Effect of Workforce Diversification on Performance of Microfinance Institutions in Uasin Gishu County, Kenya

Author(s)

Alfred Kibet Tanui , Dr. Phillis Osodo , Dr. Tecle H. Yohannes ,

Download Full PDF Pages: 59-67 | Views: 920 | Downloads: 218 | DOI: 10.5281/zenodo.3445813

Volume 6 - September 2017 (09)

Abstract

The main objective of the study was to assess the effect of workforce diversification on the performance of Microfinance Institutions in Uasin Gishu County, Kenya. Resource-based view theory informed the study. To achieve the objective of the study, the Correlational research design was employed targeting 262 employees from 8 microfinance institutions. A sample size of 122 respondents was stratified and randomly selected. Data were collected using structured questionnaires and analyzed using both descriptive, this included mean, frequency, standard deviation and inferential statistics by use of correlation and regression model to determine the nature of the relationship between variables and test hypothesis at 0.05 level of significance. Study findings showed that workforce diversification exhibited a positive and significant effect on the performance of MFIs. The study concludes that workforce diversification strategy enhances firm performance. Since workforce diversification has a positive influence on MFI performance, it is utmost necessary for MFIs to form a work atmosphere that encourages cohesiveness, coordination and contribution which influence performance

Keywords

Workforce Diversification, Performance, Microfinance Institutions

References

  1. Acharya, V., Hasan, I., Saunders, A., (2007). Should banks be diversified? Evidence from individual bank loan portfolios. Bank for International Settlements, BIS Working Papers No 118.
  2. Apostu, A., (2010). The Effects of Corporate Diversification Strategies on Capital Structure: An Empirical Study on European Companies. Aarhus School of Business, Aarhus University MSc. Thesis
  3. Carrel, M. R (2006). Defining Workforce Diversity Programs and Practices in Organizations: A Longitudinal Study. Labour Law Journal. Spring, 2006. Retrieved from www.emeraldinsight.com
  4. Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003).Applied multiple regression/correlation analysis for the behavioral sciences (3rd ed.). Mahwah, NJ: Lawrence Erlbaum Associates Eisenhardt, K. M. and Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21, 1105-1121
  5. Guillen, M.F. (2009). Business groups in emerging economies: a resource-based view, Academy of Management Journal, Vol. 43 No. 3, pp. 362-80.
  6. Gupta, R. (2013). Workforce diversity and organizational performance. International Journal of Business and Management Invention, 2(6), 36-41
  7. Hair, J., Black, W., Babin, B., Anderson, R. and Tatham, R. (2006), Multivariate Data Analysis, 6th ed., Prentice-Hall, Englewood Cliffs, NY.
  8. Hayden, E., Porath, D., & Westernhagen, N. (2007). Does Diversification Improve the Performance of German Banks ? Evidence from Individual Bank Loan Portfolios. Journal of Financial Services Research, 32, 123–140. Doi:10.1007/s10693-007-0017-0
  9. Hoffmann, Werner H., and Roman Schlosser (2010). “Success Factors of strategic alliances in small and medium-sized enterprises-an empirical survey,” Long Range Planning, 34 (3), 357-381.
  10.   F M 2015. Performance, Strategic Management Journal, 24, 1289-1306. Impact of workforce diversity On organizational Performance in the education Sector of Karachi Pakistan. International Journal of Scientific & Engineering Research, Volume 6, Issue 10, October.
  11. Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., et al. (2003). The effects of diversity on business performance: report of the diversity research network. Human Resource Management, 42(1), 3−21.
  12. Mohindru, Aparna and Chander, Subhash (2010), “Diversification Strategy and Corporate Performance in India: An Empirical Investigation,” Asia Pacific Business Review, 6(3), pp 124-137. 9.
  13. Nassiuma D. K. (2000). Survey sampling: Theory and methods. Njoro, Kenya: Egerton University Press
  14. Otike, F. W., Messah, O. B., & Mwalekwa, K. F. (2015). Effects of Workplace Diversity Management on Organizational Effectiveness: a case study. European Journal of Business and Management.
  15. Sampson, R.C. (2007). “Experience Effects and Collaborative Returns in R&D Alliances”, Strategic Management Journal. Vol. 26, pp. 1009-1031.
  16. Schertler, A., Buch, C.M. &Westernhagen, N. (2006). Heterogeneity in lending and sectoral growth: Evidence from German bank-level data. International Economics & Economic Policy, 3(1), 43-72.
  17. Teece, D.J. (2007). Economics of scope and the scope of the enterprise, Journal of Economic Behavior and Organization, No. 1, pp. 223-47.
  18. Teimet, P.R., Ochieng, D.O., & Aywa, S., (2011) Income Source Diversification and Financial Performance of Commercial Banks in Kenya. International Journal of Business and Public Management, 1(1), 26-35
  19. Turkmen.S, Yigit . I .(2012). Diversification in Banking and its Effect on Banks’ Performance: Evidence from Turkey. American International Journal of Contemporary Research, 2(12), 111-119.
  20. Zahra, S. A. and George, G. (2002). Absorptive capacity: a review, reconceptualization, and extension. Academy of Management Review, 27 (2), 185-203.

Cite this Article: