IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

No images

UserInfo


54.80.146.251
United States United States
Your Time

User Statistics Info
IJSSE is one of the leading International Journals by User Statistics!

Login Form



IJSSE Newsletter Form
Full Names *
E-mail Address: *
Country *
PDF Print E-mail

INFLUENCE OF STRATEGIC CONTINGENT ORGANIZATIONAL FACTORS ON PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA

 

1*Allan Kihara,

1*School of Business, Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya.

 

2*Dr. Partrick Karanja

2*School of Business, Jomo Kenyatta University of Agriculture and Technology

 

3*Dr. Ogollah Kennedy

3*School of Business, University of Nairobi, Kenya.

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

CITATION: Kihara, A., Karanja, P., Kennedy, O., (2016) Influence of Strategic Contingent Organizational Factors on Performance of Large Manufacturing Firms in Kenya. International Journal of Strategic Management and Current Business Studies. Vol. 5 (1). 35 – 49


ABSTRACT


Even though Kenya has been praised for its robust economy and that is set to become one of the top five fastest-growing in sub-Saharan Africa, manufacturing output remains low compared to other sectors. Kenyan manufacturers have registered stagnation and declining profits of over $330 million annually and government loses of $67 million in potential tax revenue for the last five years due to contingencies. It is estimated that manufacturing companies have lost 70 per cent of their market share in East Africa and this has resulted in some firms announcing plans to shut down their plants and shift operations to Egypt. The general objective of the study was to establish the influence of strategic contingent organizational factors on performance of large manufacturing firms in Kenya by reviewing organizational structure as the study variable with legal and regulatory environment as the moderating effect. The study adopted a mixed research design of cross-sectional research design and descriptive survey design and the research philosophy was positivism. The study population study was 499 large scale manufacturing companies with a sample size of 217 managers from each of the 217 companies. Data was collected through the administration of questionnaires to the relevant managers. The findings of the study revealed that majority of the companies had a written down IT policy, high rate of both IT software and hardware adoption in their companies and also train to sharpen their IT skills. The findings also indicated that IT hardware adoption, IT software adoption and training employees to sharpen their IT skills are positively and significantly related with ROE. The findings of the study also revealed that written down IT policy, IT software adoption and training employees to sharpen their IT skills was positively and significantly related to profit before tax while IT hardware adoption , IT software adoption and training employees to sharpen their IT skills had a positive and significant relationship with ROA. The study concluded that information technology has significant effect on performance of large manufacturing firms in Kenya. The sub-constructs of information technology that is written down IT policy, rate of both IT software and hardware adoption and sharpen of IT skills influence performance positively.The study recommended that large manufacturing firms in Kenya should have an improved information technology system as it leads to better performance. The firms should have written down IT policy, high rate of both IT software and hardware adoption and frequently sharpen IT skills of the employees through training.

Key words: Strategic contingent, Information technology, organizational factors, Large manufacturing firms, performance, Kenya.

 

Full Text PDF Format

 

 
Banner
Publication Disclaimer: The accountability of the article published in IJSSE journals is entirely of the author(s) concerned and not of the publisher/editor. The view expressed in the articles of any IJSSE journal is those of the contributors, and it does not essentially correspond to the views of the publisher/editor. It is responsibility of the authors to seek copyright clearance for any part of the content of the articles. The publisher/editor of IJSSE journals is not liable for errors or any consequences arising from the exercise of information contained in it.
Free counters!
IJSSE - International Journal of Social Sciences and Entrepreneurship | Copyright 2013 | All Rights Reserved  <