Manufacturing Strategies and Operational Performance of Cement Manufacturing Firms in Kenya

Abstract

The objectives of the study was to establish the manufacturing strategies commonly used by cement manufacturing firms in Kenya and to determine the relationship between the manufacturing strategies and operational performance of cement manufacturing firms in Kenya.It also aimed at reviewing the increasing body of theoretical and empirical studies that have endeavored to examine the effectiveness of manufacturing strategies in driving operational performance of manufacturing firms. The study employed a hybrid of a descriptive and causal research design. The target population was all the 8 cement manufacturing companies in Kenya. Primary sources of data were employed, and the study was a cross-sectional study done across the 8 cement manufacturing companies in Kenya. The study applied correlation analysis and multiple linear regression equation with the technique of estimation being Ordinary Least Squares (OLS) so as to establish the relationship of internal controls on fraud detection and prevention. The study established that the most widely used manufacturing strategy by cement firms in Kenya is TQM and the least widely used is kaizen. The study also found out that manufacturing strategies do not have a significant effect on operational performance. The study concluded that that manufacturing strategies are not effective in driving the operational performance of manufacturing firms. Policy recommendations are that the government through the ministry of industrialization and through other trade agencies and regulators can employ the study findings to spur the growth of the cement industry and the manufacturing sector at large since it is one of the main agendas in the current government objectives, Big 4.

The study also recommends that stakeholders in the Kenyan cement manufacturing, which include managers, analysts, and industry experts, as well as the manufacturing sector at large can utilize the manufacturing strategies to drive competitiveness sustainably in order to ensure business continuity over the long term. Venture capitalists can equally be armed with the trends that define this industry and the expected direction in establishing/firming up their investment options, strategies and critical success factors within their intended plants.