Human resource, marketing and environmental management on financial performance of manufacturing firms listed at the Nairobi securities exchange, Kenya
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Date
2018
Authors
Oloo, Michael Ochieng’
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Manufacturing is an important sector as it contributes to the country’s economic development
and growth. It has the potential to generate foreign exchange earnings through exports and
diversify the country’s economy. It is the platform through which Kenya intends to achieve its
development goals of Vision 2030. The problem in the sector is huge untapped potential
resources which if not checked can lead to economic crisis and also the high cost of production.
Other than financial factors, financial performance of manufacturing listed firms can be affected
by issues concerning selection and recruitment, training and development, succession and career
path, marketing planning, market analysis and evaluation, marketing control, laws and
regulation compliance, recycling of wastes and environmental planning. The study specifically
determined the extent to which human resource management, marketing management, and
environmental management affected the financial performance in manufacturing companies
listed in the NSE in Kenya. The study was a descriptive research survey and it covered a period
of the past five years from 2011 to 2015. The target population was staff in various departments
like accounts, human resources, marketing and production in ten listed manufacturing firms at
the NSE. Since the population was small and variable, census was conducted to gather
information. From a population of ten manufacturing firms, a sample size of one hundred and
two respondents was chosen from ten firms. The primary data was collected using a
questionnaire which had both open and closed ended questions. Secondary data was also used in
the research. Secondary data was collected from Management accounts of the companies and
other parameters were collected from Kenya National Bureau of Statistics, Nairobi Securities
Exchange and Central Bank of Kenya records. The collected data was analyzed through
descriptive and inferential statistics. Descriptive analysis included measures of association like
Chi-Square test which was used to find out the relationship between the independent and
dependent variables. The analyzed data was presented in form of tables and charts for easy
understanding and interpretation. The results from the Chi-Test indicated that there was positive
and significant relationship between human resource, marketing and environmental
management components and financial performance given positive P-Values tabulated. The
analysis was done using SPSS 22.0. The study concluded that human resource, marketing and
environmental management positively and significantly affected financial performance of
manufacturing companies listed at Nairobi Securities Exchange market in Kenya. The study
further concluded that manufacturing companies listed at Nairobi Securities Exchange market in
Kenya should consider Environmental, Human Resource and Marketing Management for their
good financial performance. The study recommended that Environmental, Human Resource and
Marketing Management should be employed by manufacturing companies listed at Nairobi
Securities Exchange market in Kenya since the results showed positive and significant effect on
the financial performance of manufacturing firms. The study also recommended that
Environmental, Human Resource and Marketing Management were strong variables and with a
positive significance level thus they should be employed also in public sectors corporate
institutions and NGOs.
Description
Research project submitted to the school of business in partial fulfillment for the award of degree in master of business administration (finance) of Kenyatta University June, 2018