EFFECT OF STRUCTURE OF THE BOARD ON PERFORMANCE OF PUBLIC TECHNICAL VOCATIONAL AND ENTREPRENUERSHIP TRAINING (TVET)T INSTITUTIONS IN NYANZA REGION, KENYA

The board has the responsibility to monitor, discipline, and remove ineffective management teams, and to ensure that managers pursue the interests of shareholders. The Bonn Resolution noted that TVET is the master key for alleviation of poverty, promotion of peace, creation of employment, food security and conservation of the environment, in order to improve the quality of Human Life and promote sustainable development. However, Kenya has continued to experience challenges of unemployment, poverty, food insecurity and environmental degradation. Although the structure of the board is very important for the success of an organization, the effect of structure of the board on performance of TVET Institutions is not clear. Prior studies show mixed relationships between structure of the board and performance. The main objective of this study was to establish the effect of the structure of the board on performance of public TVET institutions in Nyanza region, Kenya. The design used was correlation research design. Population of the study included the principals, deputy principals and heads of department of TVET Institutions in Nyanza region Kenya who were 99 in number. The study employed a census survey with response at 97.5 %. Reliability was measured using cronchbach’s alpha which revealed 0.872 consistency. Regarding the size of the coefficient, the study found that as the variable changes by 1 unit, performance too changes by a magnitude of 0.125. The results however showed that the probability of structure of the board is insignificant (p values = 0.164) at 5% level in determining performance. The study concludes that performance of TVET Institutions is determined by several factors which vary in their magnitude of influence. This study recommends that stakeholders employ the principles of corporate governance in appointing boards of management since they impact on performance positively. Findings of this study may be used for decision making by policy makers to improve governance of TVET Institutions and other stakeholders for further research

Board Effectiveness and Performance of Public TVET Institution in Nyanza Region, Kenya

Board effectiveness is about doing the right things to achieve the results (Triscott, 2004). Forbes and Daniel (1999) defined board effectiveness as the board’s ability to perform its control and service tasks effectively. TVET is a major initiative by the government that was envisaged as an occupational field to provide the foundation for productive and satisfying careers and offer specialized preparations for initial employment, including self-employment. However, Kenya has continued to experience challenges of unemployment, poverty, food insecurity and environmental degradation.  Although board effectiveness is very important for the success of an organization, the influence of board effectiveness on performance of TVET Institutions is not clear.  The main objective of this study was to establish the influence of board effectiveness on performance of public TVET institutions in Nyanza region, Kenya. The   Population of the study included the principals, deputy principals and heads of department of TVET Institutions in Nyanza region Kenya who were 99 in number.  The study employed a census survey with response at 97.5 %.  Reliability was measured using cronchbach’s alpha which revealed 0.872 consistency. Regarding the size of the coefficients, the study found that as the variables change by 1 unit, performance too changes by a magnitude of 0.501 respectively. The results also showed that the probability of effective performance of directors is significant (p values = 0.000). The study concludes that although performance of TVET Institutions can be determined by effectiveness of the board up to 62 percent of the variance in the respondents scale, several factors which vary in their magnitude would influence performance of TVET Institutions in Nyanza region, Kenya. This study recommends that stakeholders employ the principle of effectiveness of the board in appointing boards of management since it impacts on performance positively.  Findings of this study may be used for decision making by policy makers to improve governance of TVET Institutions and other stakeholders for further research. Keywords: Board Effectiveness, Performance, TVET Institutions, Corporate Governanc

EFFECT OF STRUCTURE OF THE BOARD ON PERFORMANCE OF PUBLIC TECHNICAL VOCATIONAL AND ENTREPRENUERSHIP TRAINING (TVET)T INSTITUTIONS IN NYANZA REGION, KENYA

The board has the responsibility to monitor, discipline, and remove ineffective management teams, and to ensure that managers pursue the interests of shareholders. The Bonn Resolution noted that TVET is the master key for alleviation of poverty, promotion of peace, creation of employment, food security and conservation of the environment, in order to improve the quality of Human Life and promote sustainable development. However, Kenya has continued to experience challenges of unemployment, poverty, food insecurity and environmental degradation. Although the structure of the board is very important for the success of an organization, the effect of structure of the board on performance of TVET Institutions is not clear. Prior studies show mixed relationships between structure of the board and performance. The main objective of this study was to establish the effect of the structure of the board on performance of public TVET institutions in Nyanza region, Kenya. The design used was correlation research design. Population of the study included the principals, deputy principals and heads of department of TVET Institutions in Nyanza region Kenya who were 99 in number. The study employed a census survey with response at 97.5 %. Reliability was measured using cronchbach’s alpha which revealed 0.872 consistency. Regarding the size of the coefficient, the study found that as the variable changes by 1 unit, performance too changes by a magnitude of 0.125. The results however showed that the probability of structure of the board is insignificant (p values = 0.164) at 5% level in determining performance. The study concludes that performance of TVET Institutions is determined by several factors which vary in their magnitude of influence. This study recommends that stakeholders employ the principles of corporate governance in appointing boards of management since they impact on performance positively. Findings of this study may be used for decision making by policy makers to improve governance of TVET Institutions and other stakeholders for further research

OWNERSHIP CONCENTRATION AND FINANCIAL PERFORMANCE OF LISTED FIRMS IN KENYA: AN ECONOMETRIC ANALYSIS USING PANEL DATA

In this study, we use panel methodology comprising 53 firms listed at the Nairobi Securities Exchange to establish the effect of ownership concentration on financial performance of these firms for the period 2007 to 2011. Before empirical estimations were conducted, the data series were subjected to unit root tests to establish their stationarity conditions and where a series is found to be non-stationary at levels, it was differenced until it become stationary. The study findings revealed that on average, firms listed at the Nairobi Securities Exchange enjoy a return on equity and return on assets of about 16.5 percent. The sectors that registered the highest return on equity included insurance, commerce and construction at 20.8 percent, 19.3 percent and 20.1 percent, respectively. On the other hand, the sectors that registered relatively higher return on assets include commerce, telecommunications and manufacturing with average ROA of 23.0 percent, 20.0 percent and 25.4 percent; respectively. The study also found that the highest ownership concentration is 96.310 %, while the lowest is 11.040%, with an average ownership concentration of 64.286 % and variability of 17.292 % implying that the percentage of shares held by those considered as large shareholders range between 96.310 % and 11.040 %, with a mean of 64.286 % and finally the results of correlation analysis revealed non-significant relationship between ownership concentration and performance of firms at the Nairobi Securities Exchange. On the other hand, from the panel regression analysis results, ownership concentration was found to be negatively related to all the three measures of performance in firms listed at the Nairobi Securities Exchange namely ROE, ROA and Tobin’s Q with coefficients of -0.0005, -0.0002 and 0.0057 respectively. The adjusted R squared for the return on equity, return on assets and Tobin’s Q models were 77.32%, 88.52% and 85.94% respectively

The Extent and Significance of the Drivers of Adoption-Use of Open Source ERP by Deposit Taking Saccos in Kenya

Deposit taking credit and savings cooperatives in Kenya are increasingly utilizing open source enterprise resource planning to better manage resources and improve efficiency.The most successful adoption of technology results from understanding the target population and the factors influencing their rate of adoption. The aim of the study was to establish the extent and significance of the drivers of adoption-use of open source ERP by deposit taking SACCOs in Kenya. The accessed the extent of adoption using diffusion of innovation theory and the significance of the drivers of adoption –use were assessed using technology, organisation, environment framework and extended decomposed theory of perceived behaviour. The unit of analysis was the 164 deposit-taking SACCOs licensed by SACCO regulatory authority (SASRA) in 2016 and sample size of 378 respondents.Questionnaire was used to collect quantitative data. Descriptive analysis was conducted on the data using SPSS. The study concludes that the extent of adoption is that 85.5% of the deposit taking SACCOs have adopted open source ERP with 14.5% not yet adopted and are categorised as laggards. The study concludes that technology, organisation, environment, attitude, normative structure and perceived behaviour adoption drivers have influence on the adoption-use of the open source ERP.The SACCO management and policy makers should put more effort on the high ranking factor components to attract the SACCOs which haven’t adopted (laggards) and increase the adoption-use of open source ERP by deposit taking SACCOs in Kenya

Factors Influencing Adoption-Use of Open Source ERP by Deposit-Taking Saccos in Kenya

The deposit taking saving and credit cooperative societies (Deposit-Taking SACCOs) are increasingly utilizing open source enterprise resource planning (open source ERP) to improve the efficiency with the least possible cost. Understanding the factors that influence the organisation and individuals to utilize this technology can assist managers and policy makers to implement strategies to increase and improve the update of the technology and improve the innovation adoption process. The main aim of the study was to establish the factors that influence open source ERP adoption- use by deposit taking SACCOs in Kenya. The study specific objective was to identify the effect of open source ERP adoption factors on the adoption-usage of open source ERP by Deposit-Taking SACCOs in Kenya. Target population was 168 Deposit-taking SACCOs with sample size of 378 respondents. Questionnaire was used to collect quantitative data. SPSS and PLS-SEM using smart PLS was used to analyse the data. The study concludes that environment, attitude and normative structure adoption factors have significant influence on the adoption-use of the open source ERP. The findings indicate that, competition within the sector, internal facilitation through training and top management support can increase adoption and use. The findings reinforce the need to support new technologies from both managerial, technical and policy perspectives

Open Source ERP Adoption-Use and Organisational Performance of Deposit-Taking Saccos in Kenya

The cost and benefits of an ERP system are arguably the reason why Deposit-Taking SACCOs are opting for adoption-use of open source ERP in an effort to achieve organisation performance. Technology adoption is only important if it truly leads to performance improvements and, as such the proper criteria by which to judge whether an ERP investment has been successful rest not simply in determining whether an organization adopts a technology, but whether the technology application or use actually improves performance. The main aim of the study was to evaluate the influence open source ERP adoption-use on the organisational performance of deposit taking SACCOs in Kenya. The study-specific objective was to determine the influence of open source ERP adoption-use on the organisational performance of Deposit-Taking SACCOs in Kenya. The target population was 168 Deposit-taking SACCOs with a sample size of 378 respondents. The questionnaire was used to collect quantitative data. PLS-SEM using smart pls was used to analyse the data. The study concludes that adoption-use of open source ERP will have a significant effect on organisational performance; learning and growth, internal process, customers, and financial indicators. Open source ERP by itself cannot contribute to significant performance improvement or sustainable competitive advantage if organizational resources and work processes are not improved or changed to enable open source ERP to promote organizational performance. The organisation management and regulatory authority should create an enabling environment and policies that will increase the adoption-use of open source ERP by deposit-taking SACCOs in Kenya. Keywords: open source ERP, adoption-use, learning and growth, internal process, customer finance, deposit-taking SACCOs

MEDIATION EFFECT OF SYSTEM SUCCESS FEATURES ON OPEN SOURCE ERP ADOPTION-USE AND ORGANISATIONAL PERFORMANCE

Organisations are shifting their attention towards flexibility, savings and efficiency in order to win or to survive in the market. The emergence of open source ERP for financial institutions can be viewed as one of the most important and constructive developments that has gained momentum in recent years. Consequently, it has become crucial for many organisations in their quest to improve and enhance their competitiveness through its adoption and use. The main objective of the study was to establish the mediation effect of system success features in the relationship between open source ERP adoption-use and organisational performance of Deposit-Taking SACCOs in Kenya. Target population was 168 Deposit-taking SACCOs with sample size of 378 respondents. Questionnaire was used to collect quantitative data. PLS-SEM using smartPLS 3.2.8 was used to analyse the data. The study concludes that adoption-use of open source ERP will have significant effect on organisational performance; learning and growth, internal process, customers and financial indicators. To maintain organisational performance and sustain long term viability of the open source ERP, the service quality has to be effective has it has the largest effective size among other mediating system success features (system and information) qualities combined. The service quality components include the support staff competences, reliability and speed of attending to complaints concerning the system