School of Business and Entrepreurship
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Item Moderating Effect Of Financial Innovations On The Relationship Between Interest Rates And Financial Performance Of Commercial Banks In Kenya(International Journal of Innovative Finance and Economics Research, 2022-09-30) Chelangat ,Nelly Mutai; et.al.Profitability of commercial banks in Kenya have been declining since 2010 which was largely attributed to macro-economic factors, fiscal policies introduced by central bank of Kenya and market activities such as issuance of bonds and capping of interest rates. There has also been increased integration due to embracement of financial innovations in the banking sector however the moderating effects of Financial innovations on the relationship between GDP per capita and financial performance is still uncertain. The objective of this study was to investigate the moderating effect of financial innovation on the relationship between interest rates and financial performance of commercial banks in Kenya. The study was based on two theories: Interest parity theory and Constraint Induced Financial Innovation Theory. The study utilized secondary data for 10-year period as from 2011 to 2020. The target population of the study was 42 commercial banks that are licensed and supervised by the Central Bank of Kenya. Secondary panel data on financial performance of Commercial Banks was obtained from the individual institutions’ financial reports while data on macroeconomic factors will be obtained from both Central Bank of Kenya and Kenya National Bureau of Statistics. Return on assets was used to measure financial performance. The study found a moderating effect of interest rates on financial performance of commercial banks in Kenya (b= -5.292, t= -2,202, p=0.028. This study concludes that when a bank’s innovations are at the highest, it can achieve a very high Return on assets even when it keeps it interest rates very low. The study recommends that banks should implement the highest degree of innovations, which will enable them achieve very high Return on assets even when they keep their interest rates very low.Item Effects of Financial Literacy on Sustainable Entrepreneurship among the Youths in Bomet County, Kenya(2024-01-30) Bii, Philip Kiprotich; Chelangat, NellyMutai; Kipkorir,Richard RotichThere is growing unemployment in Kenya and the youths are bearing the blunt of this worrying trend, despite the numerous interventions by both state and non-state actors in encouraging the youths to venture into entrepreneurship. This study sought to establish the role of Financial Literacy on the development of sustainable business ideas and innovations. The study was conceptualized with the intention of investigating the role that financial literacy plays in influencing sustainable entrepreneurship among the youthful entrepreneurs. The population of interests was the business enterprises run by youthful entrepreneurs across various sectors of business in Bomet Municipality located in Bomet County; Kenya. The study used primary data with a sample size of 473 respondents which achieved 100% response rate, with male response of 53% and 47% female. The measures of central tendency, measures of dispersion and Regression model were used to find out the relationship and correlation of the variables. The study established that there was a significant relationship between gender and sustainable entrepreneurship, further found, that financial literacyhad weak a positive significant relationship with business sustainability. The study recommends that emphasis should be placed on financial literacy as a significant determinant of sustainable businesses among the youth entrepreneurs and that training as tool to provide more knowledge on entrepreneurial skills to be factored in the trade policyItem Design Thinking and Innovation in the Informal Industries in Kenya(Asian Journal of Economics, Business and Accounting, 2023-05-30) Oringo, James OdhiamboIn the recent past there have been calls to have Kenyan products labeled ‘Made in Kenya’. By doing so, the proponents believe that products ‘Made in Kenya’ will flock the local stores and even find their way to the foreign markets, thereby making Kenya proud of itself as well as earning the much needed foreign exchange. While ‘Made in Kenya’ labeled products would be a great step forward to Kenya’s economic wellbeing, showcase talents and skills of the youth and a boost to its image in the global market, the low technology predominantly used in Kenya and lack of design thinking, still remain the greatest impediment to innovation. Using low technology in manufacturing usually results in high production costs and lack of capacity to launch mass production in response to acute increase in market demands. For example, the informal manufacturing sector in Kenya commonly referred to as Jua Kali, is a collection of semi-organized, unregulated, smaller ventures that employ a large number of people and rely on low-level technologies. A significant amount of industrial output is devoted to meeting basic requirements, such as the provision of low-cost consumer goods and services. Wood and furniture, metal products, glass and pottery, clothes, and leather are all produced in this industry. The lack of design thinking and low-level technology used in the production process obviously results in more man-hour on each unit produced, yet this is rarely considered on the final price of the product. The prices to a large scale, are usually concerned with the cost of materials without considering other hidden costs. The drive is to make the products affordable to low-income consumers, in order to satisfy the traders’ basic needs. In a wider perspective, this study focused on the application of design thinking and its impact on innovations in the informal industries in Kenya. Specifically, the study sought to establish; the application of design thinking as a system of feasibility to increase innovation in the informal industries in Kenya, the application of design thinking as a system of desirability to increase innovation in the informal industries in Kenya and its impact on the innovation in the informal industries in Kenya, as well as the application of design thinking as a system of viability to increase innovation in the informal industries in Kenya. This study reviewed secondary sources and investigations others have previously conducted in relation to the title of the study. Conventional content analysis was used to analyze data. The process of analysis began with the development of the research questions, then the identification of the dataset, and thorough evaluation of the dataset. Our findings deepen the current understanding about policy innovation and technological intervention in the informal industries in Kenya. The findings could also benefit the Government of Kenya, Kenya Association of Manufacturers and Juakali Associations, in terms of policy formulation and enhancement of sector performance.Item Moderating Effect Of Financial Innovations On The Relationship Between Interest Rates And Financial Performance Of Commercial Banks In Kenya(International Journal of Innovative Finance and Economics Research 1, 2022-09-30) Mutai, Nelly ChelangatProfitability of commercial banks in Kenya have been declining since 2010 which was largely attributed to macro-economic factors, fiscal policies introduced by central bank of Kenya and market activities such as issuance of bonds and capping of interest rates. There has also been increased integration due to embracement of financial innovations in the banking sector however the moderating effects of Financial innovations on the relationship between GDP per capita and financial performance is still uncertain. The objective of this study was to investigate the moderating effect of financial innovation on the relationship between interest rates and financial performance of commercial banks in Kenya. The study was based on two theories: Interest parity theory and Constraint Induced Financial Innovation Theory. The study utilized secondary data for 10-year period as from 2011 to 2020. The target population of the study was 42 commercial banks that are licensed and supervised by the Central Bank of Kenya. Secondary panel data on financial performance of Commercial Banks was obtained from the individual institutions’ financial reports while data on macroeconomic factors will be obtained from both Central Bank of Kenya and Kenya National Bureau of Statistics. Return on assets was used to measure financial performance. The study found a moderating effect of interest rates on financial performance of commercial banks in Kenya (b= -5.292, t= -2,202, p=0.028. This study concludes that when a bank’s innovations are at the highest, it can achieve a very high Return on assets even when it keeps it interest rates very low. The study recommends that banks should implement the highest degree of innovations, which will enable them achieve very high Return on assets even when they keep their interest rates very low. Keywords: Financial Innovations, Interest rates, Financial Performance, Commercial Banks.Item Effect of Herding Factor on Investment Decisions among Small and Micro Enterprises in Nairobi County, Kenya(Stratford Peer Reviewed Journals and Book Publishing Journal of Entrepreneurship & Project management, 2020-11-30) Barno, Leah JemutaiThis study sought to determine the effect of herd factors on investment decisions among small and micro enterprises in Nairobi County. The study was premised on the behavioural portfolio. Positivism paradigm was deployed. The study adopts explanatory research design. The target population were 102,821 firm owners. A sample of 383 respondents was selected using stratified random sampling technique. The collected data were analysed using descriptive and inferential statistics. Linear regression models were used to establish the relationship between herd factors and investment decisions. The findings revealed that herding factors was found to have positive influence on investment decision (P = 0.450 < 0.05). The study recommends that firms should improve on herd factors which improved investment. This would enhance better decision investment decision improving financial performance of the SMEs.Item Moderating Effect of Financial Literacy on Relationship between Anchoring and Investment Decision among SMEs in Nairobi County(East African Journal of Business and Economics, 2021-03-24) Barno, Leah JemutaiModerating effect of Financial Literacy on Relationship between Anchoring and Investment Decision among SMEs in Nairobi County. The study was premised on the regrets theory. Methods/materials: The positivism paradigm was deployed. The study adopts an explanatory research design. The target population was 102,821 firm owners. A sample of 383 respondents was selected using the stratified random sampling technique. Multiple hierarchical linear regression models were used to establish moderating effects of financial literacy. Findings: Anchoring factors positively influenced investment decision (β = 0.173, p < 0.05). The study also found that financial literacy moderates the relationship anchoring and investment decisions (β = .92, p > 0.05, ∆R 2 = .07). Conclusion/Practical implication; Anchoring enhance investment decisions among the small and medium enterprise. In addition, high financial literacy improves the relationship between anchoring behaviour and investment decisions among SMEs. This would enhance better decision investment decisions improving the financial performance of the SMEs.Item Moderating Effect of Financial Innovations on the Relationship Between GDP Per Capita and Financial Performance of Commercial Banks in Kenya(Stratford Peer Reviewed Journals and Book Publishing Journal of Finance and Accounting, 2022-09-30) Mutai, Nelly ChelangatProfitability of commercial banks in Kenya have been declining since 2010 which was largely attributed to macro-economic factors, fiscal policies introduced by central bank of Kenya and market activities such as issuance of bonds and capping of interest rates. There has also been increased integration due to embracement of financial innovations in the banking sector however the moderating effects of financial innovations on the relationship between GDP per capita and financial performance is still uncertain. The objective of this study was to investigate the moderating effect of financial innovation on the relationship between GDP per capita and financial performance of commercial banks in Kenya. The study was based on two theories: Keynesian Economics theory and Constraint Induced Financial Innovation Theory. The study utilized secondary data for 10-year period as from 2011 to 2020. The target population of the study was 42 commercial banks that are licensed and supervised by the Central Bank of Kenya. Secondary panel data on financial performance of Commercial Banks was obtained from the individual institutions’ financial reports while data on macroeconomic factors was obtained from both Central Bank of Kenya and Kenya National Bureau of Statistics. Return on assets was used to measure financial performance. The study found a significant and positive relationship (b=0.594, t=2.939, p=0.022) between GDP per capita and ROA. The study found no moderating effect of financial innovations on the relationship between GDP per capita and financial performance of commercial banks. The study recommends that banks should implement the highest degree of innovations, which will enable them achieve very high ROA.Item DO SELF-AWARENESS AND SELF-REGULATION AFFECT KNOWLEDGE SHARING BEHAVIOR? EVIDENCE FROM KENYAN UNIVERSITIES: INTELLIGENCE UNMASKED(Journal of Business Management and Economic Research, 2019-12-30) Biwott, Geoffrey; et.al.Universities have been identified as an accelerated centers of Knowledge sharing and changing behaviors of scholars as a critical asset for universities and this study paper deepens the understanding that Self-Awareness and Self-Regulation affect Knowledge Sharing Behavior among academic staff at universities in Kenya as an intelligence drive for modern universities in Kenya in harnessing knowledge to explore intelligence-sharing behaviors. Both concepts are individual responses as they understand and know one another even in Universities to strive for improved knowledge sharing between individuals. The study aimed at examining whether Self-Awareness and Self-Regulation affects Knowledge Sharing Behaviors among academic staff at universities in Kenya. Explanatory study was used to target a population of 6,423 and a sample size of 376 academic staff academic staff at Kenyan universities in Nairobi County was selected using simple random sampling. Data was collected using a structured questionnaire. The findings of the research revealed that self-awareness (β = 0.37, p<0.05), and self-regulation (β = 0.11, p<0.05), had a positive and significant effect on knowledge sharing behavior. Also R was 81% and R2 was 66%. Concluding that emotional self-awareness and self regulation are crucial to transforming universities in Kenya in achieving knowledge sharing behavior. Self-awareness and self-regulation in universities in Kenya have relatively been downplayed by government, respective institutions and scholars especially in harnessing knowledge yet the study contributes immensely that for leadership of universities in Kenya to drive, staff who must be self aware and self-regulated in their emotions for free exchange of ideas and knowledge sharingItem Knowledge management and employee engagement in the hospitality industry(INTERNATIONAL JOURNAL OF RESEARCH IN BUSINESS AND SOCIAL SCIENCE (IJRBS), 2022-08-28) Ojera, Patrick B.; et.alKnowledge management is becoming indispensable in organizations since it is a powerful weapon for achieving competitive advantage. However, there is still a dearth of literature for employees and managers in organizations to link their investments in knowledge management and the value the organization gets in terms of employee engagement. This study was designed to assess knowledge management and employee engagement in the hospitality industry in the North Rift region of Kenya. An explanatory research design was adopted with a target population of 580 employees from star rated hotels in the North Rift region out of which a sample size of 234 respondents was picked. Data was collected using questionnaires and interviews and analyzed using descriptive and inferential statistics using SPSS version 25.0 for quantitative data and thematic analysis of interview data. From findings, knowledge management explained a 50.4 percent variation in employee engagement. A coefficient of .728 indicated that a unit change in knowledge management leads to .728 units of positive change in employee engagement. Knowledge management significantly affects employee engagement thus the rejection of the null hypothesis. The hospitality business should invest in proper employee knowledge-sharing initiatives to enhance employee competence and motivation, resulting in high levels of engagement. The finding of this study can help major stakeholders in the hospitality industry to strengthen knowledge management for employee engagement.Item Current State of Sustainability Reporting:(EJBMR, European Journal of Business and Management Research, 2020-04-30) Ojera, Patrick B.; Odoyo, Collins O.Corporate sustainability reporting, also known as Triple-bottom-line reporting, involves reporting nonfinancial and financial information to a broader set of stakeholders than just shareholders and seek to fortify an organization’s ability to manage key risks. The current case is that, the quality, rigor, and utility of sustainability reporting remains contentious with concerns about the suitability of the criteria or standards used to prepare the reports. Despite the rapid increase in the number of companies around the world adopting Global Reporting Initiative standards, little is known about the extent of practice of corporate sustainability reporting in public universities in Kenya. The study selected five universities that had their 2017-18 audited financial reports available online for the readers, which served as the main source of secondary data. The guidelines on corporate sustainability reporting was derived from literature review, which provided key indicators upon which the data from each university was evaluated. It was observed that almost all the institutions recognize the critical role of both internal and external independent audit of financial statements. In conclusion, financial reporting sustainability is guided by strict compliance to the factors of sustainability.