Department of Business management

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

Mon, 01 Sep 2025 00:00:00 GMT

The Moderating Role of Firm Characteristics on the Relationship Between Equity Financing and Financial Performance of Micro, Small and Medium Enterprises in Nakuru County Njoroge, Joseph; Mwengei, Ombaba; Wanjala, Arnold 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 andsustainability. 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.

MODERATING EFFECT OF ORGANIZATION CULTURE ON SUSTAINABLE GREEN PROCUREMENT PRACTICES AND ORGANIZATIONAL PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI COUNTY

Wed, 01 Jan 2025 00:00:00 GMT

MODERATING EFFECT OF ORGANIZATION CULTURE ON SUSTAINABLE GREEN PROCUREMENT PRACTICES AND ORGANIZATIONAL PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI COUNTY MUTAI, DIANA Manufacturing firms in Nairobi County can achieve strong organizational performance characterized by high productivity, efficiency, profitability, and quality standards through sustainable green procurement practices. However, the sector continues to face persistent challenges such as limited technical efficiency, declining GDP contribution, and shrinking market share. Despite contributing 17.30% of total tax revenue, the sector’s technical efficiency remains comparatively lower. Therefore, the main objective of this study was to establish the moderating effect of organizational culture on the relationship between sustainable green procurement practices and organizational performance of manufacturing firms in Nairobi County. The specific objectives were to determine the influence of green product selection practice, green supplier selection practice, and green product lifecycle practice on organizational performance, and to examine the moderating effect of organizational culture on these relationships. The study was guided by Ecological Modernization Theory, Stakeholder Theory, and the Theory of Performance. An explanatory research design was employed, targeting 554 procurement managers across all manufacturing firms in Nairobi County, from which a sample of 232 respondents was obtained using Yamane’s formula. Stratified random sampling was used to ensure representation, and structured questionnaires were employed to collect primary data. A pilot study conducted in Nakuru County tested the instruments for validity and reliability. Data were analyzed using descriptive and inferential statistics through SPSS version 25, where descriptive analysis included means, frequencies, minimums, maximums, and standard deviations, while inferential analysis involved correlation and regression models. The findings revealed that green product selection practice (β=0.165, p=0.002), green supplier selection practice (β=0.226, p=0.001), green product lifecycle practice (β=0.306, p<0.001), and organizational culture (β=0.074, p=0.047) had a positive and significant effect on organizational performance. Moreover, results indicated that organizational culture significantly moderated the relationships between green product selection practice (β=−0.036, p=0.045, R2=0.573, ΔR2=0.019), green supplier selection practice (β=0.049, p<0.001, R2=0.583, ΔR2=0.010), and green product lifecycle practice (β=−0.084, p<0.001, R2=0.593, ΔR2=0.010) with organizational performance. The study concluded that integrating green product selection, supplier collaboration, lifecycle management, and a sustainability-oriented organizational culture enhances manufacturing firms’ performance, cost-effectiveness, and competitiveness while strengthening environmental and social responsibility. Theoretically, the study reinforces the explanatory strength of Ecological Modernization, Stakeholder, and Performance theories by demonstrating that culture-driven sustainability practices significantly predict firm performance outcomes. The study recommends that firms cultivate sustainability-focused cultures, integrate green product, supplier, and lifecycle initiatives, align cultural values with environmental goals, participate in environmental certification programs, provide continuous employee training, and establish partnerships with environmentally responsible suppliers to optimize sustainability performance and long-term organizational success. The study findings provided valuable insights into how sustainable green procurement practices, moderated by organizational culture, influence organizational performance among manufacturing firms in Nairobi County, offering practical implications for managers, policymakers, and researchers.

MODERATING EFFECT OF ORGANIZATION CULTURE ON HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEE PERFORMANCE IN PUBLIC UNIVERSITIES IN NYANZA REGION, KENYA

Mon, 01 Jan 2024 00:00:00 GMT

MODERATING EFFECT OF ORGANIZATION CULTURE ON HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEE PERFORMANCE IN PUBLIC UNIVERSITIES IN NYANZA REGION, KENYA ANDITI, DUNCAN Employee performance is vital for the success of public universities in Kenya. However, many institutions face challenges in achieving satisfactory outcomes despite implementing various Human Resource Management (HRM) practices. This study investigated the moderating effect of organizational culture on the relationship between HRM practices and employee performance in public universities in the Nyanza region, Kenya. Specifically, it examined the effects of recruitment, reward systems, training practices, and human resource planning on employee performance, alongside the moderating role of organizational culture. The study was guided by the Ability-Motivation-Opportunity (AMO) Theory, Human Capital Theory, and the Action Regulation Theory of Career Self-Management. A descriptive research design was employed, targeting 3,129 employees from five public universities. A sample of 355 teaching and non- teaching staff was selected using stratified random sampling. Data was collected using structured questionnaires, and the results were analyzed using SPSS version 23, with hierarchical regression applied to test the hypotheses. The findings indicated that recruitment (β = 0.165, p < 0.05), reward systems (β = 0.478, p < 0.05), training (β = 0.811, p < 0.05), and human resource planning (β = 0.912, p < 0.05) had a significant positive impact on employee performance. Furthermore, organizational culture (β = 0.238, p < 0.05) significantly moderated the relationship between these HRM practices and employee performance. The study concluded that effective HRM practices, when supported by a strong organizational culture, significantly enhance employee performance. The study recommends that public universities improve recruitment by focusing on potential, offer competitive rewards, implement targeted training, and involve employees in human resource planning to boost performance. Future research should explore other potential moderating variables on HRM practices and performance to further enhance institutional outcomes.

MODERATING EFFECTS OF FIRM CHARACTERISTICS ON THE RELATIONSHIP BETWEEN FINANCING SOURCES AND FINANCIAL PERFORMANCE OF MICRO SMALL AND MEDIUM ENTREPRISES, IN NAKURU COUNTY, KENYA

Wed, 01 Jan 2025 00:00:00 GMT

MODERATING EFFECTS OF FIRM CHARACTERISTICS ON THE RELATIONSHIP BETWEEN FINANCING SOURCES AND FINANCIAL PERFORMANCE OF MICRO SMALL AND MEDIUM ENTREPRISES, IN NAKURU COUNTY, KENYA NJOROGE, NJERI 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. MSMEs financial performance is enhanced by access to equity financing, debt financing and government financing programs which is affected by underlying factors such as inadequate finance, political interference, poor market accessibility, size and low entrepreneurial knowledge. In Nakuru County MSMEs are affected by inadequate funding, political interference and market expansion. It is with this regard that the study sought to explore the moderating effects of firm characteristics on the relationship between sources of finance and the financial performance of MSMEs in Nakuru County, Kenya. The specific objectives were to determine the effect of equity finance sources, the effect of debt financing sources, the effects of government financing programs and the moderating role of firm characteristics on the relationship between equity financing sources and MSME’s financial performance, debt financing sources and government financing programs and MSME’s financial performance. The study was informed by pecking order theory, the trade-off theory and the financing life cycle of the firm theory. The study employed an exploratory research design which assisted in employing questionnaire as a research instrument. The study employed stratified and simple sampling methods. The target population was 7,384 MSMEs in Nakuru County out of which a sample size of 379 was selected. Validity was tested using Rasch measurement model and reliability was tested using Cronbach Alpha where a value ≥ 0.7 was considered reliable. Likert scale of 5 points also was employed to test content validity and a pilot study of 37 MSMEs in Eldoret town was done. Data analysis was enhanced by the use of SPSS Version 23 and presentation employed bar graphs, tables, explanation and pie charts. The data was analyzed through hierarchical linear regression model. The direct effects findings were that equity financing had a positive and significance effects (β=0.147, PV=0.008), debt financing sources had a negative and no significance effects (β=-0.039, PV=0.521), government financing programs had a direct positive and significance effects (β=0.33, PV=0.000) and firm characteristics had a positive and significance effects (β=0.182, PV=0.000) on financial performance of micro, small and medium enterprises in Nakuru County. Firm characteristics were found to have positive effects and significance moderating effects on the relationship between equity financing sources and MSMEs financial performance (β=0.251, PV=0.000), firm characteristics had a negative and no moderating effects on the relationship between debt financing sources and MSMEs financial performance (β=-0.048, PV=0.632) and firm characteristics had a positive and no moderating effects on the relationship between government financing programs and MSMEs financial performance (β=0.006, PV=0.938). Therefore, MSMEs owners and managers should go for equity financing sources for the sources promotes higher profits hence high liquidity and as debt finance and government financing programs source increase, the profit also decreases. Also, management style and production capacity promote MSMEs financial performance. Furthermore, MSMEs in Nakuru should work on operations of the business for it negatively affects financial performance.

SUPPLY CHAIN COST OPTIMIZATION, INFORMATION SHARING AND COMPETITIVENESS OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN UASIN GISHU COUNTY, KENYA

Wed, 01 Jan 2025 00:00:00 GMT

SUPPLY CHAIN COST OPTIMIZATION, INFORMATION SHARING AND COMPETITIVENESS OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN UASIN GISHU COUNTY, KENYA KIPTOO, RACHEL JEROTICH The food and beverage processing sector in Kenya are vital to the national economy due to its role in job creation and its contribution to GDP. However, its competitiveness has faced challenges stemming from high operational costs and inefficient supply chain processes. This study examined the moderating effect of information sharing on the relationship between supply chain cost optimization and the competitiveness of food and beverage manufacturing firms in Uasin Gishu County, Kenya. Specifically, the study investigated how inventory management, strategic sourcing, adoption of technology, and logistics costs influence firm competitiveness, and how information sharing moderates these relationships. The study was guided by the Resource-Based View Theory, Lean Manufacturing Theory and Information Sharing Theory. An explanatory research design was adopted, targeting 924 departmental staff across 22 food and beverage firms. A sample of 279 respondents was selected using Yamane’s formula and simple random sampling employed. Data was collected through structured, closed-ended questionnaires, and a pilot study in Nakuru County was conducted to validate the research instrument. Data analysis was performed using SPSS version 25, incorporating both descriptive and inferential statistics, including correlation and hierarchical regression analyses. Findings revealed that inventory management (β1 = 0.152, p = 0.004), strategic sourcing (β2 = 0.173, p = 0.001), adoption of technology (β3 = 0.232, p = 0.001), and logistics cost (β4 = 0.300, p = 0.000) significantly and positively influenced competitiveness. Furthermore, information sharing significantly moderated the relationships between inventory management (β = -0.103, p = 0.002), strategic sourcing (β = 0.059, p = 0.010), technology adoption (β = 0.087, p = 0.009), and logistics cost (β = -0.182, p = 0.002) and competitiveness. The study concluded that effective supply chain practices, enhanced by robust information sharing mechanisms, play a critical role in strengthening firm competitiveness. The study recommends that food and beverage firms adopt modern inventory systems, invest in advanced technologies with adequate employee training, foster long-term supplier relationships, and optimize logistics through lean practices. Importantly, firms should institutionalize information sharing to enhance coordination, responsiveness, and strategic alignment across supply chain functions, ultimately boosting competitiveness and performance. The study's findings would be valuable to food and beverage manufacturing firms by informing managers on optimizing limited resources for competitive advantage through supply chain cost efficiency, guiding the Ministry of Trade in policy formulation within Kenyan borders, and contributing to the broader academic discourse in supply chain management.

FINANCIAL INCLUSION, COMPETITIVE LANDSCAPE AND ORGANIZATIONAL PERFORMANCE OF SELECTED COMMERCIAL BANKS IN UASIN GISHU COUNTY

Wed, 01 Jan 2025 00:00:00 GMT

FINANCIAL INCLUSION, COMPETITIVE LANDSCAPE AND ORGANIZATIONAL PERFORMANCE OF SELECTED COMMERCIAL BANKS IN UASIN GISHU COUNTY JEPCHIRCHIR, VALLARY Organizational performance in Kenya continues to face challenges, as evidenced by a consistent decline in return on investment. For example, the Return on Assets (ROA) in the Kenyan banking sector dropped from 3.2% in 2022 to 2.8% in 2023, reflecting reduced profitability. The purpose of the study was to investigate the financial inclusion and organizational performance of selected commercial banks in Uasin Gishu County. The study was guided by four specific objectives; to investigate the influence of financial literacy, technology adoption, lending practices, and income levels on organizational performance of selected commercial bank, and a moderator to determine the influence of competitive landscape on the relationship between financial inclusion and organizational performance of selected commercial banks. This study was guided by the following theories; the systems theory of financial inclusion, organizational performance theory, and competitive/market landscape theory. The study adopted explanatory research design. The study targeted 748 employees. This study employed a stratified random sampling to select a sample of 261 respondents determined by Yamane formula. The study used questionnaires as the data collection tool. The study tested for reliability and validity and pilot study carried out in Nakuru County. Both descriptive and inferential statistics were utilized. Multiple regression analysis was used to determine the effect of financial inclusion on organizational performance whereas hierarchical multiple regression was adopted to test for the moderating effect. Results showed that a positive and significant effect of financial literacy (β = 0.289, p < 0.001), technology adoption (β = 0.161, p = 0.004), lending practices (β = 0.325, p < 0.001) and income levels (β = 0.122, p = 0.029) on bank performance. Hierarchical regression showed that competitive landscape significantly moderates the relationship between financial literacy and organization performance (β = 0.56, p < 0.05, R2Δ = 0.11), relationship between lending practices and the organizational performance of commercial banks (β = 0.53, p < 0.05, R2Δ = 0.08), and relationship between income levels and the organizational performance of commercial (β = 0.37, p < 0.05, R2Δ = 0.030). However, findings indicated that the competitive landscape does not significantly increase the explained variance of technology adoption on bank performance (β = 0.33, p > 0.05, R2Δ = 0.000). In conclusion, the study asserts that financial literacy, technology adoption, lending practices, and income levels are essential aspects of financial inclusion that significantly enhance organizational performance. Additionally, the competitive landscape plays a crucial role in shaping this relationship. Based on these findings, the study recommends that regulators implement standardized financial literacy programs to empower consumers. It is also essential to encourage the adoption of technological tools, ensuring the availability of user-friendly mobile and online banking platforms. Furthermore, banks should develop clear communication strategies that clearly outline lending processes and conditions. Conducting thorough market research to understand the diverse financial needs of various income segments is vital for creating suitable financial products, such as affordable loans and savings plans. Finally, banks should regularly perform competitive analysis to remain informed about market trends and competitor strategies, which can help them effectively, navigate the evolving financial landscape.

MODERATING EFFECT OF FINANCIAL LITERACY ON THE RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE AND FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NANDI COUNTY, KENYA.

Wed, 01 Jan 2025 00:00:00 GMT

MODERATING EFFECT OF FINANCIAL LITERACY ON THE RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE AND FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NANDI COUNTY, KENYA. KEMBOI, PHILIPH KIMUTAI Small and Medium Enterprises sector is a key driver of Kenyan economy as it contributes to the Gross Domestic Product and creates 80% of employment. However, most new businesses end up failing within their early years of operations because of their dismal financial performance. The main aim of the study is to examine the moderating effect of financial literacy on the relationship between organizational culture and financial performance of small and medium sized enterprises in Nandi County, Kenya. The specific objectives are to determine the effects of clan, hierarchy, adhocracy and market cultures on financial performance of small and medium sized enterprises in Nandi County, Kenya. Furthermore, the study examines the moderating effect of financial literacy on the relationship between clan, adhocracy, market, hierarchy cultures and financial performance of Small and Medium Enterprises. Resource Based View, Dual process and Agency Theories guided the study. The study utilized explanatory research design and cluster sampling technique to collect data from a sample size of 376 Small and Medium Enterprises obtained by use of Yamane formula from a target population of 6347 registered Small and Medium Enterprises in Nandi County, Kenya. Primary data was collected using self-administered closed- ended questionnaire. Cronbach’s alpha coefficient was used to test reliability and factor analysis to test the validity of research instruments. Data was analyzed through SPSS Version 23. Correlation and hierarchical regression analysis was used to ascertain the strength and direction of relationships between variables. The study findings indicated that Clan culture (β= 0.322, p=0.000), Adhocracy culture (β = 0.255, p=0.000), Market culture (β=0.140, p=0.012) and Hierarchy culture (β = 0.200, p = 0.000) had a positive and significant direct effect on financial performance. Results of the control variables indicate that firm age (β=.136, P = .045) significantly influences financial performance while firm size (β=.012, P=.898) does not. These control variables explain 1.2% of the variance in financial performance (R2 of .012 and ∆R 2 = 0.12). Additionally, the findings of the study revealed that financial literacy moderates the relationship between clan culture, (β = -0.157, p = 0.000, R2 = 0.618, ∆R2 = 0.032), adhocracy culture (β = 0.156, p = 0.011, R 2 = 0.625, ∆R2 = 0.007), hierarchy culture and financial performance (β = -0.186, p = 0.026, R2 = 0.631, ∆R2 = 0.006). Findings further revealed that Financial Literacy does not moderate the link between market culture and SME’s performance (β = -0.029, p = 0.688, R 2 = 0.625, ∆R2 = 0.000). ∆R2 indicates the variance in financial performance that moderation process accounts for. The study provides new knowledge to the literature that financial literacy moderates the relationship between clan culture and financial performance, adhocracy culture and financial performance, and lastly, hierarchy culture and financial performance. The findings help the owners/managers in developing strategies to cultivate financial literacy and supportive culture, policy makers to formulate policies to enhance financial literacy, manage culture to achieve sustainable improvement in financial performance of SMEs. Further study should be undertaken using longitudinal research so as to allow researchers to look at changes over time in regards to organizational culture.

MODERATING EFFECT OF DIGITAL FINANCE SERVICE ON THE RELATIONSHIP BETWEEN FINANCIAL MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF SELECTED SMEs IN ELDORET CITY, KENYA.

Wed, 01 Jan 2025 00:00:00 GMT

MODERATING EFFECT OF DIGITAL FINANCE SERVICE ON THE RELATIONSHIP BETWEEN FINANCIAL MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF SELECTED SMEs IN ELDORET CITY, KENYA. JEPLETING, GLADYS Financial performance refers to the measure of how well a company is using its assets to generate revenue, profit, firm credibility, and value for shareholders and its ability to pay off debts. Challenges affecting SMEs financial performance include poor financial management, lack of technological skills and enough resources. As a result, it was necessary to investigate the moderating effect of digital finance service on the relationship between financial management practices and financial performance of selected SMES in Eldoret city, Kenya. The specific objectives of the study were to examine the effect of cash flow management, budget planning, investment decision and digital financial services on financial performance of selected SMEs. In addition, the study sought to examine the moderating effect of digital financial services on the relationship between; cash flow management, budget planning, investment decision and financial performance of selected SMEs. The research was guided by the priority- based budgeting theory, modern portfolio theory and resource-based theory. The study utilized explanatory research design. Target population was 1236. Simple random sampling techniques was utilized to collect data from 302 selected SMEs using self- administered questionnaires. Cronbach alpha was applied to test reliability while factor analysis was applied to test construct validity. Hierarchical regression analysis was employed to examine direct and moderating effects, with firm age and firm size controlled as covariates. The findings indicate that firm age has a statistically significant positive effect on financial performance (β=0.282, p=0.022), whereas firm size does not (β=0.070, p=0.149) affirming the need to control these variables. The study revealed that cash flow management (β=0.237, p=0.000), budget planning (β=0.364, p=0.000), and investment decision (β=0.366, p=0.000) positively influence financial performance, collectively accounting for 71% of the variance (R2=0.742, ∆R2=0.713, p≤0.05). The study further examined the direct effect of digital finance services on financial performance, with results showing a positive and significant influence (β=0.137, p=0.007), contributing an additional 1% variance (∆R2=0.007) to the model. However, digital finance services did not moderate the relationship between cash flow management and financial performance (β=0.002, p=0.852), indicating no significant interaction (∆R2=0.000). Conversely, digital finance services significantly moderated the relationship between budget planning and financial performance (β=-0.049, p=0.000, ∆R2=0.016), and between investment decision and financial performance (β=0.035, p=0.042, ∆R2=0.003), resulting in a combined explained variance of 80% in financial performance (R2=0.798). The study provides valuable insights for SME managers, policymakers, and financial institutions, emphasizing the importance of targeted digital finance tools to optimize financial management practices and support SME growth. SMEs owners or managers should assess and adopt digital finance solutions that align with their financial management practices.

INFLUENCE OF E-LOGISTICS ON SUPPLY CHAIN PERFORMANCE OF MANUFACTURING FIRMS, IN UASIN GISHU COUNTY, KENYA. MODERATED BY ELECTRONIC RESOURCE PLANNING

Wed, 01 Jan 2025 00:00:00 GMT

INFLUENCE OF E-LOGISTICS ON SUPPLY CHAIN PERFORMANCE OF MANUFACTURING FIRMS, IN UASIN GISHU COUNTY, KENYA. MODERATED BY ELECTRONIC RESOURCE PLANNING CHEPKEMOI, CLARA Supply chain performance is crucial for businesses to increase efficiency, reduce expenses, and meet changing client needs in a competitive environment. However, manufacturing firms in Kenya face challenges such as competition, high production costs, and untimely product availability. This study aimed to examine the moderating influence of Enterprise Resource Planning (ERP) on the relationship between e- logistics and supply chain performance of manufacturing firms in Uasin Gishu County, Kenya. Specific objectives were to assess the influence of electronic order processing, transportation management, automated warehousing, inventory management, and enterprise resource planning systems on supply chain performance. The study further assessed the moderating influence of enterprise resource planning on the relationship between electronic order processing, transportation management, automated warehousing, inventory management systems, and supply chain performance of these firms. The study was guided by Resource-Based, Innovation, and Transaction Cost Theories. Explanatory research design and a census approach were adopted in collecting data using a closed-ended questionnaire from 270 Heads of 9 Departments closely linked to the study variables in 30 manufacturing firms. Cronbach’s alpha and factor analysis were used to assess reliability and construct validity. Data analysis was performed using descriptive and inferential statistics, with a hierarchical regression model used to test all the study hypotheses. Results indicate that firm age (β=0.190, p = 0.021) significantly influences supply chain performance while firm size (β=0.101, p=0.223) does not. These control variables explain 4.8% of the variance in supply chain performance, as shown by an R2 of 0.048. Findings further revealed that electronic order processing system (β1=0.316, p=0.001), transportation management system (β2=0.167, p=0.011), automated warehousing systems (β3=0.217, p=0.008), and inventory management system (β4=0.232, p=0.001) significantly influence supply chain performance. These variables explain 56.6% of the variance in supply chain performance (R2 = 0.566 inclusive of the controls) and 51.8% (∆R2 = 518 exclusive of the controls). Results further indicate that ERP (β=0.094, p=0.010), influences supply chain performance. It explains 1.2% of the variation in supply chain performance (∆R2 =0.12). Furthermore, ERP was found to moderate the relationship between electronic order processing system (β=0.100, p=0.000), transportation management system (β=0.054, p=0.012), inventory management system (β=-0.120, p=0.002), and does not moderate the link between automated warehousing system and supply chain performance (β=-0.013, p=0.701). The entire Hierarchical model accounts for 64.5% (R2 = 0.645) of the variance in supply chain performance, much more than the direct effect model, which explains 56.6% (R2 = 0.566). The study concludes that electronic order processing, transport management, automated warehousing, inventory management systems, and ERP influence supply chain performance. ERP moderates the link between electronic order processing, transport management, inventory management systems, and supply chain performance, but does not moderate automated warehousing systems and supply chain performance. This study contributes to knowledge by examining the interaction of ERP and study variables. Future scholars will benefit from the study's findings as they conduct new research in e-logistics and supply chains in various industries. The policymakers and management may use the results to develop policies and strategies for investing in e-logistics and ERP, as these enhance efficiency in supply chain performance.

MODERATING EFFECT OF SELF-CONTROL ON THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND RETIREMENT PLANNING AMONG COMMERCIAL BANK EMPLOYEES IN ELDORET CITY, KENYA

Wed, 01 Jan 2025 00:00:00 GMT

MODERATING EFFECT OF SELF-CONTROL ON THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND RETIREMENT PLANNING AMONG COMMERCIAL BANK EMPLOYEES IN ELDORET CITY, KENYA CHESEREK, GLADYS Retirement planning, defined as a goal-oriented behavior where individuals devote effort to prepare for their retirement life, can effectively reduce retirement worry, keep stress under wraps, and enhance retirement preparedness and confidence. However, there is little literature about retirement planning among employees working in Kenyan Commercial banks. To fill this gap, this study aimed to establish the moderating effect of self-control on the relationship between financial literacy and retirement planning among commercial bank employees in Kenya. The study was guided by the following specific objectives: to assess the effect of financial knowledge, financial behavior, financial attitude, and self-control on retirement planning among commercial bank employees in Eldoret City, Kenya. In addition, the study examined the moderating effect of self-control on the relationship between financial knowledge, financial behavior, financial attitude, and retirement planning. This study was guided by goal- setting theory, social cognitive theory, and behavioral life cycle theory. The study adopted an explanatory research design, with data being collected from a target population of 1058 employees of 32 commercial banks in Eldoret town. A sample size of 290 respondents was obtained using Yamane’s formula. The study used systematic sampling techniques to select employees as respondents. Data was collected using a structured, closed-ended questionnaire. The researcher ensured the reliability of the research instrument through a pilot study and further confirmed it with Cronbach's alpha, which was above the score of 0.7. Construct validity was assessed using factor analysis, while content validity was assessed by having supervisors and experts in the field review the test items to make sure they were relevant and representative of the content that was being measured. Descriptive and inferential statistical analyses were conducted using SPSS (Statistical Package for the Social Sciences) version 25, with study hypotheses tested through a hierarchical regression model. It was found that Financial Knowledge had a significant positive impact on retirement planning (β = 0.402, p < 0.05), confirming that employees with better financial knowledge are more likely to plan effectively for retirement. Financial Behavior also showed a positive and significant influence on retirement planning (β = 0.182, p < 0.05), indicating that prudent financial actions enhance retirement preparedness. Financial Attitude similarly exhibited a significant positive effect on retirement planning (β = 0.267, p < 0.05). Self- control not only directly impacted retirement planning (β = 0.174, p < 0.05) but also moderated the relationship between financial knowledge (β = 0.120, p < 0.05), financial behavior (β = 0.099, p < 0.05), financial attitude (β = -0.047, p < 0.05), and retirement planning. The study concludes that self-control moderates the relationship between financial knowledge, financial behavior, financial attitude, and retirement planning among commercial bank employees in Eldoret City, Kenya. The results of this study can be used by practitioners and policymakers in developing strategies and formulating policies for retirement systems in the workplace. The findings contribute knowledge to the literature and theory related to financial literacy, self-control, and retirement planning.