INFLUENCE OF STRATEGIC MANAGEMENT TOOLS ON PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Timothy Maingi Maina, Dr. Lawrence Odollo

Abstract


The general research objective was to determine the influence of strategic management tools on the performance of manufacturing firms Kenya. The specific research objectives were to determine the influence of BCG Matrix and Benchmarking on performance of manufacturing firms in Kenya. The study was anchored on resource-based view theory, institutional theory and portfolio management theory. Descriptive research design was used for the study and the semi structured questionnaire was the main data collection instrument. The study targeted 49 manufacturing firms in Nairobi City County. The study constituted a stratified sampling technique of manufacturing firms within Nairobi County and the number of employees in the sample was 198 to generate information which was presented using, charts and frequency distribution tables. Primary data was collected using structured questionnaires while the secondary data was collected from relevant literature and publications. Pilot testing was done to ensure the reliability and validity of the instrument. Statistical analysis was carried out using statistical packages for social science version 25. Inferential statistics that is the correlation and regression analysis was used to make predictions or inferences about the population from observations and analysis. Regression analysis was also computed to test the relationship between study variables. The questionnaires were self-administered to the respondents by the researcher. Collected data was analyzed using both quantitative and qualitative techniques. The study concluded that BCG matrix has a positive and significant effect on performance of manufacturing firms in Kenya. In addition, the study concluded that benchmarking has a positive and significant effect on performance of manufacturing firms in Kenya. From the results, this study recommends that the management of manufacturing firms in Kenya should ensure effectiveness in implementing BCG matrix to enable them identify possible growth opportunities for their firm. In addition, the management of manufacturing firms in Kenya should adopt internal Benchmarking, external Benchmarking and performance Benchmarking.

 

Key Words: Strategic Management Tools, BCG matrix, Benchmarking, performance of manufacturing firms

Full Text:

PDF

References


Abazeed, R. A. M. (2017). Benchmarking Culture and Its Impact on Operational Performance: A Field Study on Industrial Companies in Jordan. International Journal of Academic Research in Economics and Management Sciences, 6(1), 162-177.

Alawneh, A. L. (2015). The Impact of Mission Statement on Performance: An Exploratory Study in the Jordanian Banking Industry. Retrieved from http://www.digitalcommons.www.na-businesspress.com/JMPP/AlawnehAA_Web16_4_.pdf

Baraza, D. N., & Arasa, R. (2017). Effects of competitive strategies on performance of manufacturing firms in Kenya a case study of east Africa breweries limited. International Journal of Economics, Commerce and Management, United Kingdom, 5(9), 311-328.

Bart, C., K., Bontis, N., & Taggar, S. (2016). A Model of the Impact of Mission Statements on Firm Performance. Retrieved from https://www.researchgate.net/publication/240258617_A_Model_of_the_Impact_of_Mission_Statements_on_Firm_Performance

Chiu, C. C., & Lin, K. S. (2020). Rule-based BCG matrix for product portfolio analysis. Software Engineering, Artificial Intelligence, Networking and Parallel/Distributed Computing, 17-32.

Clarissia, S. M. S. (2020). A study on Ansoff Matrix Technique: As a growth strategy and an adaptive learning technique adopted in the leading brand of products. BIMS Journal of Management, 18.

Gharaei, A., & Pilbala, M. (2016, January). Provide a practical approach for measuring the performance rate of organizational strategies. In 2016 12th International Conference on Industrial Engineering (ICIE) (pp. 115-124). IEEE.

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care organizations. John Wiley & Sons

Haezendonck, E., Willems, K., & Hillemann, J. (2017). Doing good while performing well at Flemish universities: benchmarking higher education institutions in terms of social inclusion and market performance. International Journal of Inclusive Education, 21(1), 31-47.

Janes, A., & Sutton, C. (2017). Ebook: Crafting and Executing Strategy: The Quest for Competitive Advantage. McGraw Hill.

Kalogiannidis, S., & Mavratzas, S. (2020). Impact of marketing mix strategies effective product development issues in MNCs/Retail. International Journal of Business Marketing and Management (IJBMM) Volume, 5, 118-125.

Kombo, H. K., Obonyo, P. K., and Ogutu, M. (2015). Knowledge Strategy and Performance of Manufacturing Firms in Kenya. Journal of Business & Economic Policy, 2(3), 198-207.

Lancaster, G., & Massingham, L. (2017). Strategic marketing planning tools. In Essentials of Marketing Management (pp. 402-425). Routledge.

Macedo, I. M., Pinho, J. C., & Silva, A. M. (2016). Revisiting the link between mission statements and organizational performance in the non-profit sector: The mediating effect of organizational commitment. European Management Journal, 34(1), 120-144.

Mariappan, P. (2016). Performance Analysis of Indian Public Sector Banks based on Their Investment Level. International Journal in Management & Social Science, 4(3), 83-105.

Muogbo, U. S., (2015). The Impact of Strategic Management on Organisational Growth and Development (A Study of Selected Manufacturing Firms in Anambra State). IOSR Journal of Business and Management, 7(1), 24-39.

Ndege, J. N. (2016). Relationship between working capital management and financial performance of manufacturing firms in Kenya. Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/100058/

Njeru (2015). Strategic management practices and performance of small and medium sized enterprises in Kenya. Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/94782/


Refbacks

  • There are currently no refbacks.