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Corporate Reputation and Firm Performance: An Empirical Analysis of Motor Vehicle Assemblers in Nairobi City County, Kenya

Received: 26 October 2019     Accepted: 11 March 2020     Published: 10 April 2020
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Abstract

The manufacturing sector accounts for approximately sixteen percent of Gross Domestic Product and fourteen percent of employment globally, but its relative size in an economy varies with the stage of development. In Kenya, a strong manufacturing base is considered the foundation upon which long-lasting economic frameworks can be made. The automotive industry is one of the most competitive industries in the manufacturing sector in Kenya today with significant contribution to the Gross Domestic Product. However, data from the Kenya Motor Industry Association has shown that performance of motor vehicles assemblers is on a decline as indicated by the fall in volume of sales reported annually. This study sought to investigate the effect corporate reputation on performance of motor vehicle assemblers. The research variables in this study are underpinned on the resource-based view of the firm. The investigation was guided by descriptive research design. The study targeted a population comprising of employees of motor vehicle assemblers and sought to make field observations on a sample of management employees that was randomly selected using proportionate stratified sampling. Primary data for the investigation was collected using a structured questionnaire. Validity of the questionnaire was assessed and confirmed using opinion from experts and review of relevant literature. A pilot study was carried out using fifteen employees to support the test of reliability of the questionnaire. Descriptive statistics was analyzed using frequencies, percentages, mean, standard deviation and coefficient of variation. Similarly, inferential statistics was analyzed using simple linear regression analysis. The found out that corporate reputation was found to have a statistically significant effect on performance. Practices that promote fairness, equality, diversity and dignity in the workplace should be strengthened at all level of the firms in order to project a good image in the market place.

Published in Journal of Business and Economic Development (Volume 5, Issue 2)
DOI 10.11648/j.jbed.20200502.13
Page(s) 73-81
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Strategic Assets, Corporate Reputation, Firm Performance

References
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Cite This Article
  • APA Style

    Dennis Mungai Muthoni, Godfrey Muigai Kinyua. (2020). Corporate Reputation and Firm Performance: An Empirical Analysis of Motor Vehicle Assemblers in Nairobi City County, Kenya. Journal of Business and Economic Development, 5(2), 73-81. https://doi.org/10.11648/j.jbed.20200502.13

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    ACS Style

    Dennis Mungai Muthoni; Godfrey Muigai Kinyua. Corporate Reputation and Firm Performance: An Empirical Analysis of Motor Vehicle Assemblers in Nairobi City County, Kenya. J. Bus. Econ. Dev. 2020, 5(2), 73-81. doi: 10.11648/j.jbed.20200502.13

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    AMA Style

    Dennis Mungai Muthoni, Godfrey Muigai Kinyua. Corporate Reputation and Firm Performance: An Empirical Analysis of Motor Vehicle Assemblers in Nairobi City County, Kenya. J Bus Econ Dev. 2020;5(2):73-81. doi: 10.11648/j.jbed.20200502.13

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  • @article{10.11648/j.jbed.20200502.13,
      author = {Dennis Mungai Muthoni and Godfrey Muigai Kinyua},
      title = {Corporate Reputation and Firm Performance: An Empirical Analysis of Motor Vehicle Assemblers in Nairobi City County, Kenya},
      journal = {Journal of Business and Economic Development},
      volume = {5},
      number = {2},
      pages = {73-81},
      doi = {10.11648/j.jbed.20200502.13},
      url = {https://doi.org/10.11648/j.jbed.20200502.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20200502.13},
      abstract = {The manufacturing sector accounts for approximately sixteen percent of Gross Domestic Product and fourteen percent of employment globally, but its relative size in an economy varies with the stage of development. In Kenya, a strong manufacturing base is considered the foundation upon which long-lasting economic frameworks can be made. The automotive industry is one of the most competitive industries in the manufacturing sector in Kenya today with significant contribution to the Gross Domestic Product. However, data from the Kenya Motor Industry Association has shown that performance of motor vehicles assemblers is on a decline as indicated by the fall in volume of sales reported annually. This study sought to investigate the effect corporate reputation on performance of motor vehicle assemblers. The research variables in this study are underpinned on the resource-based view of the firm. The investigation was guided by descriptive research design. The study targeted a population comprising of employees of motor vehicle assemblers and sought to make field observations on a sample of management employees that was randomly selected using proportionate stratified sampling. Primary data for the investigation was collected using a structured questionnaire. Validity of the questionnaire was assessed and confirmed using opinion from experts and review of relevant literature. A pilot study was carried out using fifteen employees to support the test of reliability of the questionnaire. Descriptive statistics was analyzed using frequencies, percentages, mean, standard deviation and coefficient of variation. Similarly, inferential statistics was analyzed using simple linear regression analysis. The found out that corporate reputation was found to have a statistically significant effect on performance. Practices that promote fairness, equality, diversity and dignity in the workplace should be strengthened at all level of the firms in order to project a good image in the market place.},
     year = {2020}
    }
    

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    T1  - Corporate Reputation and Firm Performance: An Empirical Analysis of Motor Vehicle Assemblers in Nairobi City County, Kenya
    AU  - Dennis Mungai Muthoni
    AU  - Godfrey Muigai Kinyua
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    JF  - Journal of Business and Economic Development
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    AB  - The manufacturing sector accounts for approximately sixteen percent of Gross Domestic Product and fourteen percent of employment globally, but its relative size in an economy varies with the stage of development. In Kenya, a strong manufacturing base is considered the foundation upon which long-lasting economic frameworks can be made. The automotive industry is one of the most competitive industries in the manufacturing sector in Kenya today with significant contribution to the Gross Domestic Product. However, data from the Kenya Motor Industry Association has shown that performance of motor vehicles assemblers is on a decline as indicated by the fall in volume of sales reported annually. This study sought to investigate the effect corporate reputation on performance of motor vehicle assemblers. The research variables in this study are underpinned on the resource-based view of the firm. The investigation was guided by descriptive research design. The study targeted a population comprising of employees of motor vehicle assemblers and sought to make field observations on a sample of management employees that was randomly selected using proportionate stratified sampling. Primary data for the investigation was collected using a structured questionnaire. Validity of the questionnaire was assessed and confirmed using opinion from experts and review of relevant literature. A pilot study was carried out using fifteen employees to support the test of reliability of the questionnaire. Descriptive statistics was analyzed using frequencies, percentages, mean, standard deviation and coefficient of variation. Similarly, inferential statistics was analyzed using simple linear regression analysis. The found out that corporate reputation was found to have a statistically significant effect on performance. Practices that promote fairness, equality, diversity and dignity in the workplace should be strengthened at all level of the firms in order to project a good image in the market place.
    VL  - 5
    IS  - 2
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Author Information
  • School of Business, Kenyatta University, Nairobi, Kenya

  • School of Business, Kenyatta University, Nairobi, Kenya

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