Effects of Conglomerate Diversification on Sustainability of Public Universities in Kenya
Main Article Content
Keywords
Conglomerate diversification, sustainability, public universities
Abstract
The phenomenon of globalization, together with adverse economic circumstances, intense rivalry within industries, and the changing demands of contemporary customers, has brought about a significant transformation in the field of Higher Education on a global scale. Despite the primary objectives of imparting knowledge, doing research, and providing training, many universities in Kenya face a multitude of obstacles. These issues include diminished government funding and intensified rivalry due to the proliferation of institutions vying for the same pool of students, hence contending for tuition revenue. In response to these challenges, an emerging trend in the higher education sector has been the adoption of conglomerate diversification as a strategy to enhance their sustainability. This study aimed to investigate the adoption of conglomerate diversification as a strategic approach that public universities may use in order to achieve sustainability. The Modern Portfolio Theory was employed to guide the study. The research was a descriptive survey approach. The target population was 297 participants selected from 22 public institutions in Kenya. Sample size of 170 participants was determined using a method proposed by Israel (1992). Then stratified random sampling approach was used to select the respondents. The collection of primary data was conducted via the use of a questionnaire. The analysis of quantitative data included the use of both descriptive and inferential statistical methods. Results were presented in the form of tables and models. The inferential results revealed that conglomerate diversification had a statistically significant influence on the Sustainability of public universities in Kenya (= 0.589, p=0.000<0.05). The significant influence of conglomerate diversification on the sustainability of public universities in Kenya underscores the need for these institutions to embrace diversification strategies that are well-aligned with their core objectives and values. By doing so, they can strengthen their position in the face of economic, social, and technological challenges, ensuring their continued contribution to education and society.
References
Colpan, A. M., Hikino, T., & Lincoln, J. R. (Eds.). (2010). The Oxford handbook of business groups. OUP Oxford.
Ekpoh, U., & Okpa, O. (2017). Diversification of sources of funding university education for sustainability: Challenges and strategies for improvement. Journal of Education, Society and Behavioural Science, 21(2), 1-8.
Hawley, J. P., & Lukomnik, J. (2018). The third, system stage of corporate governance: Why institutional investors need to move beyond modern portfolio theory. System Stage of Corporate Governance: Why Institutional Investors Need to Move Beyond Modern Portfolio Theory (February 21, 2018).
Israel, G. D. (1992). Determining sample size.
Kendell, R., & Jablensky, A. (2003). Distinguishing between the validity and utility of psychiatric diagnoses. American journal of psychiatry, 160(1), 4-12.
Kibuku, R. N., Ochieng, D. O., & Wausi, A. N. (2020). e Learning Challenges Faced by Universities in Kenya: A Literature Review. Electronic Journal of e-Learning, 18(2), pp150-161.
Kothari, C. R. (2004). Research methodology. new Age.
Maksimovic, V., & Phillips, G. (2002). Do conglomerate firms allocate resources inefficiently across industries? Theory and evidence. The Journal of Finance, 57(2), 721-767.
Markowitz, H. (1952). The utility of wealth. Journal of political Economy, 60(2), 151-158.
Platje, J., & Quintana, D. S. Z. (2019). Business unsustainability and early warning systems. Encyclopedia of Sustainability in Higher Education, 150-157.
Rutterford, J., & Sotiropoulos, D. P. (2016). Financial diversification before modern portfolio theory: UK financial advice documents in the late nineteenth and the beginning of the twentieth century. The European Journal of the History of Economic Thought, 23(6), 919-945.
Sanya, S., & Wolfe, S. (2011). Can banks in emerging economies benefit from revenue diversification?. Journal of financial services research, 40, 79-101.
Sulaiman, N. L., Salleh, K. M., Mohamad, M. M., & Sern, L. C. (2015). Strengthening the usage of useful critical thinking and problem solving in knowledge dissemination among tvet educators in malaysia. In ICERI2015 Proceedings (pp. 7603-7610). IATED.
Tsui-Auch, L. S. (2005). Unpacking regional ethnicity and the strength of ties in shaping ethnic entrepreneurship. Organization studies, 26(8), 1189-1216.
Watts, J. S. (2019). Navigating the partner landscape-understanding the impact of external resources and partners on universities in the modern economy. The University of Texas at Dallas.
Zangoueinezhad, A., & Moshabaki, A. (2011). Measuring university performance using a knowledge‐based balanced scorecard. International Journal of Productivity and Performance Management, 60(8), 824-843.
Article Sidebar
Article Details
Lilian Atieno, Department of Accounting and Finance, Mount Kenya University, P.o Box 342-01000 Thika
Department of Accounting and Finance, Mount Kenya University, Kenya
Oscar Sangoro, Department of Accounting and Finance, Mount Kenya University, P.o Box 342-01000 Thika
Department of Accounting and Finance, Mount Kenya University, Kenya