Management Competence and Performance of Firms Listed On the Nairobi Securities Exchange, Kenya

Abstract

The objective of the study was to determine the effect of management competence on the performance of firms listed on the Nairobi Securities Exchange and the corresponding hypothesis was formulated and tested. The study targeted human resource managers of each of the 64 firms listed on the Nairobi Securities Exchange as at December, 2014, and 34 of them responded. The study adopted the positivist research philosophy and a descriptive survey design. Statistical Package for Social Sciences (SPSS) Version 21 was used to analyze data using regression analysis. Research findings from the test of hypothesis established that management competence has positive and significant effect on firm performance. The study finding supports the Resource-Based View and Knowledge Space Theory which underscore the crucial role of management competence in company performance. The study recommends further investigation of the study variables in non-governmental organizations, small and medium sized enterprises and faith-based organizations.