Influence of Importation of Second Hand Clothes on the Performance of Textile Manufacturing Firms in Nairobi

Abstract

This study examined the influence of second hand clothes importation on the performance of textile manufacturing firms in Nairobi. The local textile manufacturing sector has been on a decline since liberalization of clothing Imports in 1990. This decline can be attributed to the clothing imports flooding the local clothing market and this study specifically sought to study the influence imported clothes have on the performance of these firms. In this study, an investigation of all the 29textile manufacturing firms in Nairobi was done. The study depended on information gathered through the use of questionnaires utilizing the five point Likert scale. The survey questions concentrated on the relationship between attributes of second hand clothes and performance of the firm utilizing the balanced score card measure of performance. The independent variables studied were, Quality, Price, Placement and Consumer tastes and preferences. With the guide of Statistical Package for Social Sciences (SPSS 24.0), the data gathered was analyzed into descriptive and statistical analysis based on a regression model. Tables were utilized to introduce the information diagrammatically while engaging information was given as logical notes. Of the 4 variables studied only 2; Quality and Placement were statistically significant to the study. The findings of the study depict Placement also as having an inverse relationship with performance of textile manufacturing firms possibly due to the huge investment it would take to put set up distribution channels and advertise. Also capacity limitations could be a factor in the ready availability of the firm’s products in the market. There were limitations in the collection of data from these firms. Being private firms they were reluctant to provide information for fear of reprimand from their superiors and also they are not obliged to provide such data. The responses provided could also be affected by personal biases. This study preempts opportunities for further research on; effects of Chinese clothing imports on the performance of textile manufacturing industries and also the role of government in how the textile manufacturing firms perform in the long run.