Journal of Business, Economics and Management Research Studies

Job Engagement as a Predictor of Employee Performance: A Study of the Independent Electoral and Boundaries Commission in North Rift Region, Kenya

Daniel Kasiti Cheptot — 2025-09-02

In Kenya, the Independent Electoral and Boundaries Commission (IEBC) operates in a complex and often challenging environment, where its performance is directly linked to national stability and public trust. However, the factors that drive performance in such high-stakes environments are not fully understood. This study therefore sought to examine the extent to which job engagement serves as a significant predictor of employee performance within the IEBC, North Rift Region, Kenya. This study was guided by Social Exchange Theory (Blau, 1964). This study adopted a convergent parallel mixed-methods design, collecting quantitative data through structured questionnaires from a census of 97 employees of the IEBC North Rift Region, selected via stratified random sampling, and qualitative data via semi-structured interviews. Quantitative data was analyzed using descriptive statistics and multiple regression analysis in SPSS version 25 to test the predictive relationship between variables, while qualitative data underwent content analysis. Descriptive statistics showed high levels of engagement, particularly in feedback-seeking (Mean=4.25) and goal dedication (Mean=4.18), though qualitative data revealed that hierarchical structures somewhat inhibited participation in decision-making. In addition, results revealed a strong, positive, and statistically significant relationship between job engagement and employee performance (r = .758, p < .001), with regression analysis confirming that job engagement is the strongest predictor, explaining 57.4% of the variance in performance (β = 0.868, p = .02). The study recommends that IEBC should strengthen participatory decision-making mechanisms by creating formal channels for employee input in operational and strategic decisions. There is need to implement regular engagement surveys to understand employee needs and concerns, and ensure follow-up actions are taken based on feedback received.

Chief Finance Officer Expertise in The Digital Age: Leveraging Derivatives for Strategic Financial Growth

Benjamin Kipchumba Tarus — 2025-10-23

The role of the Chief Finance Officer (CFO) has undergone a profound transformation, evolving from a traditional, backward-looking function focused on control and compliance to a forward-thinking, strategic role integral to value creation and long-term organizational impact. In an increasingly volatile and interconnected global economy, this evolution necessitates a new approach to financial instruments. This paper examines how modern CFOs, equipped with a strategic mindset and digital acumen, can leverage financial derivatives to drive corporate resilience and growth, particularly within the context of emerging markets. This study investigates the strategic role of Chief Finance Officer (CFO) financial expertise in the deployment of financial derivatives for corporate growth among listed firms in Kenya. Anchored in Upper Echelons Theory and guided by a longitudinal panel design, the research analyzes 195 firm-year observations from the Nairobi Securities Exchange between 2019 and 2023. Using hierarchical multiple regression and controlling for firm age and size, the findings reveal that CFO financial expertise has a positive and statistically significant effect on the use of financial derivatives (β = 0.065, ρ < 0.05). The study contextualizes this within Kenya’s evolving derivatives market, highlighting the strategic imperative for digitally-enabled CFOs to leverage instruments such as swaps, futures, and options not merely for hedging but for value creation. It further explores the intersection of digital acumen, regulatory complexity, and executive leadership in shaping derivative strategy. The paper contributes to the discourse on financial leadership by extending UET to include digital fluency and offers a roadmap for CFOs in emerging markets to transform financial risk into strategic advantage.

Corporate Governance and Capital Structure: An Analysis of Board Independence and Long-Term Debt and Financial Performance Nexus

Ambrose Wambua — 2025-10-13

This study investigates the moderating effect of board independence on the relationship between long-term debt financing and the financial performance of listed firms in Kenya. An explanatory research design with a longitudinal approach was used, analyzing secondary panel data from the financial reports of 67 firms listed on the Nairobi Securities Exchange (NSE) from 2019 to 2023. The study was guided by the Trade-off theory, Pecking Order theory, and the Resource Dependency theory. Data analysis involved descriptive and inferential statistics, including multiple regression analysis. The study found that long-term debt had a positive and statistically significant effect on the financial performance of listed firms (β= 0.124, ρ<0.05). Findings also indicated that board independence negatively and significantly moderated the relationship between long-term debt and financial performance (β= -0.171, ρ<0.05). This implies that while long-term debt generally improves financial performance, a higher proportion of independent directors can diminish this positive effect, likely due to stricter oversight that limits a firm's ability to leverage debt. The study concludes that firms should strategically balance the use of long-term debt with board oversight to optimize financial outcomes. It is recommended that regulatory bodies develop guidelines on board composition and that managers evaluate board oversight levels to allow for financial flexibility while preventing excessive risk-taking.

Effects of Monitoring and Evaluation Reporting on the Performance of Infrastructure Projects in Nakuru County, Kenya: The Moderating Role of Government Policies

Ndungu Kinyanjui Gerald — 2025-10-01

Infrastructure projects in public hospitals form a pillar of healthcare delivery, driving greater access to quality services in Nakuru County, Kenya. Yet, delays, cost overruns, and substandard work persist. Monitoring and Evaluation (M&E) reporting is a key mechanism for tracking progress and ensuring accountability however, many public hospitals in the county lack comprehensive M&E frameworks. This gap leads to inconsistent and ineffective performance assessment and consequently, project outcomes often fall short of expectations. Although government policies are meant to strengthen project oversight, their inconsistent enforcement often diminishes the utility of M&E findings. This study examines this relationship by investigating how government policies moderate the effects of M&E reporting on the performance of infrastructure projects in public hospitals in Nakuru County, Kenya. The study was anchored on the Theory of Change and employed an explanatory research design. From a population of 1,104 stakeholders in hospital infrastructure projects, a sample of 294 was drawn using Yamane’s (1967) formula at 95% confidence. Stratified and simple random sampling guided respondent selection, while structured questionnaires provided primary data. The pilot study was undertaken to test the validity and reliability of the questionnaire. The Statistical Package for the Social Sciences (SPSS) version 24 was used to do the analysis on the data that was obtained. In addition to this, a correlation, regression, ANOVA, and model summary was produced. Tables and figures were used to present the results. Monitoring and evaluation reporting recorded the highest mean value (M=4.21) and demonstrated the strongest correlation with performance (r=0.738, p<0.01). Regression results (β=0.367, p<0.05) and moderated regression (β=0.415) confirmed its critical role in enhancing accountability and project success. M&E reporting significantly improves the performance of hospital infrastructure projects, especially when supported by enabling government policies. Public hospitals should institutionalize standardized and participatory M&E reporting systems integrated with decision-making frameworks.

Financing Cash Flow Management Practices, Board Capital and Investment Efficiency: Empirical Study on Non-Financial Listed Firms in Kenya

Tubman Bosley Walaba — 2025-10-27

Investment efficiency is essential for maximizing returns, optimizing resource allocation, managing risk, ensuring long-term sustainability, fostering stakeholder confidence, and enabling informed strategic decision-making. Nevertheless, investment levels in developing nations like Kenya have yet to recover to pre-crisis levels. A concerning trend in emerging economies, including Kenya, has been the persistent decline in investment efficiency over time, presenting a formidable challenge for investors and businesses alike. Thus, the study's general objective was to establish the moderating effect of board capital on the relationship between cash flow management practices and investment efficiency of non-financial firms listed in NSE. The study was guided by stakeholders’ theory, free cash flow theory and resource dependence theory. The study’s target population was all the 66 NSE-listed companies. The 11-year period of empirical analysis was from 2012 to 2023. Longitudinal and explanatory research design were adopted to establish the causal relationship between the study’s variables by use of panel data. After exclusion and inclusion criteria, the study utilized the data of 43 non-financial listed companies covering the period 2012−2023. A document report guide was used to collect the data. The Hausman test was used in deciding between fixed and random effects model and both the Breusch-Pagan tests to assess heteroskedasticity. The data for the study was analyzed through descriptive and inferential statistics using statistical techniques including Pearson correlation coefficient and multiple regression analysis. All the analyses were done with the aid of STATA software version 13. The hypotheses were tested through hierarchical multiple regression models. The findings of this study revealed that financial cashflow management practices (β= -0.051, ρ>0.05) was negative and statistically insignificant. Board capital moderates the relationship between financing cash flow management practices and investments efficiency (β= 0.006, ρ<0.05). The study suggests that managers in non-financial companies prioritize improving operational efficiencies. The findings of this study can help direct the allocation of resources and concentrate on improving operational decisions. Since board capital has a moderating influence that is beneficial, it is essential for businesses to carefully select board members who possess the proper experience and networks that can improve financial strategy. This highlights the significance of human capital in governance systems and encourages businesses to make investments in the growth of their boards of directors. The findings have the potential to provide policymakers and regulatory agencies with information highlighting the significance of strong governance structures in the process of enhancing investment efficiency.

Effects of Transactional Leadership Style on Project Success Among NGOs’ in Kajiado County, Kenya: Moderating Role of Quality Assurance

Jesse Tonkei Katepi — 2025-10-14

Non-Governmental Organizations (NGOs) are central to Kenya's socio-economic development, implementing crucial projects across sectors like health, education, and women empowerment. In Kajiado County, NGOs tackle pressing social issues such as gender-based violence and early marriages. However, persistent issues like project delays, budget overruns, and unmet objectives raise concerns about leadership effectiveness. While transactional leadership is a prevalent management style in this sector, its precise impact on project success is under-researched. Furthermore, limited research has explored how quality assurance (QA) mechanisms influence or modify the relationship between leadership style and project outcomes. Given the limited empirical evidence on this interaction within Kajiado County, this study aims to examine the effect of transactional leadership (TLS) on project success (PS) among local NGOs and the moderating role of quality assurance. Guided by Transactional Leadership and Contingency Theories, the study employed an explanatory research design. The target population comprised 8,308 employees drawn from 201 registered NGOs across key sectors, including health, education, women empowerment, environment, relief and microfinance. A sample of 382 respondents was selected using stratified random sampling to ensure proportional representation of each sector. Primary data was collected through structured questionnaires administered to NGO staff involved in project implementation and management. Data was coded and analyzed using SPSS version 25, employing descriptive and inferential statistics. The results indicate a strong, positive correlation between TLS and PS (r=0.725, p<0.05), which was confirmed by regression analysis (β=0.426, p<0.01). Furthermore, QA not only correlated with PS (r=0.258, p<0.01) but also served as a significant positive moderator (β=0.359, p<0.05), strengthening the TLS-PS relationship. The study concludes that the efficacy of transactional leadership in NGOs is maximized when integrated with QA mechanisms. It is recommended that NGO managers formally embed QA systems within their leadership frameworks to enhance predictability, accountability, and sustainable project success.

Navigating Stakeholder Demands: How Green Supplier Collaboration Influences Procurement Performance in Public Institutions

Valary Chelagat — 2025-10-02

This study examines the moderating effect of stakeholder pressure on the relationship between green supplier collaboration and procurement performance in Kenya’s food and beverage manufacturing sector. Drawing on the Resource-Based View, Institutional Theory, and Transaction Cost Economics, the study employed a moderated multiple regression model using data from 253 procurement professionals across 197 firms. The results revealed that green supplier collaboration, when considered independently, did not have a statistically significant effect on procurement performance (β = 0.011, p = 0.155). However, stakeholder pressure—operationalized as regulatory pressure exerted a significant positive influence (β = 0.099, p < 0.001) and moderated the relationship between green collaboration and procurement performance (interaction term β = 0.001, p = 0.021). Significantly, the negative standardized beta for the interaction (β = –0.045) suggests that under high regulatory scrutiny, the marginal benefit of green collaboration may diminish. Firm age (β = 0.068, p < 0.001) and firm size (β = 0.016, p = 0.007) were also significant predictors of procurement performance. These findings underscore the conditional nature of sustainability initiatives and highlight the importance of aligning internal capabilities with external institutional pressures to achieve procurement efficiency. The study contributes to procurement and sustainability literature by clarifying the interaction dynamics and offering policy-relevant insights for developing economies.

The Moderating Role of Firm Characteristics on the Relationship Between Equity Financing and Financial Performance of Micro, Small and Medium Enterprises in Nakuru County

Joseph Njoroge Njeri — 2025-09-30

Micro, Small and Medium Enterprises (MSMEs) are important drivers of economic development in many countries and thus is a medium of job creation and poverty alleviation. Although equity financing is increasingly recognized as a sustainable financing option for MSMEs, many enterprises in Kenya continue to experience poor financial performance, with high closure rates reported in urban centers such as Nakuru. Existing studies have explored the direct relationship between financing strategies and performance but have paid little attention to the moderating role of firm characteristics. This study therefore investigates the moderating role of firm characteristics on the relationship between equity financing and financial performance of MSMEs in Nakuru County. The study was informed by the financing life cycle of the firm theory. The study adopted an exploratory research design and targeted 7,384 MSMEs operating in Nakuru County. From this population, a sample of 379 enterprises was drawn using stratified and simple random sampling techniques. Data was gathered using a 5-point Likert scale questionnaire. A pilot study involving 37 MSMEs in Eldoret town was conducted to assess the validity and reliability of the research instrument. Validity was examined through factor analysis, while reliability was tested using Cronbach’s Alpha, with coefficients of 0.7 and above considered acceptable. Data was analysed descriptively and inferentially using SPSS Version 23 and presentation employed bar graphs, tables, explanation and pie charts. Findings revealed that equity financing had a positive and significant effect on MSME financial performance (β = 0.147, p = 0.008). Firm characteristics also had a significant influence on financial performance (β = 0.182, p = 0.000). Moreover, the interaction between equity financing and firm characteristics demonstrated a positive moderating effect on financial performance (β = 0.251, p = 0.000). This implies that firm attributes such as production capacity, managerial competence, and operational factors strengthen the contribution of equity financing to MSME growth and sustainability. The study recommends strengthening MSMEs’ internal financial capacity, promoting equity-friendly financing models, and encouraging profit reinvestment alongside modern management and technology adoption to boost performance and sustainability.

Airbnb's Competitive Disruption on Hotel Industry Performance in Kenya

Peruce Atingo — 2025-09-30

The proliferation of the sharing economy has fundamentally reshaped global tourism and hospitality. As a prominent player in this digital transformation, Airbnb has emerged as a significant force, offering peer-to-peer accommodation that challenges the traditional hotel industry across the globe. The rapid rise of Airbnb in key tourist and commercial hubs in Kenya, such as Nairobi and coastal regions, presents a unique and substantial competitive pressure on the established hotel industry. This disruption raises critical questions regarding the performance metrics of hotels as they grapple with an unregulated and rapidly expanding alternative accommodation market. The primary aim of this paper is to conduct a comprehensive literature review to analyze the specific impacts of Airbnb's competitive disruption on hotel industry performance in Kenya. This review is guided by Clayton Christensen's Disruptive Innovation Theory, which posits that a new, often simpler and more affordable, technology or business model can enter a market from the bottom-up, eventually displacing established market leaders. The methodology is based on a systematic, qualitative literature review of secondary data. It involves a critical analysis of academic journals, research reports, industry publications, and statistical data from reputable sources focusing on Kenya's tourism and hospitality sector from 2010 to 2025. Key data was extracted from selected studies and then analyzed using a narrative synthesis to identify and categorize major findings. The findings revealed a rapid expansion of the Airbnb market in Kenya, particularly in Nairobi and coastal cities, driven by both individual hosts and professional operators. This growth created significant competitive pressure, primarily on mid-market and budget hotels, by attracting price-sensitive and longer-stay guests. The analysis also highlighted a clear regulatory disparity, where hotels face stricter licensing and tax enforcement compared to many informal short-term rental hosts, creating an uneven playing field. Challenges persist around regulation, tax compliance, safety standards, and housing pressures, with professional operators increasingly dominating the market. In response, hotels have adopted defensive strategies, including price adjustments and emphasizing unique service-based amenities, with some even listing their own rooms on the Airbnb platform to remain competitive. In conclusion, Airbnb's presence has irrevocably altered Kenya's hospitality landscape, acting as a powerful disruptive force. The traditional hotel industry is compelled to innovate, with key strategies including embracing digital transformation, enhancing personalized guest experiences, and leveraging unique strengths. Recommendations for policymakers include the urgent need for a clear, fair, and adaptive regulatory framework for short-term rentals to ensure equitable competition and protect consumer and host interests.