Analysis of branch network and organizational performance in private colleges in Kenya: A case of African institute of research and development studies.

Abstract

A branch location is a key component of an institution’s brand image. The location of a branch facility near one’s home or business ia a primary factor for selecting a brand even for customers who are primarily self-serviced oriented, and rarely visit a branch. The general objective of this study was to establish the effect of branch networks on the organizational performance of private colleges in Kenya with a focus on 8 branches of African Institute of research and development studies. The specific objectives were to establish the effect of geographical spread of branches on organizational performance, to establish the effect of branch size on organizational performance and to establish the effect of number of branches on organizational performance. The study reviewed and identified knowledge gaps in related literature. The target population was 2563 respondents comprising 2314 students and 249 staff members. The sample size was 1502 respondents comprising 1274 students and 228 staff members. Students and staff members were selected by simple random sampling. The study employed descriptive survey research design which allowed the collection of data that can be used for establishing causes of specific events or happenings. The survey research design emphasizes that subjects most suited to survey research are those which can be accurately measured by subject response. Questionnaires were used to collect primary data. It adopted quantitative data analysis. Correlation and multiple regression analyses were used to test hypotheses. It also employed descriptive data analysis methods such as mean and median to determine variable relationships. The study presented data using graphs, tables and pie charts. It was anticipated that the expected output of the study would draw conclusions concerning the effect of branch networks on organizational performance that would be important to managers of private colleges and regulators in the Kenyan education sector in improving performance. The study found out that size of the branch, number of branches and geographical spread of branches affect organizational performance. The study recommends branch networks as a growth strategy for organizations that wish to expand their markets, revenues and mitigate business risk. It also recommends that future studies increase their scope to study data spanning more than 7 years as covered by the current study in order to draw conclusions over the long run. The current study used likert type questionnaires to gather opinions. It recommends that future studies employ non-likert type of questionnaires in collecting research data to make it more objective.