ABSTRACT
Resource Based Performance (RBP) is an innovative construct of an organisation,
encompassing strategy, formal structure, and customer to supplier relationships; including
innovation and technological capabilities; on which performance is tested. Firm success is not
necessarily associated with market power or industry structure, but rather the result of
innovation and new technologies which are critical in influencing the dynamics of external
environment and competition. In essence, the resource-based theory explores the origins of
competitive advantage and superior performance. Activity based budgeting has been
recognized for lending this to performance. Previous studies on ABB have focused the
context of business organization whereas; it is evident that there is increased information
requiring attention on Resource Based performance analysis. Effect of activity based
budgeting on resource based performance in universities, although important has not been
given adequate attention. Available literature show minimum effort in establishing the
relationship. Despite the value of activity based budgeting and its implementation by
universities, there is evidence of fluctuating performance of the universities resources. The
purpose of this study was therefore to analyze the effect of activity based budgeting on
resource based performance in Universities in Western Kenya. Specific objectives of the
study were to; establish effect of activity based budgeting on budget goal reallocation,
determine contribution of activity based budgeting on implementation timelines, determine
effect of activity based budgeting on effective budget resource application and analyze effect
of activity based budgeting on value of the firm. The study adopted correlation research
design. The null hypotheses were that; activity based budgeting measured in terms Cost-
Revenue measurement, activity time measurement and activity to activity relationship do not
significantly affect resource based performance in the universities. The study was guided by
goal setting theory, cognitive evaluation and the accounting tool of balance scorecard. The
study was conducted in Western Kenya on 21 Universities with a target population of 36
finance management officers; comprising of Finance Officers and Senior Internal Auditors
where N=32 and 4 was used for piloting. A census survey was conducted on the entire target
population. Primary data consisting of respondent opinion and secondary data was collected
by use of structured questionnaires and secondary data schedules. Means, standard deviation,
correlation, and regression were used to analyse data. Validity test revealed respondents‟
knowledge of the tools, while cronbach‟s Alpha reliability coefficient was 0.7, meaning scale
items were 70% reliable. The result of the study has potential of contributing knowledge to be
used by scholars and researcher as reference material and it was also be useful to policy
makers to lay strategies on how to reduce cost and maximize profit. Regression results reveal
R2 of 0.637 to budget goal reallocation, 0.724 for implementation timelines, 0.698 to
effective budget resource application and 0.627 to Value to the firm, implying that ABB
account for 63.7% of budget goal reallocation, 72.4% of implementation timelines,69.8% to
effective budget resource application and 62.7% of Value to the firm, all significant at
p
OCHIENG, C (2021). Effect Of Activity Based Budgeting On Resource Based Performance In Universities In Western Kenya. Afribary. Retrieved from https://tracking.afribary.com/works/effect-of-activity-based-budgeting-on-resource-based-performance-in-universities-in-western-kenya
OCHIENG, CAROLYNE "Effect Of Activity Based Budgeting On Resource Based Performance In Universities In Western Kenya" Afribary. Afribary, 08 May. 2021, https://tracking.afribary.com/works/effect-of-activity-based-budgeting-on-resource-based-performance-in-universities-in-western-kenya. Accessed 09 Nov. 2024.
OCHIENG, CAROLYNE . "Effect Of Activity Based Budgeting On Resource Based Performance In Universities In Western Kenya". Afribary, Afribary, 08 May. 2021. Web. 09 Nov. 2024. < https://tracking.afribary.com/works/effect-of-activity-based-budgeting-on-resource-based-performance-in-universities-in-western-kenya >.
OCHIENG, CAROLYNE . "Effect Of Activity Based Budgeting On Resource Based Performance In Universities In Western Kenya" Afribary (2021). Accessed November 09, 2024. https://tracking.afribary.com/works/effect-of-activity-based-budgeting-on-resource-based-performance-in-universities-in-western-kenya