School of Business and Economics

Firm size and Financial Performance: Evidence from Listed Firms in Nairobi Security Exchange – Kenya

2026-06-02T13:16:10Z

Firm size and Financial Performance: Evidence from Listed Firms in Nairobi Security Exchange – Kenya Magara, Ruth; Nyamasege, Dennis; Nyarombe, Francis; Akuku, Caleb This study empirically investigates the effect of firm size on firm financial performance among firms listed on the Nairobi Securities Exchange over the period 2012–2023. Using a balanced panel of 468 firm-year observations from 39 firms, the study applies a fixed-effects regression model to control for unobserved, time-invariant firm characteristics that may jointly influence performance and firm growth. The regression results show that firm size has a positive and statistically significant relationship with firm performance indicating that increases in firm scale are associated with substantial improvements in performance within firms over time. In contrast, control variable including firm age exhibits a negative and significant relationship with performance suggesting that older firms may face maturity-related rigidity or declining efficiency. Firm leverage is also negative and statistically significant implying that higher debt exposure marginally reduces performance. Overall, the findings indicate that scaling up is performance-enhancing in this context, but the benefits may be constrained by ageing effects and leverage-related financial risk. The study recommends that NSE-listed firms should pursue well-governed, efficiency-focused growth in size while keeping leverage prudent and renewing strategies to avoid age-related performance decline.

Effect of Collaboration Mechanisms on Organizational Performance of KTDA-Managed Tea Factories in Nyamira and Kisii Counties, Kenya

2026-05-31T16:56:50Z

Effect of Collaboration Mechanisms on Organizational Performance of KTDA-Managed Tea Factories in Nyamira and Kisii Counties, Kenya Momanyi, Charles; Kingoina, Peter; Keraita, Joash Mokamba This study examined the effect of collaboration mechanisms as a cognitive diversity management strategy on organizational performance of Kenya Tea Development Agency (KTDA)-managed tea factories in Nyamira and Kisii Counties, Kenya. The study was motivated by persistent performance variations among KTDA-managed factories despite the strategic importance of tea to Kenya’s economy and rural livelihoods. Collaboration mechanisms were conceptualized as organizational platforms, practices, and technologies that facilitate knowledge sharing, interdepartmental coordination, problem-solving, and integration of diverse perspectives. The study was anchored on the Resource-Based View and Dynamic Capabilities Theory, which explain how collaboration systems function as strategic resources and adaptive capabilities that enhance organizational outcomes respectfully. A positivist philosophy and descriptive survey design were adopted. The target population comprised 858 permanent employees across 14 KTDA-managed factories, from which a sample of 390 respondents was selected using stratified random sampling. A total of 317 usable questionnaires were obtained, representing an effective response rate of 81.28%. Data were collected using structured questionnaires and analysed using descriptive statistics, Chi-square tests, Pearson correlation, and simple linear regression. Descriptive findings indicated strong adoption of collaboration mechanisms (mean = 4.07, SD = 0.87) and moderately strong organizational performance (mean = 3.93). Correlation analysis revealed a positive and statistically significant relationship between collaboration mechanisms and organizational performance (r = 0.498, p < 0.001). Regression results showed that collaboration mechanisms significantly explained 24.8% of the variation in organizational performance (R² = 0.248), with the model being statistically significant (F(1,315) = 103.993, p < 0.001). The findings further indicated that collaboration mechanisms had a positive and significant effect on performance of tea factories (B = 0.492, β = 0.498, p < 0.001). The study concluded that collaboration mechanisms are a critical driver of organizational performance and recommended strengthening of structured collaboration systems, digital platforms, and stakeholder integration practices.

The Effect of Service Employee Empathy on Customer Satisfaction Among Clients of African Banking Corporation Bank Limited, Kenya

2026-05-31T16:46:52Z

The Effect of Service Employee Empathy on Customer Satisfaction Among Clients of African Banking Corporation Bank Limited, Kenya Onuonga, Joshua Omondi; Motari, Yusuf; Omare, Mongare; Momanyi, Charles This study examined the role of service employee empathy on customer satisfaction among clients of Tier Three banks in Kenya, with a focus on African Banking Corporation Limited. The study was anchored on the SERVQUAL model, Cognitive Dissonance Theory, and Social Exchange Theory. An explanatory research design was adopted, and primary data were collected using a structured questionnaire administered by the researcher. Descriptive statistical tools such as mean, median, and variance were used to analyze measures of central tendency, variability, and distribution. Pearson's Product Moment Correlation was employed to assess the strength and direction of the relationship between employee empathy and customer satisfaction, while simple linear regression was used to test the direct effect of the independent variable on the dependent variable. Findings were presented in tabular form. The results revealed that service employee empathy accounted for customer satisfaction. The study concluded that service employee empathy encompassing employee courtesy, service knowledge, and customer trust has a significant positive influence on customer satisfaction in Tier Three banks in Kenya.

Redefining Learning Through Strategic Innovation as a Pathway to Resilient Education Systems in Kenyan Public Universities

2026-05-31T16:40:50Z

Redefining Learning Through Strategic Innovation as a Pathway to Resilient Education Systems in Kenyan Public Universities Momanyi, Charles Resilient education systems are those that demonstrate the capacity to adapt, evolve, and thrive in the face of challenges, disruptions, and uncertainties. The problem of building resilient education systems in Kenyan public universities has not been adequately addressed, stemming from financial instability and underfunding. The objective of the study was to determine the effectiveness of strategic innovation in redefining learning and fostering resilient education systems in Kenyan public universities. The study, literature-based, involved an extensive review and analysis of existing academic papers, books, and other scholarly articles relevant to the topic of strategic innovation in education. This methodology ensured that the recommendations were grounded in a rich body of knowledge, drawing from a wide array of experiences and research findings to provide well- informed and contextually relevant suggestions for enhancing educational resilience in Kenya, specifically within universities. The study found that strategic innovation plays a pivotal role in reshaping education to build resilient systems capable of addressing the challenges of the 21st century. Beyond technological advancements, strategic innovation fosters a culture of adaptability, continuous learning, and experimentation within educational institutions. Digital transformation and strategic partnerships further enhance this process by democratizing education and bridging the gap between theory and practice. The study concludes that strategic innovation is crucial in transforming education to address the challenges and opportunities of the 21st century. The study recommends that Kenyan public universities should prioritize the integration of strategic innovation into their educational frameworks to foster resilience and adaptability in their learning environments. Kenyan universities should encourage a mindset of continuous improvement and openness to change among both faculty and students. The study further recommends that digital transformation should be accelerated within Kenyan universities. In addition, Kenyan universities should establish and strengthen strategic partnerships with industry, government, and civil society. The study recommends that Kenyan universities should invest in training and professional development for their faculty to equip them with the skills needed to implement innovative teaching methods and leverage new technologies effectively in their pedagogy. Student-centered learning approaches should be adopted to place greater emphasis on active learning, problem-solving, and collaborative projects.