that supplier visibility had a significant relationship with performance of manufacturing firms in Kenya (β=0.769; P<0.05). The study concluded that manufacturing firms were declining in performance as a result of inefficient supply chain process and failure to enhance supplier visibility. The study recommended that there is need for managers in supply chain among the manufacturing firms to enhance supplier visibility by incorporating suppliers in their supply chain network planning for them to meet customer needs and promote their performance.

Influence of Novelty Centered Business Model Innovations on the Performance of Manufacturing Firms in Kenya

Strategic management scholars agree that innovation in business models is essential for long-term survival in challenging commercial environments. The study was designed to determine the influence of novelty centered business model innovation on the Kenyan manufacturing companies’ performance. The study was anchored on diffusion of innovation theory. The study adopted the descriptive research design and positivism philosophy that was aligned to the classical scientific method of research inquiry. Multi-stage sampling method was adopted to collect data from top management team in the manufacturing sector using a semi- structured questionnaire. The data was analysed using descriptive analysis techniques such as mean, percentages and standard deviation. The study established that novelty centered business model innovation positively and significantly influenced manufacturing firms’ performance. The study recommends that manufacturers should endeavour to innovate their business models in order to achieve superior long-term performance. The study findings inform the extent to which novelty centered business model innovation predicts the performance of manufacturing firms.

Strategic Collaborations and Performance of Oil Marketing Firms in Kenya

Purpose: Little attention has been paid to the effect of strategic collaboration on performance of oil marketing firms in Kenya. As a result, it is vital to investigate the effect of strategic collaboration on performance of oil marketing firms in Kenya. The study's particular aim was to investigate the impact of strategic alliances, mergers and acquisitions, franchising, and joint ventures on performance of oil marketing firms in Kenya. Four theoretical reviews are included in this research paper: Resource Based Theory, Transaction Cost Theory, Trust Theory and Dynamic Capability Theory. Methodology: Using descriptive research approaches, this study evaluated the data and offered findings. Over a certain time period, data was collected from oil marketing firms in Kenya. The research relied on primary data gathered via structured questionnaires as well as secondary data. The study's target population was Kenya's oil marketing firms in Kenya. The study also used stratified random sampling. The study's data was collected using Google forms and sent through email. The questionnaire data was sorted, classified, and analyzed using Statistical Packages for Social Sciences (SPSS). Findings: finding demonstrate that savvy partnerships among Kenyan oil marketers improve performance. Businesses appreciate shared storage, cooperative networks, and specialized service sharing for increasing operational efficiency and competitiveness. Statistical analysis reveals that these partnerships influence company performance, accounting for 81.5% of the variance, with a strong correlation coefficient (R = 0.903) and a substantial ANOVA F-value. Unique contribution to theory, Policy and Publication: To obtain additional information and draw meaningful conclusions about the variables of interest, descriptive studies was conducted where survey was used to provide a snapshot of the population. Tables was used to display the data. This study will be useful to academics and researchers in finance and economics.

Strategic Agility and Sustainable Competitive Advantage: How to Leverage Top Management Team Characteristics

Purpose: Ubiquitous disruptive innovations and technologies, frequently changing consumer behaviour, and evolving market dynamics in Kenya, have compelled television stations to constantly explore innovative ways to achieve long term business sustainability. Firms must be ambidextrous; balancing the tensions of excelling in current businesses while exploring opportunities for future growth. This requires top leadership teams that are well suited to the challenge of steering organisations in disrupted business contexts. This paper investigated the effect of top management team characteristics on the linkage of strategic agility and sustainable competitive advantage of licensed television stations in Kenya. Methodology: A descriptive cross-sectional survey was employed and primary data was collected using a semi-structured questionnaire. Data from 210 licensed television stations that were operational at the time of the study was analysed using structural equation modelling (SEM). Findings: The results of the study indicated that strategic agility had a positive and significant effect on sustainable competitive advantage of licensed television stations in Kenya. Further, top management team characteristics were a mediator on the nexus between strategic agility and sustainable competitive advantage, as well as a predictor variable of sustainable competitive advantage of licensed television firms in Kenya. Unique Contribution to Theory, Practice and Policy: The research was underpinned by the dynamic capabilities, resource-based view and upper echelons theories. The implication is that, to achieve sustainable competitive advantage, it is crucial for the top management team to possess specific attributes, including a balanced mix of both young and experienced members, diversity in functional backgrounds (especially those with knowledge of disruptive technologies and innovations), varying educational levels, and a mix of long-tenured and new managers.

Effect of Green Supply Chain Innovation Alliance on Performance of Manufacturing Firms in Nairobi County

Purpose: The general objective of the study was to determine influence of green supply chain innovation alliances on performance of manufacturing firms, in Nairobi County Kenya. Methodology: The study was informed by Social Exchange Theory, Transaction Cost Theory, Resource-Based view and Resource Dependency Theory. The research design for this study was an explanatory survey research design; this is primarily a positivism approach. The population for the study will constitute manufacturing firms in Kenya. Thus, the unit of observation was 516 procurement managements from 516 manufacturing firms. The research employed stratified and simple random to select a sample of 225. This study used structured questionnaires to collect data relevant to the study. Descriptive analysis such as means, standard deviation and variance. Findings: linear regression models showed that green supply chain innovation alliances have a positive and statistically significant influence on firm performance, highlighting their essential role in enhancing success for manufacturing firms. A strong partnership with suppliers and specialized expertise in green supply chain management are crucial for this improvement. Unique Contribution to Theory, Practice and Policy: Therefore, the study recommends that organizations actively strengthen their green supply chain innovation alliances by establishing joint sustainability initiatives and creating regular collaboration forums with suppliers to share best practices and innovative solutions.

Influence of Knowledge Capabilities on Performance of Kenyan Fintech Companies

Purpose: The purpose of the study was to examine the influence of knowledge capability on performance in Kenyan fintech companies. The research questions that guided the study were to establish the influence of knowledge acquisition, knowledge assimilation, knowledge transformation and knowledge exploitation on performance of Kenyan fintech companies. The theoretical review of the study used the dynamic capabilities theory. Methodology: The study adopted a descriptive research design with a target population of 850 employees at management level working at 85 Kenyan fintech companies. Stratified random sampling technique was used to select a sample size of 272 management level employees. Primary data was collected using a questionnaire and analysed using descriptive and inferential statistics. The statistical package for the Social Science was used as a data analysis tool and thereafter the data was presented in figures and tables. Findings: Findings on the first research question, indicated that there was a negative correlation between fintech performance and knowledge acquisition capability. The multiple linear regression results revealed that knowledge acquisition had no statistically significant influence on the performance of fintech. The results from the regression coefficients indicated that knowledge acquisition capability did not significantly predict the performance of fintech firms in Kenya. For the second research question, the correlation analysis findings indicated that knowledge assimilation capability had a negative relationship with performance of the fintech companies. The regression coefficient results indicated that knowledge assimilation capability did not significantly predict the performance of fintech organizations in Kenya. Regarding the third research question, correlation results noted that knowledge transformation capability had a negative relationship with performance of fintech firms. Findings of the regression coefficients indicated that knowledge transformation capability significantly did not predict performance of fintech organizations in Kenya. On the last research question, correlation results revealed that knowledge exploitation capability had a negative relationship with performance of fintech firms. Regression coefficients result indicated that knowledge exploitation capabilities did not significantly predict the performance of fintech firms in Kenya. Unique Contribution to Theory, Policy and Practice: The study concluded that knowledge capabilities did not significantly influence the performance of Kenyan fintech companies. This is mainly attributed to the other elements and factors that influence performance more. The study recommends that fintech institutions should increase their focus on knowledge capabilities to compete sustainably in turbulent business environments. Fintech organizations can fully exploit the knowledge they receive to effectively achieve strategic objectives. Additionally, due to other factors being more influential in predicting performance, further research is required with these additional variables considered.

Influence of Innovation Strategies on the Performance of Insurance Firms in Kenya

Influence of Innovation Strategies on the Performance of Insurance Firms in Kenya

THE RELATIONSHIP BETWEEN SUSTAINABLE MANUFACTURING OPERATIONS AND ENVIRONMENTAL PERFORMANCE OF PLASTICS AND RUBBER MANUFACTURERS IN KENYA: THE MODERATING EFFECT OF ECO-INNOVATIONS

Objective: This study aimed to expose the effect of sustainable manufacturing operations on performance of plastics and rubber manufacturing firms in Kenya. Theoretical Framework: The main concepts and theories that support the research were conveyed. The study employed the natural resource-based view and ecological modernisation theory. Method: The study employed descriptive research survey that targeted all the 90 plastics and rubber manufacturing firms registered by the Kenya Association of manufacturers. A structured questionnaire as well as a data collection form were useful in collecting data. For data analysis descriptive and inferential statistics were used with the precise inclusion of partial least squares structural equation modeling method. Results and Discussion: There was a statistically significant influence of eco-innovations on the effect of sustainable manufacturing operations on environmental performance. However, the individual eco-innovations indicators namely eco-product innovations, eco-process innovations, green system innovations and material flow innovations yielded varied results. Research Implications: The findings confirm previous studies that indeed there are positive gains made from the moderating role of eco-innovations in the correlation between sustainable manufacturing operations and performance of the environment. Originality/Value: These results are expected to benefit stakeholders such as policy makers in government, plastic and rubber manufacturers and academia in augmenting the existing knowledge.

Influence of Infrastructural Choices Strategy on Organizational Performance of Cements Manufacturing Firms in Kenya

Purpose: To determine the influence of infrastructural choices strategy on organizational performance of cements manufacturing firms in Kenya. Methodology: A mixed methods approach was used in the investigation. The study utilized a concurrent triangulation research design. The unit of analysis comprised of seven (7) cement manufacturing firms, targeting all the 4192 employees from where a sample size of 365 employees was drawn. The data collection tools comprised of semi-structured questionnaires and interview guides. The interview guide was administered to the CEOs while the questionnaires were administered to the managers and non-managers. The study tools were piloted to assess their validity and reliability. The data was then analyzed both descriptively and inferentially using SPSS version 27. Quantitative data was analyzed using means and standard deviations while qualitative data was analyzed using content analysis. To make the number of variables more manageable, the data was subsequently subjected to exploratory factor analysis. Findings: The results of the study revealed that infrastructural choice strategies have been employed by cement manufacturing firms to a good extent. The regression results obtained also led to the rejection of the null hypotheses since infrastructural choice strategies were found to have a positive and significant influence on organizational performance. Unique Contribution to Theory, Policy and Practice: The study recommended, based on these results that the management of individual cement firms need to identify appropriate infrastructural choice strategies and leverage on them in order to achieve efficient and effective utilization of their scarce resources at organizational level.

Effect of Recognition Practices on Employee Engagement in Fairtrade Horticultural Firms in Kenya

While most people understand that engaged employees are often happier and more satisfied in their job, the main reason that engagement is now a focal point is because it leads to real business results. Emotional states are hard to understand and measure. Employees are becoming key business drivers for any organization. The objective of the study was to determine the effect of compensation system on employee engagement in Fairtrade horticultural firms in Kenya. The study was guided by expectancy theory and social exchange theory. A cross-sectional descriptive survey research design was adopted. The study targeted 17 fairtrade horticultural firms as unit of analysis and 5,600 employees as the unit of observation. The sample size was 373 respondents drawn from low level, middle level, and top-level management. The study relied mainly on primary data. The study adopted stratified and simple random sampling techniques. After the stratification of the respondents into strata, simple random sampling was adopted to pick up the respondents. The researcher used questionnaire as the research instrument. Descriptive and inferential analysis were computed using SPSS version 26. In order to analyze the relationship between the independent variables and the dependent variable the study used regression analysis at 5% level of significance. Specifically, simple linear regression analysis. The findings indicated that recognition system has a positive and significant effect on employee engagement in Fairtrade horticultural firms in Kenya. The study concluded that recognition system contributes significantly to the employee engagement in Fairtrade horticultural firms in Kenya. From the results, the study recommends that top management horticultural firm should come up with well-defined structure that will regularly recognize employees with exemplary performance in various categories. This kind of recognition by the management as well as their supervisors would make employees feel appreciated for their input and therefore, help the organization to achieve their goals.

Effect of Capital Deductions on the Financial Performance of Listed Companies at the Nairobi Securities Exchange in Kenya

Purpose: Shareholders’ wealth maximization is a priority objective of every corporate entity. The issue of corporate tax planning and firm value is gaining relevance following the recent financial crises which resulted in the increasing collapse of global and local companies. The purpose of this study was to investigate the effect of capital deductions on the financial performance of companies listed at the Nairobi Securities Exchange (NSE) in Kenya. The study was anchored on signaling theory. Methodology: The study adopted both explanatory and longitudinal research. Secondary data for the study for the period between 2013-2022 was extracted from annual financial statements of 57 listed firms targeted for analysis. The data for the study was analyzed through descriptive and inferential statistics using statistical techniques including Pearson correlation coefficient and regression analysis. All the analyses were done using the STATA version 13.0 Pearson correlation results revealed a significant association between study variables and financial performance. Multiple Linear regression model was used to analyze relationships and the effect of the study variables. Results: The study findings established that capital deductions (β = 0.844, p-value = 0.000, <0.05) have a positive and significant effect on financial performance. The study contributes to knowledge by revealing new insights that tax planning has a significant effect on financial performance of listed firms in Kenya. Specifically, it was established that capital deductions have a significant effect on financial performance of listed firms. Conclusion: The study concludes that a holistic approach to tax planning and an optimal mix of tax planning strategies are important determinants and have a positive contributory effect on firm performance. The study recommends that companies’ management should strive to have an in-depth understanding of tax laws to take advantage of every opportunity that will reduce their tax liability thereby increasing their returns and value. The future researchers should explore the effect of Indirect tax incentives on financial performance.

Influence of Asset Quality on the Financial Performance of Insurance Companies in Kenya

The research aimed to investigate the influence of asset quality on the financial performance of insurance companies. The study was anchored on the efficiency structure theory. Positivism research philosophy was employed with a descriptive research design that targeted a population of 56 general insurance and life insurance firms in Kenya. Secondary balanced panel data spanning 15 years from 2008 to 2022 was also used in the study. The secondary data was sourced from the financial statements of the firms and industry publications from the Insurance Regulatory Authority (IRA). The quantitative data collected was analyzed using descriptive statistics inform of percentages, frequencies, mean, and standard deviation. Additionally, a balanced dynamic panel data regression model was performed. Prior to fitting the panel regression model, diagnostic tests were undertaken to evaluate linearity, stationarity, normality of residuals, serial correlation, and homoscedasticity. The research included 41 insurance firms that met the inclusion criteria. The study results determined that asset quality has a statistically significant and negative influence on the financial performance of insurance companies in Kenya (β = -0.1956, t = -2.93, p = 0.003). The study concluded that asset quality is a collective consideration of diversification, liquidity, risk and liability profiles and thus plays a crucial role in influencing profitability. The study recommends that additional regulations should be instituted by the IRA that entail developing a range of targets on each of the aspects of asset quality.

Role of Market Orientation on Competitiveness of Manufacturing Firms in Kenya

In order to be competitive, manufacturing firms have to embrace and undertake strategies that will make them perform exceedingly better than their rivals in the market. Such kind of strategies to be undertaken calls for the firm to make decisions and have principles that will direct their activities and generate a behaviour that is intended to propel the firm in the market-place. In this regard the main focus of this study was to examine the role of market orientation and moderating influence that top management commitment have on competitiveness of manufacturing firms in Kenya. Theoretically, this study was grounded on resource-based and upper echelon theories, and a descriptive survey design was adopted, which targeted 134 manufacturing firms registered members of the Machakos and Central Kenya Chapters of Kenya Association of Manufacturers. A census was undertaken of all the 134 firms that are members of the two chapters. Primary data was collected using a semi-structured questionnaire that were semi-structured questionnaire that was administered to the Chief Executive Officers/Directors of the firms under the study of which both quantitative and qualitative data was generated. To determine the relationship that exist between the variables regression analysis was used while Analysis of Variance (ANOVA) was used to determine the relationship between independent and dependent variables. The overall study findings revealed that market orientation had a positive and statistically significant role on competitiveness of manufacturing firms in Kenya and top management commitment had a positive moderating role. The study findings also noted that firms that are market-oriented have developed mechanisms that gather information about the customer continuously and are able to implement various strategies aimed at improving their competitiveness. Based on the findings, the study concluded that the competitiveness of manufacturing firms in Kenya depends not only on how they determine the needs and wants of the consumer but also on how effectively and efficiently they deliver satisfaction to them.

Supply Chain Management Practices and Organizational Performance: The Moderating Role of Competitive Edge

Organizational performance is a cornerstone of any thriving institution, serving as a critical measure of how effectively an organization meets its goals and fulfills its mission. Higher performance which is the desire of many organizations is characterized by their strategic vision, cohesive culture, and resilient processes, which collectively drive sustainable success. Non-achievement of organizational goals by textile firms can manifest as a result of discrepancies between the organization’s strategic objectives and the supply chain’s operational goals. The research therefore sought to assess the role supply chain management practices on organizational performance, moderated by the competitive edge of textile firms in Kenya. The study specifically sought to determine the effect of green procurement, reverse logistics, and outsourcing on organizational performance moderated by competitive edge. The study was guided by Just in Time Theory, Theory of Constraints, and the Resource Based View Theory. Explanatory research design was used and a sample of 216 heads of logistics and procurement departments was used, for a total of 52 textile firms in Kenya. The findings showed that green procurement (β1=0.282, p<0.05), reverse logistics (β2=0.287, p<0.05) and outsourcing (β3=0.331, p<0.05) had a positive and significant effect on organizational performance. Competitive edge enhances the relationship between green procurement (β=-0.069; p<0.05), reverse logistics (β=-0.137; p<0.05), outsourcing (β=-0.122; p<0.05) and organizational performance. Boosting competitive edge makes the supply chain efforts more effective in improving firm performance. Organizations should leverage on competitive edge to enhance the impacts of green procurement, reverse logistics, and outsourcing on performance.

Strategic Drivers for Sustainable Competitiveness in the Alcohol Manufacturing Firms in Kenya: A Case of East African Breweries Limited

Strategic Drivers for Sustainable Competitiveness in the Alcohol Manufacturing Firms in Kenya: A Case of East African Breweries Limited

Equity Investment and Financial Performance of Listed Investment Firms in Kenya

Equity Investment and Financial Performance of Listed Investment Firms in Kenya

Knowledge Audit and Transient Competitive Advantage in Textile Manufacturing Firms in Kenya

Knowledge Audit and Transient Competitive Advantage in Textile Manufacturing Firms in Kenya

Effect of Current Asset Structure on Financial Performance of Non-Financial Firms Listed at Nairobi Securities Exchange

The effect of current asset structure on the financial performance on organizations cannot be underrated. This study focused on non-financial firms listed at the Nairobi Securities Exchange in Kenya. The study used a census survey which involved the consideration of the entire population of the study. The research study was anchored on trade-off theory, agency theory and pecking order theory. The research study generally followed a longitudinal research design. The positivism research philosophy was adopted in the study. The unit of analysis comprised the non-financial firms listed at the Kenyan NSE between years 2011 to 2020 with a focus on 30 non-financial listed companies. The study applied both descriptive statistics and multiple regression methods in analysing the data collected. The study established that current asset structure was significantly influencing the financial performance of listed nonfinancial firms in Kenya.

HERDING BEHAVIOUR MARKET INFORMATION AND INDIVIDUAL INVESTOR DECISION-MAKING AT THE NAIROBI SECURITIES EXCHANGE

This paper examined the relationship between herding behaviour and individual investor decision-making at the Nairobi Securities Exchange. In addition, the study assessed the moderating effect of market information on the relationship between herding behaviour and individual investor decision-making at the Nairobi Securities Exchange. The study was anchored on behavioural finance theory and was guided by a correlational research design. The study's target population was 2.03 million individual investors who traded at the Nairobi Securities Exchange through the 17 licensed brokerage firms in Kenya. A structured questionnaire was used to collect data and Internal consistency of the instruments was measured using Cronbach’s alpha coefficient, where a coefficient of 0.865 was obtained. The obtained data was analyzed descriptively using frequencies, means, and standard deviation and inferentially by correlation and multiple regression models. The findings revealed that herding behaviour (r = 0.235; β =0.180 p<0.05) had a positive and significant relationship with individual investor decision-making. Jointly, the study established that herding behaviour explains a 59.6% change in individual investor decision-making. In addition, the study established that market information had a positive significant moderating effect on the relationship between herding behaviour and individual investor decision-making as the moderator increased the R2 from 59.6% to 61.0%, which is an R-square change of 1.4%. The study concluded that herding behaviour had a significant relationship with individual investor decision-making at the Nairobi Securities Exchange. The study recommended that investors understand market trends, financial statements, and economic indicators and continue seeking advice from financial experts. NSE should also provide regular market analysis, ensure transparency in market operations to build investor confidence and introduce investment products that cater to different risk profiles, such as low-risk mutual funds. The findings of the study could be of significance to policymakers, financial experts, academicians, scholars, and theoretical developments.

Insurance Product Innovation as an Entrepreneurial Innovation and Its Role In The Performance of Insurance Brokerage Firms in Kenya

Insurance Product Innovation as an Entrepreneurial Innovation and Its Role In The Performance of Insurance Brokerage Firms in Kenya