Effect of Non-Tariff Barriers on The Financial Performance Of Motor Vehicle Assemblers In Kenya

Simple item page
dc.contributor.authorMutwiri, Purity Ntinyari
dc.date.accessioned2023-05-09T08:57:20Z
dc.date.available2023-05-09T08:57:20Z
dc.date.issued2021
dc.description.abstractMotor vehicle assemblers in Kenya have reported dismal performance over the past ten years contributing minimally to the economic growth of Kenya. Data from the Kenya Motor Industry Association has shown that the performance of motor vehicle assemblers is on a decline as indicated by the fall in the volume of sales reported annually. In the 2018/2019 financial year, Kenya’s motor vehicle assembly industry had a low operating capacity of 16% and an annual turnover of USD 600 million (including regional dealerships). Further with the collective action problems associated with NTBs, the performance of these firms is highly threatened. However, the available empirical literature provides contrasting and heterogeneous evidence, with most of the studies not being conclusive on the relationship that exists between Non-Tariff Barriers and financial performance. This study sought to determine the effect of NTBs on the financial performance of motor vehicle assemblers in Kenya. The specific objectives of the study were to determine the effects of import bans, import licensing, and quality control on the financial performance of motor vehicle assemblers in Kenya. The study was anchored on the theory of competitive advantage, upper echelons theory, and contingency theory. The study adopted the explanatory research design with the population being all four car assemblers in Kenya namely; Isuzu East Africa, Associated Vehicle Assemblers (AVA) Mombasa, Kenya Vehicle Manufacturers (KVM) Thika and Trans Africa Motors Mombasa. The target population was 880 departmental employees working in these firms. A sample size of 275 respondents was determined using Slovin’s formula and selected using stratified random sampling. Structured questionnaires were used to collect primary data. Data analysis was done using descriptive and inferential analysis. The findings revealed that jointly, non-tariff barriers explain 67% of the total variations in the financial performance of motor vehicle assemblers. Results also indicated import ban (β1 = .410, P = .000), import licensing (β2 = .319, P = .000), and quality control (β3= .198, P = .009) had a positive and significant effect on the financial performance of motor vehicle assemblers in Kenya. The study concluded that non-tariff barriers positively and significantly contribute to the financial performance of motor vehicle assemblers in Kenya. The study recommends that the government of Kenya should protect local motor vehicle assemblers by formulating regulations that promote local industries. It should initiate training programs aimed at equipping local motor vehicle assemblers with the necessary skills. The government should also review import licensing regulations to ensure that they support local motor vehicle assemblers. The government should further subsidize the cost of quality standards to enable the local motor vehicle assemblers to comply. It should also facilitate training programs aimed at equipping the local motor vehicle assemblers with the required quality control knowledge and skills.en_US
dc.identifier.urihttps://ikesra.kra.go.ke/handle/123456789/2831
dc.language.isoen_USen_US
dc.publisherKenya School of Revenue Administration_Moi Universityen_US
dc.subjectMotor Vehicle assembleren_US
dc.subjectFinancial Performanceen_US
dc.subjectNon-Tariff Barriersen_US
dc.subjectImport Banen_US
dc.subjectQuality controlen_US
dc.subjectImporting Licensingen_US
dc.subjectTariffen_US
dc.titleEffect of Non-Tariff Barriers on The Financial Performance Of Motor Vehicle Assemblers In Kenyaen_US
dc.typeThesisen_US

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Effect of Non-Tariff Barriers on The Financial Performance Of Motor Vehicle Assemblers In Kenya.pdf
Size:
1.18 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.64 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

1.2021