East African Journal of Business and Economics

Composition and Financial Performance of Farmers' Cooperative Societies in Kericho County, Kenya

2024-01-29T08:00:11+00:00

The main focus of this study was to analyse the relationship between board composition and the financial performance of farmers' cooperative societies in Kericho County, Kenya. The study was based on the Stakeholder Theory and adopted a correlational research design. The target population consisted of accounting officers, auditors, chief executive officers, directors, managers, and employees from the 51 farmers' cooperative societies registered by the Ministry of Cooperatives in Kericho County. A sample size of 303 participants was determined through Yamane's (1967) formula. Data was collected using a structured questionnaire, and subject experts were consulted to enhance the validity of the research instrument. The instrument's reliability was measured using Cronbach's alpha coefficient, which yielded a result of 0.8999, indicating sufficient reliability for the study. A pilot study was conducted in Bomet County, using 10% of the sample size to evaluate the research instrument's validity. The data from the study was analysed using descriptive statistics, that is, mean and standard deviation, and inferential statistics using correlation and multiple regressions. The results were presented using frequency tables. The study found that board composition was statistically significant (Beta=0.431; p=0.000<0.055) and positively influenced the financial performance of farmers' cooperative societies. Overall, the study concluded that board composition had a positive statistically significant relationship with the financial performance of the farmer cooperative societies. The findings from this study could be used to improve the delivery of services to farmers by cooperative society management. It can also help policymakers, such as the government and other stakeholders, make informed decisions and policies to enhance the performance of cooperative societies across the country. Finally, the study's findings will benefit researchers interested in studying the relationship between board composition and the financial performance of farmers' cooperative societies.

Enhancing Creativity in Educational Institutions: Does Emotional Intelligence Matter?

2024-02-05T11:48:56+00:00

Academic experts have emphasised the significance of leadership elements like emotional intelligence in cultivating innovative thinking among workers in professional settings. There is a lack of understanding about how emotional intelligence affects various types of creativity. This study sought to determine the antecedent role of emotional intelligence on different dimensions of creativity. The study used an explanatory design methodology to explain the hypothesised relationship between study variables in a detailed and comprehensive manner. The research aimed to understand better how emotional intelligence affects creativity. The research revealed that emotional intelligence significantly and positively affects various forms of creative behaviour. Although the extent of impact varies across the three categories of creativity, idea championing and idea generation are the two categories most influenced by emotional intelligence. The research findings were obtained from a public educational institution, rendering the results potentially only applicable to similar institutions. This is due to the differences in work environments between public and private educational settings, which could impact the creative potential of employees. Additionally, the data was sourced from Technical and Vocational Education and Training (TVET) institutions, making the results particularly relevant to tertiary-level establishments. It is worth noting that this study was cross-sectional, so employees' creative abilities could change over time. Nonetheless, this research provides an opportunity for a future longitudinal study to be conducted in the same field. To help employees overcome their fear of the repercussions of creativity, organisations should focus on enhancing positive leadership behaviours such as emotional intelligence. However, it is important to consider the stage of creative behaviour when enhancing emotional intelligence among leaders, as studies have shown that emotional intelligence can have varying effects on creative behaviour. This research holds both practical and theoretical significance. This is a novel study to establish the direct impact of emotional intelligence and individual dimensions of creative behaviour in public TVETIs in developing countries such as Kenya. The study also extends the application of social cognitive theory by confirming that the role of leaders' personality traits, such as emotional intelligence, varies with the type of creative behaviour. This is because the embedded tasks in the dimensions of creative behaviour tasks differ

Fabrication of a Sustainable Biodegradable Packaging Alternative for the Fashion Industry from Banana Waste

2024-02-15T13:16:55+00:00

Packaging has both functional and aesthetic purposes. Kenya requires more sustainable biodegradable packaging options after a plastic ban was introduced in 2017 affecting numerous industries such as fashion. Banana stems and peels are part of the waste produced in Kenyan farms, suggested for the construction of biodegradable paper packaging material for the fashion industry. The objectives of this study were: to extract banana stem (BS) fibres using a decorticating machine; pulp the BS fibres using banana peel lye (KOH); and construct samples of paper packaging material from the pulp treated with KOH. The research design for this study was experimental. Kiganda banana stems collected from Kisii County were used in this study. The paper packaging material was constructed by pulping the BS using the KOH as a delignification reagent and then converting the pulp to paper by mounting it on mesh frames to dry. The findings reveal that in BS fibre extraction, decorticating one banana stem takes 10 minutes yielding 105 g of dry BS fibre. It also revealed that the handmade paper-making process takes 8 hours and 12 minutes including drying time to create an A4 size paper with the majority of the time (8 hours) being used for drying. The yield from the KOH pulped BS fibre was determined to be 68%. It was clear from the findings that KOH is comparable to commercial industrial alkalis like Sodium Hydroxide (NaOH) as a delignification reagent for BS fibres as it yields much pulp which produces good packaging material. Part of the recommendations for further research include the exploration of an industrially scaled paper-making process by the paper packaging manufacturing industry using KOH to pulp BS fibres. It is also suggested that research be done on using non-decorticated stems and varied concentrations of KOH to establish the most economical method

Effect of Risk Assessment as an Element of Internal Control System on the Quality of Financial Reporting Information in Local Governments of Rwanda

2024-02-18T11:59:22+00:00

Risk assessment as a component of the internal control system allows the management to stay focused on the entity's pursuit of its operation and produce high-quality financial reporting. Despite the adoption of risk assessment as part of an internal control system for years, Rwanda's local governments faced many persistent problems in their financial reporting information. Thus, this research evaluated the effect of risk assessment as a component of the internal control system on the quality of financial reporting in Rwandan local governments. The study was conducted in the 30 districts of Rwanda. Primary data was collected using the questionnaire, and the reports of the Office of General Auditors of Rwanda were consulted to collect secondary data. The findings from descriptive analysis showed a high level of risk assessment with a mean of 3.87. The level of the quality of financial reporting information was high, with a mean of 4.02. Findings from correlation analysis showed that the correlation coefficient between risk assessment and quality of financial reporting information was 0.648, and the p-value was 0.00. The linear equation from regression analysis showed a constant of 2.135, indicating that if the risk assessment as an independent variable stays constant, a positive change in the quality of financial reporting information of 2.135 is observed. The model shows that for a unit increase in risk assessment quality, financial reporting information is predicted to increase by 0.493 units. The management of local governments of Rwanda has been recommended to put more effort into considering the potential for fraud to assess risks for achieving the objective of avoiding public fund embezzlement

Asymmetric Analysis of the Impact of Taxation on Unemployment in Uganda

2024-02-29T10:09:33+00:00

Uganda, like most developing countries, has one of the highest tax rates not only in Africa but also in the world. This explains the numerous challenges faced in mobilizing sufficient revenues to fight poverty and improve people’s economic welfare. We, therefore, use a more recent nonlinear autoregressive distributed lag model (NARDL) to analyze the impact of higher taxes on the unemployment rate in Uganda. Results indicate that total Unemployment in Uganda is a negative function of both an increase in tax and a negative change in tax. Specifically, if taxes increase, then unemployment decreases by almost 3.9%, and if taxes decrease, then unemployment increases by about 4.9%. Also, the unemployment level decreased by 0.06% with a decrease in the gross capital formation (GFKF). Finally, unemployment also decreases with a rise in GDP and decreases with a decrease in GDP. In a nutshell, Uganda lacks the possibility of making the economy more productive and thus only relies on taxing an already overtaxed economy. Overtaxing an economy kills the possibility of ever building a formidable capital base that can stimulate economic growth and reduce poverty and unemployment. The government, therefore, should cut taxes and level the playing field regarding tax policies for foreign and home-grown investors. Finally, policymakers should also aim to unlock the potential of the informal sector not only to create jobs but also to widen the tax base

Fish Value Addition Practices by Women Fish Vendors in Dar Es Salaam: A Case of Mackerel Fish

2024-03-04T11:38:32+00:00

Fish value addition has been linked with enhanced economy for women vendors worldwide. Despite the existence of enormous benefits linked to value addition, many fish traders in Dar Es Salaam still sell unprocessed fish and fish products while a few of them sell the processed product. A number of practices for fish value addition have been identified through this study conducted in Kinondoni Dar Es Salaam. The study employed a cross-sectional design. The study population was 100 fish traders involved in the fish business. Structured questionnaires were employed. Quantitative and qualitative analysis using frequency table proportions (percentage) was used to interpret the data, and descriptive statistics was used to analyse the data. The study established the fish vendors in Dar es Salaam were involved in fish cleaning (14%), grading (23%), processing (52), and packaging (11%). This implies thatthe majority of fish vendors were engaged in processing fish. Further, the study revealed that 5% of respondents were preserving fish in frozen devices, 77% of respondents were frying them, 7% were drying fish in the sun and11% were packing them. This implied that there are a number of methods used to ensure the quality of fish, but the most common one used by women fish vendors was to fry them. It was concluded that Value addition plays a crucial role in enhancing economic returns, expanding market opportunities, reducing waste, improving nutrition, and promoting food security

Beyond Panacea: Deconstructing the Multifaceted Relationship between Procurement Accountability and Quality in the County Government of Kitui, Kenya

2024-03-08T06:49:28+00:00

Procurement and supply chain processes in public administration are often scrutinized for their susceptibility to inefficiency and corruption. This research investigated the influence of different accountability mechanisms on the quality of procurement and supply chain management within the Kitui County government in Kenya. Moving beyond a simplistic notion of accountability as mere responsibility, the study adopted a nuanced approach, drawing upon agency theory and institutional theory to analyse the interplay between formal rules, oversight bodies, and stakeholder engagement in shaping procurement outcomes. It examined how these mechanisms influence key quality dimensions like cost-effectiveness, transparency, and value for money. A mixed-method was employed, utilizing both quantitative surveys within the Kitui County procurement department and qualitative interviews with key stakeholders. The coefficients of correlation and the P-values were as follows: Accountability (Beta= 0.774, P-value= 0.000<0.05) thus indicating a statistical significance, 1 point increase in accountability increases quality of procurement by 0.774 hence indicating a very strong positive influence. This research serves as a springboard for further investigation into the nuanced dynamics of accountability within public procurement and supply chain management, ultimately aiming to improve quality and deliver greater value for public institutions and their stakeholders

Digital Capability and Performance of Micro, Small, and Medium-Scale Enterprises: A Review

2024-03-09T13:58:57+00:00

Digital Capability is considered one of the cardinal strategies that MSMEs can adopt to enhance their competitiveness and improve performance. However, several business enterprises continue to experience various setbacks, such as poor performance and slow growth, where almost 70 percent of SMEs close their businesses before their third year in operation. This may be attributed to an unfavorable business environment and rapid technological changes, requiring an equal and efficient change in business strategy. This paper, therefore, sought to assess the effect of digital capability on the performance of micro, small, and medium enterprises. Specifically, the study aimed to evaluate the influence of digital infrastructure, organization competency, and digital operations on the performance of Micro, Small, and medium-scale enterprises. The study adopted a qualitative survey design where the scholar did a literature search on different online databases, mainly Google Scholar, EBSCO, and Science Direct. The study was desk research, which involved reviewing academic journals, scholarly articles, and published research. The findings indicated that digital infrastructure, organization competency, and digital operations significantly positively affected the performance of micro, small, and medium enterprises. The study recommended that further studies be carried out using quantitative techniques to assess further the relationship between digital capability and the business sustainability of MSMEs

Messenger Marketing Platforms and Performance of Tour Operating Companies in Kenya

2024-04-03T15:06:03+00:00

Messenger marketing is part of global digital trend that acts as a new avenue for tour firms to adopt based on convenience in interaction, ability to reach more audiences and collaboration with customers. The study aimed to examine the effect of messenger marketing on performance of tour operating companies in Kenya. The study was anchored on diffusion innovation theory. Cross-sectional and correlational research design were utilized. The study applied census approach to a target population of 212 general managers of tour operating companies. Online and physical questionnaires were used to collect primary data. The supervisors and experts were used to examine validity of the instrument while Cronbach Alpha was adopted to test reliability was 0.783 which was above a threshold of 0.7, hence reliable. Descriptive statistics consisting of mean and standard deviations were used to summarize data while simple linear regression was used to test significance at 5%. The results revealed that messenger marketing platform was practiced by the tour operating companies through using mobile services platform for sending messages, chatting and soliciting sales. It also assisted in obtaining customer feedback, blogging and chatting with customers. However, the Chatbots were hardly used by firms which adopted artificial intelligence in communicating, sending random messages and could be integrated to existing online platforms. The results indicated that messenger marketing had positive significant effect on the performance of tour operating companies (β1=0.428, P = 0.000<0.05). The study concludes that messenger marketing platform marketing significantly influenced performance of tour operating companies. The study recommends tour operating companies should apply Chatbots, mobile service, mobile commerce and conversation commerce to enhance customer relationship and improve performance

From Reform to Resurgence on Somalia's Journey to Economic Stability and Global Confidence

2024-04-05T10:24:59+00:00

Examining Somalia's journey from political instability to economic recovery, this analysis focuses on the significant impact of recent efforts to relieve the country's debt burden. A major achievement was Somalia's successful inclusion in the Heavily Indebted Poor Countries (HIPC) initiative, which granted the nation relief from repaying its debts. This article aims to explore the complex landscape, thoroughly examining the essential role of debt relief. It dissects the factors contributing to economic stability, evaluates the newfound global confidence, analyses elements enhancing investor appeal, and navigates the challenges and opportunities defining the nation's economic resurgence. The challenges arising from the debt write-off include the effective implementation of economic reforms, managing heightened expectations, and addressing the persistent historical political instability that requires ongoing attention. Despite these challenges, opportunities emerge, providing Somalia with the chance to strategically reallocate resources to vital sectors, enhance its attractiveness to investors, and engage in potential global collaborations. This exploration concludes by outlining policy implications for Somalia's policymakers. It emphasizes the importance of sustainable economic reforms, initiatives promoting political stability, prudent resource allocation, the implementation of investor-friendly policies, active participation in international collaborations, and targeted efforts to promote investment. Addressing these policy implications could empower Somalia to transform challenges into catalysts for sustained economic growth and development, charting a course toward a prosperous and resilient future

Mediating Effect of Motivation on the Association between Employee Compensation and Employee Performance in Kenyan Chartered Public Universities

2024-04-17T08:03:32+00:00

Compensation is crucial to the employee-employer relationship, affecting satisfaction, turnover, absenteeism, commitment, and trust. Fairness in incentives distribution and supportive supervisors are key to motivating academic staff and enhancing performance. This study aimed to examine the effect of employee motivation on the relationship between compensation and performance in Kenyan chartered public universities. The study was based on Expectancy and Maslow Theory. The study adopted positivist research philosophy. It utilized a positivist research approach, adopting a descriptive cross-sectional design. A pilot study was carried out at one university to validate the data collection instrument. Reliability results indicated a Cronbach Alpha value of 0.920. 247 questionnaires were returned out of 382 administered, thus giving a response rate of 64.7%. Data on compensation, motivation, and performance were collected through a questionnaire. Descriptive and inferential statistics were employed for analysis. Results showed that motivation mediates the relationship between compensation and performance (R2=0.348, F=66.563, p<0.05), positively and significantly. The study concludes that the relationship between employee compensation and employee performance is mediated by positively and significantly by motivation. The study recommends that compensation programs should be well structured so as to promote fairness and also motivate employees

An Empirical Analysis of the Relationship between Project Planning Management and Performance of Selected Mega-dam Projects in Kenya

2024-04-23T17:07:14+00:00

The main objective of this paper was to determine the relationship between project planning management and the performance of mega-dam projects in Kenya. This study was guided by positivist research philosophy. A descriptive cross-sectional survey research design was adopted. In this study, the unit of analysis was 18 mega-dam projects launched and completed across Kenya as listed under the Ministry of Water, Sanitation, and Irrigation (MoWSI) while the unit of observation was the respective three officials (project manager, project engineer, geospatial engineer) in the MoWSI. A Census of all mega-dams completed in Kenya was conducted. In addition, the study purposively interviewed 5 key stakeholders including the cabinet secretary, permanent secretary from the MWSI, donor, contractor, and one randomly selected beneficiary from the community with the target mega-dam. This formed a total sample size of 180 respondents. Primary data was collected using the semi-structured questionnaires as well as the Key Informant Interview (KII) guide. The combination of quantitative and qualitative data from multiple sources and perspectives provided a more comprehensive and robust understanding. Pretesting was done by way of pilot testing to ascertain the validity and reliability of the tools. Descriptive and inferential statistics were used to summarize and describe the key characteristics of the data, as well as draw conclusions and make inferences. Correlation snalysis found that project planning management had a positive significant relationship with the performance of selected mega-dam projects in Kenya (r= 0.869, p<0.05). Furthermore, regression found that the project planning management coefficient is 0.497, suggesting that a one-unit improvement in project planning management corresponds to a 0.497 improvement in the performance of these mega-dam projects. Based on the findings, the study concluded that project planning management positively and significantly influences the performance of selected mega-dam projects in Kenya. This study therefore recommends that project managers should give priority to project planning management

Investigating the Influence of Project Initiation Management on Performance of Mega-dam Projects: Empirical Evidence from Kenya

2024-04-23T17:07:08+00:00

Performance of large projects including mega-dams could be associated with strict adherence to project life cycle (PLC) phases while considering the risks such as displacement of people and natural ecosystem disturbance. Understanding these risks helps project managers and stakeholders make informed decisions thus creating a positive legacy for the project in the long run. The main objective of the research was to determine how project initiation management influences the performance of mega-dam projects in Kenya. This study was guided by positivist research philosophy. A descriptive cross-sectional survey research design was adopted. In this study, the unit of analysis was 18 mega-dam projects launched and completed across Kenya as listed under the Ministry of Water, Sanitation, and Irrigation (MoWSI) while the unit of observation was the respective three officials (project manager, project engineer, geospatial engineer) in the MoWSI. A Census of all mega-dams completed in Kenya was conducted. In addition, the study purposively interviewed 5 key stakeholders including the cabinet secretary, permanent secretary from the MWSI, donor, contractor, and one randomly selected beneficiary from the community with the target mega-dam. This formed a total sample size of 180 respondents. Primary data was collected using the semi-structured questionnaires as well as the Key Informant Interview (KII) guide. Quantitative and qualitative data from multiple sources and perspectives provided a more comprehensive and robust understanding. Pretesting was done by way of pilot testing to ascertain the validity and reliability of the tools. Descriptive and inferential statistics were used to summarize and describe the key characteristics of the data, as well as draw conclusions and make inferences. Correlation findings showed that project initiation management and performance of selected mega-dam projects in Kenya have a strong positive and significant relationship (r= 0.874, p<0.05). In addition, regression findings showed that one-unit rise in project initiation management corresponds to a 0.433 improvement in the performance of these mega-dam projects. Based on the findings, the study concluded that project initiation management positively and significantly influences the performance of selected mega-dam projects in Kenya. This study therefore recommends that project managers should give priority to project initiation management