JOURNAL ARTICLEEltigani Ahmed · James Kilika · Clare Gakenia
International Journal of Finance & Banking Studies · 2021
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The theory of dynamic resource orchestration explains the differentiated response of homogeneous ecosystem organizations to systemic disruptive shocks. The Covid-19 precautionary measures in Kenya have exempted some essential service providers and government agencies, resulting in a differentiated Covid-19 impact across the national SMEs landscape. This article adopted an extractive thematic analysis technique to draw insights from in-depth interviews and discussions with owners and managers of 6 broad-range SMEs considered non-essential services providers excluded from the Covid-19 cessation of movement waiver. The article advanced insights on SMEs' resilience through dynamic resource orchestration capability. It sought to establish whether the possession and orchestration of dynamic resources capabilities differentiated highly resilient SMEs from non-resilient ones. The article identified business diversification, slack finance, intra-stakeholder collaboration, self-reinvention, positive psychology, technology leverage, and cost management as precursory resilience agents within Kenyan SMEs. Research gaps were identified, and recommendations for future research were proposed.
DOI 10.20525/ijfbs.v10i4.13996 Crossref citations7 OpenAlex citations
JOURNAL ARTICLEJacinta Nzilani Muema · Job Omagwa · Lucy Wamugo
International Journal of Finance & Banking Studies · 2021
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The collective investment schemes in Kenya have witnessed increased volatility in their earnings, resulting in irregular growth in the industry. This necessitates the need to understand the factors contributing to poor financial returns from collective investment schemes. Hence this study sought to investigate the effect of equity investments and bond investments on Kenyan CIS’s performance. The specific objectives were: To assess the effect of equity investments, bond investments on financial performance of collective investment schemes in Kenya. The study was anchored on: modern portfolio theory and the efficient market hypothesis. The positivism philosophy was applied, with the firms adopting an explanatory research design. The target population was 17 Collective Investment Schemes registered by the Capital Markets Authority and were operational in the period 2010 to 2018. Secondary data was sought from the Capital Markets Authority Annual reports and from the respective websites of the CIS’. Data was analyzed using descriptive statistics, correlational analysis and panel regression analysis. Hypotheses were tested at a significance level of 0.05. Findings indicate that equity investment, bond investments have an insignificant effect on CIS’ return on assets. Further, equity investments had a positive and significant effect on liquidity whereas bond investments had an insignificant effect on liquidity. The study recommends that CISs actively revise their equity investments and bond investments to stimulate financial returns.
DOI 10.20525/ijfbs.v10i3.13520 Crossref citations3 OpenAlex citations
JOURNAL ARTICLEHenry Mugisha · Job Omagwa · James Kilika
International Journal of Finance & Banking Studies · 2020
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Short-term debt is regarded as an important source of financing for Small and Medium-sized enterprises (SMEs). This is because it can be easily accessed and useful during times of emergent working capital shortage. However, short-term debt is the least researched among the components of capital structure, which explains why its contribution to the financial performance of small and medium-sized businesses still lacks empirical validation especially in the Ugandan context. This paper sought to determine the effect of short-term debt on financial performance of Small and Medium Enterprises in Uganda. The study adopted a descriptive cross-sectional research design to collect and analyse the data. Stratified random sampling technique was used to select SMEs while purposive sampling technique was used to select one key respondent from each of the sampled 453 SMEs in Uganda. Primary data was collected using survey questionnaire. Data was analysed using descriptive statistics and simple linear regression analysis. The findings indicted that short-term debt had a negative and significant effect on financial performance of SMEs as measured by return on assets. The study provides empirical evidence to support the propositions in the extant literature that short-term debt significantly hampers financial performance of SMEs. The study recommends that SMEs should adopt low cost operation procedures to improve profitability. This would lead to accumulated profits that can be used for investment purposes as a means of driving growth among the SMEs without resorting to borrowing. This paper suggests that further research should be conducted to establish the justification for the negative and significant effect of short-term debt on financial performance using qualitative approaches.
DOI 10.20525/ijfbs.v9i4.9105 Crossref citations9 OpenAlex citations
JOURNAL ARTICLEMorrisson Mutuku · Stephen Muathe · Rosemary James
International Journal of Finance & Banking Studies · 2019
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Financial performance of a commercial banks driven by a number of capabilities drawn from either the internal or the external environment. The Kenyan Government and commercial banks in particular have invested in e-commerce solution. Despite these invetments over the years, the impact is yet to be felt. The empirical literure reveals that there is a link between commercial banks e-commerce custiomization capability and financial peroformance.The study empirically analyzed the effect of e- commerce customization capability on financial performance of commercial banks in Kenya. E-commerce customization capability measured using online registration,online recommendation and realtime support while financial performance was measured using Return on Assets (ROA). The study was anchored on the Resource-Based View Theory. The study used explanatory design. A census of 43 commercial banks was taken; data for performance was extracted from audited banks statements for financial year 2016/2017. Data for e-commerce customization capability was collected from commercial banks websites. Data for financial performance was extracted from audited financial ststements of commercial banks. Data analysis was done using descriptive and inferential statistics. The study findings indicated that e-commerce customization capability had a significant effect on financial performance of commercial banks in Kenya. The study concluded that e-commerce customization capability significantly affected financial performance of commercial banks in Kneya. The study recommends that the management of commercial banks in Kenya should invest more in customization capability to improve their performance.
DOI 10.20525/ijfbs.v8.i1.2981 Crossref citations6 OpenAlex citations