Operations Management Practices and Firm Performance of Motor Vehicle Assembly Companies in Nairobi, Kenya

Abstract

The advent of globalization has brought about immerse pressure for organization to adopt digital strategies so at to survive in the dynamic business environment and remain relevant. Individuals use digital platforms for various reasons from social interaction, obtaining information and purchasing good and services. The study sought to establish the effect of digital adoption by tour and travel in Kenya, to enhance its competitive advantage. The study also analyzed the different digital platforms used by firms and the challenges faced by organization during implementations of digital strategies. The study adopted a descriptive cross-sectional design. The population targeted in this study consisted all the 117 tour companies operating in Nairobi. A sample size of 65 Tours and Travel firms was taken using Yamane’s formula. A questionnaire was used to collect the primary data which contained elements of open ended and closed ended questions. Respondents of the study were the marketing managers of the firms or their equivalents. Descriptive statistics were used to synthesize information collected from the respondents. The data was analyzed and presented in the forms of table and graphs using frequency, percentages, means score and standard deviation. Study found that 30% of the Firms in Nairobi use the Facebook platform to engage their customer followed by 22% on twitter while only 9% use LinkedIn. The study also found that 90% of the Tours and Travels firms in Nairobi using digital technology have improved their performance and enhanced their competitive advantage. Moreover, the study established that adoption of digital technology has improved the profitability of the firm and service delivery. The results revealed that the adoption of technology was associated with increased learning as well as growth in the organization. The study revealed that most of the firm’s staff lacked technical skills to operate some of the digital technology and management support. The study concluded that adoption of digital technology improves and promotes the competitive advantage of a firm. It results into the delivery of high quality service at low cost, provision of unique services leading to high customer satisfaction, improved market share, sales volume as well as profitability of a firm. The study recommends the need for providing effective systems and policies that would promote the adoption of digital technology within the Tours and Travel Firms in Kenya. The adoption of digital technology should be part and short term and well as long term strategy of a firm. Furthermore, the management of the Tours and Travels should continuously train their staff to equip them with skills that may help them execute their duties.