Showing papers by "Ganesh P. Pokhariyal published in 2019"

Does Organizational Structure Moderate the Relationship between Strategic Planning and Competitive Advantage? A Study of Large Manufacturing Firms in Kenya

Abstract: Several studies have been carried out in the past to find out how strategic planning and competitive advantage are connected and the causes of differences in competitive advantage among firms. Scholars have argued that competitive advantage can emanate from either internal or external sources and is usually in several forms which include; valuable resources, the position held within the industry, position within the marketplace, operating at lower costs than rival firms, differentiation, capabilities and dynamic capabilities. The debate on what causes differences in competitive advantage is still on. This study sought to establish the moderating effect of organizational structure on the relationship between strategic planning and competitive advantage of large manufacturing firms in Kenya. The study was underpinned by the competitive advantage typology of Michael Porter, the resource-based theory, dynamic capabilities theory, and the contingency theory. The study used a positivist research paradigm and a cross-sectional survey design. This was a census study from 124 large manufacturing firms in Kenya and data was collected from 122 of the firms representing a response rate of 98.4%. The findings indicate that overall strategic planning has a statistically significant influence on competitive advantage and that organizational structure partially moderates the relationship between strategic planning and competitive advantage. The study recommended that once the strategy of the firm has been changed, an organization structure that fits the needs of the new strategy should be put in place. This is because in the absence of an organization structure that fits the needs of the firm, it will be difficult for the firm to achieve and sustain a position of competitive advantage.

The Mediating Influence of Employee Behaviour on the Relationship Between Strategic Planning and Competitive Advantage of Large Manufacturing Firms in Kenya

Abstract: Several studies have been carried out in the past to find out how strategic planning and competitive advantage are connected and the causes of differences in competitive advantage among firms. Scholars have argued that competitive advantage can emanate from either internal or external sources and is usually in several forms which include; valuable resources, the position held within the industry, position within the marketplace, operating at lower costs than rival firms, differentiation, capabilities and dynamic capabilities. The debate on what causes differences in competitive advantage is still on. This study sought to establish the mediating influence of employee behaviour on the relationship between strategic planning and competitive advantage of large manufacturing firms in Kenya. The study was underpinned by the competitive advantage typology of Michael Porter, the resource-based theory, dynamic capabilities theory, and goal-setting theory. The study used a positivist research paradigm and a cross-sectional survey design. This was a census study from 124 large manufacturing firms in Kenya. Out of the 124 firms, data on strategic planning, employee behaviour and competitive advantage was collected from 122 of the firms representing a response rate of 98.4%. The data was interpreted using a 5-point Likert type questionnaire. The data received was analysed using both descriptive and inferential statistics. Reliability tests returned an average Cronbach Alpha Value for the three variables that is strategic planning, employee behaviour and competitive advantage, of 0.86. Hypotheses were tested using both simple and multivariate regression analysis as well as hierarchical analysis for mediation. The findings indicate that overall strategic planning has a statistically significant influence on competitive advantage and that employee behaviour mediates completely the relationship between strategic planning and competitive advantage (R 2 =0.751, p-value<0.05). The study concluded that the relationship between strategic planning and competitive advantage is completely mediated by employee behaviour. The study further recommended that employees’ behaviour should be strategically aligned to the goals and objectives set in the strategic plan and that they should be committed fully to the ideals of the firm in order for the firm to attain and sustain its competitive advantage position. Keywords: strategic planning, competitive advantage employee behaviour, lower costs, differentiation, capabilities, dynamic capabilities DOI : 10.7176/EJBM/11-8-01 Publication date :March 31 st 2019

The Role Of Employee Behaviour And Organizational Structure In The Relationship Between Strategic Planning And Competitive Advantage Of Large Manufacturing Firms In Kenya

Abstract: Several studies have been carried out in the past to find out how strategic planning and competitive advantage are connected and the causes of differences in competitive advantage among firms. Scholars have argued that competitive advantage can emanate from either internal or external sources and is usually in several forms which include; valuable resources, the position held within the industry, position within the marketplace, operating at lower costs than rival firms, differentiation, capabilities and dynamic capabilities. This study sought to advance knowledge and was based on the premise that strategic planning influences competitive advantage both directly and also indirectly by way of the mediating influence of employee behaviour and the moderating effect of organizational structure. The study was underpinned by the competitive advantage typology/theory, the resource-based theory, dynamic capabilities theory, goal-setting theory and contingency theory. The study used a positivist research paradigm and a cross-sectional survey design. Data collected from 122 large manufacturing firms was analyzed using both descriptive and inferential statistics. Hypotheses were tested using both simple and multivariate regression analysis as well as hierarchical analysis for mediating and moderating effects. The findings indicate that overall strategic planning has a statistically significant influence on competitive advantage and that employee behaviour completely mediates the relationship between strategic planning and competitive advantage while organizational structure has a partial moderating effect between strategic planning and competitive advantage. In addition, the joint influence of employee behaviour and organizational structure is different from the influence of individual variables on the relationship between strategic planning and competitive advantage. The outcomes from this research lend support to previous enquiries and support all the theories used to underpin the study.

On prediction based robust estimators of finite population totals

Abstract: In this article, we present results on nonparametric regression for estimating unknown finite population totals in a model based framework. Consistent robust estimators of finite population totals are derived using the procedure of local polynomial regression and their robustness properties studied (See Kikechi et al. (2017), Kikechi et al. (2018) and Kikechi and Simwa (2018)). Results of the bias show that the Local Polynomial estimators dominate the Horvitz-Thompson estimator for the linear, quadratic, bump and jump populations. Further, the biases under the model based Local Polynomial approach are much lower than those under the design based Horvitz-Thompson approach in different populations. The MSE results show that the Local Linear Regression estimators are performing better than the Horvitz-Thompson and Dorfman estimators, irrespective of the model specification or misspecification. Results further indicate that the confidence intervals generated by the model based Local Polynomial procedure are much tighter than those generated by the design based Horvitz-Thompson method, regardless of whether the model is specified or misspecified. It has been observed that the model based approach outperforms the design based approach at 95% coverage rate. In terms of their efficiency, and in comparison with other estimators that exist in the literature, it is observed that the Local Polynomial Regression estimators are robust and are the most efficient estimators. Generally, the Local Polynomial Regression estimators are not only superior to the popular Kernel Regression estimators, but they are also the best among all linear smoothers including those produced by orthogonal series and spline methods. The estimators adapt well to bias problems at boundaries and in regions of high curvature and they do not require smoothness and regularity conditions required by other methods such as the boundary Kernels.

Enterprise Risk Management, Top Management Demographics, Macro Environment and Organizational Performance: Evidence from Kenyan State-Owned Corporations

Abstract: This journal is a conceptualization of the relationship between Enterprise risk management, Top management demographics, Macro environment and performance. Some researchers have argued that Enterprise risk management influence performance positively whereas others have advanced that the influence is negative whereas others have contended that this strategic management practice is fairly recent, adopted to varying extent and its influence on performance is yet to be fully realized. There is also no agreement on the moderating influence of Top management demographics on the relationship between Enterprise risk management and organizational performance. The moderating influence of Macro environment on the relationship between Enterprise risk management and performance is also not conclusive. It was for this reason that there was need to explore the existence of these relationships. The context of the study was Kenyan State-owned corporations.

Reparameterization of vector error correction model from auto-regressive distributed lag to analyze the effects of macroeconomic shocks on youth employment in Kenya

Abstract: This study analyzes the effects of reparameterization of autoregressive distributed lag (ARDL) to vector error correction model (VECM) through cointegration of time series. It further verifies the effects of macroeconomic shocks on youth unemployment in Kenya using VECM. First, the unit root test has been done on youth unemployment (YUN), gross domestic product (GDP), external debt (ED), foreign direct investment (FDI), private investment (PI), youth literacy level (LR), and youth population (POP) to verify stationarity. The Johansen Cointegration Test has been employed and revealed three long run relationships which can be interpreted as a GDP effect, External Debt effect and Foreign Direct Investment effect relations. A structural VECM has been described through restrictions derived from the Cointegration Analysis. Based on the results of the Impulse-Response Function analysis and variance decomposition analysis of the Structural VECM, it is concluded that GDP, literacy level, population, Private Investment, External and FDI shocks have significant effects on Kenyan youth unemployment in the long run. Based on the results of the Impulse-Response Function and variance decomposition analyses of the Structural VECM, it is concluded that GDP, literacy level, population, and FDI shocks have significant effects on Kenyan youth unemployment in the long run. Whereas population, external debt, private investment, and GDP have positive effects, foreign direct investment and literacy rate have negative effects on youth unemployment in the long run. The results provide a statistical basis for assessing and prioritising investment policies and initiatives to maximise youth employment and attain the demographic dividend.

The joint effect of strategic alliance, regional integration and macro environment on the performance of kenyan manufacturing firms in the east african community market

Abstract: The study sought to establish the joint effect of strategic alliance, regional integration and macro environment on the performance of Kenyan manufacturing firms in the East African Community market. The study was anchored on resource dependency theory, Resource Based Theory, theory of integration and the Open system theory. The positivism philosophical paradigm and a cross sectional descriptive survey design adopted guided the study. The population of the study was 160 Kenyan manufacturing firms in the EAC market. Primary data was collected using a semi-structured questionnaire. A response rate of 81% was realized. Secondary data was collected from financial statements of the respective firms. Data was analysed using descriptive and inferential statistics. Hypotheses were tested using both simple and multivariate regression analysis while Baron and Kenny (1986) model of stepwise regression analysis were used to test for moderating effects. The findings indicated that there is a statistically significant positive joint influence of strategic alliance, regional integration and macro environment on the performance of Kenyan manufacturing firms in the East African Community market and the joint effect was greater than the influence of each variable individually. Future research directions include a replication of study in a longitudinal approach while using path analysis or structural equation models and consideration of other sectors, firm characteristics and resource constraints. The results of this study will serve as guide to document that the level and type of alliances used in the Kenyan manufacturing firms in the EAC market will determine their performance.

Autoregressive distributed lag cointegration analysis of youth unemployment in Kenya

Abstract: In this paper we consider cointegration analysis in an autoregressive distributed lag (ARDL) structure. First, logarithmic transformation is performed on the series to reduce outlier effects and have elasticity interpreted in terms of percentage. Second, the variables are tested for stationarity using Augmented Dickey-Fuller test. Third, the Johansen Cointegration test is carried out to examine cointegration of the series. Fourth, cointegrated dynamic ARDL model is estimated using ordinary least squares (OLS) and effects of variables and their lags interpreted. The results indicate that Gross Domestic Product (GDP) and its two-year lag are the only ones having negative effect on youth unemployment, that is, one unit increase in GDP and GDP two-year lag reduce youth unemployment by 0.207922% and 0.2052705% respectively. Also, one unit increase in External Debt (ED) and ED two-year lag reduce youth unemployment by 0.07303% and 0.009116% respectively. Furthermore, unit increase in one-year lag of youth literacy rate is the only one which reduces youth unemployment by 0.0892691%; one-year and three-year lag of population (POP) reduce youth unemployment by 0.2590455% and 4.3093119% respectively. The Foreign Direct Investment (FDI) and Private Investment (PI) do not have significant effects on youth unemployment. In the long run, increase in GDP causes increase in youth unemployment by 0.09148447%. The long run result explains that GDP growth in the country is “jobless growth” mainly in less labour intensive sectors.