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

Dennis Mungai Muthoni · Godfrey Muigai Kinyua

40 citations0/0 files storedJournal of Business and Economic Development

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Corporate Identity and Reputation Corporate Social Responsibility Reporting Organizational Strategy and Culture

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.

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References

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