Firm-Level Institutions and Performance of Companies Listed On the Nairobi Securities Exchange, Kenya

Abstract

The objective of the study was to determine the effect of firm-level institutions on the performance of companies listed on the Nairobi Securities Exchange (NSE) and a corresponding hypothesis was formulated and tested. The study targeted Human Resource managers of each of the 64 companies listed on the NSE as at 31 December, 2014 and 34 of them responded. The study adopted the positivist research philosophy and a descriptive survey design. SPSS Version 21 was used to analyze data using simple regression analysis. Research findings from the test of hypothesis established that firm-level institutions have a positive and significant effect on company performance. The study findings support the Resource - BasedView (RBV) which underscores the crucial role of firm-level institutions in company performance. The study recommends further research in non-governmental organizations and small and medium size enterprises using more firm-level institutions.