Vol 6 Issue 1 April 2018-September 2018

Abstract: Any banking institution main goal is to operate profitably in order to maintain stability and sustainable growth. Both external and internal economic environments are viewed as critical drivers for bank performance. The main purpose of this study was to determine the effects of bank specific factors on the financial performance of commercial banks in Rwanda for a period of 5 years, starting from the year 2012 to 2016. The study was guided by the following objectives; to evaluate the effects of asset quality on the financial performance of commercial banks in Rwanda, to determine the effects of capital adequacy on the financial performance of commercial banks in Rwanda, to determine the impact of management efficiency on the financial performance of commercial banks in Rwanda and to evaluate the effects of liquidity on the financial performance of commercial banks in Rwanda. Firm performance was measured using Return on Equity (ROE). This study adopted a descriptive research design in soliciting information on effects of liquidity management on financial performance of commercial banks. The target population was 14 commercial banks in Rwanda. The sampling technique that was employed is simple random sampling and the sample size was 56 respondents. Primary quantitative data was collected by use of self-administered structured questionnaires. The researcher also used secondary data derived from the audited financial statement of the commercial banks for the period 2012 to 2016. The data collected was analyzed, with respect to the study objectives, using both descriptive and inferential statistics. The data was analyzed using descriptive statistics such as mode, median, mean, standard deviation. Multiple regression analysis was employed to determine relationship between bank specific factors and financial performance of commercial banks in Rwanda. Data was presented in tables, charts, figures and mathematical expressions. The results showed that there was positive and significant association between ROA and all the independent factors. The results showed that there has been a significant decrease in capital adequacy during the five-year period. There was also a finding that asset quality affects profitability and the financial performance of banks. While holding the other factors constant a unit increase in asset quality while holding the other factors constant would lead to an increase in ROA of banks by a factor of 0.461. A unit increase in capital adequacy of the bank led to an increase of 0.354 in ROA. A unit change in management efficiency while holding the other factors constant would lead to an increase of 0.454 in ROA of the banks. A unit change in liquidity while holding the other factors constant would lead to an increase of 0.343 in ROA of the banks. The study concludes that Asset quality of the bank have the highest influence on ROA of banks. The study recommends that efficient and effective management should be adopted by bank managers to ensure that banks do not become insolvent.

Keywords: Asset quality, Financial performance, Commercial banks in Rwanda.

Title: EFFECTS OF BANK SPECIFIC FACTORS ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN RWANDA: A CASE OF COMMERCIAL BANKS IN RWANDA

Author: BIRORI RAYMOND HIRWA, Dr. PATRICK MULYUNGI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Over the last three decades, competitive strategy has been shown to involve offering product or service perceived as unique by the consumers. Completive strategy can be based on many dimensions such as low price, innovativeness, product quality, efficiency, branding among others. Although studies have shown that competitive strategies positively relates to firm’s performance, it’s not all organizations including hotels that have realize this potential in regards to increased performance. The purpose of this study was to establish the influence of competitive strategies on performance of hotels in Rwanda. The study was carried out in Kigali Marriot hotel in Kigali, Rwanda. This study employed descriptive research design. Target population was 130 employees of the hotel. A sample size of 98 employees was selected for the study. Stratified random sampling technique was used to select the samples. The study used primary data which was collected using questionnaires. Data was collected using questionnaire as the research which was distributed to the respondents by the researcher herself. The collected data was thoroughly examined and checked for completeness. The data was summarized, coded to enhance analysis using statistical package for social science (SPSS). Descriptive statistics frequencies and percentages was used to analyze the data. Correlation was used to portray the relationship between performance and competitive strategies. Regression analysis was used to determine the influence of competitive strategy on hotel performance. Data presentation was done by the use of pie charts and graphs, percentages and frequency tables for easy of understanding and interpretations. The results indicate that hotel in Rwanda have largely adopted competitive strategies in order to compete in the market place. The findings of the study revealed that cost leadership, differentiation and focus strategies have positive significant relationship with hotel performance in Rwanda However, differentiation strategy had a higher coefficient of determination meaning that, it had the greatest effect on firm performance. Moreover, as opposed to Porter’s argument that a firm can achieve a higher level of performance over its rival by either being a cost leader or by supplying differentiated product or service, the hotel industry in Rwanda combined their strategies into cost minimization, product differentiation and focus simultaneously while others chose any of the three strategies. It is also recommended that these firms pay more attention to competitive intensity and adopt other ways of coping with challenges presented by external environment. The study further recommends the need to strengthen this study via a longitudinal study and compare the performance of different categories of businesses as well. The implications from the findings point to a configuration approach on the implementation of competitive strategies by hotels in Rwanda. Hotels that intend to implement a competitive strategy should evaluate the environment to make sure they gain appropriate fit between the strategy and the environment in order to achieve competitive advantage.

Keywords: Cost leadership Strategies, Performance of hotels in Rwanda.

Title: INFLUENCE OF COMPETITIVE STRATEGIES ON PERFORMANCE OF HOTELS INDUSTRY IN RWANDA: A CASE STUDY OF KIGALI MARRIOTT HOTEL

Author: SCHOLASTIQUE RWEMALIKA, Dr. PATRICK MULYUNGI, Dr. JAYA SHUKLA

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The main problem with most projects is that the selection process of the project idea is grossly mishandled leading to the formulation of wrong interventions that do not address the needs of the major stakeholders, most project practitioners present their own perceived problems and interventions that do not reflect the realities on the ground. This study therefore sought to establish the influence of the project conceptualization process on the performance of the Karongi land husbandry and hillside irrigation project. The specific objectives of the study were; to determine the influence of stakeholder involvement on the performance of Karongi land husbandry and hillside irrigation project, to establish the influence of problem analysis process on the performance of Karongi land husbandry and hillside irrigation project and finally to determine the influence of risk management analysis on the performance of the Karongi land husbandry and hillside irrigation project. This study adopted a cross sectional study design with the Karongi land husbandry and hillside irrigation project as the case of study. The target population of study was one hundred and thirty-five respondents composed of one hundred project beneficiaries, fifteen project staff and twenty programme management staff. The sample size for the study was one hundred and twenty-four respondents. Purposive sampling approach was used for the programme management staffs while the simple random sampling technique was applied for project staff and beneficiaries. Questionnaire were used to collect the required data from the respondents; the questionnaire was physically administered to all the respondents by the researcher. The data analysis technique that was utilized for this study was descriptive and inferential statistics. SPSS was used as the appropriate tool for data analysis. The study established that stakeholder involvement significantly influences performance of Karongi land husbandry and hillside irrigation project in Rwanda (r=.029, p=0.003<0.05). Also, from the findings problem analysis process would significantly influence performance of irrigation project (r=.091, p=0.004<0.05). Lastly, the regression results indicate that risk management analysis significantly influences performance of Karongi land husbandry and hillside irrigation project in Rwanda (r=.375, p=0.001<0.05). This clearly indicated that project conceptualization process has a significant positive influence on Performance of irrigation project. As a result, the study concluded that problem analysis process influenced irrigation project performance. Through project problem analysis, factors contributing to the problem were always analyzed and involve stakeholder forum in problem analysis identifying the community problems. This study concluded that effective problem analysis process enhances conceptualization of the project problem, identifying the right project problem and causes of main problem contributing to the irrigation project performance. Regression results emphasized that there is significant positive relationship between project problem analysis processes would and performance of irrigation project. Based on the conclusions and findings of the study, suggests a research to develop a predictor model for successful construction project implementation. This model should include interplay of risks, success factors and weighted factor for the unknowns in irrigation project conceptualization. This will ensure that a success or failure of a project can be properly managed with more certainties and anticipated outcomes.

Keywords: problem analysis process, Karongi land husbandry, hillside irrigation project, project conceptualization.

Title: INFLUENCE OF PROJECT CONCEPTUALIZATION PROCESS ON PROJECT PERFORMANCE IN RWANDA:   A CASE OF KARONGI LAND HUSBANDRY AND HILLSIDE IRRIGATION PROJECT

Author: INARA ELITHE REDEMPTA, Dr. PATRICK MULYUNGI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: This study sought to investigate the effect of financial accounting variables on stock liquidity of firms listed at the Rwanda Stock Exchange. The study used earnings per share, net book value per share, return on equity, and cash flow from operation per share as proxies for accounting information. The study was addressing the gap of whether the selected accounting variables have an effect on the stock liquidity and whether one can use them to predict the stock liquidity at the bourse. The main objective of this study was to establish the effect of financial accounting information disclosure on stock liquidity of firms listed at the Rwanda Stock Exchange. Specifically, the study established the effect of earnings per share, book value per share, return on equity and cash flow from operation per share on the equity share investment. The study adopted descriptive and explanatory research designs. Simple and multiple linear regression analysis methods, were employed to determine the relationship between the dependent variable and the explanatory variables. The population of this study comprised of all the eight listed firms at the Rwanda Stock Exchange from January 2012 to December 2016. The sample constituted all the firms that comprise the RSE 20 Share Index.  Both primary and secondary data was used to carry out the study. The primary data was collected through questionnaires administered on the respondents. Secondary data was collected for all variables for a period of four years (2012 to 2016) published on the website of Rwanda Stock Exchange, Published annual financial reports of listed companies in Rwanda and the Rwanda Stock Market annual reports. Data analysis was carried out using SPSS Software Version 21. Correlation and regression methods was used to carry out the inferential analysis. Statistical t-test and F- test were used to test the significance of explanatory variables on dependent variable. The results of the study revealed that there is a significant relationship between accounting information and stock liquidity in companies listed on the Rwanda Stock Exchange. All accounting information disclosure variables considered in this study significantly influenced equity share investment. Earnings per share have the highest correlation coefficient with equity share investment, followed by net book value per share, return on equity and then cash flow from operation per share. The study recommends that all listed companies in Rwanda should prepare and disclose accounting information indices that are relevant for stock liquidity alongside with the mandatory financial statements to meet the needs of equity share investors. Furthermore, accounting regulatory bodies and government should impose strict compliance with accounting standard guidelines on listed companies in their preparation and presentation of financial statements. Sanctions should be imposed on the managers who failed to adhere to the accounting standard guidelines in the preparation and presentation of their company’s financial statements.

Keywords: return on equity information disclosure, stock liquidity, Rwanda Stock Exchange.

Title: EFFECT OF FINANCIAL ACCOUNTING INFORMATION DISCLOSURE ON STOCK LIQUIDITY OF FIRMS LISTED AT RWANDA STOCK EXCHANGE

Author: NDIKUMANA JOSEPH, Dr. PATRICK MULYUNGI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract:  It is believed that cost control techniques and tools aim at improving business cost efficiency by reducing costs or at least restricting their rate of growth, to monitor, evaluate and ultimately enhance the efficiency of specific areas such as departments, divisions or product lines within their operations, preserve and boost corporate profits and maintain or gain a competitive advantage. However, it is a difficult task for managers to make sure that business operations are running in a well and organized manner due to inadequate measures to contain costs which will cause over budget which is a risk to the business. Cost control practice is considered to be a very important element to analyse the organization’s performance while conducting day to day operations in order to improve its financial performance (Hansen). Cost control is of great value and importance on organizational performance in various ways and some of them are; it helps the organization to improve its profitability and competitiveness through reduced costs and expenses. It is indispensable for achieving greater productivity through investment of the acquired profits. Cost control helps to control all controllable labor costs, that is for example hiring enough employees for specific tasks .As an organization strives to reduce its costs, it helps it to reduce its prices. If the price of the product is stable and reasonable, it can maintain higher sales volume and thus employment of work force and as well more profits realized. The control of costs again leads to the control of risks, of which risks may include losses to the business and lastly, controlling costs stabilizes business life.The general objective of this study was to determine the impact of cost control on the performance of commercial banks in Rwanda. The research design used is descriptive. The target population of this study was all employees of Bank of Kigali at the headquarters. In carrying out this study, census technique was used to access the entire population, then data for this study were collected by use of questionnaires and the outcomes from this study are going to provide other commercial banks with the ideas on the factors that are needed to be focused on in order to improve their ways of controlling costs for better performance.Based on the information drawn from findings, the researcher concluded a significant positive correlation between operational cost control and performance of bank of Kigali and finally; the researcher concluded a significant positive relationship between administrative costs and performance of bank of Kigali. The management of Bank of Kigali should strengthen the production cost control measures since poor control of production and operation costs may negatively affect the financial performance of performance of Bank of Kigali by declining or reducing the profits of the bank of Kigali. The bank of Kigali should also strengthen the measure for effective administrative cost control since their poor control may affect the performance of bank of Kigali because if not well controlled they may increase the administrative expenses the bank incurs on daily, monthly and annual basis. Lastly but not the least, the bank of Kigali should remove the challenges encountered during cost control process like the way it takes too much time to get cost control measures to be established in the bank and finally, the bank of Kigali should adopt mixed methods for its costs control.

Keywords: commercial banks, organizational performance, financial performance, costs control.

Title: THE IMPACT OF COST CONTROL ON THE PERFORMANCE OF COMMERCIAL BANKS IN RWANDA: A CASE STUDY BANK OF KIGALI

Author: AKAYISENGA Sylvia, Dr. Patrick MULYUNGI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Most SMEs in the country lack the capacity in terms of qualified personnel to manage their activities, fund, access to market and lower level of technology. Another issue has to do with the inadequate capital base of most SMEs in the country to meet the collateral requirement by the banks before credit is given out. Researcher was examined the factors influencing the financial performance of medium enterprises in Rwanda. . Descriptive research design was used in this study to establish whether there is a relationship between factors influencing the financial performance of medium enterprise in Rwanda. In line with this research, the target population is 21 people composed by stakeholders' and staffs of SOSOMA industry. In this study, data collected through self administered questionnaires and documentation technique. Factors influencing the financial performance have an overall correlation with SMEs performance of SOSOMA industry, 0.762 is significant at 5%. These indicate good fit of the regression equation used. Analysis of Variance shows that f-calculated is greater that f – critical that is 5.221>0.00. This implies that the regression equation was well specified and therefore the co-efficient of the regression shows that there is a strong relationship between two variables. The analysis of variance of the predictors of the model is significance at 0.000. Results indicate that access to finance is the most significant in explaining the financial performance with a significance at 0.000 which is less that a p-value of 0.05 and beta value is 0.824. The results revealed that access to finance plays a major role in the financial performance of SOSOMA industry and access to finance continues to be a major problem that SMEs face in their operations. After analysis, it is suggested that SOSOMA industry should incorporate good financial management practices such as preparation and usage of financial information in their operations, preparation of business plan, and the well using of working capital management. Government of Rwanda should be directly involved to help eliminate the financing gap faced by SMEs through direct government interventions through public banks, credit guarantee schemes and other forms of subsidized financing. Most of time interest rates have locked out SOSOMA industry as only large scale borrowers who expect higher returns can bear the high cost of borrowing, the researcher recommends that financial institutions have  create special lending structures for this category of SMEs.

Keywords: SOSOMA industry, SMEs performance, government interventions, financial performance.

Title: FACTORS INFLUENCING THE FINANCIAL PERFORMANCE OF MEDIUM ENTERPRISES IN RWANDA: A CASE STUDY OF SOSOMA INDUSTRY

Author: Ufitamahoro Isaac, Dr. Patrick Mulyungi, Prof. Mike Iravo

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The purpose of this study is to assess the impact of inventory management to the profitability of manufacturing companies in Rwanda with reference to Sulfo Rwanda industry. As a problem many companies perform poorly due to lack of effective inventory management. The specific objectives of the study were to identify how just in time technique affect profitability of Sulfo Rwanda industry, to find out how ABC Analysis techniques contribute to the profitability of Sulfo Rwanda Industry, and to assess how Economic Order Quantity affect profitability of Sulfo Rwanda Industry. The study used descriptive research design in the study and correlation research design with a sample of 35 out of the 115 employees in Sulfo Rwanda industry. The study applied purposive sampling technique.

For the first objective, table 4.2.2.1 shows that due to the practice of just in time technique the industry gained profit with mean of 3.29, 3.34, 3.00 which means the neutrality of respondents and 4.00, 4.09, 3.74, 3.77, 3.43 which means that the fact appears more.

For the second objective, table 4.2.2.2, shows that due to ABC technique the profitability level increased with mean of 2.51 which means the fact appears less of respondents and 3.49, 3.80, 3.69, 3.71, 3.63 which means that the fact appears more.

For the third objective, table 4.2.2.3, demonstrates that due with the practice of EOQ firm profitability increased with mean of 3.46, 4.03, 4.11, 3.91, 3.83, 3.71 and 3.69 which means that the facts appear more.

As conclusion the correlation was 0.903 (90.3%) is located in the interval 0.9≤P<1 categorized as positive and very high correlation. The industry was recommended to expend its storeroom; the room can be short in the following period because it is shown that Sulfo Rwanda is currently improving its services for many customers. So the storeroom will have little capacity to store maximization level of inventory.

Keywords: manufacturing companies, inventory management. Sulfo Rwanda industry.

Title: IMPACT OF INVENTORY MANAGEMENT ON THE PROFITABILITY OF MANUFACTURING COMPANIES IN RWANDA, A CASE OF SULFO RWANDA INDUSTRIES 2013-2016

Author: COSSY Kayitesi, Dr. Jaya Shukla, Dr. Patrick

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The purpose of this research was to assess the contribution of post-harvest handling technology on maize income in the Climate Resilient Post-harvest and Agribusiness Support Project (PASP) of Ministry of Agriculture and Animal Resources (MINAGRI) in Kayonza district with the following objectives; to identify the contribution of storage technology on maize income in Kayonza district, to assess the effect of drying technology on maize income in Kayonza district and to examine the influence of packaging technology on maize income in Kayonza district. The researcher reviewed both theoretical and empirical literature related to post harvest handling technology and maize income, a critical review of existing literature was done to identify the gap to be filled by the research. The research design used was descriptive and analytical while the population was 80 including 20 employees of PASP project and 60 communities from Kayonza district and the sample size was 44 respondents. Data collection tools were questionnaires and interviews while the collected data was presented using tables and analyzed based on percentages and frequencies. The researcher found out that packaging technology in maize is able to be kept and lead to improvements in quality. When maize is well packed packages lead to improvements in value leading to increased income. Packaging increased the appearance which is attributed to quality and this makes customers buy more of packaged maize since it is considered to be safe and leading to increased income. The researcher concluded that thorough drying and packaging, maize value is improved as well as than physical appearance which are all attributes of improved values and justification for selling at higher or reasonable prices. The researcher recommended that farmers in Kayonza district should continue using improved post-harvest handling technology so as to improve quality and increase maize income.

Keywords: Harvest, Post-harvest handling, Income.

Title: THE EFFECT OF POST HARVEST HANDLING TECHHNOLOGY ON MAIE INCOME IN RWANDA: A CASE STUDY OF PASP IN KAYONZA DISTRICT

Author: SYLVESTRE NTABARESHYA, Dr. Patrick MULYUNGI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Globally many firms aim at achieving and sustaining competitive advantage, leading to high performance. However, they face challenge on how to achieve and sustain this performance, especially in a rapidly changing environment. Empirical studies indicate that this can be achieved if the firms understand effects of their competitive advantage. Banking sector in Rwanda faces such challenges, and though the sector has generally been performing well, there is difference in performance among the banks, with some banks reporting poor performance so far as profit before tax is concerned. This main purpose of the study was to determine the effects of competitive advantage on financial performance of local commercial banks in Rwanda. Specifically, the effects of competitive advantage studied were bank activities, bank activity drivers, initial conditions and managerial choice. This study adopted a descriptive research design in soliciting information on effects of liquidity management on financial performance of commercial banks. The target population was 189 employees of BPR. The sampling technique employed was simple random sampling and the sample size was 129 respondents. Primary quantitative data was collected by use of self-administered structured questionnaires. The researcher also used secondary data derived from the audited financial statement of the BPR. The data collected was analyzed, with respect to the study objectives, using both descriptive and inferential statistics. The data was analyzed using descriptive statistics such as mode, median, mean, standard deviation. Multiple regression analysis was employed to determine relationship between liquidity management and financial performance of commercial banks in Rwanda. Data was presented in tables, charts, figures and mathematical expressions. The study established the relationship between performance and bank activities, performance and bank activity drivers, as well as performance and managerial choices, to be positive and statistically significant. However, the study found that initial conditions do not have a significant relationship with performance of commercial banks in Rwanda. The study recommends that the banking management lobby for the training of all bank staff on the role and application of the various categories of dynamic capabilities as well as on market volatility and the correct measures to be taken within their banks. The study also recommends that all staff be trained on customer service delivery and customer relationship. Management should also ensure robust training programs involving all their employees so as to uplift their intellectual capital.

Keywords: Bank activity drivers, Financial performance, commercial banks in Rwanda.

Title: EFFECTS OF COMPETITIVE ADVANTAGE ON PERFORMANCE OF LOCAL COMMERCIAL BANKS IN RWANDA: A CASE STUDY OF BANQUE POPULAIRE DU RWANDA Ltd

Author: DEBORAH INGABIRE RIBAKARE, Dr. PATRICK MULYUNGI, Prof. IROVA MIKE

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Fraud is one of the major problems facing accounting environment industry in Kenya and it impact negatively to the whole of micro finance institution’s sector. Fraudulent practices in MFI’s have led to increase of losses and collapse of many of MFI’s sector, hence the need to use investigating accounting services to detect such fraudulent activities. The MFI’s industry is a very important institution in the segment of entrepreneur environments with many internal controls in order to overcome the fraudulent practices. The objective of this study was to investigate the effects of forensic accounting services on fraud detection on microfinance institutions in Bomet County, the specific objectives of this study were; to establish the effects of internal control; to determine the effects of information and technology; to establish effects of control environment and to moderate the effects of Government policy. The study used primary data. An ordinary linear regression model was used. The regressions were conducted using statistical package for social sciences (SPSS) version 20. The regression results indicated that there was negative and significant relationship effects of internal control and level of fraud prevention and detection. The results also indicated that there is a negative and significant relationship between effects of information and technology and level of fraud prevention and detection while the relationship between control environment and level of fraud prevention and detection was positive and significant. Following the study findings, the study recommended that MFIs should fully reconcile their accounts more frequently in order to reduce the cases of more incidences of frauds. The study also recommends that MFIs should put in place stronger financial governance control measures through more frequent meetings among the members of the risk management committee and also finance and investment committee. Another recommendation made by the study is that MFIs should reduce the variances in budgets through better reporting and budgetary control measures as it was reduce cases of frauds.

Keywords: EFFECTS, FRAUD DETECTION, MICRO FINANCE INSTITUTIONS.

Title: EFFECT OF FORENSIC ACCOUNTING SERVICES ON FRAUD DETECTION ON MICRO FINANCE INSTITUTIONS IN BOMET COUNTY

Author: ALFRED KIPLANGAT TONUI, DANIEL KAMAU, DR. KEPHA OMBUI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The study was guided by four objectives: to establish the effect on quick books accounting systems on financial performance, to assess the effects of sage accounting systems on the decision making, to establish the effect of pastel accounting systems on  financial reporting and to establish the effects of tally accounting systems on  SME’s in Bomet County. The study was guided by the decomposed theory of planned behavior, the theory of reasoned action and the theory of innovation. This study was based on epistemology. This study adopted a descriptive survey research design which is used in preliminary and exploratory studies to allow researchers to gather information, summarize, present and interpret for the purpose of clarification. The study populations were all the 1200 SME’s business community in Bomet County. The target group was drawn from top level management. The study adopted a stratified random sampling technique to come up with the required strata’s in the geographical locations. The study used a sample of 254 respondents. The questionnaires were the main instruments of data collection that were used. The questionnaires were administered by the researcher personally using drop and pick later method. Reliability of the instrument was enhanced through a pilot study. Based on the findings the study recommends that the management should have a strategic master plan from which the accounting systems are phased in line with the organizational financial ability and implemented in line with the strategic plan for the successful performance of the SMEs. Further the management to increase more staff to bridge the deficiency of the accounting staff. The SMEs should establish amicable ways to control political interference and put in more permanent governance structures to be sought with clear roles and authority among the management of the SME’s.The study established that the planning of accounting processes existed in the SME’s. However, this process was mainly done by the management and consultants with consultation of some senior staff which left out other staff and stakeholders. The study recommends that the management of the SMEs make this process inclusive by wide sampling both vertical and horizontal of their staff and all key stakeholders. Further the study established that even through the SMEs implemented computerised accounting systems, they inter-departments never had their own strategic plans with the exception of some departments only. The study recommends that all the SMEs should develop and implement their accounting systems in line with the organizations strategic plans which will enhance achievement of the organizational goals. The study also revealed that respondents describe the implementation process as poor due to the fact that the systems are never reviewed. The study recommends that the SMEs should review their level of and departments’ level to ensure the success of the implementation process. Due to the fact that there are challenges are not limited to SMEs in Bomet County alone, the study recommends that the management of other public and private or global organizations can adopt the findings of the study and bench mark their strategies with those of SMEs in Bomet County.

Keywords: Effects, Accounting System, Small Medium Entreprenuers.

Title: EFFECTS OF COMPUTERIZED ACCOUNTING SYSTEM ON THE PERFORMANCE OF SMALL MEDIUM ENTERPRISES: A CASE OF BUSINESS COMMUNITY IN BOMET COUNTY

Author: NG’ENO KIPKEMOI PETER, DANIEL KAMAU, DR KEPHA OMBUI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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 Abstract: The purpose of the study was to investigate on the effects of total quality management on customer satisfaction; a case study of Nakuru water sewerage and sanitation company limited (NAWASSCO) situated in Nakuru county in Nakuru town. The background of the study outlined the evolvement of TQM and how different TQM Gurus viewed quality and gives different definitions of quality by these Gurus. It goes further to explain the demand by customer for superior quality of products and services and the global market becoming competitive. Statement of the problem outlined the justification of carrying out the study. The specific objectives of the study were; to find out effect of supplier evaluation processes on customer satisfaction, to examine the impacts of inspection of receivables on customer satisfaction, to find the effect of quality assurance practices on customer satisfaction and to find out the effect of continuous improvement on customer satisfaction. Objectives of the study showed how the factors outlined by the researcher have an effect on total quality management for customer satisfaction; research questions of the study seek to find out how the factors outlined by the researcher affect total quality management on customer satisfaction, limitations of the study showed the problems that limited the study. The scope of the study outlined what the research covered and what the study was all about. The study outlined details of literature review, theories of what scholars have said on TQM; the study also outlined details of critical review and gaps to be filled where the literature review is criticized; and a conceptual frame work that showed the relationship between independent variables and dependent variable. The researcher used descriptive research design for the study design; used questionnaires to collect primary data. The researcher outlined details of data analysis methods. Primary data was collected using questionnaires and presented using bar graphs, tables and pie charts, a summary of data analysis was given. A summary of the finding  according to key research questions was given in chapter five; the researcher concluded that supplier evaluation, inspection of receivables, quality assurance and continuous improvement affected greatly the end result of the products and services hence having an effect on customer satisfaction; and recommended ways that would improve the quality of products and services for customer satisfaction; the researcher gave suggestions for further studies and finally gave all the references used in the study.

Keywords: Nakuru water sewerage and sanitation company limited, customer satisfaction, TQM.

Title: EFFECT OF TOTAL QUALITY MANAGEMENT AND CUSTOMER SATISFACTION ON PROJECT MANAGEMENT: A CASE OF NAKURU WATER SEWERAGE AND SANITATION SERVICE COMPANY-NAWASSCO

Author: NG’ANG’A DANIEL WAITHAKA, DR ASSUMPTAH .W. KAGIRI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The purpose of this research study was to investigate factor affecting frequent changes in project in Safaricom Mwewe project.  The specific objectives were to establish how technology affects frequent changes in project, to establish how project procedures affect frequent changes in project, to assess effect of government policy on frequent changes in project, to determine the effect of managerial skills on frequent changes in project, to assess effect of customer satisfaction on frequent changes in project management in Safaricom Mwewe project. The beneficiaries of the study include; Safaricom co. staff, government of Kenya, projects entrepreneurs, project managers and other researchers. Descriptive studies are not only restricted to fact findings, they are more than just a collection of data. They involve measurements, classification, analysis, comparison and interpretation of data. This method was preferred by the researcher since it allows in-depth study of the case under investigation. The research targeted a population of 60 staff members of Safaricom co; the population was divided into distinct characteristics groups that included managers, assistant managers and operations staff. There after the researcher gave the report on the findings and made recommendations after the investigation has been carried out. A census was used to enable the use of the entire population.  Questionnaires were administered to all respondents. The data was analyzed by the use of statistical tools and presented using figures and tables. The research findings indicated the influence of technology on factor affecting frequent changes on projects at 75%, managerial skills at 90%, government policy at 78% and customer satisfaction at 60%.  They all pose a threat to the factor affecting frequent changes in project in Safaricom Mwewe project, lack of them or inappropriate application results to poor service delivery, high cost of production, poor communication network, low employee morale and slow response to environmental changes. This contributed to high competition, poor growth rate and lack of proper handling of factor affecting frequent changes in project in Safaricom Mwewe. The study recommended that the project customers owners and project managers need managerial skills and knowledge on how to manage projects.  This can be done through training, workshops and seminars which should be carried out frequently so as to enable them acquire job related skills; technology such as the use of computers, surveillance camera and new technological advance machine within the project management should be streamlined to facilitate efficiency in the project.

Title: INVESTIGATING FACTORS AFFECTING FREQUENT CHANGES IN PROJECT: A CASE STUDY OF SAFARICOM MWEWE PROJECT

Author: MUGADIZI GEOFFREY AHONA, PROF. MIKE IRAVO (PHD)

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Most countries across the world are still adopting the crisis management approach in their drought management efforts. This approach has been criticized due to its reactive nature. Researchers emphasize the need for a more strategic and proactive drought management approach.  In Kenya, the National Drought Management Authority (NDMA) was constituted to manage the persistent droughts that are experienced in the country. However, there is paucity on research focusing on the strategic measures that the organization has adopted to achieve this goal. The study at hand was guided by theories such as strategic alliances theory and organizational adaptation theory to investigate the strategic measures that the NDMA has adopted and their effectiveness. It adopted a correlational research design. Primary data was collected from a random sample of 86 NDMA employees through a self-developed questionnaire. The questionnaire was pilot tested among 10 managers to ensure its validity. The researcher gave out 86 questionnaires but only 80 were returned and upon data cleaning they were used in data analysis. Data analysis was achieved through descriptive statistics and presented through tables. There were 54 males who took part compared to 26 female participants.  The study established that there is a relationship between drought monitoring and early warning systems and drought mitigation in Kenya. The study also revealed that there are challenges to drought mitigation which include lack of political goodwill or government support and persistence of illegal tree logging. According to this study the lack of a sound policy framework and the focus on short-term goals are also identified as challenges NDMA encounters in carrying out its mandate. NDMA however collaborates with other organizations both public and non-governmental by sharing of information. In addition, there was a significant relationship between collaboration, education, and training as well as government support in contributing to drought mitigation in Kenya. The NDMA should embrace education and training as a means of equipping farmers to respond to the needs and challenges of climate change. The organization should also develop a framework for enlightening farmers about the best farming methods and practices in light of climatic changes. The government is encouraged to increase its support to NDMA to facilitate attainment of the mandate. Future researchers can also explore the measures that can be adopted to curb the challenges to drought mitigation including illegal tree logging and occupation in catchment areas.

Keywords: STRATEGIC, MANAGEMENT, MITIGATION IN KENYA.

Title: Strategic Measures Employed by the National Drought Management Authority for Drought mitigation in Kenya

Author: DORIS WANGARI NDEGWA, DR. JESSE MAINA KINYUA

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

Research Publish Journals

Abstract: The main objective of this study was to determine the effects of strategic responses on competitive advantage in the health insurance sector in Nairobi County. The independent variables were new products, information communication technology, and customer orientation and stake holders’ involvement with competitive advantage as the dependent variable. The scope of the study was the NHIF offices in Nairobi County where a total of 64 respondents were targeted. The study adopted a descriptive research design. Data was collected using Questionnaires which were both closed ended and open ended, where descriptive statistics will be utilized to organize and describe the data while excel computer package will be used to present the analysis in tables, pie charts and bar graphs. The study will benefit National Hospital Insurance fund in strategy formulation. The findings will also help NHIF in future policy making process as it will always be used as a reference tool. Other Institutions will use the report to benchmark their strategy formulation. Lastly, other Researchers will also base their studies on this study. The study established that NHIF has set various strategies which have boosted its competitive advantage and the effect of the competitive pressure faced by NHIF is moderately viable. In response to the competition NHIF has developed and launched new products in the past 5 years, the products have increased the strategic options by the firm and that the new products launched have been successful. ICT is a key element of NHIF’s strategic business plan and business objectives, NHIF has invested in adequate hardware such as PCs, Tablets, Printers and servers to support information systems, investment in ICT has improved the firm’s competitive position, the use of ICT tools has enhanced organizational effectiveness and reputation helping to overcome competitive pressure, NHIF was vulnerable to external competition due to lagging behind in the adoption of ICT and that NHIF has adopted an enterprise resource planning system (ERP). The study concludes that ICT has positive impact on organizational performance of all sampled organizations. The study further deduces that that NHIF’s customer orientation is excellent in its competitiveness. Customer orientation emphasizes the seeking of opportunities and constraints from the perspective of customers in order to create value for potential customers. The study concludes that managing stakeholder relationships can enhance the firm’s competitive and performance against others. The relationship between the organization and its stakeholders is designed to leverage the strategic and operational capabilities of individual participating organizations to help them achieve significant ongoing benefits. The study recommends that NHIF should strive to deliver products with benefits that exceed those of competing products by adopting differentiation strategy to realize differentiation advantage and overall gain a competitive advantage over other firms. NHIF should adopt new technologies are to save costs, to improve customer relationships, business processes and performance and to open new opportunities. NHIF should adopt customer orientation and then implement customer integration in order to receive a high level of competitive advantage. Stakeholder involvement the study recommends NHIF to recruit workers who have the necessary knowledge and competencies in the business to minimize on the induction and training costs.

Keywords: EFFECTS, STRATEGIC, COMPETITIVE.

Title: EFFECTS OF STRATEGIC RESPONSES ON COMPETITIVE ADVANTAGE IN HEALTH INSURANCE SECTOR (A CASE OF NATIONAL HOSPITAL INSURANCE FUND – NAIROBI COUNTY)

Author: MIRIAM WANGUI MACHARIA, PROF. MIKE. A. IRAVO

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

Research Publish Journals