Peter Karugu Kahihu, David Muturi Wachira and Stephen Makau Muathe
The purpose of this study was to investigate on managing market risk and financial performance, experience from microfinance institutions (MFIs) in Kenya.
Abstract
Purpose
The purpose of this study was to investigate on managing market risk and financial performance, experience from microfinance institutions (MFIs) in Kenya.
Design/methodology/approach
This study used positivism philosophy and used explanatory non-experimental research designs. The targeted population was all the 13 registered deposit-taking MFIs in Kenya and a census approach was used. The study used secondary data which was collected and analyzed from microfinance Institutions annual audited financial reports for the period between 2014 to 2018. This study was anchored on two theories, namely, resource-based value theory and extreme value theory.
Findings
The results indicated that interest rate and financial leverage risk had a positive significant effect on the financial performance of MFIs in Kenya. Foreign exchange risk was found to have a negative significant effect on the financial performance of MFIs. However, inflation rate risk was found to have no significant effect on the financial performance of MFIs.
Research limitations/implications
This study recommended that the chief executive officers of MFIs should use the mechanism of identifying market risk variables, especially Interest rate, financial leverage and foreign exchange risks to enable them to put the necessary measures to mitigate those risks and enhance the financial performance of MFIs in Kenya.
Originality/value
This study is unique as it touches the microfinance industry which has a steady fast growth in assisting accessibility of financial services to small and medium enterprises. Most of the previous study concentrated on other industry in the financial sector.
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Jackie Douglas, David Muturi, Alexander Douglas and Jacqueline Ochieng
The purpose of this paper is to examine the role of organisational climate in readiness for change (RFC) with particular focus on Lean Six Sigma (LSS) and to develop and…
Abstract
Purpose
The purpose of this paper is to examine the role of organisational climate in readiness for change (RFC) with particular focus on Lean Six Sigma (LSS) and to develop and operationalise an instrument to measure organisational climate to determine the organisational readiness of the Kenya Institute of Management (KIM) to progress to the next stage of the LSS implementation lifecycle.
Design/methodology/approach
A case study outlining the KIM journey to LSS is described. A quantitative survey was developed based on the ten organisational climate dimensions discovered by Ekvall (1983) and redefined by Lauer (1994). This was then used to measure the climate of the case study organisation. Data were analysed to determine individual perceptions of the climate dimensions within KIM. The average score for each dimension was used to determine overall organisational performance and hence RFC.
Findings
The generally positive scores across each dimension of the survey indicate that the KIM climate is ready for the next stage of its LSS implementation lifecycle although there may be some isolated pockets (individuals or groups) of resistance to change. However, the range of scores on each dimension indicates that there is disagreement within the survey group about the overall organisational climate.
Research limitations/implications
The response rate to the climate survey questionnaire was only two-thirds of the total staff at KIM Headquarters and approximately one-fifth of all staff. The views of non-respondents are therefore not known and this may bias the results.
Practical implications
Since climate influences RFC it is essential that an organisation can measure it to ensure its environment is conducive to the implementation of change generally and LSS particularly. The developed questionnaire is easy to use, easy to analyse and easy to interpret making it an ideal climate measurement instrument.
Originality/value
Previous papers on LSS concentrate on organisational culture rather that climate as a success factor for LSS implementation. This paper addresses that omission.
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Jacqueline Ochieng, David Muturi and Samuel N. Njihia
The purpose of this paper is to establish the effect of ISO 9001 implementation on the performance of organizations in Kenya. It specifically targeted organizations listed on the…
Abstract
Purpose
The purpose of this paper is to establish the effect of ISO 9001 implementation on the performance of organizations in Kenya. It specifically targeted organizations listed on the Nairobi Securities Exchange (NSE) which is the leading securities exchange in East Africa.
Design/methodology/approach
The survey made use of web content analysis to collect data from these organizations’ web sites. Data were collected on net profit, turnover and net assets over a four-year period (2010-2013). The research used statistical data analysis to investigate the association between ISO 9001 implementation and performance.
Findings
Results of the survey reveal that ISO 9001 certification influenced return on net assets of the organizations thereby influencing their performance. There was significant differences in net asset value among organizations with ISO 9001 certification and those that did not possess the certification. On profit and revenue, there were no significant differences between the ISO 9001 certified and non-certified organizations.
Research limitations/implications
The research findings are limited to those organizations listed in the NSE and may not be generalized to other organizations. The study is further limited by the number of organizations participating in the study which was 20.
Practical implications
The findings of the study provide justification for adoption of ISO 9001 standard in organizations in all key sectors of the Kenyan economy for sustained quality management practices. The ISO 9001 certified companies will enhance their quality management practices to achieve the successes documented in this paper while those yet to embrace the standards will draw lessons from such successes which may offer them compelling arguments to adopt them.
Originality/value
Since the adoption and uptake of ISO certification in Kenya over a decade ago, no study has been carried out that directly relates ISO certification to organizational performance. This study will thus be useful as a starting point in documenting the ISO standard’s impact.
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Lillian Ocham and Ursulla Achieng Okoth
The purpose of this paper is to determine the effects of head teachers’ motivational practices on teacher performance in public secondary schools in Kenya. The objectives of the…
Abstract
Purpose
The purpose of this paper is to determine the effects of head teachers’ motivational practices on teacher performance in public secondary schools in Kenya. The objectives of the study: to determine the influence of staff recognition; shared leadership by teachers; participation in staff development programmes; and head teachers’ support for the teachers on performance.
Design/methodology/approach
The study design was descriptive survey involving 186 teachers and 32 head teachers from Koibatek district. The instruments comprised of a questionnaire and an interview guide. Data were analysed using descriptive statistics, and presented using tables and pie charts.
Findings
Recognition of teachers and good working conditions enhance teachers’ performance. Shared leadership between teachers and head teachers has a positive effect on teacher performance Teachers’ professional growth enhances performance. The teachers who receive head teachers’ support such as teaching materials are more motivated enhancing performance.
Research limitations/implications
Administrators of schools should often recognize teachers. The Board of Management, Teachers Service Commission, and head teachers should provide opportunities for shared leadership. The Quality Assurance and Standard (QAS) Directorate, need funds to engage teachers in in-service courses.
Practical implications
Teachers should be supported by providing teaching resources and ICT, and be given opportunities for advancement by government agencies.
Social implications
Teachers should be recognized through appreciation and other incentives during prize giving days and assemblies. Teachers be given responsibilities and freedom to act to develop abilities.
Originality/value
The research shows teacher motivation as a means of enhancing performance for quality management.
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Rosemary Muange and Loice C. Maru
The purpose of this paper is to determine the effect of strategic alliances on firm performance and the moderating effect of firm size in retail firms in Nairobi County in Kenya…
Abstract
Purpose
The purpose of this paper is to determine the effect of strategic alliances on firm performance and the moderating effect of firm size in retail firms in Nairobi County in Kenya.
Design/methodology/approach
Resource Dependency Theory was used to guide the study. The study adopted explanatory research design. Questionnaires were used to collect data from sample of 216 respondents through stratified and simple random sampling technique. The study used inferential statistics to test hypotheses.
Findings
Study findings indicated that joint marketing alliances, procurement-supplier alliances, joint manufacturing alliances and technology development alliances have significant and positive effect on firm performance. Based on the findings, creating a joint marketing, procurement-supplier, joint manufacturing and technology development alliances mostly enhance firm performance.
Research limitations/implications
The study considered only one county out of 47, although this county hosts the capital city, where most of the firms considered are located. It therefore is representative of all counties and firms considered in this study. It also considered top management staff and thus may have an effect since the lower cadre staff were not considered. However, most of the required information was expected from top management since these are the ones who make decisions, and hence most affected by strategic alliances.
Practical implications
This study has practical implication on firm performance because it has established that strategic alliance improves on overall firm performance. This manifests itself in terms of improve productivity, production efficiency and profitability. It also helps in the availability of products to the end users.
Social implications
Through improved productivity, efficiency and profitability, this translates to improved terms of payment of staff and hence improved quality of lives of their families and communities within which they live. It also enables the firms to participate more in corporate social responsibility projects which in turn improves the standard of living of the communities around them.
Originality/value
The study has provided an empirical insight on the importance of strategic alliance on firm performance. This is the first study done in the Kenyan context concerning strategic alliances formed by firms to improve on their performance especially on retail firms.
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Maxwell Philip Omondi, Kepha Ombui and Joseph Mungatu
The purpose of the study was to find out the determinants of strategy implementation by the international reproductive health (RH) non-governmental organizations (NGOs) in Kenya…
Abstract
Purpose
The purpose of the study was to find out the determinants of strategy implementation by the international reproductive health (RH) non-governmental organizations (NGOs) in Kenya for attainment of MDG 5 by 2015. The objectives of the study were to analyse the effects of the determinants of strategy implementation for attainment of the Millennium Development Goal (MDG) 5 by international RH NGOs operating in Kenya. This study was guided by three specific objectives: to analyse the effect of policy regulations on strategy implementation by international RH NGOs in attainment of MDG 5; to determine the effect of management competencies on strategy implementation by international RH NGOs in attainment of MDG 5 and to explore the effect of resource allocation on strategy implementation by international RH NGOs in attainment of MDG 5 by 2015 in Kenya.
Design/methodology/approach
A cross-sectional descriptive study design was carried out from January to March 2012 in Nairobi, Kenya. The study populations comprised of programme staff and RH technical advisors for the international RH NGOs operating in Kenya and headquartered in Nairobi. The sampling design was a census method since all the ten international RH NGOs based in Nairobi were selected. Qualitative and quantitative methods of data collection were used using both closed and open-ended questionnaires. The quantitative data were analysed using SPSS version 20 for both descriptive and inferential analysis. Qualitative data were analysed descriptively. Measures of location and variability were used for analysis and hypothesis tested using Fisher ' s Exact test and regression analysis.
Findings
The research findings showed that policy regulations, management competencies and the resource allocations determine successful implementation of the strategic plans. Inadequate resource allocations have a direct bearing on the implementation of the RH programmes which invariably affects the attainment of the MDG 5 by 2015. The study did not accept the null hypotheses and therefore showed that there is relationship between policy regulations, management competencies and resource allocations and the implementation of strategic management plans by international RH NGOs operating in Kenya.
Originality/value
Although numerous studies acknowledge that strategies frequently fail not because of inadequate strategy formulation, but because of insufficient implementation, strategy implementation has received less research attention than strategy formulation. This paper addresses this gap.
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Christopher Moturi and Peter M. F. Mbithi
The purpose of this paper is to present the experience and impact of implementing the ISO 9001: 2008 Standard at the University of Nairobi, in relation to effectiveness on service…
Abstract
Purpose
The purpose of this paper is to present the experience and impact of implementing the ISO 9001: 2008 Standard at the University of Nairobi, in relation to effectiveness on service delivery, operational performance, automation, implementation challenges and related emerging issues.
Design/methodology/approach
The paper adopted a case study design approach based on qualitative analysis of internal audit reports, internal surveys and feedback, surveillance audits conducted by the certifying body, and rankings by external bodies, over a period of seven years.
Findings
Significant achievements have been realized with regard to institutionalization of quality into the university processes, work environment, documentation and record management, customer satisfaction, infrastructure and facilities, use of ICT as a prime mover of performance improvement, and ranking of the university. Opportunities for improvement as well as critical success factors are presented.
Practical implications
The paper reports successes that may encourage other institutions of higher learning that are not certified to implement Quality Management Systems (QMSs) according to ISO 9001 Standard by focusing on specific factors.
Originality/value
This paper shows how an ISO 9001 certified QMS can improve internal institutional practices and avoid frequently experienced drawbacks.
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Edward Kariuki Mathenge, Alice Wangui Kamau, Jane Mwihaki Kariuki and Jane Wanjiru Munga
The purpose of this study was to explore how diploma students enrolled in a research project paper report their thoughts, feelings, satisfaction, and service quality of the…
Abstract
Purpose
The purpose of this study was to explore how diploma students enrolled in a research project paper report their thoughts, feelings, satisfaction, and service quality of the research process.
Design/methodology/approach
A survey using a pre-determined questionnaire was used to track the thoughts, feelings, and actions of 1,129 diploma research students during a ten-month period spanning four semesters.
Findings
Results revealed that the diploma research students experience some negative thoughts and feelings, i.e. anxiety about the research process, and they expressed some satisfaction with it.
Originality/value
These findings have important implication for research and management education courses. Helping students increase not only their positive thoughts and feelings about research but also their satisfaction level can assist with the long-term educational goal to educate management professionals who can provide high-quality services, evaluate practice, and improve practice, policy, and management of service delivery.