Vol 6 Issue 1 April 2018-September 2018

Abstract: The increasing propensity of commercial banks to take part in derivative activities is one of the notable developments in the present day financial markets. Latterly, the financial innovation improvements, deregulation and development of the financial markets, and banks” margins decrease, due to low-quality loan applicants, motivate the commercial banks to provide advanced services and products to expand their profits. Profits from traditional banking activities has been decreasing whilst the competitiveness of markets have been increasing thus forcing banks to undertake derivative activities. The objective of this study was to establish the effect of financial derivatives on financial performance of commercial banks in Rwanda. 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 study employed the census approach. 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 2014 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 financial derivatives and financial performance of commercial banks in Rwanda. Data was presented in tables, charts, figures and mathematical expressions. Return on Assets (ROA) was used as the proxy for financial performance while financial derivatives, liquidity ratio and shareholders‟ equity ratio were the predictor variables.

Keywords: Financial derivatives use, risk management in derivatives, financial performance.

Title: EFFECT OF FINANCIAL DERIVATIVES USE ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN RWANDA: A CASE OF COMMERCIAL BANKS IN RWANDA

Author: Nyabirande Blaise, Dr. Patrick Mulyungi

International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)

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Abstract: Participation of women in development has been affected to a great extent by the effects of gender-based deprivation which occurs within all social, economic, religious and cultural groups. Therefore, the purpose of this study was to establish the influence of gender-based deprivation on socio economic development in Nyagatare: Tabagwe Sector. To achieve this the study was guided by the following objectives; to assess the extent to which health deprivation influences socio-economic development, to establish the influence of employment deprivation on socio-economic development, to determine the influence of leadership deprivation on socio-economic development and to determine the influence of education deprivation on socio-economic development. The study adopted descriptive research design. The target population for the study included 240 respondents of Tabagwe Sector in Nyagatare District. The sample size for the study was 150 respondents. The simple random sampling and purposive sampling was used to collect data from the women and the area chief respectively. The study used both primary and secondary data collection methods. Primary data was collected using a structured questionnaire and interview guide. Content validity was used to establish the appropriateness of the instruments while half-split method was used to establish reliability. Quantitative data from the field was analyzed using SPSS (Statistical Package for Social Sciences) Version 21. The analyzed data was presented in the form of tables using frequencies and percentages. The study found out that health concerns stress and physical injuries included, were the major issue affecting participation of women in development. Low economic status of women especially in low income areas was another influencer due to the effect of low productivity. Moreover, family break-ups affected participation in development majorly due to lack of confidence among women that was caused by the high rate of stigmatization. It was established that despite the fact that women were aware of their fundamental rights to participate in development, the rate of participation was still very low due to the effect of patriarchal systems. Finally, from the regression analysis the study analyzed that the four variables had an influence on participation of women in development in Rwanda. Among others, the study recommended that awareness needed to be created among community members on the importance of seeking medical attention in the event that gender based violence causes physical or mental harm. The study further proposes that the government should institute a policy that demands 50:50 gender representation in development initiatives rather than the two third gender rules as provided for by the constitution. Moreover, for women to access justice in case they are abused, police should treat gender violence cases seriously. In addition to that, the government should allocate adequate resources to economic empowerment programs so as to cushion the gender-based violence victims who may have lost their livelihood. Finally, participation of women in decision-making and economic activities is a key part of empowerment and should therefore be promoted.

Keywords: Health deprivation, Employment deprivation, Leadership deprivation, Education deprivation, socio-economic development.

Title: INFLUENCE OF GENDER BASED DEPRIVATION ON SOCIO ECONOMIC DEVELOPMENT IN RWANDA: A CASE STUDY OF NYAGATARE TABAGWE SECTOR

Author: INGABIRE BELINE, Dr. PATRICK MULYUNGI, Dr. JAYA SHUKLA

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Irrigation farming is one of the most important rural development investments that can have both direct and indirect impacts on poverty and food security. Irrigation schemes is said to be the dominant contributor to the total irrigated areas. Despite the contribution of irrigation systems in enhancing rural agricultural production and poverty alleviation being widely recognized, this contribution has not been evident for small scale holder farmers at Kanyonyomba irrigation scheme. The purpose of this study was to establish the contribution of irrigation schemes on livelihood of farmers in Rwanda. a case study of Kanyonyomba irrigation scheme. The study employed a descriptive research design. The target population under study was 350 households that has benefited on the rehabilitation of Kanyonyomba irrigation scheme and 15 Agricultural extension officials from the ministry of agriculture. The study used both primary and secondary data, where questionnaires, interview were used for data collection. Data collected was analyzed through SPSS version 21. Data analysis involved statistical computations for averages, percentages, and correlation and regression analysis. Ordinary least squares (OLS) regression method of analysis was adopted to determine the inferential statistics. The results indicate that households with large cultivated land size where less likely to participate in the irrigation scheme. Negative coefficient of cultivated land size showed this (-1.63) and significant at 1% significance level. The utilization of Kanyonyomba irrigation scheme has been a success to farmers in Gatsibo district. This is a clear testimony that irrigation schemes can be successfully operated and managed by the farmers themselves. In view of that Kanyonyomba irrigation scheme has enhanced the employment availability as many people have engaged themselves in agricultural activities something that has reduced the possibility of falling into hunger, address climatic challenges as well as avoiding rural urban migration among the youths.

Keywords: Crop diversification, Irrigation schemes, Livelihood of farmers, Kanyonyomba irrigation scheme.

Title: CONTRIBUTION OF IRRIGATION SCHEMES ON THE LIVELIHOOD OF FARMERS IN RWANDA: A CASE STUDY OF KANYONYOMBA IRRIGATION SCHEME

Author: JOANITA MWIZA, Dr. PATRICK MULYUNGI, Dr. JAYA SHUKLA

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Proper functioning of a state economy depends on the civil service to play the crucial roles of service delivery. In the event that the service delivery becomes ineffective or constrained, it affects the nation’s development process and citizen’s quality of life. To enhance and improve the service delivery to the citizenly, countries across the globe have responded by introducing the concept of performance contracting. Performance contract is the means through which better results are obtained from the firms’ teams, and understanding and managing performance within the agreed standards and competence requirement. The objective of this study was to determine whether skills development has an effect on effective performance of Kakamega County Government. Descriptive survey research design was adopted as these methods are useful in describing the state of affairs as they exist and association between the variables. A stratified sampling technique was used since the target population involved individuals of different cohorts. The data was analysed using descriptive as well as the inferential statistics. At 99% confidence interval,  the correlation analysis results showed that skills development practices had positive and significant relationship with the performance in Kakamega County Government at 0.664 and P =0.00 < 0.01. Similarly, regression results indicated that skills development practices had a positive effect on the performance effectiveness. The study recommends that Kakamega County develops and trains its human resources and source for highly qualified individuals who will adopt performance contracting for effective performance.

Keywords: Skills development, performance contracting, performance effectiveness.

Title: The Role of Skills Development on Effective Performance of Kakamega County Government

Author: Judith Makokha, Dr. Clive Mukanzi, Mr. Abraham Malenya

International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)

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Abstract: The general objective of this study was to determine the role of social technical skill on performance of medical healthcare sector in Kenya. The current study used descriptive research design. The target population was 665 and the sample size was 66.The study used both primary and secondary data. The data was collected by use of research questionnaires. The data was processed by use of SPSS and analyzed both descriptively and by the use of inferential statistics for regression analysis. The output of the results was presented in the form of tables, graphs and pie charts. The study findings established that the respondents were not adequately trained on latest technological advancement in the medical healthcare, sector in Kenya. This therefore indicated that majority of the respondents in the sector were yet to be trained on the use of her technological advancement in the healthcare sector.

Keywords: Performance, Social Technical Skills, Medical Healthcare.

Title: ROLE OF SOCIAL TECHNICAL SKILL ON PERFORMANCE OF MEDICAL HEALTHCARE SECTOR IN KENYA

Author: Erastus Nondi Adanyo

International Journal of Management and Commerce Innovations 

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Abstract: The objective of this study was to investigate the profitability of pairs trading on the Zimbabwe Stock Exchange (ZSE). Pairs trading is an algorithmic trading strategy that aims to trade pairs based on cointegration between two stocks.  Logarithmic stock prices for the top ten listed stocks were used in the study. Potential pairs were first identified by testing for cointegration using the Engle Granger (1988) and the Johansen test (1987). The selected pairs were modelled by the Vector Error Correction Model to produce the spread series. From the 45 pairs formed, four were found to be cointegrated. The four pairs were hypothetically traded based on historical performance of the spread. Pairs trading was implemented by monitoring the position of the spread relative to its long-run equilibrium. For each chosen pair, a short and long position is taken when the spread is significantly above and below zero respectively. A position is reversed when the spread reverts back to zero (0). One pair showed consistent returns from 2009 to 2016 whereas other pairs had varying profits. Returns from the strategy for all pairs ranged from 0.84% to 39% after deducting transaction costs, showing that the strategy is relatively profitable despite the declining returns being registered by the ZSE index.

Keywords: Zimbabwe Stock Exchange (ZSE), Pairs trading, Cointegration, Vector Correction Model (VECM), Engle Granger.

Title: INVESTIGATING THE PROFITABILITY OF PAIRS TRADING ON THE ZIMBABWE STOCK EXCHANGE (2009-2016)

Author: Mazuruse Peter, Lorreta Nyamadzawo, Muvingi Jacob, Chisunga David, Gwarimbo Willard

International Journal of Management and Commerce Innovations, 

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Abstract: Banking system all over the world remains the pivot upon which the economic engine of any nation revolves hence the quest for it to be adequately capitalized for its smooth operational efficiency. The issue of bank capitalization has attracted many empirical studies due to its indispensable role in banking operations throughout the world. The general objective of the paper is to examine the effect of capital adequacy on the operational efficiency of Nigerian banks. Relevant theoretical foundations have been drawn from the Stakeholders’ and Capital Adequacy theories. The study population is made up of 15 DMBs where secondary data were collected from the annual reports and financial statements of the banks for 10 years from 2007-2016. Quantitative research design was employed by the study hence data collected were analyzed using both descriptive and inferential statistics. Ordinary least square method employed and relevant diagnostic tests conducted to ensure the goodness of fit of the model. Findings revealed that capitalization of banks should be a continuum having been found to be statistically significant to operational efficiency of banks (p-value = 0.000<0.05). Banks should meet the minimum capital base all the time to be able to perform its statutory role of financial intermediation and remain financially stable to withstand both internal and external shocks within the financial system. Regulatory compliance with the capital adequacy for banks as stated by Basel Accord must be taken seriously by all the banks and regulatory agencies so as to engender sound financial system stability.

Keywords: Capital adequacy, Banking system, Financial intermediation, Banking operations.

Title: CAPITAL ADEQUACY AND BANK’S OPERATING EFFICIENCY IN THE NIGERIAN BANKING INDUSTRY

Author: Tajudeen Tewogbola Lawal, Professor Willy Muturi, Oluoch Oluoch

International Journal of Management and Commerce Innovations, 

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Abstract: The general objective of this study was to analyze Influence of strategic leadership on strategy implementation in hotel industry in Mogadishu. Particularly, the study wanted to evaluate the effects of Strategy Formulation, Strategic leadership involvement, Strategic leadership competency and Strategic leadership communication on strategy implementation of Hotel industry in Mogadishu. Strategic management process is a full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness. Thus strategy implementation is regarded as the actions required to undertake in order to achieve competitive advantage. As hotel industry in Mogadishu today there are Intentional moves by the Somali Diaspora to invest hotels industry through establishing more new hotels and extension of existing hotels by expansion service they offered. After establishing more hotels the industry experience declines to continue operating. However, the exiting decline is not as a consequence of lack of investment or strategy but fairly because of problems with strategy implementation. This study adopted a quantitative research design especially descriptive research design. Purposive sampling or judgmental sampling was used to select a sample of 52 managers from hotels in Mogadishu out of the target population of 60 managers by using Slovin’s formula of sampling. Primary data was collected by use of self-administered questionnaires. Data collected from questionnaires was code and keyed into a computer the Quantitative data was analyzed using the Statistical Package for Social Sciences (SPSS version 20). Descriptive statistics including the means and standard deviations were used to analyze quantitative data and capture the characteristics of the variables under study. A Multiple regression analysis model was applied to determine the relationship between Strategy Formulation, leadership involvement, Strategic leadership competency and Strategic leadership communication as the independent variables and Strategy Implementation for hotels as the dependent variable. Factor analysis was used to assess the validity and Cronbach alpha to assess reliability of the questionnaire. In general, the results reveal that Strategy Formulation, leadership involvement, Strategic leadership competency and Strategic leadership communication have significant and positive effects on Strategy Implementation for hotels industry in Mogadishu. The study recommended Inclusion of all employees in the strategy planning process because employees’ participation in strategy formulation will improve implementation process, Hotel managers must set Parameters that measured actual results versus the plan, these parameters should mirror the goals set in strategy formulation stage, Communicate to all stakeholders: Ensure every staff member understands the strategic vision, the strategic themes and what their role will be in delivering the strategic vision.

Keywords: Strategy Formulation, Strategic Leadership Involvement, Strategic Leadership Competency, Strategic Leadership Communication and Strategy Implementation.

Title: INFLUENCE OF STRATEGIC LEADERSHIP ON STRATEGY IMPLEMENTATION IN HOTEL INDUSTRY IN MOGADISHU, SOMALIA

Author: Mohamed Ibrahim Ali, Dr. Titus M. Kisingu

International Journal of Management and Commerce Innovations

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Abstract: Since in Somalia it’s clear that many SME’S play a vital role in both in the economy and as a means of reducing poverty. Since accounting information system play a vital role for the facilitation of organization’s operations, in my best knowledge it’s still questionable whether this system have better adaptation to a changing environment, better management of arm's length transactions and a high degree of competitiveness in Small businesses in Mogadishu. Therefore, this study investigates the impact of practices of Accounting Information System on Small Businesses financial performance in Mogadishu-Somalia. The general objective of the study was to establish the effect of accounting information System on Financial performance of SMEs in Mogadishu-Somalia. And this study was focused on four main specific objectives such as the effect of Financial accounting information system, Cost Accounting information system, Management Accounting information system and Financial Management information system on the financial performance of the SMEs in Mogadishu-Somalia. The study discussed three theories and they are Agency theory, Contingency theory and Behavioral theory. The study adopted a quantitative research with the specific research design being a descriptive design. The population of the study was the classified SMEs locate in Mogadishu Market, and they are 5 main SMEs in Mogadishu Market, the employees worked that 5 main SMES are 133 employees. The sampling frame is 133 employees in 5 main SMEs arising from the sample size of 100 employees was extensively surveyed to ascertain the influence of Accounting Information system  on Financial  performance of SMEs. The sampling technique used was purposive sampling. Primary data was collected by use of questionnaires which are administered through drop and pick method. Data screening was done to identify any missing data and it further test for reliability and normality. Data was analyzed using SPSS version 22. Descriptive statistics e.g standard deviations and inferential statistics such as Pearson’s correlation, ANOVA and multiple regression analysis were used for further analysis.  The findings of this study was there was positive and significant effects of Financial Accounting information system  on Financial performance  (β = .177; t = 2.029; p < 0.05) as well as the results indicates There was positive and significant effects of Cost  Accounting information system  on Financial  performance  (β = 1.269; t = 4.187; p < 0.05) and the third objectives was found there was positive and significant effects of Management Accounting information system  on Financial performance  (β = 1.829; t = 5.637; p < 0.05) and finally the researcher found there  was positive and significant effects of Financial Management information system  on Financial performance  (β = .500; t = 6.378; p < 0.05).  In conclusion the results shows  that Financial accounting information system , Cost accounting information system , Management accounting information system and Financial management information system  is significant in predicting the financial performance of SME’s  operates  in Mogadishu- Somalia. In light of the results study, the researcher recommends that the management of Small and Medium Enterprises effective use of Accounting Information Systems in administrative decisions-making. As well as the researcher recommends the development of software and hardware used in the information systems and the training of personnel in the coordination of accounting information systems.

Keywords: Financial Accounting, Cost Accounting, Management Accounting, Financial Management Information System and Financial Performance.

Title: EFFECT OF ACCOUNTING INFORMATION SYSTEM ON FINANCIAL PERFORMANCE OF SMALL & MEDIUM ENTERPRISES IN MODADISHU-SOMALIA

Author: Hassan Mohamed Sabrie, Aaron Mukhongo

International Journal of Management and Commerce Innovations, 

ISSN 2348-7585 (Online)

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Abstarct: The current globalization pressure which external pressure of trade and investment liberalization and globalization were relatively strong, funds from foreign countries are very important to support economic situation in emerging economy in Somalia, therefore, the competition for foreign fund in emerging market cannot be avoidable. Among FDI welcome developing counties are trying to change their infrastructure, increase incentive, and create good climate and policies for investment in order to attract FDI. Therefore, the Somalia government is working on a more attractive incentive package to encourage foreign investors by implementing new policies and incentive, without setting proper policies Somalia government could benefit the FDI. The general objective of this study was to examine the determinants of foreign direct investment in public service in Somalia. To find out the effects of Market-Seeking on foreign direct investment in Mogadishu, Somalia. To establish the effects of Resource-Seeking on foreign direct investment in Mogadishu, Somalia. To determine the effects of Efficiency-Seeking on foreign direct investment in Mogadishu, Somalia. A descriptive survey focuses on the research design and is concerned with addressing the particular characteristics of a specific population of subjects, either at a fixed point in time or at varying times for comparative purposes. The target population of this study was conducted employee of sea port, airport, public hospitals and road buildings in Mogadishu. The selected number of individuals were as a representative of the whole population under study. The formula which was used this study was Slog van’s formula which is states the sample size of employee in Mogadishu seaport, Airport, Public hospitals and Road building. Data collection methods used included questionnaire. The data collected was analyzed using the software called Statistical Package for the Social Sciences (SPSS) and results shown in terms of frequency distribution and percentages. A regression model will be applied to determine the relationship between market seeking, resource-seeking and efficiency-seeking as the independent variables and Foreign direct investment as the dependent variable. Researcher recommends Government should establish foreign investment policies that can guide government to give foreign companies the activities that home investors cannot or that need huge amount of capital that is difficult to home business people. Government should make training and integration of the human resource of the country. This is to enable citizenry acquire skill; education and exposure that would enable them contribute positively to economic growth wherever they find themselves employed either with the foreign or domestic firms and whichever sector they are in.

Keywords: Market Seeking, Resource Seeking, Efficiency Seeking and Foreign Direct Investment.

Title: DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN PUBLIC SERVICE IN SOMALIA

Author: Mohiadin Mohamud Abdullahi, Jamal Ali

International Journal of Management and Commerce Innovations 

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Abstract: The purpose of the study was to establish the determinants of leadership empowerment strategy in the customer satisfaction in Hormud Telecom in Mogadishu, Somalia. Specifically, the study was necessary to address the following specific objectives that are, to find out the effects of leadership autonomy, knowledge development, information sharing, and leadership reward on customer satisfaction in telecommunication services in Mogadishu-Somalia. This is seen in the fact that the firms have problems with customers to satisfy which is a harmful for companies and can result in several consequences dilemma such as losing their customers in the future. This in the long run adversely affects profitability (Eljelly, 2004). The study research gap is demonstrated by the scarcity of empirical studies on determinants of leadership empowerment strategy. The target population of the study was 63 both managers and employees of Hormud Telecom in Mogadishu. A sample size of 54 respondents was selected using Slog van’s formula. The study used primary data. Data collection methods were used including use of questionnaires. The selection sample technique was purposive or judgmental approach. Data was analyzed using SPSS version 22 for productions of tables, descriptive statistics and inferential statistics. The key findings were that leadership empowerment strategy drivers individually had a positive influence on customer satisfaction of Hormud telecom. The overall results indicated that there is a significant linear relationship between leadership autonomy, knowledge development, and information sharing and leadership reward on customer satisfaction of Hormud telecom in Mogadishu-Somalia. The conclusions were based on the objectives of the study that leadership empowerment strategy drivers had a significant influence on customer satisfaction of telecommunication services.

Keywords: Leadership Autonomy, Leadership Knowledge Development, Leadership Information Sharing, Leadership Rewarding and Customer Satisfaction.

Title: EFFECT OF LEADERSHIP EMPOWERMENT STRATEGY ON CUSTOMER SATISFACTION IN THE TELECOMMUNICATION COMPANIES IN MOGADISHU, SOMALIA

Author: Mohamed Abdurahim Abdurahi, Dr. Fridah Theuri Simba

International Journal of Management and Commerce Innovations

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Abstract: Kenya has evolved in innovation over the years, her being the home to an early entrant form of mobile money banking with world class standards. The innovation in financial sector has propel the industry to higher heights. This thesis was to study the role of innovations in the commercial banks in Kenya and especially on KCB groups in Nairobi County. The study focused on the role of innovations on financial performance of commercial banks. The researcher was guided by the following objectives; to determine the role of product innovation, process innovations and ICT integration on financial performance of KCB bank. The scope of the study was in all KCB Group braches in Nairobi County. The sample size was 132 staffs of the target population by using the Loren Morgan formulae; the target population was 200 management staff in KCB Group branches. This research was adopted a descriptive survey design with questionnaire being the basic tool for collection of primary data. Data was collected by use of questionnaires. Data was analyzed and presented using descriptive and inferential statistical tools to determine the relationship between independent and dependent variables. In addition, advanced statistical technique was a used. SPSS (Statistical package for social sciences) version 23 model was used in data analysis. The information was displayed using  tables and graphs. The study depicted that there is proper significant positive correlation on product Innovation, ICT integration, Process Innovation and Marketing Innovation to the role of innovations on financial performance of commercial banks in Nairobi County in Kenya. The independent variables were good predictors of dependent variable. This research did not exhaust bank innovations hence gave a recommendation for further study to cover innovations like securitization, credit guarantees and agency banking and their impact on financial performance in banking institutions.

Keywords: INNOVATIONS, PERFORMANCE, COMMERCIAL BANKS.

Title: THE ROLE OF INNOVATIONS ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA

Author: MURIUKI SAMMY MURIMI, DR.YUSUF MUCHELULE

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The purpose of the study was to establish the determinants of strategic planning in the small & medium enterprise in Mogadishu, Somalia. Specifically, the study was necessary to address the following specific objectives that is, to find out the effects of Resource allocation on organizational performance of small & medium enterprise in Mogadishu-Somalia, establish the effects of Culture on organizational performance of small & medium enterprise in Mogadishu, Somalia, and determine the effects of staff training on organizational performance of small & medium enterprise in Mogadishu, Somalia. It was evident that research in the area of Strategic Planning has not been done in a more comprehensive approach. The study research gap is demonstrated by the scarcity of empirical studies on determinants of Strategic Planning. Empirical studies (Nwakaego, 2014), and (Lawrence, 2013)zir and Afza (2009)), were inadequate as they concentrated on strategic planning other industries in small medium entreprise. Therefore, Small and Medium Enterprise to remain competitive emphasis should be made on strategic planning and profitability with regards to how their ability to manage allocation of resources of organizational performance and should be provided to the organizational achievement. This study will focus on the Effect strategic planning on organizational performance of Small & Medium enterprise in Mogadishu, Somalia. Methodology – The study design was used is descriptive survey, the target population of the study was 115 employees of small & medium enterprises in Mogadishu. A sample size of 89 respondents was selected using Slog van’s formula. The study used primary data. Data collection methods used included use of questionnaires. The selection sample technique was purposive or judgmental approach. Data was analyzed using SPSS version 22 for productions of tables, descriptive statistics and inferential statistics. E.g. means, standard deviation, frequencies. Inferential statistics such as Regression Models, ANOVA and Multiple Regression Analysis were used for further analysis. The key findings were that strategic planning drivers individually had a positive influence on the organizational performance of small and medium enterprises in Mogadishu-Somalia. The overall results indicated that there was a significant linear relationship between a resource allocation, effect of culture and organizational performance of SMES in Mogadishu. The conclusions were based on the objectives of the study that strategic planning drivers had a significant influence on organizational performance of SMES. The results established that strategic planning drivers were found to significantly and positively influence organizational performance. The findings of the study established that SMES were operating under a highly competitive environment between them. However, this moderate result revealed that there were all variables which were influencing the organizational performance of SMES in Mogadishu- Somalia. The study results support the view that strategic planning drivers have a significant effect on organizational performance. However, the influence of each driver varies from one SMES to another. It is recommended that managers should study and select the driver that best suits their SMES in order to achieve maximum organizational performance.

Keywords: Resource Strategic Allocation, Organizational Culture, Corporate Leadership and Organizational Performance.

Title: EFFECT OF SATISFY STRATEGIC MANAGEMENT ON ORGANIZATIONAL PERFORMANACE OF SMALL AND MEDIUM ENTERPRISE IN MOGADISHU

Author: Ali Hassan Kahie, Dr. Fridah Simba

International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)

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Abstract: Inventory management is a very important function that determines the health of the supply chain as well as the impacts the financial health of the balance sheet and income statement. Every organization constantly strives to maintain optimum inventory to be able to meet its requirements and avoid over or under inventory that can impact the financial figures or worse draws the company into bankruptcy. The general objectives of this study were to investigate the effect of inventory management on financial performance of manufacturing companies in Mogadishu, Somalia. Also this study used a sample of five manufacturing companies, Anshur Factory, Afi Water Supply, Coco Cola, Mubarak Factory and Dalsan Water Supply. Specifically, this study was evaluated the effects of inventory planning management, inventory control management, inventory quality management and inventory recording management on financial performance in Mogadishu. Also this study used the theory of economic order quantity, Just in Time Model and Pareto (ABC) Model. The study adopted a descriptive study design in data collection. The target population of this study was 100 employees of finance and procurement departments of all manufacturing companies in Mogadishu. This study was used the purposive random sampling technique. The data collection procedure of this study is through hand picking. Primary data was collected by use of questionnaires which are administered through drop and pick method. Data screening was done to identify any missing data and it will be further test for reliability and normality. Data was analyzed using SPSS version 22. Descriptive statistics e.g standard deviations and inferential statistics such as Pearson’s correlation, ANOVA and multiple regression analysis was used for further analysis. The findings of the study was indicated that inventory planning was statistically associated with financial performance (p<0.05), as well as the results indicated that Inventory Recording was statistically associated with financial performance (p<0.05). Similarly the result indicated that inventory controlling was statistically associated with financial performance (p<0.05), and finally the results indicated that inventory quality management was statistically associated with financial performance (p<0.05).The conclusions were based on the objectives of the study that inventory management drivers had a significant influence on financial performance of manufacturing companies. The results established that inventory management drivers were found to significantly and positively influence financial performance. The study recommends the adoption of the inventory management and financial performance of manufacturing companies in Mogadishu. The inventory management was recommended as a useful design for practicing manufacturing companies with respect to the implementation of best practice.

Keywords: Planning, Control, Record Keeping, Quality Management and Financial Performance.

Title: EFFECT OF INVENTORY MANAGEMENT ON FINANCIAL PERFORMANCE ON MANUFACTURING COMPANIES IN MOGADISHU, SOMALIA

Author: Mohamed Nur Osman, Aaron Mukhongo

International Journal of Management and Commerce Innovations 

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Abstract: The purpose of this study is to find out the effect of accounts receivable management on the financial performance of Small and Medium firms Enterprises in Mogadishu city in Somalia to be outlined by such study the researcher chose The specific objectives of the study to be cash flow management, credit management and credit policy management on financial performance which are the vital element of whole concept of account receivable management. Accounts receivable management on the financial performance in Small and Medium Enterprises (SMEs) are seen important event in the field of financial management lack of empirical evidence from the emerging economies and the absence of examination of the role of account receivable management on SME financial performance was no clear, the research design employs a survey design comprising of quantitative for data collection approach. The target populations had 102 SMEs from three sectors. The study was applied both probability and non-probability sampling procedures obtained a sample of 81 SMEs required for the study based on Slovene formula. The researcher was gather data used a questionnaires because the kind of the study involves variables that not possible to find out other tools questionnaire are seen most important tools for data collection. For explaining theoretical and empirical information on the past literature review on the effect of accounts receivable management on the financial performance of SMEs, the study was three sectors in Mogadishu Somalia. Inferential statistics such as Pearson correlation coefficient and coefficient correlation was used to analyze quantitative data and descriptive statistics are employed for variables of the study.

Keywords: Cash Flow Management, Debt Management, Credit Policy, Inventory Management and Financial Performance.

Title: EFFECT OF ACCOUNTS RECEIVABLES MANAGEMENT ON FINANCIAL PERFORMANCE IN SMALL AND MEDIUM FIRMS IN MOGADISHU-SOMALIA

Author: Adam Osman Dirie, Dr. Caroline Ayuma

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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