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.

PRE-POST TESTS ANALYSIS OF USING ART THERAPY AS TREATMENT FOR DEPRESSION: CASE OF LANG’ATA WOMEN’S PRISON NAIROBI – KENYA

The purpose of this paper was to establish the effectiveness of art therapy as a treatment fordepression at Langata Women Prison (LWP) in Nairobi. The paper was anchored on Bandura’ssocial learning theory and cognitive behavioral theory and the paper’s unit of analysis constitutedimprisoned women at LWP. The Becks Depression Inventory (BDI-II) assessment 21-item self-reportscale, both in English and Swahili was given to a sample size of 217 women prisoners’ in-order toidentify the presence and severity levels of depression. Out of the 217 respondents, 104 were those inprison and 113 in remand. However, the research was only done with those in remand (ordinary andcapital offenders) as those in the prison had on-going programs that would be disrupted if they wereto be engaged in the research. The BDI-II (pre-test) questionnaires were distributed to determine thelevels of depression. A sample of 113 from the remands was selected based on their levels ofdepression and 55 responded. The treatment group met for six sessions once a week for two hours.After six weeks group was subjected again to BDI-II (post-test). Results indicated that most of theincarcerated women suffered from severe depression; there were more remands who were found tohave depression; there were more cases of severe depression cases in both remand and prison andless inmates in prison with mild depression. However, there was a marked difference of moderatelevels of depression between remands and prisoners, with those in remand having a higher level ofmoderate depression. From the analysis, there was a significant reduction of depression afteradministering art therapy (post-test) versus before art therapy (pre-test) treatment. The findingssupport the findings of various studies that have been done in other countries. Based on the resultsfrom this paper, at the time of arrest, mental assessment should be done and those that require furtherassessment need to be referred to a psychiatrist as well as support from a psychologist; specialattention should be given to mothers; and for those who end up in prison, periodic screening shouldbe undertaken together with counselling and alternative therapy. In addition, the legal system shouldescalate court matters to avoid prolonged stay in remand and enhance public awareness on mentalhealth. This research focussed on incarcerated women at LWP and therefore the results should begeneralized with caution to other prisons in Kenya. Another limitation was that some respondentstended to minimize and at the same time exaggerate symptoms and the self-administered datacollection questionnaires depended on self-report, without medical records or corroborative history.For further research a similar intervention could be replicated in other women and men prisons, as well as compare depression amongst women and men prisoners.Key Words: art therapy, Bandura’s social learning theory, Becks Depression Inventory II,

Service Quality in Kenyan Universities: Dimensionality and Contextual Analysis

The dimensionality of service quality remains debatable with extant literature revealing divergence in thought. This study examined the dimensions of service quality and tested the existence of a significant difference in service quality perception between public and private university students in Kenya. Guided by a positivist paradigm and cross sectional sample survey, data was collected from 750 randomly selected respondents. A 56 item scale instrument based on performance only paradigm was self-administered to select university students. Factor analysis was employed in determining potent service quality dimensions and Analysis of Variance test used in comparative analysis. A four factor construct was revealed, with service blue print emerging as an additional dimension of service quality in the Kenyan university context. It was established that there exist a significant difference in the dimensions of service quality between public and private university students. This implied that an appreciation of service quality dimensions is imperative in managing student’s expectation and that the university managers have to apply contingent service quality practices. The study recommends adequate regulation to standardize service quality irrespective of the service context. Key words: Kenya, service quality, dimensions, universit

Strategic Agility and Sustainable Competitive Advantage: How to Leverage Top Management Team Characteristics

Purpose: Ubiquitous disruptive innovations and technologies, frequently changing consumer behaviour, and evolving market dynamics in Kenya, have compelled television stations to constantly explore innovative ways to achieve long term business sustainability. Firms must be ambidextrous; balancing the tensions of excelling in current businesses while exploring opportunities for future growth. This requires top leadership teams that are well suited to the challenge of steering organisations in disrupted business contexts. This paper investigated the effect of top management team characteristics on the linkage of strategic agility and sustainable competitive advantage of licensed television stations in Kenya. Methodology: A descriptive cross-sectional survey was employed and primary data was collected using a semi-structured questionnaire. Data from 210 licensed television stations that were operational at the time of the study was analysed using structural equation modelling (SEM). Findings: The results of the study indicated that strategic agility had a positive and significant effect on sustainable competitive advantage of licensed television stations in Kenya. Further, top management team characteristics were a mediator on the nexus  between strategic agility and sustainable competitive advantage, as well as a predictor variable of sustainable competitive advantage of licensed television firms in Kenya. Unique Contribution to Theory, Practice and Policy: The research was underpinned by the dynamic capabilities, resource-based view and upper echelons theories. The implication is that, to achieve sustainable competitive advantage, it is crucial for the top management team to possess specific attributes, including a balanced mix of both young and experienced members, diversity in functional backgrounds (especially those with knowledge of disruptive technologies and innovations), varying educational levels, and a mix of long-tenured and new managers

Influence of Organisational Resources on Performance of ISO Certified Organisations in Kenya

This study aimed at examining the influence of organisational resources on organisational performance of International Organisation for Standardization (ISO) certified organisations in Kenya. The study was based on Total Quality Management (TQM) theory. A cross-sectional research survey design was adopted. Primary data was collected from a sample of 282 ISO certified organisations by use of a questionnaire, and secondary data was obtained from financial statements of 27 ISO certified organizations sampled. Descriptive statistics was used to analyze proportions of the variables and multiple regression model was used to estimate the effect of organisational resources on the performance of ISO certified organizations. The findings show that abundant organisational resources reduce performance. The study, therefore recommends that the management of ISO certified organisations should employ limited organisation resources available efficiently and train their staff in managerial skills in order to improve performance of their organizations

Entrepreneurial Orientation as Antecedent of Business Model Innovation among Medium Enterprises in Kenya

This study investigated the influence of entrepreneurial orientation on business model innovation in medium enterprises in Kenya. The study was grounded on the dynamic capabilities view. A descriptive cross-sectional survey research design was adopted to achieve the study’s objective. The sampling frame was the Klynveld Peat Marwick Goerdeler (KPMG) East Africa and the Nation Media Group annual Top100 companies in Kenya.  Stratified random sampling was utilized to derive 221 companies that were used in the study. Primary data were collected from single respondents comprising senior managers of the participating firms. A total of 134 questionnaires were analysed. Ordinary least squares regression analysis revealed that entrepreneurial orientation is an antecedent of business model innovation among medium enterprises in Kenya. On the basis of the results, this study concluded that entrepreneurial orientation is necessary for enterprises to benefit from business model innovation. The study recommends that managers of medium enterprises in Kenya embrace entrepreneurial behaviour and attitude to enhance business model innovation practices.   It is further recommended that policymakers should develop and implement policies that encourage innovation and entrepreneurial behaviour. The study clarifies the position of entrepreneurial orientation in relation to BMI. Additional studies are recommended

Entrepreneurial Orientation as Antecedent of Business Model Innovation in Medium Enterprises in Kenya

This study investigated the influence of entrepreneurial orientation on business model innovation in medium enterprises in Kenya. The study was grounded on the dynamic capabilities view. A descriptive cross-sectional survey research design was adopted to achieve the study’s objective. The sampling frame was the Klynveld Peat Marwick Goerdeler (KPMG) East Africa and the Nation Media Group annual Top100 companies in Kenya.  Stratified random sampling was utilized to derive 221 companies that were used in the study. Primary data were collected from single respondents comprising senior managers of the participating firms. A total of 134 questionnaires were analysed. Ordinary least squares regression analysis revealed that entrepreneurial orientation positively and significantly influenced business model innovation in medium enterprises in Kenya. On the basis of the results, this study concluded that entrepreneurial orientation is necessary for enterprises to benefit from business model innovation. The study recommends that managers of medium enterprises in Kenya embrace entrepreneurial behaviour and attitude to enhance business model innovation practices.   It is further recommended that policymakers should develop and implement policies that encourage innovation and entrepreneurial behaviour. The study clarifies the position of entrepreneurial orientation in relation to BMI. Additional studies are recommended

Methodology for Assessing Procurement Systems: the Case of Public Procurement Bid Disputes Management in KenyaP.

Purpose: This study sought to assess the efficacy of bid disputes management mechanism in Kenya.   Theoretical Framework: Transparency in public procurement proceedings is a concern for most stakeholders. Allowing aggrieved bidders to challenge decisions of procuring entities is considered a critical development in the space of public procurement. The effectiveness and efficiency of bid disputes management mechanism should therefore be a concern for procuring entities, bidders, and development partners especially. This aspect is yet to be explored extensively in Africa.   Design/Methodology/Approach: The Methodology for Assessing Procurement Systems (MAPS) as propagated by the Organisation for Economic Co-operation and Development (OECD) helps evaluate the quality of public procurement systems and subsequently strategize on necessary reforms. This study applied MAPS to assess the efficacy of the bid disputes management mechanism in Kenya.   Findings: It was established that overall, the public procurement bid dispute management mechanism in Kenya was effective and efficient. However, shortcomings were noted concerning resourcing of Public Procurement Administrative Review Board (PPARB), unaffordable filing fees and accessibility of comprehensive, simple, and clear information on filing procedures.   Research, Practical and Social Implications: The findings of this study offer policy recommendations that will help promote effective and efficient management of public procurement bid disputes.   Originality/Value: The results of this study contribute to theory, practice and literature in the field of public procurement which is less researched in the Eastern Africa Region. The findings of the study can be replicated in countries that have based their procurement reforms on the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Public Procurement. It is to be appreciated that application of MAPS indicators allows for subjective judgments by the assessor

Entrepreneurial Orientation as Antecedent of Business Model Innovation among Medium Enterprises in Kenya

This study investigated the influence of entrepreneurial orientation on business model innovation in medium enterprises in Kenya. The study was grounded on the dynamic capabilities view. A descriptive cross-sectional survey research design was adopted to achieve the study’s objective. The sampling frame was the Klynveld Peat Marwick Goerdeler (KPMG) East Africa and the Nation Media Group annual Top100 companies in Kenya.  Stratified random sampling was utilized to derive 221 companies that were used in the study. Primary data were collected from single respondents comprising senior managers of the participating firms. A total of 134 questionnaires were analysed. Ordinary least squares regression analysis revealed that entrepreneurial orientation is an antecedent of business model innovation among medium enterprises in Kenya. On the basis of the results, this study concluded that entrepreneurial orientation is necessary for enterprises to benefit from business model innovation. The study recommends that managers of medium enterprises in Kenya embrace entrepreneurial behaviour and attitude to enhance business model innovation practices.   It is further recommended that policymakers should develop and implement policies that encourage innovation and entrepreneurial behaviour. The study clarifies the position of entrepreneurial orientation in relation to BMI. Additional studies are recommended

Strategic Choice and Performance of Universities in Kenya: The Mediating Role of Organizational Learning

Scholars and practitioners argue that organizational performance is important for bothempirical and conceptual research in strategic management.  Strategic choice is a majorconnection between the organization and the environment and involves decisions on themix of business portfolio. Organizational learning, on the other hand, involves a process ofchange which evolves around improving the organizational capability through newknowledge.  However, different scholars conceptualize organizational learning differentlydepending on their interests. This empirical research sought to contribute to knowledge byassessing the extent to which organizational learning influences the relationship betweenstrategic choice and performance of universities in Kenya. The study premised on the viewthat establishing the role of organizational learning maximizes the capabilities andcompetitive advantage in the performance of universities in Kenya. The study wasanchored in the industrial organizations economics theory as the main theory. The studyadopted a positivistic orientation and used a cross sectional survey. This study used asample of fifty two and got responses from forty three private and public universities.Primary data was collected using semi structured questionnaires. An analysis was doneusing correlation and regression analysis to test the hypotheses. The study objectiveconfirmed mediation of organizational learning confirmed significant results on nonfinancialperformance. The findings of this study are consistent with most of the previousstudies. This study therefore extends the knowledge frontiers in strategic managementthrough the finding that strategic choice influences organizational performance bothdirectly and indirectly through mediation of organizational learning. The findings of this study provide a diversity of implications on theory, policy and practice. Policy makers willutilize the findings from this study as a guide in the policy formulation and implementationof strategic choices aimed at improved performance of the universities in Kenya with focuson strategic choice and organizational learning. Key Words: Strategic Choice, Organizational Learning, Organizational Performanc