School of Business and Economics: Recent submissions
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Mwende, Joyce; Wachira, Muturi; Amata, Evans (International Journal of Academic Research in Economics and Management Sciences, 2017)[more][less]
Abstract: Financial institutions have mainly relied on incentive programs as their main strategic driver to increase electronic payments, such as through use of credit cards. Credit cards have been globally acclaimed for their benefits that range from their ability to ensure tax-compliance, security, instant cash and their ability to facilitate settlement of cross-border transactions. However, there exists a great challenge of credit card usage, such as ease of accumulation of debts and high interest charges. The purpose of this study was to determine the effect of credit card incentives on consumer borrowing in Kenya. The study employed a descriptive study approach using a sample size of 18 commercial banks offering credit card services. Selfadministered questionnaires were used to collect information. Credit card incentives were found to be a major contributor to credit card uptake. The study also found that most banks used incentives such as rewards for repeated use, low interest rates, traveling awards and benefits to influence the spending behavior of their clients. The study found credit card also affected spending behavior. It is concluded that credit card incentives can be effectively used by banks to increase use of credit cards. It is recommended that financial institutions should educated their customers on how to use their credit cards so that they do not fall into a debt trap. Description: Journal Article URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4178 Files in this item: 1
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Amata, Evans Ombima; Muturi, Willy; Mbewa, Martin (International Journal of Economics, Commerce and Management,, August 8, 2016)[more][less]
Abstract: This study sought to examine the relationship between interest rate, inflation, gross domestic product (GDP), foreign exchange, investor herding behaviour and stock market volatility. Published time series data from January 2001 to December 2014 was obtained from the Central Bank of Kenya, Kenya National Bureau of Statistics, Capital Market Authority and the Nairobi Securities Exchange. Granger causality test was used to determine the short run causality while the Vector Error Correction Model (VECM) was used to test the long run causality between predictor variables and stock market volatility. Result from the regression model show a positive and significant relationship between inflation and stock market volatility both in the short run and long run. The study finds that an increase in inflation by 1% leads to an increase in stock market volatility by approximately 24%. Results also revealed that there is a negative and significant relationship between interest rate and stock market volatility both in the short run and long run. GDP, Foreign exchange and herding behaviour had no significant relationship with stock market volatility in Kenya. Description: Journal URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4177 Files in this item: 1
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Waithima, Abraham K (University of Capetown, April , 2011)[more][less]
Abstract: This thesis investigates the role of gender composition, ethnic heterogeneity and harambee on corruption. The interest is premised on the high levels of corruption in Kenya coupled with the rising ethnicization of politics and the allegation of harambee being one of the causes of corruption. In addition, there has been growing advocacy for the greater involvement of women in the public sector as an anticorruption strategy. Given this, this thesis uses experimental games which are novel in the Kenyan context to examine the extent to which individual attributes such as gender and ethnicity might ináuence the propensity to o§er or accept a bribe, or to punish individuals who engage in such activities. In addition, this thesis uses a public good game and a common pool resource game to examine the alleged link between harambee and corruption. Description: Book URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4173 Files in this item: 1
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Psiwa, Jane Tipitip; Irungu, Dancan Njagi; Muriithi, Samuel Muiruri (Journal of stratetegic management, 2017)[more][less]
Abstract: the study recommends that the national government of Kenya should disburse funds to the county governments regularly and on time, NCG should review their style of leadership to a transformational and consultative style, and that the national government should review the national legislations and policies that govern the operations of county governments Description: Article URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4170 Files in this item: 1
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Irungu, Dancan Njagi; Marwa, Simmy Mwita; Ndegwa, Joyce Watetu; WambuaKalei, Anne Favor Mumbua (International Journal of Economics, Commerce and Management., June 6, 1015)[more][less]
Abstract: The main objective of the study is to determine the influence of key decision maker attributes on the internationalization of medium sized firms. Key decision maker attributes have been underscored in much internationalization literature across different contexts as a principal feature that facilitates the process of Medium Enterprises internationalization. Medium enterprises play a significant role in creating a strong economic base to any country since they greatly contribute to employment creation. There is overwhelming evidence from the literature that the key decision maker plays a huge role in the internationalization of Medium enterprises. International entrepreneurship theory is the main theoretical framework which informs the study. The main variables that are examined in the study include key decision maker education, international experience and international business vision. Descriptive research design has been used in the study. The key CEOs of the Top 100 medium sized companies in the category of 2012 were the respondents of the study. The results of the study indicate that key decision maker attributes plays a significant role in the internationalization process of medium sized firms. The study concludes that the key decision maker is a major determinant of the firm’s ability to grow from the domestic market and internationalize its operations Description: Article URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4169 Files in this item: 1
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Nzisa, Samuel Maingi; Kithandi, Charles Katua (International Journal of Scientific and Research Publications, April , 2023)[more][less]
Abstract: Technological advancements in the financial sector have revolutionized the order of borrowing. Digital lending platforms have emerged, offering quick access to funds by many borrowers with no collaterals, no need for paperwork, complete and remote accessibility, and the use of digitized data to determine the creditworthiness of the borrowers. The purpose of this study was to investigate the relationship between digital borrowing and personal finance among students in selected Christian universities in Nairobi County, Kenya. The study used the financial intermediation theory, innovation diffusion theory, time preference theory, and the finance and inequality theory. A descriptive research design was utilized for primary and secondary data, and the primary data was collected using a questionnaire. The data was then cleaned, coded, and organized for analysis using the Statistical Package for the Social Sciences (SPSS). After analysis, the data was presented in charts, tables, and figures. The findings indicated that the most common digital borrowing platforms are Okoa Jahazi, Tala, Branch, Fuliza, Mshwari, KCB Mpesa, KCB App, MCo-op Cash, and Eazzy Banking App. The study also established that students in the sampled Christian universities highly depended on their parents for upkeep and that their digital loans were mostly for for emergencies and investment activities. Spearman correlation was used to determine the relationship between the dependent variables (savings, spending, and investment) and the independent variables (application-based lending and mobile-based lending), resulting in a moderate positive correlation and a significance level of P<0.001. It was concluded that digital borrowing significantly and positively affects personal finance. The study recommends a change of the digital credit system and an efficient and effective regulation for all digital lenders. Description: Article URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4083 Files in this item: 1
Digital Borrowing.pdf (621.5Kb) -
Kithandi, Charles Katua; Moragwa, Christine; Mutunga, Antony (International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), March , 2023)[more][less]
Abstract: This study aims to analyze the relationship between the stock market development and economic growth in Kenya This study uses a systematic review and analysis of relevant empirical reviews from previous studies. The study analyses data from five previous studies done in Kenya between the period 2017 -2021. The findings of the systematic review show that while an expanding stock market can cause economic growth to be impacted positively, this relationship is not straightforward and is affected by a variety of factors, including political stability, government policies, financial infrastructure, and the availability of credit and foreign investment. The study also identifies several challenges that have hindered stock market development in Kenya, including a shortage of liquidity, limited participation by domestic investors, weak corporate governance, and inadequate regulatory oversight. Based on these findings, the study provides evidence-based recommendations for policymakers to promote stock market development in Kenya and enhance its contribution to economic growth. These recommendations include improving the regulatory framework, enhancing transparency and disclosure requirements, increasing investor education and awareness, and strengthening corporate governance practices. The study concludes that stock market development has a significant positive effect on economic development in Kenya. Description: Journal Article URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4044 Files in this item: 1
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Muthoka, Dorothy (The World Financial Review, August , 2022)[more][less]
Abstract: Cryptocurrencies ride on blockchain, a disruptive technology in the world.The Kenyan government has been lagging behind in recognising their growthand proliferation. Yet, it can utilise the power of its technologicalinfrastructure to enhance the efficiency of these cryptocurrency payments.The innovation is becoming friendlier to law-enforcers than law-breakers. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4043 https://worldfinancialreview.com/the-nexus-between-the-central-bank-of-kenya-and-private-providers-of-cryptocurrencies/ Files in this item: 1
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Kathindi, Charles Katua (THE INTERNATIONAL JOURNAL OF BUSINESS & MANAGEMENT, June , 2022)[more][less]
Abstract: This study has been done to address the research gaps in the effect of monetary policy of commercial bank’s financial performance. The key objectives of the study were to establish the following; the effect of changes in central bank rate on financial performance of commercial banks in Kenya, the effect of reserve ratio requirement on financial performance of commercial banks in Kenya and, the effect of repo rate on financial performance of commercial banks in Kenya. The study was carried out covering a five-year time frame period from 2016 to 2020. The independent variables of the study involved: cash reserve ratio, Central bank rate, and the repo rate. Return on equity was used as the dependent variable. The study used descriptive longitudinal research design. The total population consisted of all the commercial banks, which is forty-two in number, licensed to operate in Kenya by the Central Bank of Kenya. The study employed various research tests; Durbin-Watson, quantile-quantile plot and normality test were applied in research finding analysis. The study found out that a negative relationship exists between both Central Bank rate and cash reserve ratio requirement and return on equity (financial performance) of commercial banks in Kenya. The research findings also showed that a positive relationship exists between repo rate and the return on equity (financial performance) of commercial banks in Kenya. In Conclusion, the study concluded that monetary policy affects profitability and financial performance of commercial banks in Kenya. The study recommends that, for central bank to stimulate economic growth, central Bank rate needed to be monitored and maintained low. Description: Journal Article URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/4005 Files in this item: 1
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Kithandi, Charles Katua (International Journal of Scientific and Research Publications, October 30, 2022)[more][less]
Abstract: Corporate governance is the backbone of transparency, accountability, integrity and security of shareholders’ interest in an organization. An organization with poor corporate governance structure is likely to fail to achieve its objectives as well as have exposure to financial losses. The purpose of this study is to examine the effect of corporate governance on the financial performance of Deposit-taking Savings and Credit Co-operative Societies in Nairobi City County, Kenya A purposive sampling method integrating qualitative and quantitative design methods was employed in this study. The target and sample population were all the 42 Deposit-taking Savings and Credit Co-operative Societies in Nairobi City County, Kenya while a sample of 30 deposit-taking SACCOS was used for this study. For the 30 deposit-taking SACCOS, the company secretaries and other two executive top management members were each subjected to the study through the administration of questionnaires, hence three respondents per deposit-taking SACCOS. The published annual reports of the of 30 deposit-taking SACCOS were used to collect secondary data. SPSS research analysis tool was used emphasizing on the Multiple Regression Analysis and the Spearman Correlation Coefficient among others to assess the magnitude and relationship and thus come up with a finding of the relationship of the independent and dependent variables. The research found that corporate governance practices greatly affect Deposit-taking Savings and Credit Co-operative Societies in Nairobi City County, KenyaCorporate governance is the backbone of transparency, accountability, integrity and security of shareholders’ interest in an organization. An organization with poor corporate governance structure is likely to fail to achieve its objectives as well as have exposure to financial losses. The purpose of this study is to examine the effect of corporate governance on the financial performance of Deposit-taking Savings and Credit Co-operative Societies in Nairobi City County, Kenya A purposive sampling method integrating qualitative and quantitative design methods was employed in this study. The target and sample population were all the 42 Deposit-taking Savings and Credit Co-operative Societies in Nairobi City County, Kenya while a sample of 30 deposit-taking SACCOS was used for this study. For the 30 deposit-taking SACCOS, the company secretaries and other two executive top management members were each subjected to the study through the administration of questionnaires, hence three respondents per deposit-taking SACCOS. The published annual reports of the of 30 deposit-taking SACCOS were used to collect secondary data. SPSS research analysis tool was used emphasizing on the Multiple Regression Analysis and the Spearman Correlation Coefficient among others to assess the magnitude and relationship and thus come up with a finding of the relationship of the independent and dependent variables. The research found that corporate governance practices greatly affect Deposit-taking Savings and Credit Co-operative Societies in Nairobi City County, Kenya Description: Journal ArticleJournal Article URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3974 Files in this item: 1
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Ekambi, J (International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), September 14, 2022)[more][less]
Abstract: With an approximate population of over 600 million people (World Bank Group), Africa remains demographically, one of the most attractive users of social media. Essoungou, (2010) suggests that, using social media platforms, to send and read e-mails, read news, and post research queries have become less important activities for Africans, indicating that everyone is on social media. However, very little is known about how social media is used for management functions, by the managers and other organization leaders. This is partly because of the taken-forgranted assumptions that social media cover communications field and very little in other disciplines, a long side the fact that age bracket for mangers is skewed to older ages. This is made worse by the vastness of the continent and the poverty aspect of the sub-Saharan Africa. The various social media studies from the marketing field, argues that the pattern of economic-political changes taking place in sub-Saharan Africa indicates that the region is not only opening but also quickly becoming the next economic power. Social media creates value in management functions and is leverage for competitive advantage in management functions and cost-benefit analysis for investing in social media management services creates efficiency and effectiveness for greater performance. The study will use mixed method research design through mining secondary data from World Bank dataset on social media activities, taking four countries to represent the sub-Saharan Africa: Kenya, DRC Congo, South Africa, and Nigeria. Content analysis is used to structure the review and analysis of the existing dataset. The paper looks up to challenging management to buy in social media to a level where social media will have an anchor in management to move business to a greater level. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3972 Files in this item: 1
Simplicity and Profundity-14092022.pdf (581.1Kb) -
Kithandi, Charles Katua (The International Journal of Business & Management, June , 2022)[more][less]
Abstract: This study has been done to address the research gaps in the effect of monetary policy of commercial bank’s financial performance. The key objectives of the study were to establish the following; the effect of changes in central bank rate on financial performance of commercial banks in Kenya, the effect of reserve ratio requirement on financial performance of commercial banks in Kenya and, the effect of repo rate on financial performance of commercial banks in Kenya. The study was carried out covering a five-year time frame period from 2016 to 2020. The independent variables of the study involved: cash reserve ratio, Central bank rate, and the repo rate. Return on equity was used as the dependent variable. The study used descriptive longitudinal research design. The total population consisted of all the commercial banks, which is forty-two in number, licensed to operate in Kenya by the Central Bank of Kenya. The study employed various research tests; Durbin-Watson, quantile-quantile plot and normality test were applied in research finding analysis. The study found out that a negative relationship exists between both Central Bank rate and cash reserve ratio requirement and return on equity (financial performance) of commercial banks in Kenya. The research findings also showed that a positive relationship exists between repo rate and the return on equity (financial performance) of commercial banks in Kenya. In Conclusion, the study concluded that monetary policy affects profitability and financial performance of commercial banks in Kenya. The study recommends that, for central bank to stimulate economic growth, central Bank rate needed to be monitored and maintained low. Description: Journal Article URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3963 Files in this item: 1
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Muthoka, Dorothy (The Conversation, December , 2021)[more][less]
Abstract: Kenya’s central bank has been mulling the official use of a digital currency. More than 60 central banks have already entered the digital currency race since 2014. No details have been released in Kenya, but the central bank governor, Patrick Njoroge, commented that the bank was working with other global regulators and financial institutions to explore the use ofdigital currencies. The shift towards digital currencies has been used by some central banks to formulate and implementregulations to manage the use of cryptocurrencies. For example, Nigeria has launched its officialdigital currency, the eNaira . The World Economic Forum estimates that a third of Nigerians use or own cryptocurrencies. Kenya isone of the top three markets for Bitcoin , one of the more popular cryptocurrencies. Description: https://theconversation.com/kenya-needs-to-grasp-the-cryptocurrency-nettle-how-a-digital-currency-could-help-172092 URI: https://theconversation.com/kenya-needs-to-grasp-the-cryptocurrency-nettle-how-a-digital-currency-could-help-172092 Files in this item: 1
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Onono, Perez Ayieko (Sustainable Agriculture Research, 2018)[more][less]
Abstract: Expansion of sorghum production in the arid and semi-arid areas in Kenya has been singled out as a potential for addressing food security challenges due to climate shocks affecting maize production and reduced availability of arable land in the medium and high potential areas. Towards achieving this government has used guaranteed minimum output prices, input subsidies and public investments to promote agricultural developments as some of the instruments of policy to provide incentives to farmers. Literature is deficient of studies on production behaviour of sorghum in the country with respect to market prices and public investments. This study provides empirical evidence on the response of sorghum production to output and input prices as well as to public investments. The study used data spanning the period 1978 to 2014 to fit an autoregressive distributed lag (ARDL) specification of the output response equation using the EViews statistical software. The findings show that sorghum production in Kenya does not respond to increases in its output price and is not adversely affected by input prices. Increased development spending in agriculture lead to increased sorghum production and also increase use of fertilizers and certified seeds. The findings suggest that policy interventions based on output prices and input prices alone would not yield the desired increased expansion in sorghum production. The government should increase budgetary allocations to agricultural development. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3664 Files in this item: 1
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Onchomba, Molson Samwel; Njeru, Agnes; Memba, Florence (International Journal of Economics, Commerce & Management, 2018)[more][less]
Abstract: The main purpose of the study was to determine the influence of real estate loans on financial performance of commercial banks in Kenya and a corresponding hypothesis was formulated and tested. A census of 42 fully operational commercial banks in Kenya was done for a period of ten years from 2006-2015 because of increased loan portfolio, using across-sectional survey design. A questionnaire was used to collect primary data from one key person in the finance/credit department of each bank. Secondary data was collected from audited financial statements and other relevant financial sources using data analysis sheet. Both descriptive and inferential statistics were used. Statistical package for social sciences (SPSS) and STATA version 14 were used to analyze data. Research findings established that real estate loans influence the financial performance of commercial banks. The study findings are supported by the Utilization of modern portfolio theory. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3661 Files in this item: 1
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Onchomba, Molson Samwel; Njeru, Agnes; Memba, Florence (International Journal of Economics, Commerce & Management,, 2018)[more][less]
Abstract: The main purpose of the study was to determine the influence of personal loans on financial performance of commercial banks in Kenya and a corresponding hypothesis was formulated and tested. A census of 42 fully operational commercial banks in Kenya was done for a period of ten years from 2006-2015 due to increased loan portfolio, using across-sectional survey design. A questionnaire was used on primary data that involved collecting data from one key person in the finance/credit department of each bank. Secondary data was collected from audited financial statements and other relevant financial sources using data analysis sheet. Both descriptive and inferential statistics were used. Statistical package for social sciences (SPSS) and STATA version 14 were used to analyze data. Research findings established that personal loans influence the financial performance of commercial banks. The study findings are supported by the Utilization of loan pricing theory and Asymmetric information theory. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3660 Files in this item: 1
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Nyenze, Tracy; Kyongo, Joanes Kaleli (The International Journal Of Business & Management, 2017)[more][less]
Abstract: The purpose of the study was to establish the effect of leadership traits on firm performance in Kenya Wildlife Service (KWS) and a corresponding hypothesis was formulated and tested. The study targeted a sample of 98 employees at KWS Headquarters in Nairobi, and 79 of them responded. The study employed a descriptive research design and data was collected using structured questionnaires and analyzed using descriptive and inferential statistics by the help of SPSS version 21. The findings of the research established that leadership traits positively and significantly affects firm performance in Kenya Wildlife Service. The study was anchored on the Contingency theory, Organization system theory and Leadership traits theory. The study recommends further investigation of the study variables in other State Corporations locally and abroad. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3659 Files in this item: 1
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Muriithi, Samuel Muiruri; Omollo, Judith; Wachira, Muturi (International Journal of Economics, Commerce and Management, United Kingdom, 2016)[more][less]
Abstract: The service industry worldwide has seen tremendous growth and is one of the fastest growing sectors both in the developed and developing economies. The growth is attributed to growing demand of clean atmosphere both at the workplace and domestic. Similarly, the demand for good health, safe and cleaner environment has made service businesses to start both in small and large magnitude. To successfully attain competitive advantage and boost growth, cleaning service businesses require the right strategies to be put in place. This paper examined strategies used by the cleaning industry in Kenya by focusing on a leading business in the country. The study targeted 112 managers from the target business and used a census sampling method. A questionnaire was used to collect primary data while a documentary analysis was done to collect secondary data. A pre-testing of the questionnaire was also conducted in order to validate the research instrument content. The findings from the study found that certain competitive strategies, namely professional and efficient service delivery, specialised quality services, cost effectiveness and niching were used to gain competitive advantage while product development, different marketing approaches, innovation and customer relationship managers where used to boost company’s growth. The use of these strategies ensured increased profit margin, customer satisfaction, brand position and sustainable growth. It is hoped that this study contributes significantly to the Kenyan cleaning industry both to new entrants and existing companies in terms of strategies to employ in order to excel in the industry. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3658 Files in this item: 1
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Muriithi, Samuel Muiruri; Louw, Lynette (Palgrave MacMillan, 2017)[more][less]
Abstract: The banking industry is a major driver of economic development for world economies. By offering different types of services, such as facilitating money transfers between countries and ensuring that savers and borrowers are brought together in well-organised structures, the industry determines countries’ economic development and long-term sustainability. Although critical to world economic stability, the last six decades have seen the industry experience severe financial challenges which have negatively affected economic performance of most countries. The main causes of financial crises have been non-performing loans, political interference, uncertain global financial trends and poor leadership. The Kenyan banking industry is considered the most mature, fastest-growing and largest in East Africa, thereby making it the regional financial leader. The industry has, however, been a victim of both global and domestic financial challenges. Between 1980 and 2000, the country’s financial industry was characterised by major financial upheavals that led to the collapse of many banks, while others were in and out of receivership. The crises were attributed to non-performing loans, weak internal control mechanisms, poor governance and poor leadership. Since the year 2000, the government has instituted tough measures to revive the industry, which have resulted in stability. As such, the industry has experienced positive and encouraging growth, contributing towards making the sector the financial hub of the East Africa region. Despite recent gains, however, the industry still faces challenges of corruption, inability to reach the majority of the rural population, fragmentation and ineffective leadership. This chapter explores the importance of enhancing and strengthening the banking internal control mechanisms and developing sustainability strategies, focusing on business practices and product development geared towards healthy economic, social and environmental activities. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3657 Files in this item: 1
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Muriithi, Samuel Muiruri (International Journal of Business and Management Invention, 2021)[more][less]
Abstract: Today’s business world is characterized by unpredictable, high volatility and cut-throat competition. The challenge to remain competitive, highly innovative and respond to dynamic customer needs has made organisations to pay particular attention to culture as a key foundation of their survival and sustainability. Numerous research have singled out culture as a significant determinant of organisational success and sustainability. As such, leading corporates are paying special attention to cultures as a source of competitive advantage and a foundation to employees’ attitude towards innovation, leadership, management and overall performance. For these businesses, culture is seen as a root of attaining sustainable competitive advantage and a springboard for satisfying rising dynamic competitive market needs, both local and global. Organisational culture gives identity and personality to organisations and is considered an asset that can’t be imitated by rivals. It is culture forms the foundational framework that governs operations, systems and management practices. However, besides growing recognition as critical to organisational or business survival and sustainability, there still exists a gap in literaturedue toof lack of clear understanding of the relationship between organisational culture and sustainable competitive advantage. This paper establishes that there a strong relationship between organisational culture and sustainable competitive advantage. Based on empirical literature and scholarly findings, the paper explores cultural elements that are critical to organisational competitiveness. The paper brings to out an area that has been greatly misunderstood and neglected in the past decades yet without it, successful future business operations are impossible. The paper has also developed a model of culture as a source of sustainable competitive advantage. The model emphasizes the need to identify relevant resources and competencies and integrate them in the organisational cultural practices to attain desired level of competitiveness URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3656 Files in this item: 1