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

An analysis of the efficiency of the foreign exchange market in Kenya

This study examined the Efficiency Market hypothesis in its weak form using run tests, unit root tests and the Ljung-Box Q-statistics. The motivation was to determine whether foreign exchange rate returns follow a random walk. The data covered the period starting January 1994 to June 2007 for the daily closing spot price of the Kenya shillings per US dollar exchange rate. The main finding of this study is that the foreign exchange rate market is not efficient. The results showed that most of the rejections are due to significant patterns, trend stationarity and autocorrelation in foreign exchange returns. This is attributed to both exchange rate undershooting and overshooting phenomena.

Moderating Effect of Firm Characteristics on the Relationship between Electric Power Outage Dynamics and Financial Performance of Manufacturing Firms in Kenya

Past literatures on the correlational link between electric power outage dynamics and performance of manufacturing firms, in most economies, have portrayed a controversial conceptual debate amongst scholars with little focus on the moderating role played by firm characteristics. This paper focuses on determining the effect of firm characteristics (capital structure) on the relationship between electric power outage dynamics and financial performance of manufacturing firms in Kenya. Positivism philosophical point of view and descriptive survey research design was utilized. A population of 447 manufacturing firms in Kenya, which were also members of Kenya Manufacturers Association, was selected out of which a sample size of 138 firms was drawn using stratified random sampling methodology. Structured questionnaires were utilized to collect data which involved drop and pick approach. The research results indicate that the relationship between electric power outage dynamics and performance of manufacturing firms in Kenya is not significantly moderated by firm characteristics. This study outcome augments existing knowledge on electric power outage dynamics in relation to firm characteristics and financial performance. This is because it is evident that top management should not focus on capital structure as a conditional factor when making decisions aimed at enhancing firm financial performance under power outage conditions. The study has also made an input to the academic literature ascending from empirical reinforcement of tradeoff theory and pecking order theory in making determination on firms’ capital investments. Policy makers and power utilities benefit in understanding the negative effect of power outages on the performance of firms are therefore guided in overseeing the planning and implementation of proper electricity infrastructure. Kenya Association of Manufacturers (KAM) will find these research findings useful in guiding their member firms on strategies to adopt to ensure continuous productivity and safeguard damages to the firm as a result of electric power outages

Governance and Performance of National Government-Constituencies Development Funds in Kenya

The main objective of the study was to establish the relationship between governance and performance of National GovernmentConstituencies Development Funds (NG-CDFs) in Kenya. A census survey was carried out on all the 290 NG-CDFs performance in Kenya. A positivistic research philosophy and a descriptive cross-sectional survey design were used. Data was collected using structured and unstructured questionnaire. Secondary data was easily accessible from the National Treasury, Kenya National Bureau of Statistics, the General Auditor’s reports and NG-CDF website and was collected for the period 2014 to 2018. Simple regression analysis was used to test the hypotheses at 95 percent confidence level. The results of the study were established and compared to various theories anchoring the study and conceptual, contextual and empirical evidence. It was established that there is a statistically significant relationship between governance and NG-CDFs performance in Kenya. The study benefits policy makers such that the NG-CDF board should ensure that all NG-CDFs have homogeneous governance practices that ensure enhanced performance. Managerial practitioners especially in NG-CDF may consider strengthening governance to enhance performance and use Data Envelopment Analysis (DEA) technique to measure performance in NG-CDFs

THE JOINT EFFECT OF STRATEGIC ALLIANCE, REGIONAL INTEGRATION AND MACRO ENVIRONMENT ON THE PERFORMANCE OF KENYAN MANUFACTURING FIRMS IN THE EAST AFRICAN COMMUNITY MARKET

The study sought to establish the joint effect of strategic alliance, regional integration and macro environment on the performance of Kenyan manufacturing firms in the East African Community market. The study was anchored on resource dependency theory, Resource Based Theory, theory of integration and the Open system theory. The positivism philosophical paradigm and a cross sectional descriptive survey design adopted guided the study. The population of the study was 160 Kenyan manufacturing firms in the EAC market. Primary data was collected using a semi-structured questionnaire. A response rate of 81% was realized. Secondary data was collected from financial statements of the respective firms. Data was analysed using descriptive and inferential statistics. Hypotheses were tested using both simple and multivariate regression analysis while Baron and Kenny (1986) model of stepwise regression analysis were used to test for moderating effects. The findings indicated that there is a statistically significant positive joint influence of strategic alliance, regional integration and macro environment on the performance of Kenyan manufacturing firms in the East African Community market and the joint effect was greater than the influence of each variable individually. Future research directions include a replication of study in a longitudinal approach while using path analysis or structural equation models and consideration of other sectors, firm characteristics and resource constraints. The results of this study will serve as guide to document that the level and type of alliances used in the Kenyan manufacturing firms in the EAC market will determine their performance

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

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

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