School of Business and Economics

EFFECT OF INNOVATION STRATEGY ON SERVICE DELIVERY IN PUBLIC UNIVERSITIES IN WESTERN REGION, KENYA.

Sat, 01 Nov 2025 00:00:00 GMT

EFFECT OF INNOVATION STRATEGY ON SERVICE DELIVERY IN PUBLIC UNIVERSITIES IN WESTERN REGION, KENYA. Mandila, Ruth The changing operational landscape of public universities necessitates innovation strategy. Funding constraints due to reduced government funding and budget cuts is a major challenge affecting service delivery in public universities globally and even universities in Western region. Innovation strategy is regarded to be a significant factor in enhancing service delivery within these institutions. The main objective of this study was to investigate the effect of innovation strategy on service delivery in public universities in Western Region. The specific objectives of the study were the effect of technological innovation, service innovation, organizational innovation and moderating effect of management support on service delivery. The study was anchored on resource-based view theory and dynamic capability. The study adopted a causal research design collecting data using structured questionnaires. The target population of the study were deputy vice chancellors, directors, deans of schools and heads of departments from four public universities in Kenya. Hence, a target population of 220 respondents with a sample size of 142 respondents was determined using Yamane’s formula. Simple random and stratified sampling techniques were used. The sample universities were MMUST, JOOUST, Maseno and Kibabii. A pilot study was conducted in Moi University in Uasin Gishu county. Content and construct validity of the research instrument adopted in this study were evaluated through assessment by university supervisors and factor analysis. The reliability of the research instrument was assessed using the Cronbach alpha test. Data collected was processed and analyzed using the SPSS software version 23, adopting descriptive and inferential statistical analysis methods. Data collected was presented in the form of tables and figures. The findings of the study indicated that technological innovation had a positive and statistically significant effect on service delivery in public universities in Western region (β= 0.835, p = 0.00). Service innovation was found to have statistically significant influence on service delivery (β = 0.789, p = 0.00). Organizational innovation was found to have a statistically significant impact on service delivery (β =0.756, P= 0.00). Management support was found to have a positive and significant moderating effect on the relationship between innovation strategy and service delivery. From these findings, the study concluded that technological innovation had the most significant effect on service delivery in public universities. The study recommended that universities should prioritize improvement of digital infrastructure to support effective virtual learning, digital administration of students and increased access to learning resources. Also, universities are encouraged to regularly review and update their service delivery systems and curriculum to meet their customers’ needs and expectations. Correspondingly, the public universities should embrace resource exchange partnerships and networks to improve the quality of services offered. Additionally, universities are encouraged to revolutionize their management structures and systems to embrace managerialism in the university administration. Study findings are instrumental in improving policy formulation and decision-making by educational institutions such as public universities, Commission for University and Ministry of education

EFFECT OF FINANCIAL RISK MANAGEMENT TECHNIQUES ON FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCOS IN KENYA

Sat, 01 Nov 2025 00:00:00 GMT

EFFECT OF FINANCIAL RISK MANAGEMENT TECHNIQUES ON FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCOS IN KENYA Etenyi, Peruce Hoka Financial performance is a vital aspect of the finance field, as it seeks to explain why organizations in similar environments achieve different results. In Kenya, cooperative societies play a key role in national development, contributing across various economic sectors. Despite notable progress by deposit-taking Savings and Credit Cooperative Organizations (SACCOs), their overall performance and sustainability remain subjects of ongoing debate. This study thus sought to assess the effect of financial risk management techniques on financial performance of deposit taking Savings and Credit Cooperative Organizations in Kenya. The specific objectives were to determine the effect of credit risk management techniques, liquidity risk management techniques, market risk management techniques and operational risk management techniques on financial performance of deposit taking Savings and Credit Cooperative Organizations in Kenya. The study was based on four theories namely, Modern Portfolio Theory, Credit Risk Theory, Liquidity Preference Theory, and Risk Management Theory. A descriptive survey design was adopted. The population of the study was the 175-deposit-taking Savings and Credit Cooperative Organizations in Kenya as of 31st December 2022. Due to relative population nature, sampling was not conducted and therefore the study was a census. The respondent was the risk manager of each deposit-taking Savings and Credit Cooperative Organizations. The study utilized primary data. The data was collected using a structured questionnaire. Data was analyzed using descriptive statistics such as the mean and standard deviation and inferential statistics which included correlation and regression analysis. Reliability tests were conducted on the variables each meeting the 0.7reliability threshold with validity tests being confirmed by the Bartlett’s test that confirmed validity of the variables being measured. The regression analysis revealed significant insights into the relationship between financial risk management techniques and the financial performance of deposit-taking Savings and Credit Cooperative Organizations in Kenya. Credit risk management techniques were found to have a positive impact on financial performance with a regression coefficient of β = 0.238 and a significant value of P <0.005. Additionally, liquidity risk management techniques were found to contribute positively to financial performance having a regression coefficient of β = 0.425 and a significant value of P <0.005. Market risk management techniques also played a crucial role, with strategies such as derivatives hedging and product diversification leading to enhanced financial performance with a regression coefficient of β = 0.231 and a significant value of P <0.005. Moreover, operational risk management techniques were identified as having a significant positive impact on financial performance with a regression coefficient of β = 0.695 and a significant value of P <0.005. In conclusion, the study provides compelling evidence of the importance of comprehensive risk management frameworks in driving the financial performance of deposit-taking Savings and Credit Cooperative Organizations in Kenya. By implementing effective risk management practices tailored to address credit, liquidity, market, and operational risks, Savings and Credit Cooperative Organizations can enhance their stability, profitability, and resilience in a dynamic operating environment. These findings have significant implications for policymakers, practitioners, and stakeholders in the Savings and Credit Cooperative Organizations sector, highlighting the need to prioritize investments in risk management capabilities to promote sustainable financial growth. The study recommends that Savings and Credit Cooperative Organizations should focus on enhancing their credit risk management frameworks. They also need to improve their liquidity risk management practices. Further, Savings and Credit Cooperative Organizations should focus on strengthening their market risk management frameworks to mitigate exposure to market risks.

EFFECT OF CORPORATE GOVERNANCE CHARACTERISTICS ON QUALITY OF FINANCIAL DICLOSURE BY COMMERCIAL AND SERVICE COMPANIES IN KENYA

Fri, 01 Aug 2025 00:00:00 GMT

EFFECT OF CORPORATE GOVERNANCE CHARACTERISTICS ON QUALITY OF FINANCIAL DICLOSURE BY COMMERCIAL AND SERVICE COMPANIES IN KENYA Ndiema, Boiyo Philip Notwithstanding a stringent legal framework, corporate governance in Kenya persists in deteriorating. Numerous corporations have been defined by scandals. Directors have engaged in unlawful or disingenuous conduct against their shareholders. This is concerning, particularly given that several of the listed companies were deregistered. The collapse of Uchumi Supermarkets followed purported manipulation of financial records amounting to Ksh 1.04 billion. The main objective of the study was to establish the effect of corporate governance characteristics on quality of financial disclosure by Commercial and Service Companies in Kenya. The study had the following specific objectives to determine the effect of board accountability on quality of financial disclosure by Commercial and Service Companies in Kenya, to examine the effect of shareholder rights on quality of financial disclosure by Commercial and Service Companies in Kenya, to assess the effect of corporate behaviour on quality of financial disclosure by Commercial and Service Companies in Kenya and to determine the moderating effect of firm size on the relationship between corporate governance characteristics and quality of financial disclosure by Commercial and Service Companies in Kenya.. The study adopted descriptive and correlational research design. The target population was commercial and service companies departments in charge of financial statements making thus accounting and finance giving 145 stakeholders of which sample size was 106 utilized. The stratified and basic random sampling techniques were employed. Closed-ended questions were employed for primary data collection. A pilot research was executed at Nairobi Business Ventures Ltd. The researcher employed Cronbach’s Alpha to assess reliability at a threshold of 0.7. Establish validation through the application of multiple factor analyses, employing variable rotation, and excluding variables with a factor loading below 0.4. Descriptive statistics, including frequencies, percentages, measures of central tendency and dispersion, as well as inferential statistics such as regression and Pearson’s correlation analysis, were calculated using SPSS version 23. Data was presented as tables and figures. There was a positive significant influence of board accountability, shareholder rights and corporate behaviour on financial disclosure among Commercial and Service Companies in Kenya. Firm moderates the relationship between Commercial and Service Companies’ financial disclosure and corporate governance. The study concludes that board accountability is a viable measure in ensuring quality of financial disclosure. Shareholder rights significantly influences financial disclosure of Commercial and Service Companies by ensuring Commercial and Service Companies adhere to owner’s rights. Corporate behaviour is a significant predictor of financial disclosure of Commercial and Service Companies, since it helps in building a well accountable organization. Firm size as a new initiative to boost Commercial and Service Companies growth path as far as corporate governance and financial disclosure is concerned. The study recommendations that Commercial and Service Companies should formulate feasible board accountability policies that guides board on financial disclosure. Commercial and Service Companies should adhere to shareholder rights requirements as stipulated by law to avoid non disclosure tendencies in the organizations. Commercial and Service Companies should enact feasible corporate behavior that guides and caution against unethical practices that may compromise financial disclosure. Commercial and Service Companies should embrace viable firm size initiatives as possible such as market share goals and profitability.

EFFECT OF BUDGETING PRACTICES ON THE FINANCIAL ACCOUNTABILITY OF COUNTY GOVERNMENTS IN WESTERN REGION, KENYA

Sat, 01 Nov 2025 00:00:00 GMT

EFFECT OF BUDGETING PRACTICES ON THE FINANCIAL ACCOUNTABILITY OF COUNTY GOVERNMENTS IN WESTERN REGION, KENYA OWATE, CLARES Budgeting practices are fundamental to the improvement of the financial accountability of public institutions and must be practiced at all times of the year based on sound resource spending. While financial management is devolved across Kenya, county governments continue to experience concerns about aligning the budget with strategic plans, delivering the projects on time, and maintaining fiscal transparency. This research examined the influence budgeting practices have on financial accountability in county governments in Western Region, Kenya. It investigated the effect of budget development processes, budget implementation, budget monitoring and budget adjustments on financial accountability. The study was informed by Public Budget Theory as the main theory, and the Expenditure Theory and Contingency Theory as the supporting theories. It adopted descriptive, correlational, and explanatory research design targeting 262 officers including County Executive Committee Members (CECMs) for Finance, Directors for Budget, Accounting Services, Internal Audit, and Members of County Assemblies. By applying Slovin’s formula, 158 respondents were sampled. Using a stratified and simple random sampling 142 MCAs were selected while16 senior officials (4 CECMs and 12 Directors) were sampled using a census method. The data reliability and validity were established using Cronbach’s alpha (0.834) and KMO as (0.668–0.775) which were acceptable values. Closed-ended questionnaires were used to collect primary data. Data were analysed using SPSS version 26. Descriptive statistics included mean, percentage, standard deviation and frequency, and inferential statistics included Pearson correlation as well as simple and multiple regression analyses. The study results were presented in tables and graphs. The results showed that budget development processes had a significant and positive effect on financial accountability (B = 0.685, p < 0.001), budget implementation had a significant positive effect (B = 0.562, p < 0.001). Likewise, budget monitoring was significantly and positively related to financial accountability (B = 0.788, p < 0.001). Budget adjustments also had a significant favourable relation with financial accountability (B=0.591, P< 0.001). The study concluded that strengthening the budgeting practices has a tremendous impact on financial accountability in the county governments. The insights provide value for theory by generalizing the application of budgeting and accountability models into devolved government, as well as for practice, through delivering evidence-based policy. The study recommended that county governments should institutionalize regular budget estimation reviews, enforce procurement timelines, strengthen strategic planning, conduct ongoing audits, encourage and support public participation and improve capacity of the internal audit units and county assembly committees to adequately monitor budget implementation.