IDEAS home Printed from https://ideas.repec.org/a/jfr/ijba11/v4y2013i1p92-104.html
   My bibliography  Save this article

The Role of Value-based Management Tools on the Performance of Firms Listed in the Nairobi Securities Exchange

Author

Listed:
  • Uzel Jean Mutindi Mzera

Abstract

The purpose of this paper was to determine the role of value-based management tools namely the Balanced scorecard and selected organizational factors on the performance of firms listed in the Nairobi Securities Exchange. The paper also highlighted the characteristics of the managers who had implemented value-based management tools in their organizations. The research was based upon a Descriptive Survey of the Heads of Departments or top managers of firms registered at the Nairobi Securities Exchange and who are based at Mombasa. Data from the questionnaires was analyzed using SPSS version 20. The model used in the study was Multiple Regression Analysis; y= a+¦Â1 X1 + ¦Â2 X2+ ¦Â3 X3 + e. The study found out that there was a positive relationship between the use of the Balanced scorecard and firms performance. It however found out that the Balanced Scorecard was used by companies listed in the Nairobi Securities Exchange to a fairly low extent. Majority of the companies that had implemented VBM tools were larger companies which had employed young managers below the age of 35 years. The study found out that the lower application of the Balanced Scorecard by companies listed in the Nairobi Securities Exchange could be a major contributing factor to the poor performance of these companies.

Suggested Citation

  • Uzel Jean Mutindi Mzera, 2013. "The Role of Value-based Management Tools on the Performance of Firms Listed in the Nairobi Securities Exchange," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 4(1), pages 92-104, January.
    • Handle: RePEc:jfr:ijba11:v:4:y:2013:i:1:p:92-104
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijba/article/view/2261/1255
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/ijba/article/view/2261
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
    2. Marian Rizov & Richard Croucher, 2009. "Human resource management and performance in European firms," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(2), pages 253-272, March.
    3. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Lex Donaldson & James H. Davis, 1991. "Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns," Australian Journal of Management, Australian School of Business, vol. 16(1), pages 49-64, June.
    6. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    7. Biddle, Gary C. & Bowen, Robert M. & Wallace, James S., 1997. "Does EVA(R) beat earnings? Evidence on associations with stock returns and firm values," Journal of Accounting and Economics, Elsevier, vol. 24(3), pages 301-336, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    2. Rimon Emile & Aiman Ragab & Sandy Kyaw, 2014. "The Effect of Corporate Governance on Firm Performance, Evidence from Egypt," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(12), pages 1865-1877, December.
    3. Cheng, Louis T.W. & Leung, T.Y., 2016. "Government protection, political connection and management turnover in China," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 160-176.
    4. Mouna Mrad & Slaheddine Hallara, 2014. "The Relationship Between the Board of Directors and the Performance/Value Creation in a Context of Privatization: The Case of French Companies," Public Organization Review, Springer, vol. 14(1), pages 83-108, March.
    5. Yasemin Kor & Joseph Mahoney & Sharon Watson, 2008. "The effects of demand, competitive, and technological uncertainty on board monitoring and institutional ownership of IPO firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(3), pages 239-259, August.
    6. Wilkin, Carla L. & Couchman, Paul K. & Sohal, Amrik & Zutshi, Ambika, 2016. "Exploring differences between smaller and large organizations' corporate governance of information technology," International Journal of Accounting Information Systems, Elsevier, vol. 22(C), pages 6-25.
    7. Lippert, Inge, 2008. "Perspektivenverschiebungen in der Corporate Governance: Neuere Ansätze und Studien der Corporate-Governance-Forschung," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-302, WZB Berlin Social Science Center.
    8. Margit Osterloh & Bruno Frey, 2006. "Shareholders Should Welcome Knowledge Workers as Directors," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(3), pages 325-345, September.
    9. Hanene Ezzine, 2018. "Corporate governance and social norms during financial crisis: evidence from France and Saudi Arabia," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(3), pages 707-748, September.
    10. Franco Ernesto Rubino & Paolo Tenuta & Domenico Rocco Cambrea, 2017. "Board characteristics effects on performance in family and non-family business: a multi-theoretical approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(3), pages 623-658, September.
    11. Marco Cucculelli & Lidia Mannarino & Valeria Pupo & Fernanda Ricotta, 2014. "Owner‐Management, Firm Age, and Productivity in Italian Family Firms," Journal of Small Business Management, Taylor & Francis Journals, vol. 52(2), pages 325-343, April.
    12. Sumon Kumar Bhaumik & Andros Gregoriou, 2010. "‘Family’ Ownership, Tunnelling And Earnings Management: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(4), pages 705-730, September.
    13. Mediha Mezhoud & Asma Sghaier & Adel Boubaker, 2017. "The Impact of Internal Governance Mechanisms on the Share Price Volatility of Listed Companies in Paris Stock Exchange," Bulletin of Applied Economics, Risk Market Journals, vol. 4(1), pages 1-12.
    14. Tarek Roshdy Gebba, 2015. "Corporate Governance Mechanisms Adopted by UAE National Commercial Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 5(5), pages 1-2.
    15. A. Ashwin & Rishikesha Krishnan & Rejie George, 2015. "Family firms in India: family involvement, innovation and agency and stewardship behaviors," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 869-900, December.
    16. Chen, Ming-Yuan, 2014. "Determinants of corporate board structure in Taiwan," International Review of Economics & Finance, Elsevier, vol. 32(C), pages 62-78.
    17. Georgeta VINTILA & Raluca Georgiana MOSCU, 2015. "Comparative Analysis Regarding The Principles Contained In The Corporate Governance Code In Romania And Other Codes Of Emerging Markets," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 7(7), pages 89-97, June.
    18. Yu, Mei & Ashton, John K., 2015. "Board leadership structure for Chinese public listed companies," China Economic Review, Elsevier, vol. 34(C), pages 236-248.
    19. Michael Pirson & Shann Turnbull, 2011. "Toward a More Humanistic Governance Model: Network Governance Structures," Journal of Business Ethics, Springer, vol. 99(1), pages 101-114, March.
    20. Nguyen, Tuan & Locke, Stuart & Reddy, Krishna, 2014. "A dynamic estimation of governance structures and financial performance for Singaporean companies," Economic Modelling, Elsevier, vol. 40(C), pages 1-11.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:ijba11:v:4:y:2013:i:1:p:92-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jenny Zhang (email available below). General contact details of provider: http://ijba.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.