Data Based Management Decisions and Operational Performance of Large Manufacturing Firms in Nairobi

Abstract

The objectives of the study were; to establish the extent of data based management decision making adoption on large manufacturing firms in Nairobi and to determine the impаct of dаtа bаsed mаnаgement decisions on performаnce of large mаnufаcturing firms in Nаirobi. It also aimed at reviewing the increasing body of theoretical and empirical studies that have endeavored to examine the data based management decisions and its effect on organisation performance. The study employed a hybrid of a descriptive and causal research design. The target population was the 455 large manufacturing firms in Nairobi County, Kenya. Stratified random sampling was applied and 46 manufacturing firms in Nairobi County were picked as the study sample. Primary sources of data were employed, and the study was a cross-sectional study done across the 46 manufacturing entities in Nairobi County. The study utilized descriptive statistics in order to establish the extent of data based management decision making adoption on large manufacturing firms in Nairobi. The study also applied correlation analysis and multiple linear regression equation with the technique of estimation being Ordinary Least Squares (OLS) so as to determine the impаct of dаtа bаsed mаnаgement decisions on performаnce of large mаnufаcturing firms in Nаirobi. Regression was done on the operational performance measures of cost and quality, and then on the overall operational performance. The independent factors considered for this study were quality, procurement and marketing management decisions. The study established that data based management decision making adoption by large manufacturing firms in Nairobi was agreed. The study also found out that data based management decisions only have a significant effect on cost performance and overall operational perfomance. Quality management decisions also positively influence cost performance and operational performance. The study concluded that data based management decision making adoption by business enterprises is agreed and that data based management decisions impact on operational performance and aspect of cost effectiveness. 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 manufacturing industry. The study also recommends that stakeholders in the Kenyan manufacturing sector, which include managers, analysts, and industry experts, as well as the manufacturing sector at large to 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 manufacturing plants