The Influence Of Corporate Communication Strategies On ...

The Influence Of Corporate Communication Strategies On Financial Performance:

A Case Study Of Airtel Kenya

by

Florence Ojwang’

A thesis presented to the School of Communication

of

Daystar University

In partial fulfillment of the requirement for the degree of

MASTER OF ARTS

in Communication

April 2018

Daystar University Repository

Library Archives Copy

APPROVAL

THE INFLUENCE OF CORPORATE COMMUNICATION STRATEGIES ON FINANCIAL PERFORMANCE: A CASE STUDY OF AIRTEL KENYA

by

Florence Ojwang’

In accordance with Daystar University policies, this thesis is accepted in partial fulfilment

of requirements for the Masters of Arts degree.

Date

_____________________ Rosemary Nyaole-Kowuor, PhD, 1st Supervisor

____________________

__________________________ Maurice Owino Onyango, MA, 2nd Supervisor

_____________________

__________________________ Kinya Mwithia, PhD, HoD, Strategic and organizational

_____________________

Communication

__________________________ Levi Obonyo, PhD, Dean, School of Communication

_____________________

ii



Copyright© 2018 Florence Ojwang’

iii



DECLARATION

THE INFLUENCE OF CORPORATE COMMUNICATION STRATEGIES ON FINANCIAL PERFORMANCE: A CASE STUDY

OF AIRTEL KENYA

I declare that this thesis is my original work and has not been submitted to any other college

or university for academic credit.

Signed ___________________

Florence Ojwang’ 11-1726

Date _________________

iv



ACKNOWLEDGMENTS

I give all the glory and honour to the Almighty God for giving me the grace and strength to

undertake the master’s programme. I will forever be indebted to my supervisors, Dr.

Rosemary Nyaole-Kowuor, and Mr. Maurice Owino Onyango, for guiding me through this

study. To my friends, classmates, course lecturers, thank you for believing in me.

v



TABLE OF CONTENTS APPROVAL ........................................................................................................................... ii DECLARATION ....................................................................................................................iv

ACKNOWLEDGMENTS .......................................................................................................v

TABLE OF CONTENTS .......................................................................................................vi

LIST OF FIGURES ............................................................................................................. viii

LIST OF TABLES..................................................................................................................ix

LIST OF ABBREVIATIONS AND ACRONYMS ................................................................x

ABSTRACT ...........................................................................................................................xi

DEDICATION...................................................................................................................... xii CHAPTER ONE ......................................................................................................................1

INTRODUCTION AND BACKGROUND TO THE STUDY ...............................................1

Introduction .............................................................................................................................1

Background to the Study .........................................................................................................5

Statement of the Problem ......................................................................................................13

Purpose of the Study ..............................................................................................................14 Objectives of the Study..........................................................................................................14

Research Questions................................................................................................................14

Justification of the Study .......................................................................................................15

Significance of the Study .......................................................................................................15

Assumptions of the Study ......................................................................................................16

Scope of Study .......................................................................................................................16

Limitations and Delimitations of the Study ...........................................................................16

Definition of Terms ...............................................................................................................17

Summary ................................................................................................................................20

CHAPTER TWO ...................................................................................................................21

LITERATURE REVIEW ......................................................................................................21

Introduction ...........................................................................................................................21

Theoretical Framework ..........................................................................................................21

General Literature Review .....................................................................................................27

Empirical Literature Review .................................................................................................45

Conceptual Framework ..........................................................................................................48

Summary ................................................................................................................................50

CHAPTER THREE ...............................................................................................................52

RESEARCH METHODOLOGY ..........................................................................................52

Introduction ...........................................................................................................................52

Research Design ....................................................................................................................52

Population ..............................................................................................................................53

Target Population ..................................................................................................................53

Sample Size ...........................................................................................................................55

Sampling Technique ..............................................................................................................56

Data Collection Instruments ..................................................................................................56

Data Collection Procedure .....................................................................................................56

Pretesting ...............................................................................................................................57

Data Analysis Plan.................................................................................................................57

Ethical Considerations ...........................................................................................................58

Summary ................................................................................................................................59

CHAPTER FOUR .................................................................................................................60

DATA PRESENTATION, ANALYSIS AND INTERPRETATION ...................................60

Introduction ...........................................................................................................................60

Presentation, Analysis and interpretation ..............................................................................60

Summary of Key Findings .....................................................................................................95

vi



Summary ................................................................................................................................96

CHAPTER FIVE ...................................................................................................................97

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS ....................................97

Introduction ...........................................................................................................................97

Discussions of Key Findings .................................................................................................97

Conclusions .........................................................................................................................106

Recommendations ...............................................................................................................107

Areas for Further Research ..................................................................................................108

REFERENCES ....................................................................................................................109

APPENDICES .....................................................................................................................118

Appendix A: Questionnaire .................................................................................................118

Appendix B: Interview Guide ..............................................................................................122

Appendix C: Anti-Plagiarism Report ..................................................................................123

Appendix D: Research Permit .............................................................................................124

Appendix E: Research Authorization Letter .......................................................................124

vii



LIST OF TABLES

Table 3. 1: Sample Size................................................................................................ 54

Table 4. 1: Gender of Respondents ............................................................................. 61

Table 4. 2: Gender vs Age Range ................................................................................ 62

Table 4. 3: Gender and Highest Education Level ....................................................... 63

Table 4. 4: Employment Status of Respondents ........................................................... 63

Table 4. 5: The length of Time Respondents Have Been Customers of Airtel Kenya . 64 Table 4. 6: Influences of Airtel Kenya Subscription .................................................... 65

Table 4. 7: Communication Channels Frequencies .................................................... 67

Table 4. 8: Preferred Channel Frequencies ................................................................ 68

Table 4. 9: Channel Effectiveness Frequencies ........................................................... 69

Table 4. 10: Whether the Information Communicated by Airtel Kenya Met ............... 70

Table 4. 11: Whether Respondents Got the Desire to Try Out Airtel Kenya Service.. 71

Table 4. 12: Respondents Got the Desire to Purchase a Product from Airtel Kenya . 72 Table 4. 13: Whether Respondents Would Inform Others about Airtel Products ...... 72

Table 4. 14: Whether Respondents Would Continue Being Airtel Customers ............ 73

Table 4. 15: Whether Airtel Kenya Communication Channels Were Very Effective .. 73

Table 4. 16: Airtel Kenya Communications Prompt you to take an action ................. 73

Table 4. 17: Whether Respondents Had Adequate Information on Airtel Kenya that 74

Table 4. 18: Whether Respondents Learn’t about New Airtel Kenya Offers Through 74

Table 4. 19: Whether If Airtel Kenya Stopped Communicating about Its Products and75

Table 4. 20: Correlation- Communication and Customer Satisfaction ...................... 77

Table 4. 21: Correlation – Communication and Revenue Generation ........................ 78

Table 4. 22: Correlation – Communication and Market Share .................................. 79

Table 4. 23: Correlation – Communication Channels and Knowledge ...................... 80

Table 4. 24: Correlation-Communication Channels and Customer Loyalty .............. 81

Table 4. 25: Financial Performance Attributes Frequencies ...................................... 82

viii



LIST OF FIGURES

Figure 2. 1: HPO Framework ...............................................................................................33

Figure 2. 2: Conceptual Framework .....................................................................................48

ix



LIST OF ABBREVIATIONS AND ACRONYMS

CAK:

CIS:

CSR:

EMEA:

GDP:

HPO:

IABC:

ICT:

KES:

LDC:

Mn:

ROI:

Rs:

WEO:

Communication Authority of Kenya

Commonwealth of Independent States

Corporate Social Responsibility

Europe and the Middle East

Gross Domestic Product

High Performance Organization

International Association of Business Communicators

Information Communication Technology

Kenya Shillings

Least Developed Countries

Million

Return on Investment

Rupees

World Economic Outlook

x



ABSTRACT

Achieving success in financial performance is a key objective for most organizations, since

their existence is dependent on performance. Communication is one such technique that

helps an organization implement strategies on financial performance. The purpose of this

study was to explore the influence of Airtel Kenya’s corporate communication strategies on

its financial performance. Its objectives were to identify corporate communication strategies

used by Airtel Kenya, establish the factors attributed to Airtel Kenya’s financial

performance and establish the influence of corporate communication strategies on financial

performance of Airtel Kenya. The study was a descriptive survey that used questionnaires

and interviews to gather information. The sample size comprised Airtel Kenya Corporate

Communication Department and 248 Airtel Kenya customers. Questionnaire data was

analyzed using the SPSS (version 20). Five interviews were qualitatively analyzed based on

the research objectives. The study revealed that Airtel Kenya’s corporate communication

strategies had an influenced financial performance in the areas of; revenue, market share,

shareholder value and customer satisfaction. Further, 66.8% of the respondents strongly

agreed that Airtel Kenya communication met their needs, while 55.1% strongly agreed that

the company communications influenced their purchase decisions. Similarly,

communication at Airtel Kenya allowed its stakeholders to make informed decisions which

influences their interactions with the organization. The study concluded that Airtel Kenya’s

corporate communication strategies had influenced service uptake, improved business,

growth in shareholder value, product purchase, customer service and loyalty, awareness on

Airtel Kenya products and services to its customers thus having an overall influence on the

organization’s financial performance. It recommended that Airtel Kenya should continue

incorporating corporate communication strategies into the overall organizational strategy.

Another recommendation is that organizations should recognize and make use of corporate

communications strategies when creating plans on financial performance.

xi



DEDICATION

I dedicate this work to my parents, Mr. and Mrs. Ojwang’.

xii



CHAPTER ONE

INTRODUCTION AND BACKGROUND TO THE STUDY

Introduction

Organizations often communicate their intent through crafted communication

strategies. Communication therefore tends to have effects on the organization's

stakeholders as it is a channel through which information, resources or even strategies

are communicated. Further, for-profit companies exist mainly to bring in revenue for

the organization. Financial performance is the procedure of determining the results of

an organization’s strategies and operations in monetary terms. Consequently,

achieving financial success is a key objective for organizations. Various techniques

and systems are deployed to help an organization implement its strategies on financial

performance. One such tactic is communication.

Communication is the process by which information is conveyed and

comprehended between two people or more (Kibe, 2014). Harris and Nelson (2008)

viewed communication as one of the most powerful and significant organizational

activities. According to Cornelissen (2008), a communication strategy comprises the

development of a desired position for a company in terms of how it wants to be

recognized by its publics. He also states that a communication strategy is always built

on an evaluation of the gap between the organization’s reputation (how organization is

presently viewed) and its vision (how the organization wants to be viewed).

Steyn (2000) pointed out that a corporate communication strategy is viewed as

strategic decisions involving the identification and management of communication by

communication professionals and senior managers. An effective communication

strategy should give direction of opinion and actions of the communication program,

link organizational objectives and tactics together and be a setting and a guide for all

1



communication activities (Tibble, 1997). Sheldon and Sallot (2008) were of the

opinion that organizations should include a corporate communication strategy when

coming up with an overall strategy for a company.

It is therefore important that all stakeholders are brought up to speed with the

current requirements of an organization in the whole process of attaining

organizational goals through effective communication by an organization. Financial

performance reporting is one such need. Financial performance is a term used to refer

to an organization’s general financial health within a given time frame. These

includes revenues, expenses, and profits (Harvard University, 2008). If the health of

an organization's finance is compromised, then its existence is also compromised. A

communication strategy would, therefore, specify an organization's intent when it

comes to matters relating to financial performance to the organization's stakeholders.

Towers Watson, a research firm did a study on the role of communication

strategy on the return on investment. The study leveraged on data collected from

companies globally. The study affirmed the perception that effective employee

communication was a leading indicator of financial performance (Watson, 2014).

Studies have continuously highlighted a positive correlation between effective

communication and financial performance (Sheldon & Sallot, 2008). While touted as

a perfect example of a study that could underline the influence of communication

strategies on financial performance, the Towers Watson study is still mostly North

American-centric. With North American corporate organizations forming the bulk of

organizations surveyed and other continents like South East Asia, Europe, and the

Middle East following closely. Further, it is worth noting that the study has been

touted as a benchmark for analysis for communication ROI from its inception in 2003.

The study though only incorporated the continent of Africa in its 2013/2014 survey

2



for the first time. Even then, Africa was lumped with Europe and the Middle East

(under EMEA region) forming 18% of the respondents interviewed. This study can be

deduced as being unrepresentative of African corporate organizations being that

Africa is the second largest continent in the world.

Evidently, the global real Gross Domestic Product (GDP) in 2014 expanded by

3.7 percent in comparison to 3 percent in 2013 as reported by The World Economic

Outlook (WEO) Report (2014). The World Economic Outlook Report (2014) further

notes that strong public and private investment contributed to Sub-Saharan Africa’s

robust growth. Further to this, The Economic Survey (2015) reported that East

African Community's GDP growth had increased to 5.8 percent in 2014 up from 5.3

percent in 2013 (The Economic Survey, 2015). The telecommunications industry falls

within the information and communication technology (ICT) sector and consists of

amongst others telecommunication organizations and internet service providers.

The Telecommunications industry has shown continued growth and

innovation globally, driving development in unprecedented ways. CAK (2015)

attributed the growing access to ICT sector globally to technological advancement,

dropping prices and infrastructure availability. There were over 7 billion mobile

phone customers as at the end of 2014, representing a 97 percent penetration rate.

Mobile internet in particular, was the most dynamic industry unit, with a worldwide

penetration rate at 47 percent in 2015, a 12 times gain since 2007.

Also, as at the end of 2014, of the 3.2 billion people worldwide who were

utilizing the internet, 2 billion were from developing countries and 89 million from

least developed countries (LDCs). Further, with the world average internet access at

46 percent, more than 80 percent of households in developed countries had access to

3



internet compared to developing countries access at 34 percent and LDC’s at 7

percent. Europe and the Americas continued to record the highest mobile broadband

penetration levels at an approximate 78 percent in contrast to Africa’s 17 percent

(CAK, 2015). In Sub-Saharan Africa, mobile telephony continued to promote other

ICT developments like the internet and money transfer services. According to GSMA

(2014), the mobile industry's unique subscriber (i.e. Refers to the number of people

who subscribe to mobile services and can actively use multiple connections) was

estimated at 39.0 percent and is expected to reach 48.7 percent by 2020. CAK (2015)

adds that about mobile money uptake, Sub-Saharan Africa had the highest number of

mobile money accounts. In East Africa, 50 percent of the mobile phone subscribers

have mobile money accounts.

Kenya's Gross Domestic Product (GDP) expanded by 5.3 percent in 2014

compared to 5.7 percent in 2013, according to the estimates contained in the

Economic Survey Report of 2015. Information and Communications sector

experienced a 13.1 percent growth in 2015. The sector advanced in mobile telephony,

the internet and mobile money transfer services. Mobile money transfer service

subscribers stood at 27.74 million. On the other hand, mobile telephony market

subscribers were 36.11 million, representing 83.98 percent mobile penetration rate.

The number of Internet users increased by 33 percent to stand at 29.67 million up

from 22.31 million recorded in the previous financial year. The growth of internet

users can be linked to the growth of utilizing the internet to access essential services

like education, health, the accessibility of cheap data gadgets and banking; as well as

the increased affordability of data services. Internet penetration as at June 2015 stood

at 69 percent (CAK, 2015).

4



The World Economic Outlook Report (2014), Economic Survey (2015) and

CAK (2015) reports are evidence of an Africa rich with financial information. The

financial information reports coupled with the telecommunication sector potential sets

up discussions on whether communication strategies influence financial performance.

Background to the Study

In 2007/2008, the Return on Investment (ROI) study by Willis Towers Watson

examined how an organization’s communication was linked to its financial

performance. Similar studies by the organization in 2003/2004 and 2005/2006 found

out that those organizations that practiced effective communication earned

significantly higher market premiums than their competitors. The Watson Wyatt

Study concluded that effective communication was a significant measurement of a

company’s improved financial performance (Watson, 2014).

Meng and Berger (2008) presupposed that linking communication

effectiveness and an organization's financial performance is likely to be stronger

because of Communication departments and stakeholder's recurring interactions.

‘Measuring the value of Public Relations’ was in fact positioned second in a survey by

Berger and Reber (2006) to establish important issues facing professionals in Public

Relations in gaining influence within an organization. Further, Kaplan and Norton

(2001) reported that because of the competitive nature of organizations,

communication professionals had to come up with communication programs that were

supposed to create value that was sustainable over time for organizations.

BHP Billiton (South Africa), named top African Company by Africa Business

in 2015 had a market capitalization of $122,089 million (Top 250 African Countries,

2015). In its 2016 Financial Annual Report the company acknowledged that

strengthened relationships with its key stakeholders due to successful communication

5



helped deliver productivity and capital expenditure improvements for the organization

(BHB Billiton, 2016). Another organization, Commercial International Bank (Egypt),

the most profitable organization in Egypt in 2015 had a market capitalization of $6699

million (Top 250 African Countries, 2015). In its Sustainability 2015 Report, the

organization attributed one of its success to having established a sound reporting

system that ensured timely dissemination of communication materials to its

stakeholders (Commercial International Bank, 2015).

Thirdly, Maroc Telecom, a leading communications company in Morocco,

acknowledges in its Communication on Progress 2014/2015 report that

communication is anchored in its culture and that has been its progress with

stakeholders. Various communication channels are available on its website including

press kits, publications, photo library, video library, social media accounts, financial

communication and financial investor relations news (Maroc Telecom, 2016).

Nigerian Breweries Plc, the second most profitable organization in Nigeria

which had a market capitalization of $5447 million in 2015 (Top 250 African

Countries, 2015) at a Question and Answer (Q&A) Forum 2015 recognized that it

kept investments towards communication channels at a very high level. The

organization stated that it believed in investments when it came to communication

because of its (communications) effects on the organization's marketing and

promotional efforts towards achieving profitability (Nigerian Breweries Plc, 2015).

Lastly, Kenya's most profitable organization Safaricom Ltd reported in its 2015

Sustainability Report that its Public Relations Strategy utilizing the digital platform

channel had been essential in marketing its products and services. The report makes

mention of how communication was important in enabling Safaricom Kenya Ltd to

6



reach its target stakeholders, who the organization ties its performance directly to

(Safaricom Ltd, 2015).

With a lack of representative studies on African corporate organizations

linking the influence of corporate communication strategies on financial performance,

this study aimed to fill this gap. Kenya’s four telecommunication companies are

Safaricom Kenya Limited, Airtel Networks Kenya Limited, Telkom Kenya Limited

(Orange) and Finserve Kenya Limited (Equitel). As at the end of June 2015,

Safaricom had 24,183,903 subscribers, Airtel had 7,002,464, Orange had 4,053,111

and lastly, Equitel had 873,643 subscribers. Their respective market shares as at June

2015 was Safaricom (67%), Airtel (19%), Orange (11%) and Equitel (3%).

According to the CAK (2015), mobile penetration continued on an upward

trajectory to stand at 84 percent for the year ending 2014/2015 up from 79 percent

recorded in the previous year. Kenya's mobile penetration rate was in fact higher than

Africa’s which was 71.2 percent at the end of 2014. It was, however, lower than the

global penetration rate that stood at 96.8 percent at the end of 2014.

This study on Airtel Kenya investigated corporate communication strategies

influence on financial performance. Evidently, Airtel Kenya spends resources on

promotional activities for its products and services through various communication

channels. In 2011, Strategic Communications Agency firm Hill+Knowlton, received

the Public Relations Society of Kenya (PRSK) excellence award for “Best Event

Campaign” for managing Airtel’s successful brand launch across 16 operations in

Africa and fulfilling the company’s brand promise of uniting the continent’s diversity

(Hill+Knowlton Strategies, 2011). In fact, just within three years of operation in 2013,

Airtel Africa was ranked amongst Africa’s most loved worldwide brands in Africa in

a study carried out by the African Business Magazine (Airtel, 2013). With a focus to

7



win customers forever by providing an extraordinary experience, Airtel Kenya has

come up with multiple product and service offerings to ensure that winning customers

for life translates to market share and revenue growth. Communication strategies are

important given their role in coming up with tactics to help an organization improve

financial performance.

A review of literature reveals that no study linking corporate communication

strategies and financial performance on Airtel Kenya has been done and this

contributed to the motivation for this study.

In the United Kingdom, Willis Towers Watson (formerly Watson Wyatt), a

leading global advisory, broking and solutions company has over the years been

conducting research on communication and return on investment (ROI). Its studies in

2003/2004, 2005/2006, 2007/2008 concluded that effective communication was a

significant measurement of a company’s improved financial performance (Watson,

2014).

In the USA, Meng and Berger (2012) in their study highlighted in the journal

of communication management, ‘measuring return on investment (ROI) of

organizations’ internal communication efforts, findings established that organizations

acknowledged the importance of assessing internal communication activities. Again,

still in the USA, Meng and Berger (2008) in their study ‘how top business

communicators measure the return on investment (ROI) of organization’s internal

communication efforts found out that communication effectiveness and an

organization's financial performance was likely to be stronger because of

communication departments and stakeholder's recurring interactions.

8



At the Daystar University, Godwin (2010) did a study on ‘exploring the

effectiveness of the communication strategies used by Tanzania Tourism Board

(TTB) in promoting tourism and confirmed the need for the communication process

in successful promotion of tourism products. Wababu (2012) at Daystar University,

studied the ‘The Role of Corporate Communication Department in Achieving

Organizational Goals: A Study of National Hospital Insurance Fund (NHIF)’ and

revealed that corporate communication was playing a key role in helping NHIF

achieve its organizational goals.

Owino’s (2013) research on ‘the link between organizational identity and

communication strategy formulation: a case of retirement benefits authority, Kenya at

Daystar University concluded that there was a link between organizational identity

and communication strategy formulation, that the stronger an employee was involved

in communication strategy formulation, the stronger they identified with the

organization.

At the University of Nairobi, Temesi (2012) did a study on ‘An investigation

into the role of corporate communication in organizational growth: a case study of

National Oil Corporation of Kenya (NOCK)’ and found out that corporate

communication had a significant contribution to the organizational growth of NOCK

in its role in enhancing brand equities and positioning new products and services.

Okoth (2007) at the University of Nairobi, researched on ‘the role of corporate

communication in image building: a case study of Safaricom Limited’ and revealed

that advertisement influenced learning and purchasing of Safaricom’s new products

and services.

Bakhuya (2015) at the University of Nairobi did research on the ‘effect of

communication strategy on strategic planning in African Banking Corporation (ABC)

9



Kenya’ and concluded that effective communication was important for the successful

implementation of strategy at ABC Kenya. At Strathmore University, Syengo’s

(2015), study on ‘an investigation into the impact of internal communication to staff

motivation and Satisfaction in enhancing performance at Rafiki Microfinance Bank’

confirmed that internal communication was a strong predictor of staff motivation, job

performance and staff satisfaction at the bank.

It is essential to note that there exist factors that could be attributed to Airtel

Kenya's financial performance. The factors may include its excellent customer

service, multiple product and service offerings, digital services, valuable customers,

cost efficiencies, high performing employees, global affinity, corporate social

responsibility, corporate governance, etc. Airtel Kenya holds a significant percentage

of Kenya’s mobile subscriber base in terms of market share. The organization has

maintained the second position over the years after Kenya’s leading mobile operator

Safaricom Ltd.

Further, Bharti Airtel has well laid down reviewed and analyzed financial

statements that depict the organization’s performance over the years it has been in

business. However, lacking in these factors be it directly or indirectly is the

communication link given the massive role that communication plays in ensuring

stakeholders are reached. According to Aladwani (2001), by not communicating

strategic goals to organizational publics implies that strategy developers are not

adequately communicating sufficient information for organizational publics to

comprehend what they are expected to do with the communication strategy.

Furthermore, according to Coombs and Holladay (1996), not explicitly defining an

organization's communication intent can result in a reputational risk for the

organization seeing that one of communication's role is to protect an organization's

10



reputations. What this study, therefore, wanted to determine was whether Airtel

Kenya's Corporate Communication strategies influenced its financial performance.

A Brief History of Airtel-Kenya

The history of Airtel Kenya dates back to the year 2000. The organization has

been bought off and ownership changed four times and the result has always been a

change in name for the organization. The mobile company started its Kenyan

operations as Kencell in 2000, then Celtel Kenya in 2004, later to Zain Kenya in 2008

and finally Airtel Kenya in 2010. Kencell’s business started in September 2000 as an

initiative between Vivendi, a French telecommunications company and Sameer

Group, owned by a local business man, Naushad Merali. According to Kinyanjui

(2009), the business, owned 60 percent by Vivendi and 40 percent by Sameer Group

had acquired the second mobile operator license for a five year period at a value of

KES 4 billion. The deal made Kencell, the first private organization to provide GSM

mobile services besides Safaricom which was then owned by the government. The

cellphone operator then had 1.2 million subscribers and was Kenya’s fourth largest

business with regard to market value after Barclays Bank, East African Breweries and

Standard Chartered ("The Celtel Purchase of Kencell," n.d).

Further, according to "The Celtel Purchase of Kencell," (n.d.), under Jean

Messier’s leadership, Vivendi Universal went into an acquisition spree that threw the

company into a lot of debt. With the stock market crash and high international stock

prices, Vivendi almost went into bankruptcy. It was therefore wise for organizations

like Vivendi to use their equities to finance acquisitions instead of getting into more

debt. The assumption was that telecom organizations with their millions of customers,

would automatically make money. Vivendi therefore acquired a Kenyan mobile phone

operator license at a cost of KES2 billion (US$27 million). Vivendi in May

11



2002, resolved to sell its assets and leave Africa. Consequently, by the end of 2003,

Vivendi was looking for a buyer to purchase its stake from the business.

In 2004, Neshad Merali stopped the sale of Kencell to South African’s MTN

by exerting his pre-emptive rights and matching the $230 million that MTN had

offered. That was the deal that saw Celtel's owner Mohamed Ibrahim part with $250

million for the stake. Celtel, a Dutch based company, further promised to invest $400

million to take on the competitor Safaricom and recruit more subscribers. Celtel

believed that with a new marketing strategy and the advantage of being a pan-African

organization, more customers would join the network (Kinanjui, 2009). There was

little growth in terms of customer numbers for Celtel despite different marketing

strategies, hence financial losses. Despite less growth in its customer numbers, Celtel

still grew its network infrastructure, spending on average KES 14 billion (Kinyanjui,

2009).

Celtel International was acquired by Mobile Telecommunications Company

(MTC) of Kuwait in 2005. MTC then changed its brand name to Zain International hence

the rebranding of Celtel's entire operations spanning 15 countries in Africa. It was sold at

$2.8 billion. As part of the launch activities, Zain International announced its intention to

inject KES 25 billion (US$37 million) into its Kenyan network. According to its then

CEO Nabil bin Salamah, Zain in 2010 decided to focus on its Middle East operations

which generated most of its revenue and profits ("Zain to Change Focus after Africa Sale:

CEO," 2010). Then in March of the same year, Bharti Airtel Limited, (a

telecommunications service provider in Asia) and Zain Group started talk on buying

Zain’s African businesses (Zain Africa BV) at a price of $10.7 billion. Under the deal,

Bharti would buy Zain’s 15 African telecommunications businesses (Zambia, Burkina

Faso, Uganda, Chad, Madagascar, Kenya, the

12



Democratic Republic of Congo, Malawi, Tanzania, Gabon, Rwanda, Nigeria,

Seychelles, Niger, Ghana and Sierra Leone) that had over 42 million subscribers

("Bharti set to acquire Zain Africa BV”, 2010).

In 1995, Bharti started its mobile services in India, later it launched in Sri

Lanka in 2009 and in January 2010, acquired Warid in Bangladesh. Bharti Airtel

Limited has its head office in New Delhi, India and operates in 19 countries across

Africa and Asia. As at the end of June 2015, Bharti Airtel had about 358 million

subscribers across its Asian and African operations. Airtel’s vision is to give mobile

services that are affordable and innovative to everyone.

The organization has African operations in: Zambia, Burkina Faso, Uganda,

Chad, Madagascar, Kenya, the Democratic Republic of Congo, Malawi, Tanzania,

Gabon, Rwanda, Nigeria, Seychelles, Niger, Ghana and Sierra Leone. Bharti Airtel

had over 76 million customers in Africa as at the end of June 2016 (Bharti Airtel,

2016). According to Bharti Airtel Limited (2015), to ensure its business is accountable

and sustainable, Bharti Airtel undertakes systemic mapping by frequently engaging its

publics. Its internal and external publics according to its 2014-2015 financial year

includes; shareholders, government institutions, customers, staff, suppliers, industry

regulators, society, schools and non-governmental organizations.

Statement of the Problem

Given this background, it is beyond a shadow of any doubt that financial

performance success is important for the survival of organizations in competitive

industries like those in the telecommunications industry. Argenti (2009) is of the

opinion that communication strategies clearly highlighting how to reach various

stakeholders of an organization are critical if an organization is to meet its set

objectives. As a result, organizations come up with strategies and plans to improve

13



financial performance and stay ahead of competition. Having a communication

strategy is one way; an organization can specify intent on how it intends to improve

financial performance. In this context, therefore, for Airtel Kenya to improve financial

performance, clear communication strategies on how to reach its various stakeholders

have to be developed because almost all stakeholders are affected by how an

organization performs.

While not ignoring findings to the studies mentioned, this study sought to

bridge existing knowledge gap by finding responses to questions establishing if

corporate communication strategies had an influence on Airtel Kenya’s financial

performance. As far as financial performance was concerned, did Airtel Kenya stand a

better chance by continuously actually communicating to its stakeholders? Had the

organization added a competitive edge as a result of the communication strategies it

had employed, and do communication strategies contribute to Airtel Kenya’s financial

performance?

Purpose of the Study

The purpose of the study was to investigate the influence of corporate

communication strategies on the financial performance of Airtel Kenya.

Objectives of the Study

a) To identify corporate communication strategies used by Airtel Kenya;

b) To establish the factors attributed to Airtel Kenya’s financial performance;

c) To establish the influence of corporate communication strategies on financial

performance of Airtel Kenya;

Research Questions

a) What were the corporate communication strategies used by Airtel Kenya?

14



b) What were the factors attributed to Airtel Kenya’s financial performance?

c) What was the influence of corporate communication strategies on financial

performance of Airtel Kenya?

Justification of the Study

The concept of the influence of corporate communication strategies on

financial performance has received little attention thus having a rich area with a vast

potential for exploration. Many reports covered communication strategies, but none of

them satisfactorily linked communication strategies to financial performance. It is for

this reason that the need for a study on the influence of corporate communication

strategies on financial performance cannot be overlooked. This study therefore,

focused on Airtel Kenya since the organization had recorded significant strides in its

financial performance. It is therefore hoped that this study will be a future guide to

studies in this domain.

Significance of the Study

The study evaluated how corporate communication strategies at Airtel Kenya

influence financial performance. Findings and recommendations of this study may be

useful in improving corporate communication strategies at not only Airtel Kenya, but

also other organizations given that financial performance is a key objective for

organizations in the for-profit sectors. The study would also be helpful to other

researchers who may wish to test the research methodology in conducting similar

studies in other organizations.

15



Assumptions of the Study

The study made the following assumptions:

1. That Airtel Kenya generally had corporate communication strategies

specifically linked to its financial performance.

2. That corporate communication strategies influenced financial performance of

Airtel Kenya

3. The organization would be sincere enough to disclose its communication

strategies.

4. Airtel Kenya’s Corporate Communication Department would be available for

an interview to respond to questions during data collection.

5. That Airtel Kenya customers would be willing to truthfully respond to the

questionnaires during the data collection period.

Scope of Study

This study was carried out on Airtel Kenya, targeting its corporate

communication department at the organization's headquarters in Nairobi. It also

focused on Airtel Kenya’s shops at the Koinange Store, Sarit Centre Store, TRM

Store and Greenspan Store in Nairobi County. The study was limited to the events and

issues of Airtel Kenya financial years of 2012 to 2016. The study was restricted to

three dimensions of financial performance, communication strategies and overall

organizational performance.

Limitations and Delimitations of the Study

1. The inability to reach the targeted number of customers. This was because,

customers visited the shop at different times and the study targeted a specific

number of Airtel Kenya customers. To overcome this first limitation, the

16



researcher made sure that questionnaires were distributed and responses

obtained until the targeted number was attained

2. Most customers were always in a hurry and to get them to fill in the

questionnaire became difficult. To overcome this, questionnaires were only

issued to those who agreed to be part of the study. The questionnaires were

returned on the same day duly filled.

3. Customers unwilling to fill in the questionnaires thinking the questionnaires

had revelations to their Mobile Money and call record details. The third

limitation was overcome by assuring customers of confidentiality. Plus the

way the questionnaire was structured revealed that Mobile Money details and

call records were not a requirement. The company’s support in the study also

assured customers of confidentiality.

Definition of Terms

Corporate Communication: Corporate communication is an organizational operation

that provides a system that effectively coordinates internal and external

communication with the general goal of determining and sustaining good reputations

with organizational publics (Cornelissen, 2008).

Corporate Communication Strategies: A communication strategy comprises the

development of a desired position for a company in terms of how it wants to be

recognized by its publics (Cornelissen, 2008). This study referred to communication

strategies as the desired position by Airtel Kenya on how it wanted to be seen by its

stakeholders and the approaches and activities it used in accomplishing its objectives.

Financial performance: Financial performance refers to an organization’s general

health within a given time frame and can be applied when creating contrasts with

companies in the same industry. The term also refers to the subjective measure of how

17



an organization uses assets from its main business to create revenue (Nelling &

Webb, 2009). This study referred to financial performance as the financial results

after communication activities by Airtel Kenya.

Stakeholder: A stakeholder is any group or people who can influence or is influenced

by the attainment of the company’s purpose and goals (Freeman, 1999). Within the

scope of this study, the term stakeholder was used interchangeably with publics and

constituents. In its Financial Year 2014-2015, Bharti Airtel identified its key

stakeholders as: shareholders, government institutions, customers, staff, suppliers,

industry regulators, society, schools and non-governmental organizations (Bharti

Airtel, 2015).

Revenue: Revenue is money an organization gets from its business, generally from the

sales of services and goods to customers (Hakio & Rush, 1991). This research

referred to revenue as money received by Airtel Kenya from sale of its products and

services to its stakeholders.

Market Share: Market share is an overall view of an organization’s size in contrast to

businesses in similar markets and its competitors. It denotes what percentage a

company holds out of all the total sales by competitors and businesses in the same

market over a given time frame (Anderson, Fornell, & Lehmann, 1994). Within the

scope of this study, market share denotes Airtel Kenya customer numbers held against

other industry players in the telecommunications business in Kenya.

Income statement: At times called the profit and loss statement, an income statement

reports the financial performance of an organization over a particular accounting

duration. Evaluation of financial performance shows revenues and expenses incurred

by the organization including profit and loss over the said accounting period (Cahan,

18



Courtenay, Gronnewoller, & Upton, 2000). Within the scope of this study, income

statement referred to a statement where information about an organization’s financial

performance can be found.

Return on Assets: Return on assets (ROA) is a measurement of the profitability of an

organization in respect to its overall resources. ROA shows the efficiency of the

management of a company in using organization resources to create revenue (Chen,

Cheng, & Hwang, 2005). Within the scope of this study, ROA was used as an

indicator of financial performance.

Return on Equity: Return on equity (ROE) is the percentage sum of net revenue

returned in contrast to the total shareholders equity. Return on equity is a metric of a

company’s profitability by disclosing the amount of revenue an organization produces

with the money invested by its shareholders (Chen, Cheng, & Hwang, 2005). Within

the scope of this study, ROE was used as an indicator of financial performance.

Return on Sales: Return on sales (ROS) is a measurement of the profitability of an

organization in respect to its operational efficiency. ROS measures revenue created

from a company’s sales (Chen, Cheng, & Hwang, 2005). Within the scope of this

study, ROS was used as an indicator of financial performance.

Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio

that assesses an organization’s profitability and how efficiently an organization can

create profits from its capital employed (Chen, Cheng, & Hwang, 2005). Within the

scope of this study, ROCE was used as an indicator of financial performance.

Excellence Theory: The excellence theory is a public relations theory that culminated

after a 15-year research of best practices in communication management financed by

the International Association of Business Communicators (IABC) Research

19



Foundation. Excellence theory embodies different public relations theories. The

public relations theories handled issues on; communication, roles, strategic

management, stakeholders, communication models, diversity, advocacy,

sustainability, gender, authority, global communications, public relations assessment

and employee relations (Grunig, n.d.). The Excellence theory guided this study.

Within the scope of this study, Excellence Theory was used to ascertain to what

extent corporate communication had been valuable to Airtel Kenya especially in the

area of financial performance.

Systems Theory: This theory was originally advanced by Ludwig Von Bertalanffy,

who sought to explain the relationship between parts and whole of living organisms.

The theory stipulates there exists different parts within a system. Each part is

important as it is affected by changes within other parts of the system. It is mainly

through communication that the interrelated parts within a system are facilitated

(Schrader, 2008). The Systems theory also guided this study. Within the scope of this

study, was the role of corporate communications in the system (Airtel Kenya) and its

importance in creating value in the system.

Summary

This chapter has introduced the history and background of communication

strategies and financial performance. Additionally, it has highlighted the research

objectives, questions, rationale, purpose, significance, and scope of this study. The

chapter has also explained the limitations and delimitations of the study. Finally, key

terms used in the study were defined. The next chapter reviews the literature on the

topics of communication strategy and financial performance.

20



CHAPTER TWO

LITERATURE REVIEW

Introduction

The focus of this study was to explore the influence of corporate

communication strategies on the financial performance of Airtel Kenya. To carry out

this study, it was necessary to build a theoretical foundation to find out the influence

of the corporate communication strategies on organizations financial performance.

The following literature was thus discussed: theoretical framework, general literature

review, empirical literature review and conceptual framework.

Theoretical Framework

Current scholarship in organizational communication recognizes that theory is

just not a conduit for truth but rather plays the constitutive role in the creation of truth

(May & Mumby, 2005). Littlejohn (1983) defined theory as someone's

conceptualization of an observed set of events. The author further explained that

theories consist of ideas that guide researchers in making decisions and taking action.

Systems Theory

The systems theory guided this study. According to Weckowicz (2000), this

theory was initially advanced in 1968 by a biologist, Ludwig Von Bertalanffy. Von

Bertalannfy’s research attempted to explain the link between parts and whole of living

organisms. The theory details that the entire is more than the total of its components.

Each component should be assessed as it relates with adjustments and is changed by

recurring components inside the system. The components of a specific system are

presumed to be connected and it is fundamentally via communication that this

connection is facilitated (Schrader, 2008). According to Coombs and Holladay

21



(2012), the system perspective sees an organization as a grouping of interconnected

parts with a sole motive of maintaining balance.

Bivins (1992) noted that the systems theory has gone beyond the borders of

biology and has been embraced in other academic fields such as psychology, history,

cybernetics, sociology and communication. According to Almaney (1974),

communication is important to the systems theory. Not only is communication

important since it necessary for a system to function smoothly but also because the

system theory counts on communication for its very definition. That in order for a

system to be complete, it needs associations among its different parts, communication

is therefore required as it provides a system of passing information to different parts

of the system and providing the necessary feedback.

Abdulla and Antony (2012) observed that the systems theory explains the

communication events occurring within the organization (system) and the outcomes

of communication interactions. Further, they add that the communication process

should be put in place for the system to exchange appropriate information with its

environment. For the purpose of this study, the notion of interacting systems can be

applied on two levels, on the level of Airtel Kenya as an organization or a system; and

second, on the level of Corporate Communication Departments as a subsystem of the

system. Therefore understanding the influence of corporate communication on the

organization’s financial performance has to identify existing communication

strategies and if these strategies influence the organization’s performance.

Also, the inner stability of the entire system is maintained since

communication merges all the subsystems. Furthermore, communication also helps to

connect the whole system with the outside surroundings therefore allowing the system

to adjust and manage adjustments in its environment (Almaney, 1974). A fundamental

22



characteristic of any system is its collaborative activities. These activities take place

inside the system units and outside between the system and its surroundings.

Communication does an important task of joining subsystems together, that the entire

system may be thought to be a communication network. This network functions as a

path via which information about the systems activities are passed to other

subsystems (Almaney, 1974).

According to Van der Walt (2003), the systems theory is built on the thought

that there exists an independent link between a company and its subsystems. Such

links according to this research are strengthened along communication interactions

between the company and its stakeholders. Additionally, organizational-publics

relationship change as a result of change pressures from its surroundings. Failure to

change, past relationships become broken since the company behaves contrary to the

current situation. If they are unmanaged and non-purposive to environmental changes

responses, systems tend to degrade to maximum disorder, what systems theorists call

“entropy”. In social systems this means that interrelated behavior to achieve mutually

advantageous goals is impossible. In effect, systems break up.

Corporate communications are entrusted with ensuring that organizational

relationships are in line with mutual interests and objectives of the company and its

stakeholders. In the context of this study, failure by Airtel Kenya to engage its

customers in communication with timely information using appropriate

communication channels, may push the organization into a state of entropy. State of

entropy may result into issues like revenue loses and a declined market share for

Airtel Kenya.

Almaney (1974) opined that the system theory sees communication as an

element that holds the system together, crucial for the life and development of any

23



organization. Communication holds together the subsystems such that an inner

balance is assured. Communication also holds the system to the outside environment

in an effective stability that will ensure system development and objective

achievement. The systems theory approach was fitting for this study as it offered a

model for seeing inter-relationships within an organization brought about by

communication. The systems theory guided the study in identifying the different

communication activities by Airtel Kenya’s Communication Department and also to

demonstrate how communication was important in ensuring continued business for

the organization which in essence translates to the very survival of the company.

Excellence Theory

To clarify the value of communication to organizations, the International

Association of Business Communicators (IABC) Research Foundation requested the

research proposals to answer the ‘effectiveness question’ “How, why and to what

extent does communication contribute to the achievement of organizational

objectives?” (Grunig & Grunig, 2011). The research foundation also wanted to

determine communication’s contribution to the achievement of organizational

objectives and what constituted effective public relations. This was done by

establishing the characteristics of an organizational communication function that

could increase the value of an organization through conducting empirical research

(Grunig & Grunig, 2011).

Excellence theory is a general theory of public relations that resulted from a

15-year study of best practices in communication management funded by the

International Association of Business Communicators (IABC) Research Foundation.

Excellence theory embodies different public relations theories. The public relations

theories handled issues on; communication, roles, strategic management,

24



stakeholders, communication models, diversity, advocacy, sustainability, gender,

authority, global communications, public relations assessment and employee

relations. A survey was done on organization heads, communication managers and

staff in 327 institutions to test the theory in the United States, Canada, and the United

Kingdom. A qualitative analysis later followed involving interviews of public

relations professionals, heads of public relations, and directors of companies of 25

organizations who scored the maximum and the minimum as per the excellence scale

produced by the survey data.

According to Grunig (n.d.), the excellence theory initially determined that the

importance of public relations to organizations was founded on social responsibility

and stakeholder relationship decisions by company management. According to the

theory, an effective organization should resolve problems and fulfill stakeholder

objectives. Failure to do that, the organization will risk opposition from stakeholders

who will demand change. An organization should be aware of publics that are likely

to be affected by its prospective organizational decisions or those who expect the

company to resolve their issues so that the company is deemed socially responsible.

Communication from the organization is therefore important to stakeholders so that

quality, long-term relationships are cultivated. The importance of valuable

relationships to the organization according to interviewed heads of public relations

and directors of companies, included; reduced legal cases, positive publicity and

increased revenue due to producing products and services needed by stakeholders.

Further, based on the excellence theory presumption about the benefits of

communication, Grunig (n.d.) posited that the theory obtained ways of making the

public relations role be of maximum value. First, the study established that

participation in strategic management was important for public relations. Public

25



relations professionals were involved in strategic decisions at managerial and

administrative levels. Public relations was also strengthened by having access to

important company personnel. Secondly, according to the study, the public relations

function loses its distinctive purpose if sublimated to marketing or management

functions. Sublimating public relations to other functions would lead to recognition

happening only to a specific stakeholder group e.g. customers for marketing.

Another result of sublimating public relations to marketing is asymmetrical

communication. A great public relations strives to build relationships with relevant

organization publics while working with management functions within a company.

Thirdly, the excellence study found out that staff were generally content with their

jobs in organizations that practiced internal communication. Internal communication

was more successful in organizations that had a participative culture as opposed to

authoritative ones. Lastly, the study looked at how the rising number of women in

communication experienced difficulty in attaining leadership positions. The research

found out that companies with great public relations involved women in strategic roles

just like they did to men. The fifth part of the excellence theory discussed ethnicity

and race diversity while the sixth part looked at ethics in public relations.

According to Grunig (2006), and Toth (2007), there has been continued

research after the excellence theory ended, especially the participation of

communications in strategic management. The areas of research include; global

strategy, public relations return-on-investment, resolving conflicts, stakeholders,

relationship improvement plans, evaluation, complex theories, ethics and

empowerment in public relations etc. While the excellence theory focusses on

different aspects of public relations, the researcher adapted to this study and only

focused on the benefit of communications in achieving company objectives. This

26



helped in establishing whether communications strategies influenced Airtel Kenya’s

financial performance. Thus the relevance in the excellence theory question of “How,

why and to what extent does communication contribute to the achievement of

organizational objectives?” The theory also helped to highlight Airtel Kenya’s

Corporate Communication Department involvement in strategic management seeing

that financial performance is a key aspect of the organization.

General Literature Review

Corporate Communication Strategies

Corporate Communication

Corporate communication is an organizational operation that provides a

system that effectively coordinates internal and external communication with the

general goal of determining and sustaining good reputations with organizational

publics (Cornelissen, 2008). Ferguson (1999) further viewed communication as a

support operation for the activities of the organization and, therefore, emphasizes the

importance of making communication plans to achieve the intended objectives of any

communication task.

Communication Strategies – A Conceptualization

A communication strategy comprises the development a desired position for a

company in terms of how it wants to be recognized by its publics. Evaluating the gap

between organizational reputation (how a company is presently viewed) and vision

(how it desires to be viewed), a communication strategy will state its strategic

intention, on which potential actions are created, assessed and eventually selected

(Cornelissen, 2008). It is a fact that communication in organizations like Airtel Kenya

must be given attention. In its financial year report of 2014-2015, Bharti Airtel notes

that it prioritized key sustainable concerns that were significant to the company and

27



its publics. The company carried out materiality-assessment which helped it to match

stakeholder expectations and organizational strategy. Therefore, it naturally has a way

of communicating directly with its key stakeholders and employs a variety of channels

and mechanisms to do so. In the context of this study, communicating to these

stakeholders on financial performance requires communication strategies to be put in

place for exceptional results.

Cornelissen (2005) pointed out that there is a large consensus on some general

patterns in thinking about communication strategy. Firstly, a strategy is an

amalgamation of an organized and developing process of strategy formation.

Secondly, strategy entails overall guidance and not just tactics and plans and finally,

strategy is with regard to the company and its surroundings. Additionally, Steyn and

Puth (2000) posit that a communication strategy that is effective should provide

direction for all communication activities in an organization, be a determinant of the

why and how and finally be the logic that ties organizational plans and goals together.

Steyn and Puth (2000) further explained that the effective organization

communication strategies should essentially mirror the organization strategy.

Organizational strategies are therefore necessary if a solid communication strategy is

to be developed, because it gives the required bearing to the communication and

creates synergy between an organization’s strategy and communication strategy.

Argenti (1998) further acknowledges that even if it is the development of a coherent

image for an organization through corporate advertising or simply getting customers

to buy its services or products, it is beneficial for an organization to have a

communication strategy.

28



Developing Corporate Communication Strategies

When starting a communication campaign, it is essential to refer to the

company’s general communication strategy and the established strategic goal. A

corporate strategy according to Cornelissen (2008) gives a strategic vision for the

whole company concerning its products, market or even on issues as basic as

ownership of the company. A communication strategy is an operational strategy

concerned with how corporate communication can develop communication programs

towards supporting the corporate objectives in the corporate strategy.

The three factors for developing a corporate strategy are; objective setting,

allotting resources and determining the reputation of the company (Argenti, 2009).

Also, there are many reasons why an organization might choose to communicate.

Organizations might have corporate communication departments to manage functions

like; corporate reputation, corporate advertising and advocacy, corporate

responsibility, media relations, marketing communications, internal communications,

investor relations, government relations, crisis management.

According to Argenti (2009), difficult to classify as a separate function, a

company’s image, identity and reputation strategy are the most important elements of

any corporate communication role. Image is the company as viewed in the eyes of its

stakeholders. Identity comprises an organization’s specific features like products and

services, its stakeholders, values and vision etc. While identity represents the truth of

a company and image its impression by major stakeholders, reputation is how all

stakeholders see the company in totality.

Corporate advertising is the utilization of paid media that aims to benefit the

organization’s image. Corporate responsibility is where a company shows respect for

the environment it operates by taking responsibility of the results its activities have on

29



its stakeholders. Media relations function assists corporate communication to work

with the media to inform stakeholders about the organization. Publicity about a

company’s products and services and customer activities are managed and

coordinated by marketing communications. Internal communication is the role

responsible for communication with the employees of an organization.

Government Relations Departments study the methods of other companies,

organize popular support, make alliances, create political action committees and

establish connections with influential Government insiders. Investor relations, a

strategic management function combines finance, securities law compliance,

marketing and communication to allow communication between an organization,

other stakeholders and the finance community. Investor relations eventually helps an

organization’s securities to realize fair valuation. Crisis communication is part of the

corporate communication function that is designed to safeguard a company’s

reputation and preserve its image (Argenti, 2009)

Airtel Kenya, in this case, might want to introduce a new product to the

market. In this case, its object may be more than just introducing the product to its

customers but convincing them to take it up. Thus the objective here would be to see

the customers take up the new product to boost sales figures for the organization. An

organization defines an objective to establish the effect of the communication to the

constituency. The overall effect with the introduction of the product to customers will

affect financial performance, so it is imperative that its communication to stakeholders

is well planned.

Argenti (2009) noted that after a company has set its communication

objectives, stakeholders involved should be thoroughly scanned. Since an

organization has different stakeholders, it is important for the company to understand

30



what the stakeholders think about it and establish their (stakeholder) knowledge and

feelings on the communication in question. An example would be if Airtel Kenya

wanted to strengthen its customer’s service to grow revenue from its customers, the

company has to first reinforce the idea with its employees before customers see the

results. Airtel Kenya must also work through other stakeholders like employees,

suppliers, the media etc., to make sure that their objective is well communicated.

Further, thought should go into how best to structure a message and what the message

will entail. It is important to carefully research on what communication channels to

use during the development of a communication strategy.

Organizations can use different channels of communication for its internal and

external communication to deliver messages (Argenti, 2009). For example, if Airtel

Kenya wants to announce its financial results, it can choose different communication

channels like a press release (for a broad set of publics) or a company’s intranet (for

employees); choice of a channel is always dependent on target publics. Finally, it is

important for an organization to evaluate and establish whether communication that

was done to stakeholders yielded the desired results. An example would be Airtel

Kenya investigating whether there was an increase in product sales as a result of an

advertising campaign (Argenti, 2009). In the context of this research, was the

identification of corporate communication strategies used by Airtel Kenya and how

financial performance is influenced in the process.

Factors Attributed to the Financial Success of an Organization

According to De Waal (2007), Peters and Waterman’s (1982) book “In Search

of Excellence” created a great interest in the identification of attributes of high

performance organizations (HPOs). The interest grew as a result of rapid changes in

business operating environments forcing them to offer quick and reliable distribution,

31



flexibility, after-sales service for organizational products, quality, price and compete

concurrently on the premise of development cycle time (Kasarda & Rondinelli, 1998).

Epstein (2004) noted that HPOs are mostly reported with regard to

organizational achievements like satisfied staff and consumers, strong leaders,

attaining strong financial results, great levels of individual drive, leading efficiency

and transformation and aligned performance appraisal and compensation structures.

De Waal (2007) defines a high performance organization as that which attains both

financial and non-financial performance success in a period of between five to ten

years better than other organizations in its peer group.

To categorize HPO characteristics, Kotter and Heskett (1992) framework was

merged with that of Scott Morton 2003 (De Waal, 2007). The four factors of Kotter

and Heskett which impact how people behave in organizations include; culture,

structure, leadership and external environment. Organizational culture attributes are

the policies and systems while the external environment attributes include competitors

and public institutions. Scott Morton’s framework adds to the external environment

attributes to include customers and business partners and expands the framework to

include technology, strategy and the design of an organization. The resulting

framework’s (Figure 2.1) factors influence how an organization performs which will

later determine if it will be a HPO or not (De Waal, 2004).

32



Figure 2. 1: HPO Framework Source: De Waal (2007)

De Waal (2008), in a study whose aim was to identify factors that determined

the continuous success of a high performance organization (HPO) did a meta-analysis

of 289 research studies into high performance. The study found out that, annually,

HPOs performed better financially than non-HPOs. Satisfied and loyal customers,

quality products and services and loyal employees were some attributes common to

HPOs in non-financial performance areas. The factors he identified as qualities for

continued performance of HPOs were: high management quality, culture of an

organization, long term commitment to stakeholders, continuous improvement and

innovation and lastly an organization that addressed workforce quality.

According to Kaufman and Goldstein (2008), there is no one path to success

since different leaders have contradicting techniques, strategies and tactics. In a study,

Kaufmann and Goldstein (2008), identified five leadership characteristics of

financially successful non-profit health care companies. Financially developed

33



companies have leaders who can visualize, engage and implement. A second activity,

was that financially successful organizations built and sustained a strong team.

Thirdly, Kaufmann and Goldstein (2008), think that strict planning is a major attribute

for many successful health institutions. Fourthly, they identified that a skillfully

executed plan by its leadership, most often enables an organization to achieve its

targets. Lastly, they mentioned building and maintaining credibility with key

constituents as an activity of successful organizations that achieve strong financial

results. Communicating with constituents according to the leaders interviewed in the

Kaufmann and Goldstein (2008) study is how they ensure an organization attains its

set objectives and performs well.

The Boston Consulting Group (2011) listed five elements that sustain

performance in an organization. They were of the view that company and people’s

potential propel performance and enable strategy. The elements they mentioned that

sustain performance were: leadership, design, people, change management and

culture and management. First, strategic thinking leaders devote resources, enable

engagement, drive transparency and ensure results delivery. Secondly, there is a need

to coordinate and link the organizational structure and individual roles since how an

organization is designed is important in helping it (organization) attain its strategic

objectives.

The last element is that for sustained performance, organizational strategies

should be effectively converted to people strategies that seek to attract and maintain

competent people. Also, Boston Consulting Group (2011) were of the opinion that

there are two main ways an organization can gain sustained competitive advantage.

First, organizations require ways to manage changes in strategy and culture. Second,

organizations should have the capacity to handle market changes. Communicating and

34



engaging with company stakeholders during change management is important, since

communication restores confidence and commitment. Achieving strategic goals by

high performance organizations according to Boston Consulting Group (2011),

requires a clear managed culture. Also, high performance organizations regularly

monitor how involved stakeholders are with the company and manage the

engagement.

According to Hagberg Consulting Group (n.d), a customer centric company, talented

employees, visionary leaders, cost cutting processes, expert marketers and a great

service or product etc. are all components that ensure the financial success of

organizations. Its research shows that the culture of a company can either be a

supporting or restraining component in establishing if it can attain its financial goals.

Yeramyan (2014) pointed out that there exists six defining traits of successful

modern day companies. The six defining traits include relentless innovation in all its

business operations like procurement, human resources, business development,

strategic planning and customer service etc. Secondly, modern day companies are

purposeful and this produces a competitive edge that is hard to recreate. Also, to be

one with the customer, is a totally new mentality about customer relationships that is

required for the modern day company. Embracing the customer, grants a company a

specific aspect, an aspect that is required to make excellent products and services

repeatedly, resulting into customer loyalty. Also, prosperous modern day companies

can reconstruct their work surroundings into successful environments – environments

that are flexible to organizational changes, resolve issues rapidly, have a necessary

strategy to outdo competitors and constantly attain remarkable results (Yeramyan,

2014).

35



Miller (2014) shared five characteristics by most successful organizations and

they included: Leadership, effective communication of overall strategy, customer

retention, shared knowledge across the organization and finally increasing or

decreasing speed based on indicators built into the business processes. Marshak

(2013) opines that key characteristics of a customer focused company include;

dedication to customer success, customer engagement from the start, dedication to the

customer by the entire organization, creating a customer focused culture, recognizing

customers across all business units, customer centered policies and procedures,

inspiring customer innovation and evaluating customer service. Marshak (2013)

added that this was because companies had realized the importance of customers to

the success of their businesses.

This study attempted to find out whether Airtel Kenya’s communication

strategies influence its financial performance. Reviewed literature indicated that that

there might be factors attributed to an organization’s financial success. This study

therefore established factors that were attributed to Airtel Kenya’s financial

performance in line with its second objective.

The Influence of Corporate Communication Strategies on Financial

Performance

Financial Performance

Nelling and Webb (2009) defined financial performance as an organization’s

general health within a given time frame and can be applied when creating contrasts

with companies in the same industry. The term also refers to the subjective measure

of how an organization uses assets from its main business to create revenue.

According to Aliata, Odondo, Aila, Ojera, Abong'o, and Odera (2012), profitability of

a company is its ability to earn profits in the present and the future as well. Profit

36



maximization is a major goal for for-profit organizations. Empirical evidence has

demonstrated that even organizations other goals like return on investment, return on

equity etc. usually execute a secondary role to the profit objective (Pandey, 2006).

Also, according to Dess, Lumpkin and Taylor (2005), organizations

implement strategic management to gain and maintain competitive advantage over

their peers. Strategic management involves actions and decisions firms undertake to

create and sustain competitive advantage. They add that at the center of strategic

management is the question pertaining to why some organizations outdo others. The

call is therefore for managers to opt for advantageous strategies that are sustainable

over time. Strategic management is aimed at general company goals, involves various

publics, short and long term objectives and determines a middle ground between

effectiveness and efficiency (Dess et al., 2005).

Njangi and Kombo (2014) added that for strategy to be implemented, plans

have to be translated into actions and then results. Organization performance is

improved by having a strategic process. Organizational performance entails repeated

actions to achieve organization goals, monitoring progress towards goal achievement

and making changes where necessary to attain set goals. Also, for sustainability

purposes, an organization should be relevant to its stakeholders and their changing

needs and be financially viable.

Measures of Financial Performance

Bhunia, Mukhuti, and Roy (2011) defined financial performance analysis as

an exercise towards establishing a company’s finances from its financial statements.

The objective of financial performance analysis is to establish an organization’s

efficiency and performance as indicated in its financial statements. Financial analysis

measures the company’s liquidity and profitability etc. to at least ensure that there is a

37



return to shareholder investment. Also, analysis helps a company to better its

competitive position in a market place. Further, financial performance analysis is a

chance for an organization to identify opportunities to better performance at different

departmental levels within a company (Bhunia, Mukhuti & Roy, 2011). The analysis

establishes the financial advantages and disadvantages of the company by rightly

determining the link between the financial position statement and comprehensive

income statement (Ali, 2013).

According to Munene (2009), suitable performance measures are those that

allow companies to aim their operations towards attaining their strategic goals. Return

on assets (ROA), return on sales (ROS) and return on equity (ROE) are some

accounting established performance measurements. Munene further added that to

calculate the metrics, for ROA, net revenue is divided by total assets, for ROS, net

revenue is divided by total sales and ROE, net income is divided by the common

equity.

Financial reports are a collection of records about an organization’s financial

results. Financial reports help managers formulate informed decisions. Reporting

financial matters is an avenue through which managers are liable to the resources

charged to them. Therefore, financial reports must ensure its information is clear and

comprehensible. It is not for the financial reports to eliminate complicated

transactions or over simplify complicated transactions that falsifies the information

but the stress on a clear and comprehensible report would be necessary during

financial reporting (Ali, 2013).

The Influence of Corporate Communication Strategies on Financial Performance

According to Argenti (2009), in 2006, Mattel, a toymaker company faced a

credibility crisis with its customers and investors when choking dangers and high

38



amounts of lead paint was found in many of its products. As a result, the company

was hit by a series of product recalls that caused its stock value to fall to a 25 percent

low in September, 2007. Aggressive action of using digital communications to deliver

messages to stakeholders by the company management helped avert the credibility

crisis. According to Grant (2007), Mattel’s businesses performed fairly well despite

the crisis that happened during the third quarter. Sales increase was realized in its

different brands that included girls’ and boys’ brands, Fisher, Hot Wheels and

Matchbox. Overall Mattel sales revenue was $1.84 billion that was a 3 percent rise

during the crisis period. Further, according to Rooney (2007), during the time the

crisis was at its peak, the company stock fell as low as 25 percent from its year-to-date

high, by September 2007, the stock had climbed up and was at 10 percent.

Top FedEx senior officials annually gather at its headquarters to evaluate

different risks faced by the company. The evaluation process involves looking at the

impact of risk to the business continuity and how the reputation of the organization is

affected in the process. Further, a survey is also done by FedEx to establish internal

and external stakeholder perceptions of the company since stakeholders affect how

the company performs (Argenti, 2009).

Argenti (2009) asserted that shareholders need straightforward clarifications

of a company’s financial and non-financial performance information. The author

mentioned Ernst & Young’s report from its Centre for Business Innovation that note

that non-financial metrics are equally important when trading stocks. Non-financial

metrics comprise an executable organizational strategy, credible leadership and an

organization’s capacity to acquire talented employees. A survey by McKinsey & Co.

established the importance of non-financials when a consideration is being made to

invest in a company. The survey found out that board practices was as important as

39



financial results for at least three quarters of institutional investors from Asia, Latin

America, Europe and the United States. Therefore, for corporates to represent itself

well in the financial arena, it should have investor relation professionals who possess

both financial and non-financial communication skills (Argenti, 2009).

SABMiller PLC, a beer producing company in South Africa had long-

established a repute among shareholders of its potential in managing brewers bought

from new markets. In 2002, its stock value started to plummet, a year after taking

over Miller Brewing Company for $5.6 billion. In an effort to comprehend the cause

of the rapid slump, management sought the assistance of Echo Research to analyze

financial media coverage of the company and pinpoint a potential catalyst.

Based on Echo’s findings, which compared coverage and analyst commentary

against SAB’s stock movement, the management understood which analysts and

journalists had the most impact on reported news about SAB’s stock. Furthermore,

the research identified the biggest factor contributing to the stock’s demise: Miller’s

ongoing and consistently poor performance. With this information, SAB executives

retooled their communication strategy to restore investor confidence. Since then, the

stock has been on the rise; case in point - media coverage and investor relations being

key drivers of financial performance (Argenti, 2009).

Kenya Commercial Bank’s image had been tainted by a series of loss making

scandals, mismanagement and unprofessional business practices and was in dire need

of a transformation in 2003/2004. In a study, Gikonyo (2005) confirmed that Kenya

Commercial Bank (KCB) used multifaceted corporate communication strategies

which contributed to its turnaround. The bank transformed both its visual and

corporate images through a blitz of advertisement and media campaigns. Also, they

40



later developed a Corporate Social Responsibility policy and sponsored events and

activities countrywide.

Gikonyo’s (2005) study found out that as a result of the transformation

strategies, the bank realized enhanced customer satisfaction (which was realized

through the bank’s new products and services) and its customer base increased by

eight percent. The increase in customer base resulted to profitability, which gave the

bank its strongest balance sheet in ten years. Consequent upon the transformation, its

shares increased in value at the Nairobi Stock Exchange, while its rights issue was

oversubscribed.

Former president of the drug store chain CVS Corp, Charles C. Conaway

explained that unless an organization had a targeted investor-relations program that

communicated its message, the organization was bound to get into trouble. CVS Corp

underwent restructuring in 1995 that resulted in a complete turnover of its

shareholders in the course of one year. To resolve the instability, CVS bolstered its

investor relations program and began actively recruiting longer-term institutional

investors to suit its new growth profile. In 2004, CVS won the Interactive Investor

Relations Award from the Web Marketing Association (Argenti, 2009).

Johnson and Johnson’s (J&J) Tylenol recalled in 1982, is held by many as the

‘gold standard’ of product recall crisis management. In fact, towards the end of

September 1982, seven people died after taking Johnson and Johnson’s painkiller

Tylenol. The cyanide-laced drugs, were then the company’s best-selling product.

Tylenol, then had almost 40 per cent of the market for painkiller drugs issued over the

counter (Argenti, 2009). According to Rehak (2002), just days of press reports about

the poisoning crisis, Tylenol sales had fell by almost 90%. Experts in fact foresaw an

end of the Tylenol brand and doubted whether the company would recover from the

41



crisis. Tylenol in 1981 accounted for 17 per cent of Johnson & Johnson’s net revenue.

Two months later, supported by an extensive media campaign, Tylenol was back in

the market. One year later, Tylenol’s stock price that had gone down to 7 percent

from a previous 37 percent due to the crisis had risen to 30 percent.

According to Mihai (2017), organizational performance can be construed in

two variable aspects; financial performance variables and non-financial performance

variables. Financial performance variables include the measurements on revenue,

profits, Return on Assets (ROA), Return on Capital Employed (ROCE), and Return

on Equity (ROE) etc. Non-financial performance aspects include attainment of

organizational mission and strategic plans, employee performance and productivity

amongst others.

Mihai (2017) posited that measuring the performance of a company can also

be seen from three levels; management innovation, employees’ productivity and

marketing. Marketing she noted included an organization attaining its mission,

growing its market share, producing quality products and services and an organization

having a competitive advantage in its industry. Generally, corporate communication’s

role is to communicate the direction of the company to its stakeholders. This in

essence shows how the attainment of an organization’s mission and strategic plans is

dependent on corporate communication’s messaging. Corporate communication helps

a company reach out to its internal and external publics through the use of different

communication channels. Failure to communicate or wrong communication, means an

organization will not attain its set mission and strategic plans (Mihai, 2017).

Zerfass and Sherzada (2015) examined how Chief Executive Officers (CEOs)

of German companies perceived the valued of strategic communications to their

organizations. The study concluded that the company heads valued corporate

42



communications and its role in contributing to the organizations’ overall goals. The

executives interviewed noted that various communication activities influenced the

reputation of the organization. In fact 70.4% of the respondents noted that public

opinion was strongly considered when formulating strategic plans for the company.

Zerfass and Sherzada (2015), therefore conclude that by including public opinion in a

company’s strategic plans shows that communication has an effect on the attainment

of company objectives. The CEOs further added that communication contributed to

the success and financial performance of the organization with communication

activities like internal communication, image and reputation management and

stakeholder relations management.

According to Vig, Dumicic and Klopotan (2017), the changing environment of

an organization, has implications on its reputation. Corporate communication function

in reputation management is to build and maintain a strong organizational reputation

by ensuring that stakeholder perceptions align to the company identity and values. In

a survey in Croatia, Vig, Dumicic, and Klopotan (2017), researched on how the

reputation about organizational products and services, leadership and vision and

employment conditions influenced an organization’s performance. The research

showed that the reputation on organization’s products and services, leadership and

working conditions impacted its financial performance. Also, the research showed

that the reputation on products and services, leadership and vision and working

condition specifically affected financial performance measures of ROCE, ROA and

ROE. The research concluded that organizational reputation management which is a

corporate communication function has an effect on the financial performance of an

organization.

43



Shamsan and Otieno (2015) opined that clear communication strategies are

important in providing guidelines directed towards the improvement of an

organization’s image to its targeted public. They note that communication strategies

have helped companies identify and segment stakeholders who influence the financial

performance of the organizations. Further, Shamsan and Otieno (2015) pointed out

that when a company knows its targeted stakeholders, the company is able to

implement its strategic plans that seek to improve its financial performance. A well-

articulated communication plan can help a company attain its long term vision. Lastly,

communication strategies are essential in the creation of the alignment of an

organization. Organization alignment refers to the extent where parts of an

organization are arranged to support the mission and vision of the company.

Corporate communication just like other organizational functions seek to

create financial value to a business. Corporate communication is therefore tasked to

primarily create communication activities that work towards creating value to the

organization (Volk, Berger, Zerfass, Bisswanger, Fetzer, & Köhler, 2017). According

to Volk et al. (2017,) first, corporate communication helps an organization in various

functions like creating publicity, customer satisfaction and employee loyalty.

Communication messaging helps create publicity on organizational products and

services, and company strategies therefore keeping the company functioning.

Also, constant communication to various stakeholders provides value to key

organizational publics. Secondly, Volk et al. (2017) noted that communication also

creates non-financial values to companies like; a positive reputation, brand loyalty and

an understood corporate identity. Lastly, communication is important as it supports

the organization’s strategic positions in communicating various aspects the

organization deems important. By therefore evaluating communication responses to

44



stakeholders, corporate communication makes recommendations that could improve

the company’s strategies. In the process, corporate communication adds value to the

organization by helping the company identify its strategic competitive advantages.

Volk et al. (2017) proposed that to successfully define the value of communications to

an organization’s performance; organizations should set objectives, specify

communication goals, spell out specific deliverables, identify suitable research

methods and finally determine the evaluation process of the communication.

Understanding the influence of corporate communication strategies on financial

performance is relevant to this study as it helped in establishing Airtel Kenya’s

corporate communication strategies influence on its financial performance.

Empirical Literature Review

Various studies have shown the importance of corporate communication in

today's world. This is particularly important since each business venture has many

stakeholders as pointed out by the study “how corporate communication influences

strategy implementation, reputation and the corporate brand: An exploratory

qualitative study’ by Argenti and Forman (2005) in the corporate reputation review

journal. The study shows that these investors include upper management as well as

internal stakeholders (staff).

Other scholars have tried to link organizational management to the capacity of

stakeholders. In the book ‘excellent public relations & effective organizations: a study

of communication management in three countries’ in New Jersey, Grunig, Grunig,

and Dozier (2002), for example, found out that the capacity of managers in

communicating to the lower level staff should be enhanced. The study identified

major stakeholders as employees, board members, investors, local communities and

45



government officials among others. Communication channels they noted should

enhance effective communication between the different stakeholders.

In New York in 2003, the findings of the study ‘Rebuilding Confidence in

Financial Reporting: An International Perspective’ by the International Federation of

Accountants (2003) showed that managers of organizations have difficulty

communicating with the appropriate levels with clarity and detail. As such corporate

communication officials ought to enhance the communication capacity of such

managers so as to enhance their communication efficiency. David (2009), in his

research on ‘Strategic Management: Concepts and Cases’ in South Carolina in 2009,

points out that organizations that communicate more effectively have more chances of

having more successful projects. This is because management can ensure the

systematic realization of organizations goals and restructure in line with the needs of

the organization.

As far as the production process of organizations is concerned, various

scholars have tried to determine the relationship between such organization

communication and the productivity of organizations. In the Harvard’s Business

Review, Ibarra and Hunter (2007) in their study ‘How Leaders Create and Use

Networks’ found out that corporate communication enhances the capacity of

employees to work effectively with their colleagues as well as with the top

management. Furthermore, in a study published in the College Composition and

Communication Journal, ‘Analyzing Audiences’ by Park (2011), it was found that

communication is essential in enhancing increased productivity at the workplace. In

this light, managers ought to ensure clear and relevant workplace messages that can

contribute to such productivity. Park's study is essential since it attempts to establish

how communication is linked to work productivity.

46



As far as the confidence of clients and investors is concerned, various scholars

have added their voices on the subject. Hill (2003) in the Harvard Business Press

(Boston) for example elicits in the study ‘Becoming a Manager: How Managers

Master the Challenges of Leadership’ that communication managers should attempt to

build the confidence of organizational outsiders. The confidence of these stakeholders

is essential in enhancing the productivity of the organization.

Pulford and Colman (2005) in Stockholm attempted to establish how

communication and stakeholder confidence enhancement were linked. The study

established that clear communication enhanced the belief level of stakeholders in the

goals of an organization. Sniezek and Van Swol (2001) study on ‘Information

Sampling and Confidence within Groups and Judge Advisor Systems’ in the

Communication Research Journal elucidated that efficient communication is

positively correlated with the confidence that the stakeholders of an organization have

with the organization. To this end, corporate organizations have to ensure clear

communication with stakeholders such as clients, investors among others.

47



Conceptual Framework

Financial Performance Communication Strategies

(Dependent Variable)

(Independent Variable)

Attributes:

Attributes: Revenue Growth.

Organization’s Overall

Market Share Growth.

Strategy.

Growth of Shareholder Analyzing the

value.

Relevant

Customer Satisfaction Constituencies.

and loyalty growth. Delivering the

Message Appropriately.

Analyzing constituency

responses to determine

whether

communication was

successful.

Figure 2. 2: Conceptual Framework

Source: Researcher (2018)

Discussion

This study was based on two variables; corporate communication strategies

and financial performance. The study specifically explored the influence of corporate

communication strategies on financial performance. This study conceptualized that

communication strategies attributes (independent variable) determined the financial

performance of an organization (the dependent variable). Even before the collection

of data, intuition and existing data favored the prediction that building blocks of a

communication strategy tended to influence its financial performance.

For a company to achieve financial performance success, it needs tactics to

determine how to get there. Communication is one such tactic that will help the

organization to actualize its strategy towards achieving financial performance. This

48



conceptual framework shows that a communication strategy involves four major

components: An organization’s overall strategy, analyzing the relevant constituencies,

delivering the messages appropriately and determining whether the communication

was successful or not. An organization that sets out to communicate for a particular

reason desires specific results from the communication. Therefore this conceptual

framework illustrates on its right side that in the event that an organization puts out a

communication strategy to influence its financial performance, then it will expect to

see specific results from its communication. This framework proposes that there will

be an overall improvement in the organization’s financial performance as a result of

its communication strategy. According to Munene (2009), there are various ways an

organization can measure its financial performance. They include an organization’s

Income statement, Return on Assets (ROA), Return on Capital Employed (ROCE)

and lastly Return on Equity (ROE). This study was based on the fact that an

organization with a communication strategy that clearly spells its strategic intent will

realize growth in revenues, growth in market share, Shareholder value growth and

customer satisfaction and loyalty growth.

The Systems Theory and the Excellence theory were incorporated into this

study to show how critical it is to have a coherent communication strategy as a

measure towards an organization’s financial performance. The theories were

incorporated because they showed the strategic role of communication in helping an

organization achieve its objectives. Abdulla and Antony (2012), note that the systems

theory explains the communication events occurring within the organization (system)

and the outcomes of communication interactions. Further, according to the systems

theory, communication holds the system to the outside environment in an effective

stability that will ensure system development and objective achievement. The systems

49



theory fitted this conceptual framework as it shows corporate communication

facilitating the achievement of the organization’s objectives by its communication

strategy attributes and thus helping in the realization of company objectives like

growth in; revenue, market share, shareholder value and customer satisfaction and

loyalty.

The Excellence theory sought to clarify the value of communication to

organizations and to what extent communication contributed to the achievement of

organizational objectives. Some of the communication theories that excellence theory

embodies relevant to this conceptual framework include: communication, strategic

management, stakeholders, communication models, public relations assessment,

communications return-on-investment etc. The theory posits that communication from

the organization is important to stakeholders since quality, long-term relationships are

cultivated. The theory further reveals that valuable relationships to an organization

leads to reduced legal cases, positive publicity and increased revenue due to

producing products and services needed by stakeholders. The Excellence Theory fits

this conceptual framework by showing how various communication strategy attributes

i.e. organization overall strategy, stakeholders, the message and analyzed stakeholder

response contributed to financial performance attributes; revenue, market share,

shareholder value and customer satisfaction and loyalty.

Summary

Communication is crucial in corporate organizations. It is important for

communicators in these organizations to recognize the factors that influence financial

performance through the communication strategies used to reach target stakeholders.

In this chapter, various factors that influence corporate communication strategies are

explored. The chapter has also presented the theories that informed this study,

50



emphasizing both general and relevant empirical literature to the influence of

corporate communication strategies on the financial performance of Airtel Kenya.

This chapter on literature review formed the basis for the kind of data collected. Since

the data was collected in Nairobi County, specific data collection methods were used

in achieving the objectives. The methodology used in this study is the topic of

discussion in the next chapter.

51



CHAPTER THREE

RESEARCH METHODOLOGY

Introduction

This chapter discusses the methodology that was used in conducting this

study. Research is an active, diligent and systematic process of inquiry to discover,

interpret and revise facts (Mugenda & Mugenda, 2003). Methodology refers to a

systematic way of solving a research problem (Kothari, 2004). This study aimed at

producing a greater understanding of the influence of corporate communication

strategies on the financial performance of an organization. The chapter has

summarized and explained the research methodology including the research design,

sampling and sample size, population targeted by the study, data collection tools,

procedure of data collection, pretesting, data analysis plan and finally ethical

considerations observed by the study.

Research Design

Research design refers to the manner in which researchers go about the

collection and analysis of data to achieve research objectives (Kothari, 2004). A

research method can also be thought of as the structure of research (Kombo & Tromp,

2006). This study adopted the use of descriptive survey research design. Kothari

(2004) argued that this type of research is a description of the state of affairs as they

exist at the time of the study. In reference to this study, descriptive survey research

was used to collect information that demonstrated Airtel Kenya’s financial

performance and its corporate communication strategies. The information was then

used to determine Airtel Kenya’s corporate communication strategies influence on its


52



This study applied both qualitative and quantitative approaches to research.

Qualitative approach was used in interviews with Airtel Kenya’s Corporate

Communication Department where they provided details of whether corporate

communication strategies influenced the financial performance of Airtel Kenya.

Quantitative research, on the other hand was utilized when analyzing questionnaires

from Airtel Kenya’s customers in a bid to establish whether there existed influence of

corporate communication performance on financial performance.

Population

A population is the group to which the results of the study are to be

generalized and the larger group from which the sample is taken (Kombo & Tromp,

2006). The population of interest in this study were stakeholders of Airtel Kenya. In

this study, the respondents were Airtel Kenya’s Corporate Communication

Department and its customers. Therefore, this study targeted all the 7,002,464 Airtel

Kenya customers as per the CAK (2015) report. This study also targeted 5 Corporate

Communications Department employees at Airtel Kenya.

Target Population

Airtel Kenya Corporate Communication Department was considered in this

study as it was considered a key player in the formulation and eventual

implementation of an organization's communication strategy and general financial

performance of the organization. Airtel Kenya’s Corporate Communication

Department had 5 employees. Initially all the 5 employees of the department were to

be interviewed for the study. The study was however done at a time when Airtel

Kenya was experiencing staff layoffs and resignations. As a result the

Communications Director and Policy Manager indicated that the Corporate

53



Communications Officer’s view would represent the view of the whole department.

Therefore, only the Communication Officer was interviewed for this study.

Airtel Kenya customers also formed part of this study. Customers are

purchasers of Airtel Kenya goods and services be they individual or corporate

customers. In this study, the customers were taken as the receivers of the

communication strategies.

There are 24 Airtel Service Centers (Shops) in Kenya (“Services Centers”,

n.d.). Of the 24 Services Centers, Nairobi County has 12 Services Centers. Airtel

Kenya Services Centers include the following: Parkside Store, Koinange Store, Sarit

Centre Store, TRM Store, Greenspan Store, Oval Shop, Thika Shop, Yu Shop,

Prestige Shop, Village Market, Junction, Westgate, Garden City, Mombasa Moi

Avenue Store, Mombasa Nyali Store, Eldoret Store, Nyeri Store, Kisumu Store,

Kakamega Store, Embu Store, Mtwapa Shop, Kericho Shop, Meru Shop and Nakuru

Shop.

The target population for this study was derived from Nairobi County Shops.

The Nairobi county shops were Parkside Store, Koinange Store, Sarit Center Store,

TRM Store, Greenspan Store, Oval Shop, Yu Shop, Prestige Shop, Village Market,

Junction, Westgate, and Garden City. The choice of Nairobi county shops was due to

the fact that, the shops represented the demographics needed for this study i.e. Airtel

Kenya Customers, representing the demographics of the total population of Airtel

Kenya in general. It is also worth noting that those who visit Airtel Kenya shops are

those who mostly seek Airtel Kenya products and services (“Airtel opening more

shops to improve customer service”, 2010; Bharti Airtel Limited, 2015). Nairobi

County was chosen because of its cosmopolitan and diverse nature.

54



Sample Size

Convenience sampling technique was used to identify the 248 respondents fill

the questionnaires. According to Kothari (2004), convenience sampling is when

population elements are selected for inclusion in the sample based on the ease of

access, while Mugenda and Mugenda (2003) observed that convenience sampling

involves selecting cases or units of observation as they become available to the

researcher. To begin with, the researcher found out the average number of customers

who visited Koinange Store, Sarit Centre Store, TRM Store and Greenspan Store per

day from the respective Shop Managers. These numbers were then used to calculate

the sample size. Sample sizes were determined using the following equation

developed by Yamane (1967):

n = N/1+N*(e) 2

Where n is the sample size, N is the population size and e (0.05) is the level of

precision.

Table 3. 1: Sample Size

Airtel Service Sub- Population Sample Centre (Shop) counties (Average number of Size

customers per day (n) (N)

Sarit Centre Westlands 80 67 Store

Koinange Store Starehe 150 109 TRM Store Kasarani 50 44

Greenspan Store Embakasi 30 28

Total 310 248 Source: Shop Managers

55



Sampling Technique

For the purposes of this study, convenience sampling technique was used to

identify the respondents to fill the questionnaires. Purposive sampling on the other

hand was used to identify a respondent from Airtel Kenya’s Corporate

Communication Department; the Corporate Communication Officer of Airtel Kenya.

Data Collection Instruments

This study made use of both primary and secondary methods of collecting

data. The primary data involved both quantitative and qualitative data. In this study,

primary data was collected through the use of a questionnaire for quantitative data and

interview guide for qualitative data. The questionnaires used for quantitative data

were structured and unstructured, concise and comprehensive with a few multiple

questions.

Data Collection Procedure

The researcher obtained the approval letters including Daystar clearance letter

and National Commission for Science, Technology and Innovation NACOSTI) prior

to conducting data. Since the number of customers who visited the shops varied per

day, the researcher and research assistants issued questionnaires to consenting

respondents till the 248 targeted number of respondents were reached. Issuing of the

questionnaires was done after customers had received the service that made them visit

the shop. All the questionnaires from the customers were collected immediately after

they were filled as this was a one-time opportunity to see the respondents. An

interview was conducted on a Communication Officer, an employee of Airtel Kenya’s

Corporate Communication Department. Secondary data on Airtel Kenya financial

56



information was collected using a myriad of sources which included Annual Reports

from Bharti Airtel, the Internet and Bharti Airtel website.

Pretesting

Before the questionnaire was administered, it was pretested. It is wise to carry

out a pretest, a rehearsal of the main study prior to disseminating the research tool

according to Kothari (2008). The reason for the pretest is to refine the questionnaires

so that respondents do not experience challenges responding to the questions.

Pretesting was done to find out the applicability of research tools. Pretesting

helped in finding out how the research tools applied to the respondents. For this

research, a pretest was done on 10 Airtel Kenya customers at Daystar University,

Nairobi Campus. These questionnaires were excluded from those that were finally

administered for the study. A pretest was also done on Airtel Kenya’s Communication

officer to test the interview guide. The aim of the pretest was to determine errors in

the questionnaire and the interview guide and assist in revising weakly framed

questions and remove those that were unacceptable and were likely to be answered

improperly. Purposive sampling was applied in conducting the pretest by sampling

specifically Airtel Kenya customers from Daystar University and Airtel Kenya’s

Communication Officer.

Data Analysis Plan

Data analysis is the procedure of creating order, formation and interpretation

to the large amount of information gathered. The objective of data analysis is to

produce findings that correlate with the problem prompting the study and to present

understanding into the decision-making process (Mugenda & Mugenda, 2003). In this

study, data from structured questionnaires (quantitative data) was cleaned, coded,

57



keyed and processed quantitatively using Statistical Package for the Social Sciences –

Version 20 (SPSS) software.

Secondary data sources and qualitative data (from the interview) involved the

identification, examination, and interpretation of patterns and themes in textual data.

This was done by processing the information and recording detailed notes. The

researcher then combed the raw data to establish what was important and changed the

data into an easier format that could help answer the research questions. Identifying

meaningful patterns and themes involved analyzing the content and interpreting their

meanings. The analyzed content was then grouped into themes to help answer the

research questions. Once the data was collected, it was organized so as to determine

and concentrate on what was important. The data was then transformed into an easier

format that could help answer the research questions.

Ethical Considerations

The ethical considerations in this study were impartiality, confidentiality, and

independence. It is also worth noting that matters about internal issues of an

organization are private and sensitive; therefore respondents were assured of utmost

confidentiality. Consent was sought from the respondents; who were not pressurized

into answering the questionnaires. If they felt vulnerable, they would not release

pertinent information. In this study, permission was obtained from Airtel Kenya to

conduct this research in their organization. Permission was also obtained from

National Commission for Science, Technology and Innovation (NACOSTI) to

perform this research.

The respondents were accorded the independence of answering the questions

they felt comfortable with. Participants were informed of the confidentiality of the

information they divulged and were also briefed about the purpose of the study.

58



Therefore, participants who felt uncomfortable, stopped or chose not to answer a

question or the entire questionnaire.

Summary

This chapter has presented the methods that were used to carry out this

descriptive survey study. The targeted population were Airtel Kenya’s Corporate

Communication Department and Airtel Kenya customers. It also examines the

research design, the population of the study, sample size and sampling technique, data

collection instruments, data collection procedure, pre-testing, data analysis plan and

ethical consideration. Hence, the chapter clearly shows how data was collected to

answer the research questions of this study effectively. The next chapter analyzes the

collected data, presents and interprets it based on the research findings.

59



CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

Introduction

Chapter four presents the findings of this study carried to investigate the

influence of corporate communication strategies on the financial performance of

Airtel Kenya. The chapter provides an analytical report of discussion as well as

presentations of the analysis showing significant findings of the study in relation to

the objectives of this research.

Presentation, Analysis and interpretation

Response Rate

The number of questionnaires that were administered 248 out of which 245

were properly filled and returned. This represented an overall successful response of

98.8%. A response rate of 50% - 60% is considered sufficient, while a rate of 61-70%

is good and a rate above 70% is considered excellent (Mugenda & Mugenda, 2003).

Demographic Characteristics of Respondents

The research sought this information to determine the respondents’ profile.

The study involved customers of Airtel Kenya from Koinange Store, Sarit Center

Store, TRM Store and Greenspan Store in Nairobi County. 248 filled responses were

returned, representing a 100% response rate. The response rate implied that the

information obtained was reliable and hence significant to the research since it

enabled the research to establish how communication strategies influenced financial

performance. Airtel Kenya Corporate Communication Department was considered in

this study as it was considered a key player in the formulation and eventual

implementation of an organization's communication strategy and general financial

performance of the organization. The importance of demographics in this study was

60



essential for the establishment of whether the people in this research were a

representative sample of the target population for overall purposes.

Gender vs. Age

Majority of the respondents (69.0%) were male, and only 31.0% were female

as presented in Table 4.1. Notably, 41.2% of the respondents who were male fell in

the age range of 21-30 years, 4.1% were less than 20 years, while those respondents

who were male aged 31-40 years were 20.4%. The respondents who were of ages 41-

50 and male were 2.4% while the respondents who were 51 years and above and male

were 0.8%. None of the respondents were female and in the age range of 51 years and

above. The majority of the respondents who were female were 15.9% and aged 21-30

years, 1.2% were less than 20 years, while those in the age range of 31-40 years were

11.0% and 2.9% of the female respondents were in the age range of 41-50 years.

The diversity of the ages meant a perfect comparison regarding experience of

Airtel Kenya services. The age diversity was a significant element that helped the

research to examine how corporate communication activities of Airtel Kenya had

affected the experiences of different age groups and gender. Also, age and gender

are two elements that hugely impact a person’s responsibility in the community thus

the need to include them in this study.

Table 4. 1: Gender of Respondents Frequency Percent

Male 169 69.0

Female 76 31.0

Total 245 100.0

61



Table 4. 2: Gender vs Age Range

Age Range Total Less 21-30 31-4041-50 51 years than 20 years years years and years above

Male 10 101 50 6 2 169

4.1% 41.2% 20.4% 2.4% 0.8% 69.0%

Female 3 39 27 7 0 76

1.2% 15.9% 11.0% 2.9% 0.0% 31.0%

Total 13 140 77 13 2 245 5.3% 57.1% 31.4% 5.3% 0.8% 100.0%

Education Level of Respondents

Table 4.3 shows that the majority of the male respondents at 34.2% had

diploma level of education, 0.8% had primary education, while 8.6% had secondary

education, 19.3% had undergraduate degrees, while 6.2% had post-graduate degrees.

From the data in Table 4.3, the majority of female respondents at 13.2% were diploma

holders. No female fell under the primary level of education, while 3.3% of the female

respondents had secondary level of education, 9.9% were undergraduate, while 4.5%

had post-graduate degrees.

This observation implies that the research involved individuals with all levels

of education thus it could mean that the study cut across respondents with all levels of

education hence presenting data that was viable and unbiased. Further, more often

than not, there are clear differences in opinion between respondents with different

educational levels. Also, the level of education gives an impression of a respondent’s

income, socio-economic status etc. therefore the importance of including the

education element in this study.

62



Table 4. 3: Gender and Highest Education Level Education Level Total

Primary Secondary Diploma Degree Post-

graduate

Male 2 21 83 47 15 168

0.8% 8.6% 34.2% 19.3% 6.2% 69.1%

Female 0 8 32 24 11 75

0.0% 3.3% 13.2% 9.9% 4.5% 30.9%

Total 2 29 115 71 26 243

0.8% 11.9% 47.3% 29.2% 10.7% 100.0%

Employment Status of Respondents

The majority of the male respondents at 31.5% were self-employed, 22.4%

were formally employed, while 14.5% were unemployed. On the contrary, 12.4% of

the female respondents were self-employed, 11.6% were formally employed and 7.5%

were unemployed. This implies that the study involved individuals with different

employment levels to get different views of customers with different employment

levels. Table 4.4 represents the information on the employment status of the

respondents.

Table 4. 4: Employment Status of Respondents Employment Status Total

Formally Self Not

Employed Employed Employed

Male 54 76 35 165

22.4% 31.5% 14.5% 68.5%

Female 28 30 18 76

11.6% 12.4% 7.5% 31.5%

Total 82 106 53 241

34.0% 44.0% 22.0% 100.0%

63



Corporate Communication Strategies of Airtel Kenya

Duration in Years the Respondents Had Been Customers of Airtel Kenya

A majority of the respondents at 65.3% had been customers of Airtel Kenya

for between 1-5 years. The small percentage 1.6% however could not remember the

number of years they had been customers of Airtel Kenya. A considerable proportion

(16.3%) had been with Airtel Kenya for 5-10 years. Those who had been with the

company for less than 1 year were 13.5%, while those who had been subscribers for

10 years and above were 3.3%.

Table 4. 5: The length of Time Respondents Have Been Customers of Airtel Kenya

Frequency Percent

Less than 1 year 33 13.5

1-5 years 160 65.3

5-10years 40 16.3

10 years and above 8 3.3

Can't remember 4 1.6

Total 245 100.0

Examining the duration the respondents had been customers of Airtel Kenya

helps in predicting their loyalty to the company and the much the company has done

to retain the customers. This can be interpreted to mean that, the fact that majority of

Airtel Kenya customers have been retained for a period of 1-5 years, may indicate that

they were satisfied by the quality of service they received from Airtel Kenya.

Customer loyalty could also be attributed to customers’ belief that they were receiving

quality service for their money. It could also mean that Airtel Kenya had worked

towards strategies of ensuring it built and maintained relationships with its customers

since the organization understood that customer retention was essential in growing a

successful business.

64



Influences for Respondents’ Airtel Kenya Subscription

From the study, 76.3% of customers were influenced to join Airtel Kenya by

family and friends. Airtel Kenya promotions influenced 53.9% of the respondents,

while Airtel Kenya products and services influenced 47.8%, followed closely by

Advertisements by Airtel Kenya that influenced 22.0%. Least among the influencing

factors was Airtel Kenya Roadshows at 12.7%. Other influencing factors at 2.0% gave

factors like Airtel Internet services and Airtel Conference. Table 4.6 below shows the

medium that influenced the respondents to subscribe to Airtel Kenya.

Table 4. 6: Influences of Airtel Kenya Subscription Responses Percent of

N Percent Cases

Advertisements by Airtel 54 10.3% 22.0%

Kenya

Airtel Kenya products and 117 22.2% 47.8%

services

Family and Friends 187 35.6% 76.3%

Airtel Kenya Promotions 132 25.1% 53.9%

Airtel Kenya Roadshows 31 5.9% 12.7%

Other 5 1.0% 2.0%

Total 526 100.0% 214.7%

Through establishing who or what influenced customers to subscribe to Airtel

Kenya, the research was able to ascertain the level of influence of different factors

with corporate communication strategies influencing majority of the respondents.

Corporate communication strategies by the organization include advertisements,

products and services, promotions and road shows. It seems Airtel Kenya corporate

communication strategies had a total combined influence of 136.4%. This shows how

corporate communication strategies formed an avenue where a potential customer’s

65



opinion was shaped before deciding to purchase a product or a service from the

organization. It also means that corporate communication strategies ultimately had an

influence as to whether someone decided to be an Airtel Kenya customer or not.

Referrals

Asked on whether they had referred their friends to join Airtel Kenya, 94.7%

of the respondents agreed, while only 5.3% disagreed. Those who referred others cited

various reasons like the affordability of Airtel Kenya services, Airtel Kenya

accommodated business demands, affordable call rates and longer talk time,

affordable network transcriptions, affordable services, Airtel Kenya had a wide

variety of choices to choose from, and that Airtel Kenya was a friendly network to use

among other reasons. Those who said they didn’t refer anyone to Airtel Kenya cited

them already being in other competitive networks as the reason.

Table 4. 1: Whether Respondents Had Ever Recommended Airtel Kenya to

their Friends

Frequency Percent

Yes 232 94.7

No 13 5.3

Total 245 100.0

These findings imply that most respondents based their referral decisions on

the experiences they had had with Airtel Kenya products and services. It could also be

said that Airtel Kenya customers trusted the level of treatment and experience they

had with the organization, hence ended up recommending the organization to their

friends.

66



Channels of Communication

On the channels of communication through which the respondents received

information about the products offered by Airtel Kenya, 75.1% cited television,

63.3% radio, 73.5% internet/website, 73.1% newspaper, 71.8% Magazine, 57.6%

promotional leaflets, 46.1% family and friends. Facebook had 39.6%, Twitter 22.4%

and SMS 17.6%. Road shows had 6.5% of the respondents, Airtel Customer care was

4.1% and Sales People was 10.2%.

Table 4. 7: Communication Channels Frequencies

Responses Percent of Cases

N Percent

Television 184 13.4% 75.1%

Radio 155 11.3% 63.3%

Internet/Website 180 13.1% 73.5%

Newspaper 179 13.0% 73.1%

Magazine 176 12.8% 71.8%

Promotional Leaflets 141 10.3% 57.6%


Facebook 97 7.1% 39.6%

Twitter 55 4.0% 22.4%

SMS 43 3.1% 17.6%

Airtel Kenya Customer Care 10 0.7% 4.1%

Sales People 25 1.8% 10.2%

Road Shows 16 1.2% 6.5%

Total 1374 100.0% 560.8%

The most preferred channel was television with 34.3% respondents, followed

by radio with 11.0%, Newspaper had 10.6%, SMS had 10.2%, Magazine had 9.8%,

Facebook 9.4%, Family and Friends 8.6%, Internet/website had 5.7%, Twitter 4.9%,

Promotional leaflets 3.7% and sales people 1.6%. The least preferred channel was

customer care which had 0.8% of the respondents.

67



Table 4. 8: Preferred Channel Frequencies


N Percent

Television 84 31.0% 34.3%

Radio 27 10.0% 11.0%

Internet/Website 14 5.2% 5.7%

Newspaper 26 9.6% 10.6%

Magazine 24 8.9% 9.8%

Promotional Leaflets 9 3.3% 3.7%


Facebook 23 8.5% 9.4%

Twitter 12 4.4% 4.9%

SMS9 25 9.2% 10.2%

Airtel Kenya Customer Care 2 0.7% 0.8%

Sales People 4 1.5% 1.6%

Total 271 100.0% 110.6%

These results indicate that Airtel Kenya used a variety of communication

channels to deliver its messages to its customers. The results might also imply that

Airtel Kenya customers preferred channels of communication for receiving Airtel

Kenya information. That the majority of respondents received their communication

from radio and television shows the significant role that radio and television played in

passing Airtel Kenya information to its customers. The responses also imply that

Airtel Kenya presupposed that no one communication channel was enough to reach its

customers and therefore a need to incorporate different types of communication

channels. The fact that television appealed to most Airtel Kenya customers can be

accredited to the fact that the research was based in an urban setting (Nairobi County)

and since Nairobi has access to electricity, then it is assumed that most respondents

had access to televisions.

68



Effectiveness of a Communication Channel

On effectiveness of a communication channel rating, it was found out that

80.0% of the respondents rated a communication channel as effective because the

language used was persuasive, 77.1% because images used were attractive, 63.7%

because the words used were appropriate, 54.7% because the information provided

was clear and 18.4% because the message was timely.

Table 4. 9: Channel Effectiveness Frequencies

Responses Percent of

N Percent Cases

The Information was Clear 134 18.5% 54.7%

The words were persuasive 196 27.0% 80.0%

The images used were attractive 189 26.1% 77.1%

The words were appropriate 156 21.5% 63.7%

The message was timely 45 6.2% 18.4%

Other 5 0.7% 2.0%

Total 725 100.0% 295.9%

The results indicate that Airtel Kenya customers had various reasons as to

what they considered an effective communication channel. Data revealed that Airtel

Kenya used different creative concepts on its messages to appeal to its customers like

the use of visual stimuli and catchy slogans.

Influence of Corporate Communication Strategies on Financial

Performance To gauge the influence of the Airtel Kenya’s

corporate communication

strategies on its financial performance, several questions on Airtel Kenya’s corporate

communication strategies were administered to respondents to indicate whether they

strongly agreed, agreed, were undecided, disagreed or strongly disagreed. The

69



strongly agreed and strongly disagreed answers were considered most because they

represented a strong stand for an idea. 66.8% of the respondents strongly agreed that

the information communicated by Airtel Kenya strongly met their needs. 0.8%

however strongly disagreed that information communicated by Airtel Kenya met their

needs. 22.8% of the respondents selected the agreed option, 7.1% were undecided

while 2.5% disagreed.

Table 4. 10: Whether the Information Communicated by Airtel Kenya Met

Respondents’ Needs

Frequency Percent

Strongly agree 161 66.8

Agree 55 22.8

Undecided 17 7.1

Disagree 6 2.5

Strongly Disagree 2 .8

Total 241 100.0

It is likely that Airtel Kenya’s information was effective as majority of

respondents acknowledged that they had their needs met by the organization. These

findings may mean that Airtel Kenya knew what was important to its customers and

their expectations regarding services and products the company offered. Further, it

could also mean that Airtel Kenya had accorded its customers excellent service by

solving their problems and addressing their needs. This in effect had helped Airtel

Kenya solidify its relationship with its customers and this is likely to last for many

years.

At b52.0%, the respondents strongly agreed that they got a strong desire to try

out an Airtel Kenya service after they got communication about the service. On the

other hand, 1.2% of the respondents strongly disagreed with that. 34.0% of the

respondents selected the agree option. The results indicate that respondents respond

positively to communication from Airtel Kenya about its services. This means that

70



communication from Airtel Kenya is effective as respondents afterwards are prompted

into action of trying out a service from the organization. Communication here serves

as a valuable reinforcement tool that solidifies the taking up of services by Airtel

Kenya customers.

Table 4. 11: Whether Respondents Got the Desire to Try Out Airtel Kenya Service

After Communication about the Services

Frequency Percent


Agree 83 34.0

Undecided 25 10.2

Disagree 6 2.5

Strongly Disagree 3 1.2

Total 244 100.0

At 55.1%, respondents strongly agreed that they got a desire to purchase an

Airtel Kenya product after a communication about the product, 1.6% however

strongly disagreed with that. Those who selected agree option were 27.6% of the total

respondents. 2.9% respondents disagreed and 12.8% were undecided. This can be

interpreted to mean that Airtel Kenya communication influences its customers buying

decisions as a result of having communicated about the product. Since the

communication informs Airtel Kenya customers about the organization’s products,

communication also serves the purpose of convincing customers to take up the

product. Due to the fact that most responses strongly agreed to purchase a product,

this becomes revenue to the organization.

71



Table 4. 12: Respondents Got the Desire to Purchase a Product from Airtel Kenya

After a Communication about the Product

Frequency Percent


Agree 67 27.6

Undecided 31 12.8

Disagree 7 2.9


Total 243 100.0

At 50.0%, the respondents strongly agreed that they would inform others about

Airtel Kenya’s products and services, while 0.8% of the respondents strongly

disagreed. Similarly, 54.2% of the respondents strongly agreed that they would

continue to be customers of Airtel Kenya, while 1.3% strongly disagreed with that.

Further, 52.9% of the respondents strongly agreed that the Airtel Kenya’s

communication channels were very efficient, while 1.3% of the respondents strongly

disagreed. At 53.3%, respondents strongly agreed that Airtel Kenya’s communication

prompted them to take action, 0.8% however strongly disagreed. Similarly, 45.2% of

the respondents strongly agreed that the Airtel Kenya customer service was top notch

with only 1.7% strongly disagreeing with that. At 50.0%, respondents strongly agreed

that resolutions were promptly handled by Airtel Kenya with only 1.3% strongly

disagreeing.

Table 4. 13: Whether Respondents Would Inform Others about Airtel Kenya Products

Frequency Percent


Agree 73 30.2

Undecided 33 13.6

Disagree 13 5.4


Total 242 100.0

72



Table 4. 14: Whether Respondents Would Continue Being Airtel Customers

Frequency Percent


Agree 66 27.7

Undecided 26 10.9

Disagree 14 5.9


Total 238 100.0

Table 4. 15: Whether Airtel Kenya Communication Channels Were Very Effective

Frequency Percent


Agree 71 29.8

Undecided 30 12.6

Disagree 8 3.4


Total 238 100.0

Table 4. 16: Airtel Kenya Communications Prompt you to take an action

Frequency Percent


Agree 69 28.3

Undecided 34 13.9

Disagree 9 3.7


Total 244 100.0

On the question of how informed the customers were on the Airtel Kenya’s

products, 51.9% strongly agreed that they had adequate information that made them

utilize the Airtel Kenya’s services and products, however 3.3% strongly disagreed. At

73



51.0%, respondents strongly agreed that they were proud to be customers of Airtel

Kenya, while 4.5% strongly disagreed. 53.9% strongly agreed that they learned about

the Airtel Kenya offers through its various communication channels while 2.9%

strongly disagreed with that. Finally, 53.1% of the respondents strongly agreed that

they would switch to the competition in case Airtel Kenya stopped communicating

about its products and services. 5.3% however strongly disagreed with that.

Table 4. 17: Whether Respondents Had Adequate Information on Airtel Kenya that

Made them Utilize most of its Services and Products

Frequency Percent


Agree 71 29.2

Undecided 33 13.6

Disagree 5 2.1


Total 243 100.0

Table 4. 18: Whether Respondents Learn’t about New Airtel Kenya Offers Through

Its Various Communications Channels

Frequency Percent


Agree 65 26.5

Undecided 28 11.4

Disagree 13 5.3


Total 245 100.0

74



Table 4. 19: Whether If Airtel Kenya Stopped Communicating about Its Products

and Services, Respondents Would Switch to the Competition

Frequency Percent


Agree 69 28.2

Undecided 21 8.6

Disagree 12 4.9


Total 245 100.0

On interpreting and summarizing the respondents’ perspectives, it emerged

that Airtel Kenya communication had influenced product purchase, service uptake,

customer service and loyalty, shareholder value, knowledge awareness on Airtel

Kenya products and services to its customers. Also the fact that most responses were

of the opinion that not getting communication from Airtel Kenya could influence their

choice of joining competitor organizations reinforced communications’ role in

ensuring continued business for Airtel Kenya. Further the overall outcome on the

analysis establishes Airtel Kenya’s communication strategies in playing a role in

generating revenue and customer loyalty thus influencing the financial performance

of the organization. Also, buying a company’s products and services is guaranteed

revenue to an organization which eventually increases the shareholder value in the

business.

The data can also be interpreted to mean that Airtel Kenya’s communication

activities have an impact on the business through the impact the organization has

created with its customers which has had consequences to its financial performance.

This is due to the fact that Airtel Kenya has used communication to reach its

customers, inform, persuade and remind them about the organization’s products and

75



services. By reinforcing customers’ purchase behavior and maintaining customers,

communication has contributed to Airtel Kenya’s revenue generation.

To find the relationship between communication strategy used and the

financial performance, two variables were chosen, namely, effective communication

representing the independent variable and switching to competition (Customer

satisfaction) dependent variable. The results showed a very strong significant positive

relationship between communication channel and the switching to competitors side

(r=0.971, p<0.000). The correlation is significant at 0.01 and p value 0.000 is not too

far from the significant value. A positive correlation means that an increase or a

positive change in one variable brings about an increase in another variable and vice

versa. Not switching to competition represents customer satisfaction and this is one

aspect of financial performance since customer satisfaction is tied to profitability. It is

possible to interpret the findings to mean that satisfied customers are loyal customers

who buy more from an organization and also recommend the organization to other

customers. This then means that satisfied customers are able to provide the

organization with a somewhat likely source of future revenue as they come to

purchase again.

76



Table 4. 20: Correlation- Communication and Customer Satisfaction

Effective Switching to Communication competition

Pearson Correlation 1 .971**

Effective Communication

Sig. (1-tailed)

.000

N 238 238

Pearson Correlation .971**

1 Switching to competition

Sig. (1-tailed) .000

N 238 246 **. Correlation is significant at the 0.01 level (1-tailed).

Correlational Analysis between Airtel Kenya Communication and Revenue

Generation

To also establish the relationship between communication strategy and

financial performance, two variables were chosen, namely communication

representing the independent variable and purchase of product (revenue generation)

representing the dependent variable. The results showed a very strong significant

positive relationship between communication and product purchase (r=0.969,

p<0.000). For ease of interpretation, Table 4.24 indicates that the more Airtel Kenya

communication prompts customers to purchase a product, the more the customers get

a desire to purchase the product. The conclusion can thus be made that Airtel Kenya’s

communication influences its customers to purchase products thus generating revenue

for the organization. Revenue realized due to the sale of products and services of a

company increases the shareholder value of a business.

77



Table 4. 21: Correlation – Communication and Revenue Generation

Airtel Kenya

Communications Prompt

you to take an action

I got the desire to

purchase a product from

Airtel Kenya after a

communication about the

product.

Airtel Kenya I got the

Communicati desire to

ons Prompt purchase a

you to take an product from

action Airtel Kenya

after a

communicatio

n about the

product.

Pearson Correlation 1 .969**


N 244 244

Pearson Correlation .969**

1


N 244 244

**. Correlation is significant at the 0.01 level (1-tailed).

Correlational Analysis between Airtel Kenya Communication and Retained

Market Share

Table 4.25 indicates the correlation between communication (independent

variable) and continued being a customer (retained market share) (dependent variable)

in a bid to further find a relationship between communication strategy and financial

performance. The results showed a very strong significant positive relationship

between communication and retained market share (r=0.894, p<0.000). This implies

that continued communication by Airtel Kenya to its customers increases the

likelihood of them continuing being customers of Airtel Kenya. To continue being a

customer is a retained part of the market share for the organization which is continued

business for Airtel Kenya thus revenue. Increase in revenue leads to an increase in

shareholder value.

78



Table 4. 22: Correlation – Communication and Market Share

The I will

Information continue

communicate being a

d by Airtel customer of

Kenya met Airtel Kenya

my needs

The Information Pearson Correlation 1 .894**

communicated by Airtel

Kenya met my needs Sig. (1-tailed) .000

N 240 238

I will continue being a Pearson Correlation .894**

1 customer of Airtel Kenya


N 238 238


Correlational Analysis between Communication Channels and Awareness of

Airtel Kenya Products and Services

Communication channels (independent variable) and awareness of Airtel

Kenya products and services (dependent variable) were also correlated in a bid to

establish a relationship between communication strategy and financial performance.

The results showed a very strong significant positive relationship between

communication channels and awareness of Airtel Kenya products and services

(r=0.970, p<0.000). The correlation suggests that effective communication channels

had led to increased awareness of Airtel Kenya products and services. An assumption

can therefore be made that with customers aware of the organization’s products and

services, then they could take them up, therefore generating revenue for the

organization. This is because, unless customers were aware of a company’s products

and services, the organization was unlikely to benefit from it, therefore, awareness of

products and services was key for an organization to realize financial performance.

79



Table 4. 23: Correlation – Communication Channels and Knowledge

Airtel Kenya I have

communication adequate

channels are very information

effective on Airtel

Kenya that

makes me

utilize most

of its services

and products

Airtel Kenya communication Pearson 1 .970**

channels are very effective Correlation


N 238 238

I have adequate information on Pearson .970**

1 Airtel Kenya that makes me utilize Correlation

most of its services and products Sig. (1-tailed) .000

N 238 245


Correlational Analysis between the Channels of Communication Used and

Customer Loyalty

The researcher further determined the influence of corporate communication

strategies on Airtel Kenya’s financial performance by doing a correlational analysis

between the channels of communication used and customer loyalty representing the

dependent variable. The results of the analysis indicated a very strong positive

statistically significant relationship between the communication channel used and

customer loyalty (R=.801, P<0.01). The r value represents the strength and the

positivity or the negativity of the coefficients while p value represents the probability

or the significance of the relationship between the two variables. The results of the

analysis are represented in the Table 4.27.

80



Table 4. 24: Correlation-Communication Channels and Customer Loyalty

Customer Loyalty

Communication Channel Pearson Correlation .801**


N 238

Factors Attributed to Airtel Kenya’s Financial Performance

Among the factors that were attributed to Airtel Kenya’s financial were:

excellent customer service with 85.2%, multiple product and service offerings with

84.0%, digital services with 83.2%, postpaid services with 80.3%, global company

with 66.8%, corporate social responsibility activities with 50.4%, corporate

governance with 25.0%, professional employees with 9.8%, Airtel Kenya Leadership

with 4.5% and others with 2.0%. This study objective sought to establish factors

attributed to Airtel Kenya’s financial performance. These factors were significant as

they helped the research answer the question on “factors attributed to Airtel Kenya’s

financial performance”. This is because firm performance helps an organization to

achieve its goals. From a financial perspective, Bharti Airtel’s eventual goal is to

grow revenues and firm performance will help it attain revenue growth.

81



Table 4. 25: Financial Performance Attributes Frequencies


N Percent

Excellent Customer Service 203 17.3% 85.2%

Multiple Product and Service 205 17.1% 84.0%

Offerings

Digital Services 208 16.9% 83.2%

Postpaid Services 196 16.3% 80.3%

It is a global Company 163 13.6% 66.8%

Corporate Social 123 10.3% 50.4%

Responsibility Activities

Corporate Governance 61 5.1% 25.0%

Professional Employees 24 2.0% 9.8%

Airtel Kenya Leadership 11 0.9% 4.5%

Other 5 0.4% 2.0%

Total 1199 100.0% 491.4%

Analysis and Discussion of the Interview Responses

This section presents and analyzes an interview with the Corporate

Communication Officer of Airtel Kenya who represented the Corporate

Communications Department. The interview notes were used in the thematic analysis

to provide qualitative understanding of how Airtel Kenya’s Corporate

Communication Department viewed the influence of corporate communication

strategies on the organization’s financial performance. This section gives an analysis

of the interview findings based on the study’s research questions. The section covers

responses on; corporate communication strategies of Airtel Kenya, the influence of

corporate communication strategies on financial performance of Airtel Kenya and

factors attributed to Airtel Kenya’s financial performance.

82



Response on Corporate Communication Strategies of Airtel Kenya

To determine the corporate communication strategies of Airtel Kenya, the

Corporate Communication Officer was asked the following questions: Why a

Corporate Communications Department for Airtel Kenya?; What are the corporate

communication strategies of Airtel Kenya?; What are the main areas of Corporate

Communication that you consider to have contributed to Airtel Kenya’s financial

performance over the years?; Does Airtel Kenya’s Corporate Communication strategy

relate to the organization’s overall strategy? Who are Airtel Kenya’s stakeholders?;

What resources does Airtel Kenya have in place when coming up with a

communication Strategy? The questions were formulated in line with the first research

question: What are the corporate communication strategies used by Airtel Kenya?

The main aim of the questions were to determine Airtel Kenya’s corporate

communication strategies. The questions sought to establish whether Airtel Kenya

corporate communication office had a communication strategy guiding its

communication activities. The researcher was also interested in finding out, whether

the organization’s corporate communication strategies had all the building blocks of a

communication strategy i.e.; organization’s overall strategy, analyzed relevant

constituencies, the message and analyzed stakeholder responses to establish if the

communication was successful.

On the question of why a Corporate Communications Department for Airtel

Kenya, the officer noted that the department served as a mouthpiece of the

organization. She further noted that all communication pertaining to Airtel Kenya was

channeled through the corporate communications department to its different internal

83



and external stakeholders. She added that the department’s key role was to keep key

Airtel Kenya stakeholders informed about the organization.

The Communication Officer confirmed that Airtel Kenya had a corporate

communication strategy, but due to company policy she was not able to share the

corporate communication strategy document with the researcher. Further, according

to the Communication Officer, Airtel Kenya’s corporate communication strategy has

all the building blocks of a communication strategy i.e.; organization’s overall

strategy, analyzed relevant constituencies, the message and analyzed stakeholder

responses to establish whether the communication was successful. According to the

Corporate Communication Officer, “The overall strategy for Airtel Kenya’s

Corporate Communication office is to ensure that all of Airtel Kenya’s stakeholders

are well informed of what is going on in the business to allow for seamless workflows

and enhance relationships especially with external stakeholders such as media,

government agencies etc.”

When asked about the main areas she considered to have contributed to Airtel

Kenya’s financial performance over the years, the officer mentioned consistent

stakeholder relations e.g. media and government relations, engagement activities, and

community development aspects that give the organization a human face. She also

said that by consistently communicating and engaging with its key stakeholders, the

organization has gained a good reputation amongst its stakeholders. The good

reputation has led to stakeholder interactions with the company hence influencing the

firm’s performance.

The Communication Officer acknowledged that Airtel Kenya’s organizational

strategy served as an anchor for the various business segments that form the larger

organization. Also, that all departmental strategies including Corporate

84



Communications Department were geared towards achieving the organizational

strategy. This went to further affirm the fact that an organization’s corporate

communication strategy should be included during the planning of an organization

strategy.

The Communication Officer listed Airtel Kenya stakeholders as: employees,

customers, media, industry regulators (communication authority, competition

authority of Kenya, consumers federation of Kenya etc.), general public, government

(Ministry of ICT, Ministry of Education etc.), partners (suppliers, vendors etc.)

On the resources that Airtel Kenya had in place when coming up with a

communication strategy, the Communication Officer noted that Airtel Kenya had

invested greatly in industry research and was therefore equipped with information that

aided the Communication Department to align key messages to the market trends and

needs. Further, she noted that, Airtel Kenya is always engaging its stakeholders to get

their views which often informs the organization’s communication plans.

The Corporate Communication Officer identified Airtel Kenya

Communication Strategies to include: Strategic Communications and Planning,

Corporate Social Responsibility (CSR), Employee Relations, Customer Relations,

Media Relations, Corporate Advertising, Government Relations, Investor Relations

and production of corporate publications.

Communication Strategies of Airtel Kenya

Strategic Communications and Planning

The communications officer noted that the Corporate Communications

Department developed communication plans both for the department and the

organization. One of the department’s role was to develop communication activities

85



geared towards achieving the overall business strategy. The communication officer

also explained that the department worked with other company departments to ensure

organizational publics were effectively reached. The activities include planning

towards effective communication with employees which meant working with the

Human Resources. Developing communicating plans for customers meant working

with marketing, retail and customer care departments for successful message delivery.

Other strategic plans entailed working with Finance Department to ensure effective

investor related communication delivery. Others included planning for corporate

social responsibility, company communication, issues and crisis management

communications, advertising, communications to government and industry regulators

etc. Overall, the communication officer noted that the Corporate Communication

Department’s strategic communication plans were all geared towards key company

publics with the overall goal of attaining the mission and vision of the company.

Corporate Social Responsibility (CSR)

According to the Communications Officer, Airtel Kenya wanted to be

recognized and known as a socially responsible company. Its CSR project focus was

about empowering, enabling and unlocking the potential of future generations to

succeed and create wealth – social, financial and health. The company wanted its

brand to be loved and hoped that CSR could help it achieve this objective. Airtel

Kenya hoped that its CSR activities would improve the lives of its stakeholders and

especially by inspiring success in the youth. Branded the ‘Airtel Spirit’ the company

had impacted the community through initiatives in Education, employee volunteerism,

health and environment.

Education projects include: the Airtel Free Internet program, where

communities and students in Kenya were able to broaden their learning through 24

86



hours free access to educational material and other learning information that is

available online so they can do more to be successful in life. Airtel Free Internet

Program was an initiative that had been availed to over 300 public and private

schools, hospitals, police stations etc. Other donations included school bag donations,

solar lamps to schools, school books, furniture donations and school feeding programs

amongst others.

Employee Volunteerism – Airtel Kenya employees took time off their busy

schedules to attend to the organization’s CSR activities in various schools across the

country. The employees offered mentorship to the students, sharing personal

experiences and encouraging students about the importance of education.

Health – Airtel Kenya was also active in Health related CSR. They include

raising funds for the Beyond Zero Campaign, aimed at improving maternal healthcare

in Kenya. Also during the Ebola outbreak in Africa, Airtel partnered with the African

Union (AU) Commission to garner resources in support of Ebola affected countries in

West Africa. The initiative, known as ‘Africa United against Ebola Campaign’ used

an SMS dedicated platform to raise funds from citizens for the deployment of African

health workers to affected countries.

Environment - Airtel Kenya was committed in ensuring that it operated and

took part in initiatives that would promote the company as environmentally

responsible and that embraced environmentally friendly technologies in its

businesses. They include initiatives like tree planting, funding biogas projects, safe

water harvesting projects, commissioning new toilets etc.

87



Employee Relations

The communication officer noted that Airtel Kenya’s vision was to be the

preferred employer providing a workplace that inspired excellence and personal

achievement. The company, she said was committed to employee policies that were in

adherence to the labor laws of Kenya, International Labor Organization (ILO)

Conventions and other International Standards thereby eliminating all forms of labor.

The company’s Human Resource office ensures that the rights of its employees were

adhered to and not breached. The policies were made clear to the employees through

the company’s handbook.

Some employee communication activities include: sending regular

informational SMS updates to employees. The company also sent a quarterly online

survey to employees that enabled the measurement of employees’ expressions and

concerns. The wellness week at least once a year is meant to create awareness on

pertinent health issues to its employees. Airtel Kenya also offered training to its staff

to enhance career growth and self-development. Training was also offered to

employees to understand new company policies or changes in policies. Other forms of

communication activities for employees were documented employment policies that

were given to all employees as reference guides.

An online version of the documented policies were also available to the

employees on the company intranet. Also, Airtel Kenya employees gather at the

employee communication forums where company strategies and set targets were

communicated. The morning hurdles meetings gave employees avenues where they

could raise concerns, interact with supervisors, give feedback and ideas beneficial to

the company. Monthly staff meetings were platforms of informing employees on the

financial performance of the organization and general progress of the company.

88



Lastly, the company board had an active communication channel with the company’s

management. The communication enabled free flow of communication between the

board and management on issues like raising concerns and seeking clarity on

company matters to promote good working relationships between the board and

management.

Customer Relations/Service

Airtel Kenya’s customer relations strategy was to connect communities across

Kenya by providing relevant and innovative mobile solutions for all. The company

was proud for having a team that was committed and driven to ensure that its

customers’ expectations were met. Airtel Kenya’s vision for its customers was to

inculcate a customer centric culture that delivered insightful products and services to

fulfill their consumer needs. According the communications officer, Airtel Kenya

remains committed to the Kenyan market as it continued to deliver quality and

affordable products and services, enhancing its network to ensure effective

communication is achieved by its customers across the country.

The officer pointed out that Airtel Kenya had rolled out some 400 customer

touch points, enabled seamless services and enhanced customer experience. The

company’s shops were exclusively branded providing customers with excellent and

proactive customer service and in addition the organization had approximately 3,000

brand ambassadors and 25,000 multi branded shops selling Airtel products. Also she

added that, with over 20,000 active agents in 2016, Airtel Kenya’s Airtel Money

provided e-commerce solutions including online payments, online banking and utility

bill payments so as to enhance customer reach and satisfaction. Airtel Kenya further

had a dedicated 24 hour customer care service line to handle customer inquiries and

complaints. Lastly, the company had an online media customer care team to handle

89



customer queries on its online and social media platforms like Facebook, Twitter and

email communication channels.

Media Relations

Airtel Kenya considers media an important channel through which

organizational stakeholders get communication and information about the

organization. Corporate Communication office media relations activities include

building relations with the right people in the media so as to know what journalist to

target with a particular story. This primarily means developing a positive relationship

with media people. The office also pitched stories about Airtel Kenya to various

media houses once a communication objective has been determined. Other activities

include responding to media queries about the organization and preparing the

company management for interviews. Finally, the communication office ensured that

it evaluates the effectiveness of media stories against the communication intent they

had sought to achieve. The communication officer added that the media had also been

key in highlighting Airtel Kenya media campaigns and product and service launches

across various communication channels.

Government Relations

Airtel Kenya’s vision is to inspire an open and respectful partnership with the

Government and its partners. For the government, Airtel Kenya targetsed ministries

like those of Information and Communication Technology and the Ministry of

Education. Some of its industry regulators are Communication Authority,

Competition Authority of Kenya, and Consumer Federation of Kenya etc. The

Communication Officer noted that communication with the government and industry

regulators include creating information with industry themes that targets government

and industry regulators. Airtel Kenya corporate communication office facilitated the

90



engagement of these key decision makers and subject experts through information

exchange, as well as debate on industry issues. Government relations for Airtel Kenya

also involved building and strengthening relations with government and industry

regulators. Activities include having one on one meetings, committee meetings,

formal dinners and luncheons, round table discussions, sending letters, emails, press

releases and holding media interviews etc.

Corporate Advertising

According to the Communications Officer, Airtel Kenya paid media to be able

to pass information it deemed important to its stakeholders. Corporate advertising

activities by the organization include for example when the organization was

rebranding from Zain. The organization had to explain its new vision, company

strategy and the company to its stakeholders to enable its stakeholders understand the

new changes. Further, the officer noted that Airtel Kenya ensured it used

communication channels that would mostly reach its stakeholders. Other times when

the organization had used corporate advertising includes communicating about

management changes, taking a stand on an industry position and advertisements that

seek to differentiate it from its competitors. The department planned the writing,

designing and placement of all company advertisements and public notices in

different media to ensure maximum reach of its target publics.

Investor Relations

According to the Communication Officer, while Bharti Airtel India was in

charge of overall investor relations communications for the organization, Airtel

Kenya corporate communication office ensured that they put together investor related

information for the Airtel Kenya subsidiary for eventual forwarding to Bharti Airtel

India for final compilation.

91



Production of Corporate Publications

The Corporate Communication Department developed corporate publications

to ensure the published content adhered to the organizational branding strategy and

guidelines. The department acted as a brand guardian and ensured there was

consistency in all internal and external communication publications. The publications

produced by Airtel Kenya’s Corporate Communication Department include but not

limited to; online and print publications and templates amongst others.

From the Corporate Communication Officer’s response, the researcher was

able to identify the communication strategies of Airtel Kenya. The researcher further

established that Airtel Kenya’s corporate strategy guided its communication activities.

Consistent stakeholder relations was the main area of corporate communication that

had contributed to Airtel Kenya’s performance. Also, Airtel Kenya’s communication

strategy had all the building blocks of a communication strategy can be interpreted to

mean that the organization had a laid down plan that specified its strategic intent that

helped it attain its communication objectives thus contributing to the organization’s


Influence of Corporate Communication Strategies on Financial

Performance of Airtel Kenya

This thematic area sought to find out what the Corporate Communication

Officer thought was the influence of corporate communication strategies on the

financial performance of Airtel Kenya. Asked about Airtel Kenya’s stakeholders’

attitudes towards communication on financial performance, the communication

officer responded that as a matter of company policy, the organization did not share

financial information except with shareholders at investor briefings. She however

92



pointed out to the researcher that all company financials were available at the web

link: http://www.airtel.in/about-bharti/equity/.

When asked about what communication channels the company used to pass

communication on financial performance to stakeholders, her response was that

overall, the company used different communication channels to reach different

stakeholders. The communication officer noted that lots of research and thought went

into the choice of use of a specific communication channel. She opined that one

channel could be effective to a group of publics and not the other. Consequently, that

there exists different channels to pass communications to key publics about the

company’s financial performance. The communication channels ranged from emails,

press releases to both local and international media, company website, company

intranet, newspapers, presentation to investors etc. She added that Bharti Airtel had

always released reports containing financial performance of the company, major

organization and industry updates and developments, operations performance, stock

market reports etc. All financial information were subsequently uploaded on the

company website. Also, when asked how Airtel Kenya structured communication

messages on financial performance, she stated that all thought was given to all

messages structured by the department that ensured that a particular communication

objective was attained.

The Communications Officer was asked to explain how the communication

department knew that the messages they communicated met stakeholder needs and

interests to which she responded that; “Our communication strategies and key

messages are informed by market research and analysis therefore they are structured

to address the needs and interests of all our stakeholders. We also encourage customer

feedback on our products and services which gives insights that we consider whilst

93



http://www.airtel.in/about-bharti/equity/

innovating our products and services.” She also noted that overall, Airtel Kenya

stakeholders generally responded in the way corporate communication expected,

towards communication on financial performance.

On the specific question of whether in her opinion, Airtel Kenya corporate

communication strategies influenced the organization’s financial performance, her

response was that “Yes. That communication was the most vital aspect for any

business to thrive as it relays the business’ agenda and intended impact on its

stakeholders. Therefore, ‘‘the key messages and communication that we share with

our key stakeholders allows them to make informed decisions which influences their

interactions with us and this translates to improved business.”

From the officer’s responses, Airtel Kenya’s communication strategies

influenced how the organization performed. This can be seen on how the company

crafted messages that targeted its stakeholders based on its market research. Further,

the communication strategies seemed to also influence how the organization designed

its products and services based on the feedback the company receives from its

customers. Since communication’s task was to relay key messages to the

organization’s stakeholders and allow them (stakeholders) to make informed

decisions, it can therefore be concluded that, Airtel Kenya had improved business due

to communication. Improved business can be thought of as satisfied customers, loyal

employees, informed investors, achieved organizational objectives, growth in

revenues, market share growth, shareholder value growth, organization mission and

vision achievement etc.

Responses to factors attributed to Airtel Kenya’s financial performance

The question in this thematic area generally sought to know from the

communications officer the factors that were attributed to the organization’s financial

94



performance in response to the second research question. The question was meant to

gather information from the officer on what in her opinion was attributed to Airtel

Kenya’s financial performance. She listed the following as factors attributed to Airtel

Kenya: Quality and innovative products and services, a proven business strategy, and

affordability and reliability of all organizational offerings.

Summary of Key Findings

The study found that;

Airtel Kenya’s corporate communication strategy had communication programs

that supports the organization’s corporate objectives and that corporate

communication was a strategic function of Airtel Kenya.

Airtel Kenya’s corporate communication strategies included strategic communication

and planning, corporate social responsibility (CSR), employee relations, customer

relations, media relations, government relations, corporate advertising, investor

relations and production of corporate publications.

That Airtel Kenya’s communication strategies had an influence on its financial

performance through improved business, revenue generation, shareholder value

growth, market share retention, customer satisfaction and loyalty to the organization.

Marketing communication had been effective in managing publicity of Airtel Kenya’s

products and services and activities directed towards the organization’s customers.

That communication at Airtel Kenya allowed its stakeholders to make informed

decisions which influenced their interactions with the organization and therefore

translating into improved business for the company.

95



Summary

This chapter served as the findings section by providing findings on the


Airtel Kenya. The information was obtained through analysis of the data collected

from Airtel Kenya’s corporate communication office and Airtel Kenya customers in

Nairobi. The quantitative results were represented by tables. The qualitative content

was grouped into themes to help answer the research questions. In the next chapter,

the key findings are discussed, conclusions are drawn and recommendations made.

96



CHAPTER FIVE

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS

Introduction

This chapter presents the discussions, conclusions and recommendations based

on the research objectives of the study. The purpose of the study was to investigate

the influence of corporate communication strategies on the financial performance of

Airtel Kenya. The specific objectives were to identify corporate communication

strategies used by Airtel Kenya, establish the factors attributed to Airtel Kenya’s

financial performance and to establish the influence of corporate communication

strategies on financial performance of Airtel Kenya. Both quantitative and qualitative

data approaches were used.

Discussions of Key Findings

Corporate Communication Strategies Used by Airtel Kenya

The study found that Airtel Kenya’s corporate communication strategies

included strategic communication and planning, corporate social responsibility

(CSR), employee relations, customer relations, media relations, government relations,

corporate advertising, investor relations and production of corporate publications.

The findings concur with Argenti (2009) on the fact organizations have

corporate communication departments to manage various organizational functions

like; corporate reputation, corporate advertising and advocacy, corporate

responsibility, media relations, marketing communications, internal communications,

investor relations, government relations, crisis management etc.

97



According to Argenti (2009), in setting up a communication strategy, it is

important for an organization to refer to an organization’s overall strategy. The next

part, is to determine the objective of the communication. Once a company has

established its corporate communication objectives, it must extensively examine all

stakeholders involved. Then, there is the part of determining what communication

channels to utilize and when to utilize them. The company also needs to decide on the

best message composition and actual content of the message.

It is important for an organization to evaluate and establish whether

communication that was done to stakeholders yielded the desired results. The first

objective on corporate communication strategies used by Airtel Kenya contended with

Cornelissen (2008) that a communication strategy details a strategic goal on which

potential courses of action are developed, assessed and finally selected. The objective

further agreed with Steyn and Puth (2000) who posited that a communication strategy

that is effective should provide direction for all communication activities in an

organization, be a determinant of the why and how and finally be the logic that ties

organizational plans and goals together. They further explain that the effective

organization communication strategies should essentially mirror the organization

strategy.

Almaney (1974) said of the systems theory that in order for a system to be

complete, it needs associations among its different parts, communication is therefore

required as it provides a system of passing information to different parts of the system

and providing the necessary feedback. Further, Abdulla and Antony (2012) noted that

the systems theory explains the communication events occurring within the

organization (system) and the outcomes of communication interactions. The system

theory fit this objective as it highlighted Airtel Kenya’s corporate communication

98



office overall strategy of ensuring its stakeholders were well informed. The objective

on corporate communication strategies also agreed with the systems theory as it

identified the different communication activities/strategies of Airtel Kenya.

On the other hand, the excellence theory established that it is important to

involve communication in an organization’s strategic management and planning. The

theory also highlighted how communications strives to build relationships with

relevant organization publics while working with management functions within a

company (Grunig, n.d.).

Factors Attributed to Airtel Kenya’s Financial Performance

Findings indicated that the quality and innovative products and services,

proven business strategy and affordability and reliability of Airtel Kenya’s products

were the factors attributed to the organization’s financial performance. Airtel Kenya’s

excellent customer care however from the analysis of frequencies had the highest

percentage as rated by respondents. This means that one of the things liked by

customers was to be well attended to. Most of the respondents in the analysis on the


Airtel Kenya, strongly agreed that their resolutions were promptly handled by Airtel

Kenya.

The Financial Reports of Bharti Airtel, from 2012-2016 reported that income

was identified to the degree that it was likely that the economic advantages would

move to the organization and the income could be genuinely measured. Sources of

revenue were service revenues and equipment sales. Service revenues included

amounts invoiced for usage charges, fixed monthly subscription charges and very

small aperture terminal (‘VSAT’) service usage charges, bandwidth services, roaming

charges, activation fees, processing fees and fees for value added services (‘VAS’)

99



etc. Equipment sales are mainly proceeds from telecommunication equipment and

accessories sales (Bharti Airtel Limited, 2013; Bharti Airtel Limited, 2014; Bharti

Airtel Limited, 2015; Bharti Airtel Limited, 2016).

The findings on factors attributed to Airtel Kenya’s financial performance,

affirmed De Waal’s (2008) study who identified qualities of high performance

organizations as high management quality, culture of an organization, long term

commitment to stakeholders, continuous improvement and innovation and lastly an

organization that addressed workforce quality. De Waal (2008) further noted that high

performance organizations usually achieved higher customer satisfaction, loyal

customers, loyal employees, and had quality products and services.

Similarly, Kaufmann and Goldstein (2008) mentioned communication and

building and maintaining credibility with key constituents as an activity of successful

organizations that achieve strong financial results. The findings further agrees with

Hagberg Consulting Group (n.d.) that a customer centric company, talented

employees, visionary leaders, cost cutting processes, expert marketers and a great

service or product etc. were all components that ensure the financiaTl success of

organizations.

Demirhan and Anwar (2014) stated that from a financial perspective, the

eventual goal of a company is to maximize shareholder wealth and financial

performance is an important factor that can help the company attain the goal. It is for

this reason that organizational performance is the most significant research

deliberation for financial management.

100



Influence of Corporate Communication Strategies on Financial Performance

The study established that Airtel Kenya’s corporate communication strategy

ensures that all its stakeholders were well informed of what was going on in the

business to allow for seamless workflows and to enhance relationships with its

stakeholders therefore improving business performance. According to Steyn (2000), a

corporate communication strategy is viewed as strategic decisions involving the

identification and management of communication by communication professionals

and senior managers. Further, communication was found to be a vital aspect for Airtel

Kenya’s business as it relays its business agenda and intended impact on its

stakeholders. Since the organization’s communication strategy was anchored on its

overall strategy, it therefore influences organizational performance.

Munene (2009) stated that suitable metrics on performance should allow

organizations to direct their activities towards attainment of strategic goals. Sheldon

and Sallot (2008) also opined that organizations should include a corporate

communication strategy when coming up with an overall strategy for a company.

Also, consistent communication to organizational key stakeholders has led to the

company having a good reputation. The good reputation of the organization amongst

its publics has often translated into business for the company thus influencing its

financial performance according to the communication officer. Reputation effect and

corporate communication aligns with Cornelissen’s (2008) definition of corporate

communication. Cornelissen (2008) defined corporate communication as an

organizational operation that provides a system that effectively coordinates internal

and external communication with the general goal of determining and sustaining good

reputations with organizational publics.

101



From the analysis, communication strategies used by Airtel Kenya strongly

met the needs of the organization’s customers. This underscores the importance of

communication strategies in ensuring that Airtel Kenya’s customers have a satisfied

customer experience in their interactions with the organization. Bayraktar et al. (2012)

opined that customer satisfaction is directly linked to organizational profitability and

that when customers are happy they become loyal and once they are loyal, they not

only buy repeatedly but also recommend the organization to other customers.

The study found out that Airtel Kenya communication strategies had

influenced customer loyalty. In addition, the research noted that the company’s

communication strategies had contributed to loyalty because its customers were proud

of being Airtel Kenya customers and the fact that most of the respondents were

willing to shift to Airtel Kenya’s competitors if the company stopped its

communication. The correlation between effective communication and customer

satisfaction further highlights the organization’s communication strategies influence

on customer loyalty and retention. The correlation results showed that continued

communication by Airtel Kenya to its customers increases the likelihood of customer

retention.

Anderson and Sullivan (1993) noted that considerable customer retention

shows a relatively secure customer base that creates a somewhat obvious source of

future income as customers come back to purchase repeatedly, a customer base less

likely to be affected by competition and environmental changes. Also, Anderson,

Fornell and Mazvancheryl (2004) noted that other satisfied customer actions that

impact shareholder value include purchasing specific services or products from a

specific business, making recommendations to others, etc. The importance of

customer retention in financial performance of an organization is confirmed by

102



Reichheld and Schefter (2000), who pointed out that customer retention is important

for the profitable growth of any organization because just a 5 percent growth can

create a growth in organizational profits by 25 percent to 95 percent.

The researcher further determined the influence of corporate communication

strategies on Airtel Kenya’s financial performance by doing a correlational analysis

between the channels of communication used and customer loyalty. The results of the

analysis indicated a very strong positive statistically significant relationship between

the communication channel used and customer loyalty. Customer loyalty according to

Wyse (2012) comprises of loyalty behaviour and/ or customer retention which is the

repeated buying of company products and services instead of selecting competitor

products and services. Wyse (2012) explained further that customer loyalty comprises

of views and beliefs about company brands that are usually linked to replicated

purchases. Also, Fornell (1992), Rust and Zahorik (1993), Rust, Zahorik and

Keiningham (1995) opined that by having satisfied customers, organizational revenue

is assured, hence net revenue should increase.

The research established that Airtel Kenya communication strategies

influenced customer purchase decisions on the company’s products and services,

indicating that information was communicated in an efficient way and that it had a

huge impact on the populace. The more Airtel Kenya communication prompts

customers to purchase its products and services, the more the customers get a desire to

purchase the product as established in a correlation done between communication

strategy and financial performance. This shows how Airtel Kenya’s communication

influences its customers to purchase products thus generating revenue for the

organization.

103



Wyse (2012) defined the meaning of customer satisfaction as a measurement

of customer’s attitude towards the products, services and brands. Loof and Heshmati

(2008) noted that retained profits as a result of a company’s sales and profits exerts

positive impact on the company’s financial performance.

Correlation between communication channels and awareness of Airtel Kenya

products and services showed how strong effective communication channels have

been key in increasing awareness of Airtel Kenya products and services. This means

that communication channels contribute to customers gaining knowledge on the

company’s products and services. Once a customer is knowledgeable about

company’s products and services, a purchase is done which generates revenue for the

organization. According to Quelch and Cannon-Bonventre (1983), communicators

hope that by using different channels of communication like advertising and sales

promotions, they are able to influence the buying decision of consumers. Dowling

(2000), adds that when communication is passed and received through the correct

channels, it has the capability of influencing the corporate strategy hence influencing

how the organization performs financially.

Social Media has also been important in the engagement of Airtel Kenya

customers. In 2014-2015, as a result of Airtel Kenya’s high response rate on social

media communication channels i.e. Facebook and Twitter, the company got rated as a

socially devoted global brand in Africa (“Airtel Kenya: Mastering Social Devotion”,

n.d.). In fact in the year 2015-2016, Africa Brand Index Rankings named the

company, the continent’s top social media telecommunication brand. The organization

was honoured for its excellent utilization of social media in engaging customers

(“Airtel Kenya named top telecom brand on social media in Africa”, 2016).

104



Bharti Airtel financial year reports of 2012-2016 also reported

communication’s key role in communicating major Bharti Airtel activities and

campaigns meant to enhance a connection to the Bharti Airtel Brand. They included:

Airtel Rising Stars (ARS) started in 2012 and currently in its 6th edition meant to

provide a platform to discover the next generation of soccer stars in Africa. In fact at

its launch, it was rolled out on the DSTV Network’s SuperSport Channel. It also

engaged viewers on digital platforms like airtel-football.com and

facebook.com/AirtelFootball. Secondly, communication was key during Airtel Trace

Music Stars (ATMS) launch in 2014, the biggest mobile phone based pan-African

talent search competition (Bharti Airtel Limited, 2013; Bharti Airtel Limited, 2014;

Bharti Airtel Limited, 2015; Bharti Airtel Limited, 2016). Further, in the second

quarter of 2013-2014, the organization used communication to promote launches of its

data products and services under the new brand “Airtel”. Again in 2013-2014, Bharti

Airtel used a series of communication strategies to roll out its “Mr. Money” campaign

during the roll out of its Airtel Money product in all the 17 countries of Africa. The

campaign helped spread awareness about Airtel Money (Bharti Airtel Limited, 2013).

This research showed how Airtel Kenya utilized the marketing communication

function to coordinate and manage publicity relating to the company’s products and

services and also deals with customer associated activities. Bacik et al. (2012) noted

that the marketing communication main goals are to create a product preference with

prospective customers, tell customers about organization services and products,

distinguish company products and services from competitors, persuade prospective

purchasers to buy from the organization, and lastly to serve as a reminder to

customers about the company’s value and principles. According to Adair (1997)

105



effective communications have an impact on a business through the impact that the

business has created with its customers which consequently leads to the successful

financial performance of an organization.

Almaney (1974) opined that the system theory sees communication as an

element that holds the system together, crucial for the life and development of any

organization. Additionally, communication holds the system to the outside

environment in an effective stability that will ensure system development and

objective achievement (Almaney, 1974). The systems theory approach was fitting for

this objective as it offered a model for seeing inter-relationships within an

organization brought about by communication. The systems theory also demonstrated

how communication was important in ensuring continued business for the

organization which in essence translates to the very survival of the company.

Conclusions

The study made the following conclusions

That Airtel Kenya’s corporate communication strategies had influenced

service uptake, improved business, growth in shareholder value, product purchase,

customer service and loyalty, awareness on Airtel Kenya products and services to its

customers thus having an overall influence on the organization’s financial

performance.

Corporate communication at Airtel Kenya relayed the company’s business

agenda and its intended impact to its stakeholders. Communication’s key messages

and communication activities allowed Airtel Kenya stakeholders to make informed

decisions resulting into improved business for Airtel Kenya.

106



Communication had been indispensable in communicating Airtel Kenya’s

products and services to the general public by employing different channels of

communication. Airtel Kenya’s communication strategies included strategic

communications and planning, corporate social responsibility (CSR), employee

relations, customer relations, media relations, corporate advertising, government

relations, investor relations and production of corporate publications.

That quality products and services, excellent customer services, affordability

of Airtel Kenya offerings, the company’s global nature, corporate social responsibility

were the factors attributed to Airtel Kenya’s financial performance.

That communication strategies determine the financial performance of an

organization. Communication is a tactic that a company can use to achieve financial

performance. A communication strategy involves four major components: an

organization’s overall strategy, analysing the relevant constituencies, delivering the

message appropriately and determining whether the communication was successful or

not. Communication on financial performance of an organization results into growth

in revenue, growth in market share, shareholder value and customer satisfaction and

loyalty. Therefore with a communication strategy in place, Airtel Kenya, should

expect an improvement in its financial performance.

Recommendations

This study made the following recommendations for practice and research as

follows:

Airtel Kenya should intesify incorporating corporate communication strategies

into the overall organizational strategy as it has an influence in the organization’s

performance.

107



Airtel Kenya should recognize and make use of corporate communications

strategies when creating plans on financial performance. These strategies should

target both internal and external publics of an organization.

Since the respondents were the customers of Airtel Kenya, some of what they

recommended was considered in this section. The customers recommended that the

organization should have money agents in more places in Kenya, expand and cover

more regions, be active in corporate social responsibility activities and improve its

network etc.

Areas for Further Research

While the study looked at the holistic aspect of communication strategy

attributes, future research could examine specific corporate communication functions.

The reason for examining specific communication functions, most often than not is

that specified functions have different objectives. Future research could feed into how

the communication functions/strategies feed into an organization’s overall strategy

and their specific influence on how an organization eventually performs.

This study only concentrated on Airtel Kenya’s Corporate Communication

Department and its customers. The researcher recommends that further research be on

other stakeholders of Airtel Kenya.

Further research should focus on challenges faced by corporate

communications on financial performance implementation. A further study should be

done on the influence of corporate communication strategies on the entire mobile

telephony industry of Kenya to have a comparative study on specific corporate

organizations.

108



REFERENCES

Abdulla, H., & Antony, A. C. (2012). Perception of employees on internal Communication of a leading five star hotel in Malaysia. Asian Social

Science, 8(2), 17-26.

Adair, J. (1997). Effective communication: The most important management tool of

all. London: Macmillan Publishers Ltd.

Airtel. (2013). Airtel ranked amongst Africa’s top ten most admired global brands.

Retrieved from http://airtel.com/wps/wcm/connect/africarevamp/africa/home/media/press- releases/october-04-2013

Airtel Kenya. (n.d.). Mastering social devotion. Retrieved from https://www.socialbakers.com/social-media-content/client-stories/airtel-kenya/

Airtel Kenya. (2016). Airtel Kenya named top telecom brand on social media in

Africa. Retrieved from https://www.standardmedia.co.ke/business/article/2000201653/airtel-kenya- named-top-telecom-brand-on-social-media-in-africa

Airtel Kenya. (2015). Airtel opening more shops to improve customer service. Capital Business, 3, 82-86.

Aladwani, A. M. (2001). Change management strategies for successful ERP implementation. Business Process management Journal, 7(3), 266-275.

Ali, K. H. (2013). Contribution of internal control system to the financial

performance of a financial institution: A case of people’s Bank of Zanzibar

Limited (Unpublished master’s thesis). Mzumbe University, Morogoro.

Aliata, V. L., Odondo, A. J., Aila, F. O., Ojera, P. B., Abong’o, B. E., & Odera, O. (2012). Influence of Promotional Strategies on Banks Performance.

International Journal of Business, Humanities and Technology. Vol 2. No. 5.

Almaney, A. (1974). Communication and the systems theory of organization. Journal of Business Communication, 12(1), 35-43.

Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction, market share and profitability: Findings from Sweden. The Journal of marketing, 5, 53-66.

Anderson, E. W., Fornell, C., & Mazvancheryl, S. K. (2004). Customer satisfaction and shareholder value. Journal of marketing, 68(4), 172-185.

Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing science, 12(2), 125-143.

109



http://airtel.com/wps/wcm/connect/africarevamp/africa/home/media/press-releases/october-04-2013

http://airtel.com/wps/wcm/connect/africarevamp/africa/home/media/press-releases/october-04-2013

https://www.socialbakers.com/social-media-content/client-stories/airtel-kenya/

https://www.standardmedia.co.ke/business/article/2000201653/airtel-kenya-named-top-telecom-brand-on-social-media-in-africa

https://www.standardmedia.co.ke/business/article/2000201653/airtel-kenya-named-top-telecom-brand-on-social-media-in-africa

Argenti, P. A. (1998). Corporate communication. Boston, MA: McGraw Hill, Inc.

Argenti, P. A. (2009). Corporate communication (5th ed.). Singapore: McGraw Hill.

Bacik, R., Fedorko, R., & Simova, S. (2012). Advertising as a tool of marketing communication and its consequent impact on consumers. Polish Journal of Management Studies, 5, 299-306.

Bakhuya, B. (2015). Effect of communication strategy on strategic planning in African Banking Corporation Kenya (Unpublished master’s thesis). University

of Nairobi, Nairobi, Kenya.

Bayraktar, E., Tatoglu, E., Turkyilmaz, A., Delen, D., & Zaim, S. (2012). Measuring the efficiency of customer satisfaction and loyalty for mobile phone brands with DEA. Expert Systems with Applications, 39(1), 99-106.

Berger, B. K., & Reber, B. H. (2006). Gaining influence in public relations: The role

of resistance in practice. Mahwah, NJ: Lawrence Erlbaum.

Bharti Airtel Limited. (2006). Bharti Airtel. New Delhi: Bharti Airtel Limited.

Bharti Airtel Limited. (2013). Bharti Airtel Limited annual report 2012-13. New Delhi: Bharti Airtel Limited.

Bharti Airtel Limited. (2014). Bharti Airtel Limited abridged annual report 2013-14. New Delhi: Bharti Airtel Limited.



BHB Billiton. (2016). Annual report 2016. Retrieved from

http://www.bhpbilliton.com/~/media/bhp/documents/investors/annual-

reports/2016/bhpbillitonannualreport2016_interactive.pdf?utm_source=Websit

e&utm_medium=Organic&utm_term=Overview&utm_campaign=AR2016#p

age=66

Bhunia A., Mukhuti S. S., & Roy, S. R. (2011). Financial performance analysis: A case study. Current Research Journal of Social Sciences, 3(3): 269-275.

Bivins, T. H. (1992). A systems model for ethical decision making in public relations. Public Relations Review, 18(4), 365-383.

Boston Consulting Group. (2011). High-performance organizations: The secrets of their success. Retrieved from https://www.bcg.com/documents/file84953.pdf

Cahan, S. F., Courtenay, S. M., Gronnewoller, P. L., & Upton, D. R. (2000). Value relevance of mandated comprehensive income disclosures. Journal of Business Finance & Accounting, 27(9), 1233-1265.

110





https://www.bcg.com/documents/file84953.pdf

Chen, M. C., Cheng, S. J., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of intellectual capital, 6(2), 159-176.

Commercial International Bank. (2015). Sustainability. Retrieved from http://annualreport2015.cibeg.com/sustainability/corporate-governance/

Communications Authority of Kenya (CAK). (2015). Annual Report 2014-15. Nairobi: Author.

Coombs, W. T., & Holladay, S. J. (1996). Communication and attributions in a crisis: An experimental study in crisis communication. Journal of Public Relations Research, 8(4), 279-295.

Coombs, W. T., & Holladay, J. S. (2012). The paracrisis: The challenges created by publicly managing crisis prevention. Public Relations Review, 38(3), 408-415.

Cooper, D. R., & Schindler, S. P. (2003). Business research methods. (11th ed.). New York: McGraw-Hill.

Cornelissen, J. (2005). Corporate communication: Theory & practice. Thousand Oaks: Prentice Hall

Cornelissen, J. (2008). Corporate communication: A guide to theory and practice

(2nd ed.). London: Sage.

David, F. (2009). Strategic management: Concepts and cases. (12nd ed.). Boston: Pearson Education.

Demirhan, H. G., & Anwar, W. (2014). Factors affecting the financial performance of the firms during the financial crisis: evidence from Turkey. Ege Stratejik Araştırmalar Dergisi, 5(2), 65-80.

Dess, G. G., Lumpkin, G. T., & Taylor, M. L. (2005). Strategic management:

Creating competitive advantage. New York: McGraw-Hill/Irwin.

De Waal, A. A. (2004). Stimulating performance-driven behavior to obtain better Results. International Journal of Productivity and Performance Management, 4, 53-58.

De Waal, A. A. (2007). The characteristics of a high performance

organization. Business Strategy Series, 8(3), 179-185.

De Waal, A. A. (2008). The secret of high performance organizations. Management Online Review, 2, 100-108.

Dowling, G. (2000). Creating corporate reputations: Identity, image and

Performance. Oxford: Oxford University Press.

Epstein, M. J. (2004). The drivers and measures of success in high performance organizations. In: Epstein, M.J. and J.F. Manzoni (eds). Performance measurement and management control: Superior organizational performance. Amsterdam: Routledge.

111



Ferguson, S. D. (1999). Communication planning: An integrated approach. Thousand Oaks: Sage Publications.

Forman, J., & Argenti, P. A. (2005). How corporate communication influences strategy implementation, reputation and the corporate brand: An exploratory qualitative study. Corporate Reputation Review, 8(3), 245-264.

Fornell, C. (1992). A national customer satisfaction barometer: The Swedish experience. The Journal of Marketing, 3, 6-21.

Freeman, R. E. (1999). Divergent stakeholder theory. Academy of

Management Review, 24(2), 233-236.

Gikonyo, W. R. (2005). Strategies in corporate communications: A case of Kenya Commercial Bank (Unpublished master’s thesis). University of Nairobi, Nairobi.

Godwin, G. (2010). Exploring the effectiveness of the communication strategies

used by Tanzania Tourism Board (TTB) in promoting tourism (Unpublished master’s thesis). Daystar University, Nairobi, Kenya.

Grant, J. (2007). Mattel posts lower profit on impact of recalls. London: Springer.

Grunig, J. E. (1992). Excellence in public relations and communication management. New Jersey: Lawrence Erlbaum Associates.

Grunig, J. E. (1997). A situational theory of publics: Conceptual history, recent challenges and new research. Public relations research: An international perspective, 3, 48-54.

Grunig, J. E. (2006). Furnishing the edifice: Ongoing research on public relations as a strategic management function. Journal of Public Relations Research, 18, 151–176.

Grunig J. E. (n.d.). Excellence theory in public relations. Maryland: University of Maryland.

Grunig, J. E., & Grunig, L. A. (2011). Characteristics of excellent communication. In T. Gillis (Ed.). The IABC handbook of organizational communication: A

Guide to internal communication, public relations, marketing and leadership

(pp. 3-14). San Francisco: Jossey- Bass.

Grunig, L., Grunig, J. & Dozier, D. (2002). Excellent public relations and effective organizations: A study of communication management in three countries. Mahwah, NJ: Lawrence Erlbaum.

GSMA. (2014). The mobile economy 2014. London: GSMA.

Hagberg Consulting Group. (n.d.). Organization: Organizational cultures that get

financial results. Retrieved from https://www.leader-values.com/article.php?aid=442

112



https://www.leader-values.com/article.php?aid=442

Hakkio, C. S., & Rush, M. (1991). Is the budget deficit too large?. Economic inquiry, 29(3), 429-445.

Harris, T. E., & Nelson, M.D. (2008). Applied organizational communication: Theory

and practice in a global environment. New York: Lawrence Erlbaum.

Harvard University. (2008). Definition of financial performance. Retrieved from http://harvard.wsi.com.cn/sumtotal/stdata/20081126_154302_4721/key_terms. html

Heskett, J. L., & Kotter, J. P. (1992). Corporate culture and performance. Business Review, 2, 83-93.

Hill, L. A. (2003). Becoming a manager: How a new managers master the challenges

of leadership (2nd ed.). Boston, MA: Harvard Business Press.

Hill+ Knowlton Strategies. (2011). Public Relations Society of Kenya (PRSK) awards

For Excellence. Retrieved from http://hkstrategies-africa.com/Awards/8/Public-Relations-Society-of-Kenya- PRSK-Awards-for-Excellence

Ibarra, H., & Hunter, H. (2007). How leaders create and use networks. Harvard Business Review, 2(5), 121-128.

IFAC. (2003). Rebuilding public confidence in financial reporting: An international

perspective. New York: Sage.

Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization: How balanced scorecard companies thrive in the new business environment.

Harvard: Harvard Business Press.

Kasarda, X., & Rondinelli, X. (1998). Innovative infrastructure for agile manufacturers. Sloan Management Review, 39(2), 73-78.

Kaufman, K., & Goldstein, L. (2008). Leadership and successful financial performance in healthcare. Bulletin of the National Center for Healthcare Leadership, 5, 8-22.

Kenya National Bureau of Statistics. (2015). Economic survey. Retrieved from http://www.knbs.or.ke/index.php?option=com_phocadownload&view=categor y&download=720:economic-survey-2015&id=107:economic-survey-publications&Itemid=1181

Kibe, C. (2014). Effects of communication strategies on organizational performance:

A case study of Kenya Ports Authority. European Journal of Business & Management, 6(11), 201-214.

Kinyanjui, K. (2009, July 3). Going, going…Gone! The Business Daily, p. 7.

Kombo, D. K., & Tromp, D. L. (2006). Proposal and thesis writing: An

introduction. Nairobi: Paulines Publications Africa.

113



http://harvard.wsi.com.cn/sumtotal/stdata/20081126_154302_4721/key_terms.html

http://harvard.wsi.com.cn/sumtotal/stdata/20081126_154302_4721/key_terms.html

http://hkstrategies-africa.com/Awards/8/Public-Relations-Society-of-Kenya-PRSK-Awards-for-Excellence

http://hkstrategies-africa.com/Awards/8/Public-Relations-Society-of-Kenya-PRSK-Awards-for-Excellence

http://www.knbs.or.ke/index.php?option=com_phocadownload&view=category&download=720:economic-survey-2015&id=107:economic-survey-publications&Itemid=1181




Kothari, C. R. (2004). Research methodology: Methods and techniques (2nd ed). New Delhi: New Age International (P) Ltd.

Kothari, C. R. (2008). Research methodology: Methods and techniques (3rd ed.). New Delhi: New Age International.

Littlejohn, S. W. (1983). Theories of human communication. Belmont CA: Wadsworth.

Loof, H., & Heshmati, A. (2008). Investment and performance of firms: Correlation or causality? Corporate Ownership & Control, 6(2), 268-282.

Maroc Telecom. (2016). Maroc telecom: Major telecom player in Africa. Retrieved from http://www.iam.ma/en/the-group-maroc-telecom/index.aspx

Marshak, R. (2013). Defining the customer-centric organization: What are the attributes and behaviors that define true customer-centricity? Retrieved from

http://www.customers.com/articles/defining-customer-centric-organization/

May, S., & Mumby, D. (2005). Engaging organizational communication theory

& research: Multiple perspectives. Thousand Oaks, CA: Sage.

Meng, J., & Berger, B. K. (2008). How top business communicators measure the return on investment (ROI) of organization’s internal communication efforts.

London: Springer.

Meng, J., & Berger, B. (2012). Measuring return on investment (ROI) of organizations’ internal communication efforts. Journal of Communication Management, 16(4), 332-354.

Mihai, R. L. (2017). Corporate communication management. A management approach. Valahian Journal of Economic Studies, 8(2), 103-110.

Miller, A. (2014). Five characteristics shared by the most successful organizations.

Retrieved from https://www.entrepreneur.com/article/233526

Mugenda, O. M., & Mugenda, A. G. (2003). Research methods: Quantitative and

qualitative approaches. Nairobi: Acts Press.

Munene, J. M. (2009). Effects of internal controls on financial performance of technical training institutions in Kenya (Unpublished master’s thesis). University of Nairobi, Nairobi, Kenya.

Naoum, S. G. (1998). Dissertation research and writing for construction students. Oxford: Butterworth-Heinemann.

Narayandas, D. (1998). Measuring and managing the benefits of customer retention: An empirical investigation. Journal of Service Research, 1(2), 108-128.

114



http://www.iam.ma/en/the-group-maroc-telecom/index.aspx

http://www.customers.com/articles/defining-customer-centric-organization/

Nelling, E., & Webb, E. (2009). Corporate social responsibility and financial performance: The virtuous circle revisited. Review of Quantitative Finance and Accounting, 32(2), 197-209.

Nigerian Breweries Plc. (2015). Financial markets forum 2015: Summary of the Q&A session. Retrieved from http://nbplc.com/investor-relations.html

Njangi, L., & Kombo, H. (2014). Effect of strategy implementation on performance of commercial banks in Kenya. European Journal of Business &

Management. 6(13), 121-127.

Okoth, E. A. (2007). The role of corporate communication in image building: A

case study of Safaricom Limited (Unpublished master’s thesis). University of Nairobi, Nairobi, Kenya.

Owino, R. (2013). The link between organizational identity and communication strategy formulation: A case of Retirement Benefits Authority, Kenya

(Unpublished master’s thesis). Daystar University, Nairobi, Kenya.

Pandey, I. M. (2006). Financial management (9th ed.). London: Vikas Publishing House PVT Ltd.

Park, D. B. (2011). Analyzing audiences. College Composition and

Communication, 37(4), 478-488.

Peters, T., & Waterman, R. (1982). In search of excellence. New York: Warner Books.

Pulford, B. D., & Colman, A. M. (2005). Testing the confidence heuristic: Are confident communicators more persuasive?” 20th research conference on

subjective probability, utility, and decision making (SPUDM20), Stockholm, August 22-24, 2005.

Quelch, J. A., & Cannon-Bonventre, K. (1983). Better marketing at the point

of purchase. Harvard: Harvard Business School Publishing.

Rehak, J. (2002). Tylenol made a hero of Johnson & Johnson: The recall that started them all. Retrieved from http://www.nytimes.com/2002/03/23/your-

money/tylenol-made-a-hero-of-johnson-johnson-the-recall-that-started.html

Reichheld, F. F., & Schefter, P. (2000). E-loyalty: Your secret weapon on the web. Harvard Business Review, 78(4), 105-113.

Rooney, B. (2007). Mattel's recall rebound. CNN Money. Retrieved from

http://money.cnn.com/2007/10/12/markets/spotlight_mat/index.htm?postversi

on=2007101210

Rust, R. T., Zahorik, A. J., & Keiningham, T. L. (1995). Return on quality (ROQ): Making service quality financially accountable. The Journal of Marketing, 3, 58-70.

115



http://nbplc.com/investor-relations.html

http://www.nytimes.com/2002/03/23/your-money/tylenol-made-a-hero-of-johnson-johnson-the-recall-that-started.html

http://www.nytimes.com/2002/03/23/your-money/tylenol-made-a-hero-of-johnson-johnson-the-recall-that-started.html

http://money.cnn.com/2007/10/12/markets/spotlight_mat/index.htm?postversion=2007101210

http://money.cnn.com/2007/10/12/markets/spotlight_mat/index.htm?postversion=2007101210

Rust, R. T., & Zahorik, A. J. (1993). Customer satisfaction, customer retention, and market share. Journal of retailing, 69(2), 193-215.

Safaricom Ltd (2015). Safaricom sustainability report 2015. Retrieved from

https://www.safaricom.co.ke/sustainabilityreport_2015/public/uploads/SC

Sustain Report Mon 23rd Sept 2015.pdf

Schrader, C. B. (2008). Advances in statistical control, theory and dynamic systems. Boston: Birkhauser.

Sheldon, C. A., & Sallot, L. M. (2008). Image repair in politics: Testing effects of communication strategy and performance history in a faux pas. Journal of Public Relations Research, 21(1), 25-50.

Services Centers. (n.d.). Retrieved from http://africa.airtel.com/wps/wcm/connect/AfricaRevamp/Kenya/Business/cust omer-service/service-centers/

Shamsan, R. M., & Otieno, M. (2015). Effects of strategic public relations on organization performance: A case study of Kenya Red Cross Society. International Journal of Scientific and Research Publications, 5(9), 1-12.

Sniezek, J. A., & Van Swol, L. M. (2001). Information sampling and confidence within groups and judge advisor systems. Communication Research, 28(6), 737-771.

Steyn, B., & Puth, G. (2000). Corporate communication strategy. Sandown, South Africa: Heinemann Publishers.

Steyn, B. (2000). Strategic management roles of the corporate

communication function. Pretoria: University of Pretoria.

Syengo, Z.I. (2016). An investigation into the impact of internal communication to staff motivation and Satisfaction in enhancing performance at Rafiki

Microfinance Bank (Unpublished master’s thesis). Strathmore University, Nairobi, Kenya.

Temesi, M. J. (2012). An investigation into the role of corporate communication in organizational growth: A case study of the National Oil Corporation of Kenya

(Unpublished master’s thesis). University of Nairobi, Nairobi, Kenya.

Tibble, S. (1997). Developing communications strategy. Journal of Communication Management, 1(4), 356-361.

Top 250 African Companies. (2015). African Business, 5, 100-118.

Toth, E. L. (2007). The future of excellence in public relations and

communication management. Mahwah, NJ: Lawrence Erlbaum.

116



https://www.safaricom.co.ke/sustainabilityreport_2015/public/uploads/SC

http://africa.airtel.com/wps/wcm/connect/AfricaRevamp/Kenya/Business/customer-service/service-centers/

http://africa.airtel.com/wps/wcm/connect/AfricaRevamp/Kenya/Business/customer-service/service-centers/

Van der Walt, L. (2003). Strategic organizational communication: Paradigms and

paradoxes. Sandown: Heinemann.

Vig, S., Dumičić, K., & Klopotan, I. (2017). The impact of reputation on corporate financial performance: Median regression approach. Business Systems Research Journal, 8(2), 40-58.

Volk, S. C., Berger, K., Zerfass, A., Bisswanger, L., Fetzer, M., & Köhler, K. (2017). How to play the game: Strategic tools for managing corporate

communications and creating value for your organization. Leipzig: Academic

Society for Management & Communication.

Wababu, B. N. (2012). The role of corporate communication department in achieving organizational goals: A study of National Hospital Insurance Fund

(Unpublished master’s thesis). Daystar University, Nairobi, Kenya.

Watson, T. (2014). Change and communication ROI: The 10th

anniversary

report. Retrieved from https://www.towerswatson.com/en/Insights/IC-Types/Survey-Research-Results/2013/12/2013-2014-change-and-communication-roi-study

Weckowicz, T. E. (2000). Ludwig von Bertalanffy (1901-1972): A pioneer of general systems theory. Retrieved from http://www.richardjung.cz/bert1.pdf

World Economic Outlook. (2014). Recovery strengthens, remains uneven.

Washington: International Monetary Fund.

Wyse, S. E. (2012). Customer satisfaction vs. customer loyalty: Snap research services. Retrieved from https://www.snapsurveys.com/blog/customer-

satisfaction-customer-loyalty/

Yamane, T. (1967). Statistics: An introductory analysis (2nd ed.). New York: Harper and Row.

Yeramyan, P. (2014, September 3). The six defining traits of the successful

21st

century organization. Forbes Magazine, p. 8.

Zain. (2010, February 11). Zain to change focus after Africa sale. The Economic Times, p. 5.

Zerfass, A., & Sherzada, M. (2015). Corporate communications from the CEO’s perspective: How top executives conceptualize and value strategic communication. Corporate Communications: An International Journal, 20(3), 291-309.

117



https://www.towerswatson.com/en/Insights/IC-Types/Survey-Research-Results/2013/12/2013-2014-change-and-communication-roi-study





http://www.richardjung.cz/bert1.pdf

https://www.snapsurveys.com/blog/customer-

https://www.snapsurveys.com/blog/customer-

APPENDICES

Appendix A: Questionnaire

Dear Respondent,

My name is Florence Ojwang’, a student at Daystar University undertaking a Master’s

Degree in Corporate Communication. I request you to answer the following questions

to enable me collect data required for my thesis topic on “The Influence of Corporate Communication Strategies on Financial Performance: A Case Study

of Airtel Kenya.” I commit myself that the information that you will provide will be

used only for academic purposes and will be treated with utmost confidentiality.

Please answer all questions by ticking where appropriate or filling in the blank spaces.

Kindly do not write your name anywhere in this questionnaire or any information that

can be used to identify you. Thank you for participating in this study!

Section A: Demographic Information

1. What is your Gender? Male [ ] [ ] Female

2. What is your age range?

[ ] Less than 20 years [ ] 21-30 Years

[ ] 31-40 Years

[ ] 41-50 Years [ ] 51 Years and above

3. What is your highest educational level?

[ ] Primary [ ] Secondary

[ ] Diploma [

] Degree [ ] Post Graduate

4. What is your employment status?

[ ] Formally Employed [ ] Self Employed

[ ] Unemployed

Section B: Corporate Communication Strategies of Airtel Kenya

5. How long have you been a customer of Airtel Kenya?

[ ] Less than 1 Year [ ] 1-5 Years

[ ] 5-10 Years [ ] 10 Years and above [ ] Can’t Remember

118



6. Who or what influenced you to subscribe to Airtel Kenya? [ ] Advertisements by Airtel Kenya [ ] Airtel Kenya products and

services [ ] Family and Friends [ ] Airtel Kenya Promotions

[ ] Airtel Kenya Road shows [ ] Other_______________________________________________

7. Have you ever recommended any of your friends/associates to subscribe to

Airtel Kenya? Why? [ ] Yes

[ ] No Why___________________________________________________________ _______________________________________________________________ _______________________________________________________________

8. Airtel Kenya has many products and services. Through which of the following

channels of communication do you mostly receive information about Airtel

Kenya products and services? [ ] Television

[ ] Radio

[ ] Internet/Website

[ ] Newspaper

[ ] Magazine

[ ] Promotional Leaflets

[ ] Family and Friends

[ ] Facebook

[ ] Twitter

[]SMS

[ ] Airtel Kenya Customer Care

[ ] Sales People

[ ] Road shows

[ ] Other (Explain) ___________________________________________

9. From the above list, kindly indicate the channel you MOST PREFER to

receive information about Airtel Kenya products and services? __________________________________________________

119



10. The following are some reasons one may rate a communication channel as

effective. Tick the ones which best apply to you when you think of Airtel

Kenya communications. [ ] The information provided was clear

[ ] The words were persuasive

[ ] The images used were attractive

[ ] The words were appropriate

[ ] The message was timely

[ ] Other_______________________________________________

Section C: Influence of Corporate Communication Strategies on Financial

Performance

11. Please indicate the extent to which you agree to the following statements on a

scale of 1-5 (Tick on one box in each statement, where 5 = Strongly Disagree;

4 = Disagree; 3 = Undecided; 2 = Agree; 1 = Strongly Agree)

Statements 1 2 3 4 5 The Information communicated by Airtel Kenya met my needs I got the desire to try out an Airtel Kenya service after communication about the service. I got the desire to purchase a product from Airtel Kenya after a communication about the product. I will inform others about Airtel Kenya Products and Services I will continue being a customer of Airtel Kenya Airtel Kenya communication channels are very effective Airtel Kenya Communications Prompt you to take an action Airtel Kenya Customer Service is Top Notch Resolutions are handled promptly by Airtel Kenya I have seen Airtel Kenya often mentioned in the press positively I have adequate information on Airtel Kenya that makes me utilize most of its services and products I am a proud Airtel Kenya customer I learn about new Airtel Kenya offers through its various communications channels If Airtel Kenya stops communicating about its products and services, I will switch to the competition.

Section D: Factors Attributed to Airtel Kenya’s Financial Performance

120



12. In your opinion, what attracts you to Airtel Kenya? Tick the answers that best apply to you.

[ ] Excellent Customer Service

[ ] Multiple Product and Service Offerings

[ ] Digital Services

[ ] Postpaid services

[ ] It is a global Company

[ ] Corporate Social Responsibility Activities

[ ] Corporate Governance

[ ] Professional Employees

[ ] Airtel Kenya Leadership

[ ] Other ___________________________________

13. What recommendations would you give to Airtel Kenya on improving

communication to its customers? __________________________________________________________________

_____________________________________________________________________ ______________________________________________________

Thank you for taking your time to answer the questions!

121



Appendix B: Interview Guide

Introduction: The Researcher will make a self-introduction and introduce the purpose of the interview and thank the interviewee for availing time for the interview.

The following are the interview questions that the researcher will ask a representative from Airtel Kenya’s Corporate Communications Department.

1. Why a Corporate Communications Department for Airtel Kenya? 2. What are the corporate communication strategies of Airtel Kenya? 3. What are the main areas of Corporate Communication that you consider to

have contributed to Airtel Kenya’s financial performance over the years? 4. Does Airtel Kenya’s Corporate Communication strategy relate to the

organization’s overall strategy? Kindly clarify. 5. What resources does Airtel Kenya have in place when coming up with a

communication Strategy? 6. Who are Airtel Kenya’s stakeholders? 7. What are Airtel Kenya’s stakeholders’ attitudes towards communication on

Financial Performance? 8. What are the communication channels used by Airtel Kenya to pass

communication on Financial Performance to stakeholders? Which ones do you

find most effective? 9. How does Airtel Kenya corporate communication department structure

communication messages on financial performance? 10. How do you know that the messages you communicate meet stakeholder

needs and interests? 11. Do Airtel Kenya Stakeholders generally respond in the way corporate

communications expects them to respond towards communication on

Financial Performance? 12. What factors can be attributed to Airtel Kenya’s financial performance? 13. In your opinion, how does Airtel Kenya Corporate Communication Strategies

influence the organization’s financial performance?

Thank you for your time!

122



Appendix C: Anti-Plagiarism Report

123



Appendix D: Research Permit

124



Appendix E: Research Authorization Letter

125



Date post:	15-Oct-2021
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

The Influence Of Corporate Communication Strategies On ...

Documents