The Impact of Real Exchange Rate Misalignment on Economic Growth; Kenyan Evidence

This paper examines Real Exchange Rate (RER) Misalignment on economic growth in Kenya by using Johansen Cointegration, and Error Correction Model Technique to establish the factors that determine equilibrium real exchange rate, calculate the real exchange rate misalignment as the difference between equilibrium  and  actual real exchange rate. Generalized Method Moments (GMM) technique was used to assess the impact of the real exchange rate misalignment on economic growth for the period of January 1993 to December 2009.  Data for the study was collected from Kenya National Bureau of Statistics, Central Bank of Kenya and International Monetary Fund Data Base by taking monthly frequency.  Thus, 204 data values were analysed, which assisted in evaluating the extent of the trade Kenya had with different countries and used in the construction of the Real Exchange Rate (RER).  The results of the study on the extent of RER misalignment suggest that over the study period 1993-2009, Kenya’s RER generally exhibited a depreciating trend, implying that in general, the country’s economic growth deteriorated over the study period. Keywords: Real Exchange Rate, Nominal Exchange Rate, Real Effective Exchange Rate, Nominal Effective Exchange Rate, Misalignmen

THE MODERATING INFLUENCE OF REGIONAL INTEGRATION ON STRATEGIC ALLIANCES AND PERFORMANCE OF KENYAN MANUFACTURING FIRMS IN THE EAST AFRICAN COMMUNITY MARKET

The specific objective of this study was to determine the influence of regionalintegration on the relationship between strategic alliances and performance ofKenyan manufacturing firms in the East African Community market. The studywas anchored on Resource dependency theory, theory of integration and the Opensystem theory. The positivism philosophical paradigm and a cross sectionaldescriptive survey design guided the study. The population of the study was 160Kenyan manufacturing firms in the EAC market. Primary data was collectedusing a semi-structured questionnaire. A response rate of 81.88% was realized.Secondary data was collected from financial statements of the respective firms.Data was analysed using descriptive and inferential statistics. Hypotheses wastested using Baron and Kenny model of stepwise regression analysis to test formoderating effects. From the research findings, regional integration was found tohave a statistically significant moderating influence on the relationship betweenstrategic alliance and firm performance. These results are consistent withpropositions in the resource dependence and open system theories. In a regionalintegration framework, firms depend on each other through strategic alliances togain competitive advantages as envisaged in resource dependency theory. Thestudy recommends that policy makers in EAC partner states should encouragecomplementarity and competitive advantage approaches while promoting skillstransfer and information sharing amongst the firms

Interventions, Entrepreneurial Orientation and Macro Environment: Effect on Beneficiary Poverty Reduction by Faith Based Enterprises

This study focuses on joint effect of interventions, entrepreneurial orientation and macro environment on beneficiary poverty reduction (BPR) by Faith based enterprises (FBEs) within the slums of Nairobi, Kenya. In Nairobi, about 60-70% of the people live in slums and conditions are deplorable. Hence, FBEs assist meet the social welfare voids like shelter, water, health services, education and employment. However, there is distorted and incomplete information with divergent views to explain success or failure of joint effects in BPR. Hinged on these gaps, the study objective of joint effect of the variables on BPR is assessed and its hypothesis is tested. The study uses a census approach and data was collected from 72 FBEs using a structured questionnaire. The study uses the descriptive cross-sectional research design and data is analysed using descriptive statistics and hierarchical multiple regression analysis. Study found that joint effect of the variables has a greater effect on BPR than the singular effect of each variable; most people in Nairobi slums live below World Bank poverty threshold of $1.90 per day and FBEs bring disruptions that create wealth enabling people take charge of their own destinies as they escape from poverty. Key hindrances to BPR in the slums of Nairobi include lack of markets, reduced donor funding, basic needs such as food, water, shelter, health services, public schools, latrines for safe hygiene and unemployment. Study adds value to theory as findings show net works trigger the mobilization of resources which explains robust joint effects in BPR. Adds value to human capital theory as findings reveal enterprises can deliver in social value based on relationships and doing things differently by those involved despite their illiteracy and inexperience. The paper concludes findings inform new thinking that authorities and development partners may emulate in building new funding outfits for poverty reduction such as collaborations to mobilize resources, enterprise culture for business approaches, technology for markets, quality products, politics for laws and support. Pentecostalism and Catholicism are the most prevalent in BPR within slums of Nairobi. Future research could use grounded theory approach for more in-depth investigation

RELATIONSHIP BETWEEN INTERVENTIONS AND BENEFICIARY POVERTY REDUCTION BY FAITH BASED ENTERPRISES: DOES MACRO ENVIRONMENT MODERATE?

This paper focuses on the moderating role of macro environment on therelationship between interventions and beneficiary poverty reduction (BPR) byFaith based enterprises (FBEs) within the slums of Nairobi. The slums poor live indeplorable conditions with social welfare deprivations. This explains the comingin of FBEs to assist in various aspects of BPR such as education, health, shelter,water, food and employment. There is incomplete information that cannot explainsuccess or failure of moderation by macro environment. Based on these gaps, thepaper sought to determine the moderating effect of Macro environment on therelationship between interventions and beneficiary poverty reduction by FBEs. Toattain this, hypothesis from the study objective was tested. This paper appliedtriangulation data collection from 72 FBEs. The study uses the descriptive crosssectionalresearch design. Data is analysed using descriptive, inferential statisticsand qualitatively. The study results provide evidence FBEs instill disruptions indevelopment that impact positively on people livelihoods. Regression results foundmoderation effect of Macro environment not statistically significant on therelationship between Interventions and BPR. Correlation coefficient was .729indicating a strong correlation between interventions of macro environment alonewith BPR. Descriptive show Macro environment factors contribute positively toBPR. The lack of significant moderation effect by Macro environment is newinformation to theory as it explains scanning of environment information forresources to achieve best management practice. Pentecostalism and Catholicismare the most prevalent in BPR within slums of Nairobi. Future research couldadopt the grounded theory approach for possible in-depth diverse set of conceptsand theories to explain moderating effect of Macro environment on therelationship between interventions and beneficiary p

An exploration of opportunities and challenges facing cervical cancer managers in Kenya

BACKGROUND: Kenya like other developing countries is low in resource setting and is facing a number of challenges in the management of cervical cancer. This study documents opportunities and challenges encountered in managing cervical cancer from the health care workers’ perspectives. A qualitative study was conducted among cervical cancer managers who were defined as nurses and doctors involved in operational level management of cervical cancer. The respondents were drawn from four provincial hospitals and the only two main National public referral hospitals in Kenya. Twenty one [21] nurse managers and twelve [12] medical doctors were interviewed using a standardized interview guide. The responses were audio recorded, transcribed verbatim and the content analyzed in emerging themes. FINDINGS: Four themes were identified. Patient related challenges included a large number of patients, presenting in the late stage of disease, low levels of knowledge on cancer of the cervix, low levels of screening and a poor attitude towards screening procedure. Individual health care providers identified a lack of specialised training, difficulty in disclosure of diagnosis to patients, a poor attitude towards cervical cancer screening procedure and a poor attitude towards cervical cancer patients. Health facilities were lacking in infrastructure and medical supplies. Some managers felt ill-equipped in technological skills while the majority lacked access to the internet. Mobile phones were identified as having great potential for improving the management of cervical cancer in Kenya. CONCLUSION: Kenya faces a myriad of challenges in the management of cervical cancer. The peculiar negative attitude towards screening procedure and the negative attitude of some managers towards cervical cancer patients need urgent attention. The potential use of mobile phones in cervical cancer management should be explored

The Mediating Influence of Employee Behaviour on the Relationship Between Strategic Planning and Competitive Advantage of Large Manufacturing Firms in Kenya

Several studies have been carried out in the past to find out how strategic planning and competitive advantage are connected and the causes of differences in competitive advantage among firms. Scholars have argued that competitive advantage can emanate from either internal or external sources and is usually in several forms which include; valuable resources, the position held within the industry, position within the marketplace, operating at lower costs than rival firms, differentiation, capabilities and dynamic capabilities. The debate on what causes differences in competitive advantage is still on. This study sought to establish the mediating influence of employee behaviour on the relationship between strategic planning and competitive advantage of large manufacturing firms in Kenya. The study was underpinned by the competitive advantage typology of Michael Porter, the resource-based theory, dynamic capabilities theory, and goal-setting theory. The study used a positivist research paradigm and a cross-sectional survey design. This was a census study from 124 large manufacturing firms in Kenya. Out of the 124 firms, data on strategic planning, employee behaviour and competitive advantage was collected from 122 of the firms representing a response rate of 98.4%. The data was interpreted using a 5-point Likert type questionnaire. The data received was analysed using both descriptive and inferential statistics. Reliability tests returned an average Cronbach Alpha Value for the three variables that is strategic planning, employee behaviour and competitive advantage, of 0.86. Hypotheses were tested using both simple and multivariate regression analysis as well as hierarchical analysis for mediation. The findings indicate that overall strategic planning has a statistically significant influence on competitive advantage and that employee behaviour mediates completely the relationship between strategic planning and competitive advantage (R2=0.751, p-value<0.05). The study concluded that the relationship between strategic planning and competitive advantage is completely mediated by employee behaviour. The study further recommended that employees’ behaviour should be strategically aligned to the goals and objectives set in the strategic plan and that they should be committed fully to the ideals of the firm in order for the firm to attain and sustain its competitive advantage position. Keywords: strategic planning, competitive advantage employee behaviour, lower costs, differentiation, capabilities, dynamic capabilities DOI: 10.7176/EJBM/11-8-01 Publication date:March 31st 201

Entrepreneurial Orientation and Firm Innovativeness in Manufacturing Small and Medium Enterprises: The Moderating Effect of Environmental Dynamism

In spite of firm innovativeness being identified as essential for firm performance and growth, there exists a dearth of studies that relate entrepreneurial orientation and firm innovativeness in manufacturing small and medium enterprises in Kenya. A cross sectional survey approach was adopted to study this effect. Environmental dynamism as a moderating variable was identified as affecting the relationship between entrepreneurial orientation and firm innovativeness in this model. The unit of analysis was the manufacturing small and medium enterprise firm within Nairobi County, Kenya. Stratified Random Sampling was applied to obtain 363 samples, followed by a series of descriptive and inferential analysis on the collected data. Entrepreneurial orientation was confirmed as having a significant effect on firm innovativeness. It was further confirmed that environmental dynamism had a moderating effect on the relationship between entrepreneurial orientation and firm innovativeness. The study recommends further studies for the construct of innovativeness in small and medium enterprises. It further recommends that active decision-making on the basis of internal and external circumstances are very important for a firm to be innovative. The study also recommends a raft of policy considerations that seek to address the diffusion of innovation across various enterprises segments