Strategic Management Practices on Revenue Growth of Selected Lake Region Economic Bloc Counties in Kenya

Malach Ogeto Omwenga; Wishlay Otuke; Rodah Rerubo Masira

doi:10.18535/ijsrm/v12i08.em08

Abstract

The purpose of this study was to find out the effects of strategic management practices on revenue growth of Selected Lake Region economic bloc counties in Kenya. Specific objectives were; to evaluate the effects of fraud control strategy; and to assess the effects of monitoring and tracking strategy on revenue growth in county governments in Kenya. The target population for the study was 331 employees involved in revenue collection. A stratified sampling technique was used to identify a sample size of 259 respondents. Primary data was collected using closed ended structured questionnaire. Collected data was edited and coded then analyzed using descriptive statistic methods; means, percentages and standard deviations. Pearson Product Moment Correlation was used to establish the strength of relationship while simple linear regression was used to establish the effect of independent variable on the dependent variable and data was presented in tables and figures. From the findings the study made the following conclusions; employees were trained on how to detect system fraudsters and performance targets were being monitored and tracked on a daily basis. Correlation analysis concluded that fraud control had a positive and significant relationship with monitoring and tracking and revenue growth. Regression analysis concluded that an increase in one unit of fraud controlled to a decrease in revenue growth and the effect was statistically significant. An increase in one unit of monitoring and tracking led increase in revenue growth and the effects was found to be statistically significant. The study recommended that revenue targets to be set in a way that they can be monitored and tracked easily in the system also the study recommended that hiring and transfers should be done based on merits.

References

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[refR-2] Balunywa, W., Nangoli, S., Mugerwa, G. W., Teko, J., & Mayoka, K. G. (2014). An analysis of fiscal decentralization as a strategy for improving revenue performance in Ugandan Local governments.Google Scholar ↗

[refR-3] Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of management, 27(6), 643-650.Google Scholar ↗

[refR-4] Capergemini, S. (2016).The CPA‟s role in income tax growth: An empirical study of variability in recommending aggressive tax position. Texas: Texas Tech. University. 125Google Scholar ↗

[refR-5] Charles Gichane (2017) Determinants of tax evasion: Across-country investigation. Journal of International Accounting, Auditing and Taxation, 15(2), 150-169Google Scholar ↗

[refR-6] Controller of budget report (2021), Public Report on the Budget: Assessment on Whether the Expenditure Allocations and Taxation Policies are in Line with the Governments Policy.Google Scholar ↗

[refR-7] De Wulf, L. and Sokol, J. B. (2012).Customs Modernization Handbook (Washington: World Bank)Google Scholar ↗

[refR-8] Dramod, K. R. (2014). The Challenges of Tax Collection in Developing Economies, University of Georgia: Georgia.Google Scholar ↗

[refR-9] Gekonge Justus Maisiba,Wallace Atambo,2016 Tax payers belief and views: Anew survey. PaperNo.03/05,Australian National University,CanberraGoogle Scholar ↗

[refR-10] Gidisu, T. E. (2012). Automation system procedure of the Ghana revenue authority on the effectiveness of revenue collection: A Case Study of Customs Division. Unpublished MBA Thesis, Kwame Nkrumah University of Science and Technology, 14.Google Scholar ↗

[refR-11] Hylton Meyer, H., Kamath, R. R., & He, Y. (2010). Courses on forensics and fraud examination in the accounting curriculum. Journal of Leadership, Accountability and Ethics, 8(1), 25- 33.Google Scholar ↗

[refR-12] Jananga Owidhi, H. E. N. R. Y. (2018). Effect Of Automation System Outcomes On Revenue Collection Of Nakuru County Government, Kenya (Doctoral dissertation, Kisii University).Google Scholar ↗

[refR-13] Joshi, A., Prichard, W., & Heady, C. (2014). Taxing the informal economy: The current state of knowledge and agendas for future research. The Journal of Development Studies, 50(10), 1325-1347.Google Scholar ↗

[refR-14] Kimani, J. A. C. K. L. I. N. E. (2013). Assessment of effects of monetary policies on lending behavior of commercial banks in Kenya. Kenyatta University.Google Scholar ↗

[refR-15] Kiprop, G. J. (2013). The relationship between financial deepening and the growth of small and medium enterprises in Kenya (Doctoral dissertation, University Of Nairobi).Google Scholar ↗

[refR-16] Kuipers, T. A. (2013). From instrumentalism to constructive realism: On some relations between confirmation, empirical progress, and truth approximation (Vol. 287). Springer Science & Business Media.Google Scholar ↗

[refR-17] Latema, M. O. (2011). Business Models for Revenue Generation and Enhancement Adopted By County Governments in Kenya. University of NairobiGoogle Scholar ↗

[refR-18] Ng, A. C., & Rezaee, Z. (2015). Business sustainability performance and cost of equity capital. Journal of Corporate Finance, 34, 128-149.Google Scholar ↗

[refR-19] Nyhan, B., Kelleher, M., Cressey, P., & Poell, R. (2003). Facing Up to the Learning Organization Challenge: Selected European Writings. Volume II. CEDEFOP Reference Series. Bernan Associates, 4611-F Assembly Drive, Lanham, MD 20706-4391 (# 3028 EN, 40 Euro for both volumes).Google Scholar ↗

[refR-20] Oates, W. E., Portney, P. R., & McGartland, A. M. (2018). The net benefits of incentive-based regulation: a case study of environmental standard setting. In The Theory and Practice of Command and Control in Environmental Policy (pp. 273-282). Routledge.Google Scholar ↗

[refR-21] Okiro, A. (2015). The effect of E-Payment system on revenue collection by the Nairobi City County Government (Doctoral dissertation, University of Nairobi).Google Scholar ↗

[refR-22] Omondi, G. O., Magutu, P. O., Onsongo , C.O, & Abongo, L. A. (2011). The adoption of strategic human resource management practices in commercial banks ; the process and challenges in kenya. Journal of human resource management research 1(20)Google Scholar ↗

[refR-23] Opromolla, G., & Maccarini, M. (2010). The control system in the Italian banking sector: Recent changes in the application of Legislative Decree No. 231 of June 8, 2001. Journal of Investment Compliance, 11(2), 16-22.Google Scholar ↗

[refR-24] Orodho J.A. (2005). Elements of Education and Social Science Research Methods. Nairobi: Masola Publishers.Google Scholar ↗

[refR-25] Spira, L. F., & Page, M. (2003). Risk management: The reinvention of internal control and the changing role of internal audit. Accounting, Auditing & Accountability Journal, 16(4), 640-661.Google Scholar ↗

[refR-26] Supervision, B. (2011). Basel committee on banking supervision. Principles for Sound Liquidity Risk Management and Supervision (September 2008).Google Scholar ↗

[refR-27] UNCTAD, (2013). Use of Customs Automation Systems, Trust Fund for Trade Facilitation Negotiations Technical Note No. 3 (New York).Google Scholar ↗