Browsing by Author "Otieno, Walter Ochieng"

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    EFFECT OF ISO 9001 QUALITY MANAGEMENT SYSTEM ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KENYA: A SURVEY OF TOP 100 SMES IN KENYA
    (Management University of Africa, 2021-10) Otieno, Walter Ochieng; Prof. Peter Kithae
    Small and Medium Enterprises are increasingly under pressure to implement quality improvement initiatives to improve their competitiveness and financial performance as a result of globalization of markets. Studies that have been conducted to determine the effect of quality improvement initiatives on financial performance of organizations in different sectors of Kenyan economies are limited and their outcomes are inconclusive. This study investigated the effect of implementation of ISO 9001 quality management system on the financial performance of SMEs in Kenya. Financial performance was measured by growth in revenue, Return on Assets, Return on Investment, Profit and reduction in unit cost of production. The sample for the study were the Top 100 SMEs in Kenya in 2019 according to the survey carried out by the consulting group KPMG and Nation Media Group. Descriptive research survey was applied in this study. A census approach was adopted for data collection. The primary data was collected from each enterprise using a questionnaire which was administered online. The descriptive statistics were analyzed using Statistical Package for Social Scientist (SPSS). The study found that 30% of SMEs in Kenya have adopted ISO 9001 quality management system to improve quality of their products and services. The study also established that implementation of ISO 9001 QMS has statistically no significant effect on financial performance of SMEs in Kenya. However, implementation of ISO 9001 QMS has a potential to explain 2% of financial performance of SMEs in Kenya. From the findings of the study, it can be concluded that the financial performance of SMEs in Kenya is explained by other factors other than implementation of ISO 9001 QMS. Due to its potential to contribute to the financial performance of SMEs, the study recommends that SMEs in Kenya should implement ISO 9001 QMS in conjunction with other initiatives to improve their financial performance in the long term. Keywords: ISO 9001 quality management system, financial performance, SMEs, Quality improvement initiatives,
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    THE EFFECT OF USE OF STANDARDS ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KENYA: A SURVEY OF TOP 100 SMES IN KENYA
    (Management University of Africa, 2021-10) Otieno, Walter Ochieng; Prof. Peter Kithae
    In the current globalized economy, quality of products and services offered by an enterprise is a critical factor for gaining competitive advantage in the market. Recent trends indicate increased adoption of different quality improvement initiatives by organizations as they focus on quality to improve their business performance. Studies that have been conducted on adoption of quality improvement initiatives and their effects on financial performance of organizations in different sectors of Kenyan economy are limited and their outcomes are inconclusive. The purpose of this study was to determine the effect of use of standards as a quality improvement initiative on the financial performance of SMEs in Kenya. Financial performance was measured by growth in revenue, Return on Assets, Return on Investment, Profit and reduction in unit cost of production. The sample for the study were the Top 100 SMEs in Kenya in 2019 according to the survey carried out by the consulting group KPMG and Nation Media Group. Descriptive research survey was applied in this study. A census approach was adopted for data collection. The primary data was collected from each enterprise using a questionnaire which was administered online. The descriptive statistics were analyzed using Statistical Package for Social Scientist (SPSS). The results showed that the use of standards has statistically no significant effect on financial performance of SMEs in Kenya. However, awareness on relevant standards is high (81.8%) and the use of standards has a potential to explain 0.8% of financial performance of SMEs in Kenya. According to this study, financial performance of SMEs in Kenya is explained by other factors other than the use of standards. Considering the potential of Standards to contribute to financial performance of SMEs and being the foundation for meeting minimum quality requirements, it is recommended that the relevant stakeholders should actively engage SMEs to develop relevant standards that apply to their products and services and support them to use standards in conjunction with other quality improvement strategies to improve their financial performance in the long term.