Achieving improved performance through excellent service delivery for companies manufacturing food in Kenya

Abstract

The overall objective of this paper was to determine the how improved firm performance can be achieved through excellent service delivery for companies manufacturing food in Kenya. Specifically, the study sought to determine the effect of service delivery on the performance of companies manufacturing food in Kenya. The population of the study comprised of the company’s manufacturing food in Kenya. A descriptive cross-sectional survey design was adopted in data collection and analysis. Primary data was collected from respondents using a structured questionnaire, while secondary data was collected from published firm’s reports. Out of the 75 respondents targeted by the study, 44 respondents forming 56.67% response rate, which was considered adequate for analysis with good representation from all the subsectors. On hypotheses testing, it was established that, 61.8% of variations in the overall firm performance are explained by variations in the firm’s service delivery namely the application of service delivery innovation, resolution of public complaints, customer satisfaction index and conformity to the food regulatory standards. Thus, there is a relationship between service delivery and performance of companies manufacturing food in Kenya. HA1 is therefore supported. In conclusion, the study confirmed that there is a positive and statistically significant relationship between service delivery and performance of companies manufacturing food in Kenya, whereby 41.7% of changes in the overall firm performance are explained by changes in the firm’s service delivery namely application of service delivery innovation, resolution of public complaints, customer satisfaction index and conformity to the food regulatory standards. The results therefore support the anchoring theory of resource advantage theory. This study has contributed in different areas including implications to theory, policy, management practice and methodological contributions as discussed in the subsequent paragraphs. First, this study has advanced frontiers of knowledge from the study findings; the relationship between service delivery and firm performance has recently attracted increasing interest from academics and practitioners alike (Blind 2006; Dean 2004; Ho and Zheng 2004; Meuter et al. 2005; Verganti and Buganza 2005; Namibia (Republic), 2016; Zomerdijk and de Vries 2007), but there was little evidence of significant relationship between service delivery and firm performance. Secondly, this research makes several noteworthy contributions to the existing theory: the empirical relationship testing how the variations in the overall firm performance were explained by variations in the firm’s service delivery confirms the conceptual model that the relationship between service delivery and firm performance is significant where service delivery constructs independently and positively influences improvements in firm performance with four significant predictors namely application of service delivery innovation, resolution of public complaints, customer satisfaction index and conformity to the food regulatory standards. Thirdly on the study’s policy contributions: the results of the study show that business organization can maximize their service delivery for better overall performance benefit. The findings compliment policy direction that better measures of service delivery and firm performance which makes the study current in fitting to existing body of knowledge to overcome the outdated measures. Fourth, the study contributed to management practice: The findings that firm’s service delivery positively influence overall firm performance will certainly be useful in making key managerial and operational decisions. Lastly on the methodological contributions: key methodological contribution is the use of a quantitative composite index in computing the SD index and firm performance index, the use an integrated empirical model to test the relation between service delivery and performance