Advanced Research In Economics and Business Strategy Journal

Impact of crude oil price fluctuations on consumer price index in Kenya

Walter Yodah — 2024-11-20

This study tries to determine the impact of crude oil price fluctuations on the Consumer Price Index, CPI in Kenya, using the monthly data from 2012M1-2023M3. The Augmented Dickey-Fuller unit root test used in the analysis to test for stationarity for the series indicated that CPI and significant types of Crude oil (Kerosene, Diesel, and Super petrol) were non-stationary. The empirical analysis is carried out using cointegration by applying Johansen’s multivariate approach, which reveals that not more than one cointegrating relationship holds between oil prices and CPI in Kenya. The analysis using VECM further shows that the series deviation from equilibrium to disequilibrium cannot be corrected back to equilibrium in the long run. The impulse response functions reveal that oil price shocks positively affect CPI in Kenya. As expected, the forecasted values continue to exhibit an increasing trend in the central oil type prices and CPI values in Kenya. The Jacque-Bera test for normality, ARCH-LM test for Homoscedasticity, and Portmanteau test for serial correlation were used to test for the adequacy of the Model.

Does Monetary Policy Matter for Economic Growth in Tanzania? A Critical Analysis

Benjamine G. Miku — 2024-11-20

This paper examines monetary policy's influence on Tanzania's economic growth by utilizing the Autoregressive Distributed Lag model (ARDL). Analysing yearly time series data from 1970 to 2022, the study offers empirical insights into whether monetary policy impacts economic growth in Tanzania. The empirical findings indicate that in the long run, there is a negative relationship between the growth of monetary aggregates (base money M0 and broad/near money M2) and economic growth. There is also a positive relationship between the expansion of the broader money supply (M3) and the growth of the economy in Tanzania. However, in the short run, the paper discovers a positive relationship between base money (M0) and economic growth and a negative relationship between discount window rate and economic growth. The paper recommends re-assessment of the existing monetary policy frameworks in light of the observed negative relationship, continuing backing for a conducive monetary policy environment to facilitate the positive connection between broader money supply (M3) and economic growth, and considering adjusting the discount window rate to bolster short-time economic growth as well as lowering the discount window rate since it has the potential for incentivizing borrowing and investment thereby stimulating economic activities in the short run.

Investigating the impact of work stress on work engagement across selected industries during the Covid-19 pandemic in Namibia

Simoné Fourie — 2024-11-20

Since the start of the Covid-19 pandemic, many industries faced severe challenges and had to adapt business strategies to ensure their survival. A lot of business operations had to move to an online platform which stressed financial and human resources and interrupted normal operations. Service provision had to proceed as normal therefore causing widespread anxiety and distress. This study aimed to investigate the impact of work stress on work engagement across selected industries during the Covid19 pandemic in Namibia. Work stress, due to stressful work environments, leads to harmful physical and psychological consequences. Work engagement does not only benefit employees through higher job satisfaction but also the organisation through better performance and quality of work. A quantitative research approach was utilised- using a questionnaire collecting data on the biographical information, work stress and work engagement of employees. The sample consisted of n=431 teachers, Unam staff and medical staff from Namibia. Role ambiguity and work stress reported a positive relationship with work engagement. Stress management and wellness programs may be implemented to help employees manage work stressors and promote work engagement. Counselling services may address employee concerns regarding job insecurity and ease distress and anxiety. Organisations should implement a mentoring system to provide advice and support to employees in order to reduce work stress. Work engagement can be enhanced through leadership development activities for employees. This study adds to the knowledge on work stress and work engagement in the Namibian context.

Socio-cultural factors hindering loan repayment among Women borrowers in Tanzania: A Qualitative Study

Zuhura M. Hassan — 2024-11-20

This article aimed to look into socio-cultural barriers to loan repayment faced by women borrowers in Dodoma City's Nzuguni and Njedengwa Wards in 2022. A qualitative approach and a cross-sectional research design were employed. Six key informants in all—four loan officers from the Bangladesh Rehabilitation Assistance Committee-Dodoma, two Ward Executive Officers from two specifically chosen wards, and six Focus Group Discussions—participated in the face-to-face interview. Key informant interviews and focus group discussions were used as the primary data collection tools. In the end, the data were summarized, thematically assessed, and presented. The study discovered that peer pressure, marital considerations, family size, social festivals, and other socio-cultural factors constitute barriers to loan repayment for women borrowers in the study area. The study recommends that women borrowers only take out loans they can afford to repay. The study has practical implications in that the Bangladesh Rehabilitation Assistance Committee should focus more on educating and training women borrowers so they can use the borrowed money responsibly. Last but not least, research must be done in different wards to contrast women borrowers' experiences with loan payback.

Does Leveraging International Financial Flows a Key Driver for Growth in East Africa Region?

Benjamine G. Miku — 2024-11-20

This study aims to investigate whether international financial flows serve as a significant driver of growth in the East African region. Utilizing Fixed Effect (FE) panel data estimation for Kenya, Uganda, Tanzania, Rwanda, and Burundi spanning the period from 1990 to 2021, the empirical results reveal a positive and statistically significant relationship between official development assistance per capita and the growth rate of gross domestic product (GDP) in the East African region. Furthermore, trade openness and inflation rates appear to exhibit a negative relationship with GDP in the region. Conversely, population growth in East African countries shows a positive relationship with GDP growth in the region. The study recommends prioritizing and increasing investments in official development assistance, urging East African governments and international organizations to continue allocating resources towards development projects aimed at fostering economic growth. Policymakers are advised to concentrate on enhancing the efficiency and effectiveness of utilizing official development assistance, ensuring that funds are directed towards sectors with high growth potential such as infrastructure, human capital, and entrepreneurship. Additionally, the study emphasizes the importance of strengthening partnerships between donors and recipient countries and promoting transparency and accountability in the allocation and implementation of official development assistance initiatives.

The relationship between ethical procurement, corporate image and procurement efficiency in public sector procurement: A case of public entities in Bindura

Tendai Towo — 2024-11-20

The study focused on analyzing the relationship between ethical procurement practices, corporate image and procurement efficiency. The research study was underpinned by the positivism research philosophy. The study population comprised of employees from procurement and finance departments within government entities in Bindura. Precisely, 120 respondents were eligible to participate in the study. The sample size of this research was determined using the Raosoft Sample Size Calculator. According to this method, given the target population of 120 and a margin of error of 5% based on 95% confidence level, with a response distribution of 50%, the minimum recommended sample size for this study was 73. The analysis of data was carried out on the Statistical Package for Social Science (SPSS version 21) and involved the use of descriptive statistics, Pearson correlation and logistic regression analysis. The findings revealed that ethical procurement practices such as due diligence, transparency, fairness, compliance, confidentiality and integrity have a positive statistically significant effect on the corporate image and resultantly on procurement efficiency. Incorporating these practices throughout the procurement cycle would ensure improved quality of output, timeliness of delivery of product, profitability and sustainability. The study recommends that instead of relying solely on the broad legislative framework, which might not take into account the interests and circumstances of the particular institution, public procurement bodies should create their own internal ethical control procedures.

Functional distribution of income in Africa: An estimation of the shares of owners of capital and labour in GDP

Idowu Shola Ajayi — 2024-11-20

The functional distribution of income in Africa is a critical aspect of economic analysis that focuses on how income is distributed among various factors of production. However, understanding the dynamics of functional income distribution is essential for comprehending the economic landscape and the factors that influence income disparities within African economies. The study estimates the share of owners of capital and labour in GDP in Africa. To achieve this objective, the growth accounting equation provides the core framework for the models adopted in the study. Two sets of equations were specified, which are aggregate and per capita with four variants of estimates, two each for the equations. Intercepts were suppressed in two of the four variants of the estimates while the intercept was included in the remaining two variants of the estimates. The study employed regression to analyse the data, which were over 1996-2022 years, and were mainly sourced from the World Development Indicator of the World Bank database. Following the above methodology, the highlights of findings confirmed the evidence that the share of GDP accruing to the capitalists exceeds that accruing to workers. Specifically, based on these estimates that are relatively valid on theoretical grounds, the capitalists have a share in GDP of between 56% and about 70%, depending on the growth accounting variant employed in the estimation, so that only the remaining share that is between 44% and 30% of GDP accrues to workers.

Frugal Innovation for Inclusive and Sustainable Development in Africa

Pitshou Moleka — 2024-11-20

Frugal innovation has emerged as a promising approach to addressing the unique challenges and resource constraints African communities face. This article presents a comprehensive analysis of the key principles, frameworks, and case studies of frugal innovation in Africa, exploring its transformative potential in driving inclusive development and sustainable progress. Drawing on extensive research and illustrative examples, the article examines the defining characteristics of frugal innovation, such as affordability, functionality, sustainability, and adaptability, which distinguish it from traditional innovation models. The article delves into the theoretical foundations that underpin frugal innovation, including the Jugaad Innovation framework, the Empathic Design approach, the Bottom of the Pyramid (BoP) framework, the Reverse Innovation concept, and the Frugal Innovation framework. These conceptual models provide valuable insights into the drivers, manifestations, and applications of frugal innovation in Africa. Through a detailed examination of sectoral case studies, the article showcases the diverse ways in which frugal innovations are addressing pressing social, economic, and environmental challenges in areas such as healthcare, energy, agriculture, water, and sanitation. These case studies illustrate the ingenuity, resourcefulness, and community-driven nature of frugal innovation, highlighting its potential to create affordable, accessible, and adaptable solutions that empower marginalized populations. The article further explores the barriers and enablers of frugal innovation, drawing on the insights of prominent African scholars, such as Mvemba Phezo Dizolele and Carlos Lopes. It examines critical issues, including policy and regulatory frameworks, financing mechanisms, innovation ecosystem development, and capacity-building efforts. It outlines strategies for fostering enabling environments that nurture the growth and scaling of frugal innovations. Finally, the article delves into the challenges and approaches to measuring the impact and scaling of frugal innovations, emphasizing the need for comprehensive impact metrics, data-driven decision-making, and the alignment of frugal innovation initiatives with the United Nations Sustainable Development Goals. By cultivating a culture of impact-driven innovation, the article argues, African nations can unlock the full potential of frugal innovations to drive inclusive and sustainable development across the continent.

The Impact of Transformational Leadership on Sustainability in Small and Medium Enterprises (Applied Study: Saudi Arabia)

Mohammed Asiri — 2024-11-20

This study aims to estimate the impact of transformational leadership on the sustainability of small and medium enterprises in the Kingdom of Saudi Arabia. Transformational leadership is explored for its characteristics that can contribute to achieving environmental, social, and economic sustainability in SMEs. The study focused on defining the unique concept of transformational leadership in SMEs and its contribution to success and achieving sustainability. A questionnaire survey gathered data, with 402 valid responses analyzed using SPSS software to examine the relationships between the variables. The study hypothesis was tested that transformational leadership has an impact on the sustainability of small and medium enterprises. The findings reveal that SMEs in Saudi Arabia increasingly adopt this leadership approach due to its demonstrated impact on achieving sustainability.