The Influence of Organizational Culture and Market Orientation on Performance of Microfinance Institutions in Kenya | Chapter 09 | Current Perspective to Economics and Management Vol. 4

Firms operating in highly competitive industries strive to bolster their performance by building sustainable competitive advantage. Organizational culture and market orientation are considered sources of competitive advantage. Organizational culture creates competitive advantage only when it is strong, encourages creativity and adaptation to changing conditions in the market. Organizational culture creates behaviors such as market orientation that ultimately leads to superior performance of the firm. Competition in the microfinance industry is intense as microfinance institutions compete with each other, commercial banks, savings and cooperative societies and informal money lenders. In such competitive markets, understanding the drivers of firm performance is necessary. Therefore, our study was designed to assess the influence of organizational culture and market orientation on performance of microfinance institutions in Kenya. The population of the study comprised microfinance institutions that were members of the Association of Microfinance Institutions (AMFI) in Kenya. We used descriptive cross-sectional survey design. We collected primary data using structured questionnaire. Our hypotheses were tested through linear regression analysis. Our results demonstrate that organizational culture significantly and positively influence performance of microfinance institutions. The partial mediation effect of market orientation on the relationship between organizational culture and performance was confirmed. The complimentary effect of organizational culture on market orientation implies that organizations need to spend more resources in nurturing market orientation to create sustainable competitive advantage through delivery of superior customer experience. We conclude that the influence of organizational culture and market orientation on performance is more plausible for mature industries regarded as diverse in terms of customer needs.

Author(s) Details

Owino O. Joseph [Ph.D]
Department of Business Administration, University of Nairobi, Kenya.

Prof. Kibera Francis [Ph.D, OGW, CBS]
Department of Business Administration, University of Nairobi, Kenya.

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Data Analysis Using Venn Diagrams | Chapter 08 | Current Perspective to Economics and Management Vol. 4

Data analysis is the process of evaluating data using analytical and statistical tools to discover useful information and aid in business decision making. There are several data analysis methods. However, one area that has been left out in the analysis of data is the analysis involving intersections and overlapping relationships between two or more sets of items. The intersection of two or more sets of data is a new set that contains all of the elements that are in both sets. This chapter introduces the use of Venn diagrams in the analysis of data sets involving intersections and overlap. This method will be of benefit analysis of data sets that involve mixed financing strategies in finance and economics by showing all possible logical allocation and intersection of strategies in the “Mixed Financing Strategies.”

Author(s) Details

Raude John O. Messo
Department of Business Management, School of Business and Economics, Masinde Muliro University of Science and Technology, Kenya.

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Building a Comparative CFA and ADB & Hermes’s Corporate Governance Standards after Financial Crisis, Corporate Scandals and Manipulation – Implications for Developing Countries | Chapter 07 | Current Perspective to Economics and Management Vol. 4

Corporate governance is rising as a subject for debates and an MBA course at many business schools all over the world. Whereas it is developed as one of key functions at headquarters at medium and big companies. Esp., it can be combined with ISO and quality management system toward a better leadership and management roles in various industries. After our previous paper of “A set of limited Asian Pacific comparative corporate governance standards”, this one concentrates on several comparative international standards, so-called a limited comparative set of standards on corporate governance.

First, it looks at some groups of findings on corporate governance subjects in the post-crisis period. It found out that companies in these periods need to oversight their legal or compliance activities, besides suitable policies.

Second, it identified different points in latest corporate governance standard principles and systems in groups: CFA Corporate Governance Standards and ADB & Hermes’s Corporate Governance Codes. Third, this paper provide with a summary of evaluation of current corporate governance systems in these above countries which may enable relevant organizations in re-evaluating their current ones.

Last but not least, it aims to illustrate a limited comparative set of standards of International corporate governance, so-called backbone and give proper recommendations to relevant governments and institutions.

Author(s) Details

Dinh Tran Ngoc Huy
Banking University, Ho Chi Minh City, Vietnam and Graduate School of International Management, International University of Japan, Niigata, Japan.

Bui Thi Thu Loan
Hanoi University of Industry, Ha Noi, Vietnam.

Nguyen Thi Phuong Hong
University of Economics, Ho Chi Minh City, Vietnam.

Nguyen Dac Anh Chuong, MBA
Van Lang University, Ho Chi Minh City, Vietnam.

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Internal Governance Mechanisms: Evidence from Islamic Banks | Chapter 06 | Current Perspective to Economics and Management Vol. 4

The impact of institutional corporate governance on the financial performance of Islamic banks, with a specific focus on Shari’ah Supervisory Boards and corporate boards. The findings of this study indicate that Islamic banks with Shari’ah Supervisory Boards outperform Islamic banks without such boards, as measured by return on assets (ROA), return on equity (ROE), asset growth (AG), and interest margins (IM). Further findings of this study indicate that the financial performances of Islamic banks with Shari’ah Supervisory Boards and corporate boards are influenced by several board characteristics, including the size of the board and the education of the board members. Moreover, Shari’ah Supervisory Boards provide tighter monitoring and control, as well as more advising and counseling, as compared with Islamic banks without Shari’ah Supervisory Boards. Later findings indicate that Shari’ah Supervisory Boards’ affiliations with international Islamic financial institutions motivate the positive relationship between the Shari’ah Supervisory Boards and Islamic bank performance. Overall, this study provides strong evidence that Shari’ah Supervisory Boards benefit shareholders by complementing corporate boards and thus mitigating agency problems and agency costs.


Author(s) Details

Majdi Anwar Quttainah
College of Business Administration, University of Kuwait, P.O.Box 5969, Safat – 13060, Kuwait.

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Innovative Strategies for Managing Workforce Diversity in Kenyan Leading Corporations in Present Global Scenario | Chapter 05 | Current Perspective to Economics and Management Vol. 4

Business globalization, preference for teamwork to individual work and the changing workforce demographics have made workforce diversity management necessary for firms. Mismanaged diversity can be detrimental to the employee satisfaction and productivity. Employees who feel more valued work hard while the group that consider themselves as minority group feel less valued leading to lower performance. This paper identifies innovative strategies for managing workforce diversity in Kenyan leading corporations in present global scenario. The paper looks at how communication strategies, performance management, leadership initiatives and shared responsibilities are used in managing workforce diversity. Activities of different corporations in Kenya are reviewed to identify those that are inclined to the management of workforce diversity.

Author(s) Details

Solomon Kinyanjui
School of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya.

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Financial Risk Management via the Measurement of Volatility of Market Risk of Viet Nam Tourism and Airline Industry after the Low Inflation Period 2015-2017 | Chapter 04 | Current Perspective to Economics and Management Vol. 4

Risk management policies and tools have been becoming one of hottest issues since collapses during global crisis 2007-2009. The Vietnam economy and tourism & airline industry have gained lots of achievements after the financial crisis 2007-2011, until it reached a low inflation rate of 0.6% in 2015. Tourism & airline companies face challenges in expanding Vietnam market such as pricing policy and supporting services, etc. This paper measures the volatility of market risk in Viet Nam tourism & airline industry after this period (2015-2017). The main reason is the vital role of the tourism & airline company group in Vietnam in the economic development and growth in recent years always go with risk potential and risk control policies.

This research paper aims to figure out how much increase or decrease in the market risk of Vietnam tourism & airline firms during the post-low inflation period 2015-2017.

First, by using quantitative combined with comparative data analysis method, we find out the risk level measured by equity beta mean in the tourism & airline industry is acceptable, i.e it is little lower than (<) 1.

Then, one of its major findings is the comparison between risk level of tourism & airline industry during the financial crisis 2007-2009 compared to those in the post-low inflation time 2015-2017. In fact, the research findings show us market risk fluctuation, measured by asset and equity beta var, during the post-low inflation time has decreased slightly.

Finally, this paper provides some ideas that could provide companies and government more evidence in establishing their policies in governance. This is the complex task but the research results shows us warning that the market risk volatility might be higher during the post-low inflation period 2015-2017. And our conclusion part will recommend some policies and plans to deal with it. Finding new potential markets and credit and financing policies are among directions for tourism & airline companies.

Author(s) Details

Dinh Tran Ngoc Huy
Banking University, Ho Chi Minh City, Vietnam and Graduate School of International Management, International University of Japan, Niigata, Japan.

Bui Thi Thu Loan
Hanoi University of Industry, Ha Noi, Vietnam.

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The Mediating Effect of Organizational Citizenship Behavior on the Organizational Justice and Organizational Performance in Small and Medium-sized Enterprise of China | Chapter 03 | Current Perspective to Economics and Management Vol. 4

This study examined the factors that influencing small and medium-sized enterprise (SMEs)’ performances with the mediating effect of organizational citizenship behavior in China. Its purpose is to motivate and improve the small and medium-sized enterprise’ performance. The examined factors were distributive justice, procedural justice, interactional justice. This study uses cross-sectional survey to verify the theoretical framework. The survey data in this study were collected from 251 employees of SMEs in China. The study result shows that distributive justice, interactional justice had significant influence on the organizational performance; distributive justice, procedural justice, interactional justice had significant influence on the organizational citizenship behavior; Meanwhile, procedural justice can influence organizational performance through the meditating role of organizational citizenship behavior. The results of this study could provide a development strategy for SMEs in China through the relationship organizational justice and organizational performance.

Author(s) Details

Dr. Mohamad Hisyam Selamat
Faculty of Business, Accounting and Management, SEGi University, Petaling Jaya, Malaysia.

Guo Wan Ran
Faculty of Business, Accounting and Management, SEGi University, Petaling Jaya, Malaysia a.

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Organizational Citizenship Behaviour and Demographic Profiling: An Exploration Study among Local Government Workforce in Terengganu, Malaysia | Chapter 02 | Current Perspective to Economics and Management Vol. 4

Local authority is the manager of urban environment and ranks last under the Malaysia government structure after Federal and State governments. The main duty of local authority is to stimulate economic growth and social development of a district. However, the operational roles that these local authorities supposed to portray have to some extent do not meet the public expectations, resulting in various complaints being filed as evidenced from Public Complaint Bureau statistics. In response to the public outcry for better service delivery, the objective of this research is to investigate the effect of demographic factors (gender, age, working experience, supervision period and service group) in influencing the exhibition of citizenship behaviour among local authority workforce in east coast region of Malaysia. 167 respondents from four local authority in Terengganu have participated where data were collected using stratified random sampling approach. Empirical results revealed that only supervision period has significant influence in elevating employees’ Organizational Citizenship Behaviour, hence, supporting social exchange theory. Therefore, management should undertake hands-on actions in warranting that these demographic variables be strengthened in invoking employees’ citizenship behaviour towards instilling community confidence towards diverse services provided by local authorities.


Author(s) Details

Rashidah Mohamad Ibrahim
Faculty of Economics and Management Sciences, University Sultan Zainal Abidin, 21300 Kuala Nerus, Terengganu, Malaysia.

Nor Mazlina Abu Bakar
Faculty of Economics and Management Sciences, University Sultan Zainal Abidin, 21300 Kuala Nerus, Terengganu, Malaysia.

Ahmad Firdause Md Fazil
Faculty of Economics and Management Sciences, University Sultan Zainal Abidin, 21300 Kuala Nerus, Terengganu, Malaysia.

Aziz Amin [PhD]
Faculty of Applied Social Sciences, University Sultan Zainal Abidin, Kuala Nerus, Terengganu, Malaysia.

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Consumers Involvements with Social Media in Saudi Arabia: A Marketing Perspective | Chapter 15 | Current Perspective to Economics and Management Vol. 4

Social network channels have sparked millions of users in almost to our society. Furthermore, these new tools of connection obtain users’ trust by interacting with them at a more profound level, as regional and worldwide marketing organizations have realized social networking as an underlying buying platform and have used this reform to encourage advertisement campaigns and marketing approaches by social networks channels. A company cannot stand in the market with the lack of social media channel now. Notwithstanding the increase of social networks and the widespread diffusion of different information means, limited studies have been done concerning the marketing perspectives of these channels of communication in the Arab region. The motive for this study is to examine the tool of these media and determinants that affect the purchasing behavior of the Saudi consumer. To study a sample of 226 respondents via. Google forms and monkey survey (online) using a close-ended questionnaire with the care of reducing non-response error was addressed in the research. For analysis descriptive (frequency distribution statistics), with the Chi-square goodness of fitness test at P. Value 0.05 (for hypothesis test) was applied and the outcomes were explained respectively in the research. In the result analysis, it is discovered that there is variance among the respondents in time duration spent on social media and purchasing preferences within the social media platform as well as a result shows that there is a remarkable difference in preferences in the use of social networking sites among the respondents.

Author(s) Details

Mohammad Zulfeequar Alam
Department of Marketing, College of Business Administration (CBA), University of Business and Technology (UBT), P.O.Box 110200, Jeddah 21361, Kingdom Saudi Arabia.

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Formulation of Strategy to Create a Sustainable Business Organization | Chapter 10 | Current Perspective to Economics and Management Vol. 4

About couple of decades back, Prince Group was one of the leaders in Plastic Industry by being No. 2 in India. This particular independent organization belonging to Prince Group was in the business of Manufacturing and Marketing of Injection Moulded Crates, Blow Moulded jars, drums, bottles etc. Due to high volume of sale generated, business was excellent. This unit’s main business came from two big multinational organizations who contributed around 75 to 80% of turnover for the previous 5 to 6 years. As the time elapsed, the demand from multinationals dropped drastically to almost tending to zero (due to change of market). As a result, the turnover of these Organizations sharply dropped and slipped into loss.

I was known to this organisation being an Auditor who was in-charge of providing Audit services. At this juncture, I was invited to join this organization as Strategy Manager to create a turnaround. I formulated Strategy to cover both Manufacturing and Marketing functions in order to recover. This case deals with how the strategy was evolved and how it was implemented; hitherto few unknown initiatives were taken, what results were achieved both financially and non-financially etc. Finally, at the end of 3 years this organization bounced back with bang with a trebling turnover and earning decent profit. Thus, sustainable business organisation was created.

This article explains in detail as what Strategy was formulated and what was the result.

Author(s) Details

Gururaj Kulkarni
Crompton Greaves Ltd, Mumbai, India and Quality Management System Certification Bodies, European Origin – DNV, TUV Rheinland and BSI, India and Prince Containers Pvt. Ltd. and Prince Multiplast Pvt. Ltd. Mumbai, India and JASANZ (Joint Accreditation Scheme for Australia and New Zealand), Canberra, Australia, Quality Council of India at National Accreditation Board for Certification Bodies, New Delhi, based  in Mumbai, India.

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