Effects of Strategic Capabilities on Competitive Strategies of Manufacturing Firms in Nairobi City County

Abstract

In the global world of today, majority of the firms are operating in an increasingly very dynamic and challenging environment that threatens their survival in the competitive business world. Firms must be able to respond promptly to opportunities and obstacles that occurs within the business environment. “The study sought to investigate on the effects of strategic capabilities on the competitive strategies of the manufacturing firms in Nairobi. The study was guided by the following objectives; to identify the strategic capabilities that are used by the Manufacturing firms in Nairobi and to establish the influence of the strategic capabilities on the competitive strategies of manufacturing firms in Nairobi. The study therefore adopted descriptive research design which was considered as being a data collection process that helps to answer the questions concerning the present status of the object that was being considered. The target population of the study was therefore 544 (Approximately 80% of the 700) which is the number of the manufacturing firms in Nairobi. It was also noted that 80% of the estimated population is considered enough to cover for any error that would be emanating from the chosen sample.” “The study adopted the use of semi structured questionnaires for purposes of data collection. Questionnaires entailed the use of both the open ended and closed ended questions. the study revealed that manufacturing organizations are making proper utilization of the raw materials for maximum output. The study revealed that the firm is investing on new opportunities that supports the availability of the materials needed. Further it’s also apparent that high costs of productions are dealt with through ensuring that manufacturing material inventory is maintained within the production rates. The data that was obtained from the questionnaires was therefore analyzed using the quantitative analysis approach.” Further the study revealed that manufacturing firms do benchmarks on the best technology innovations practices for operation benefit of the firm, that manufacturing firm have in place new policies and practices that supports technology innovations. It was concluded that management and leadership of the manufacturing firms needs to have a clear understanding of the firms’ functional goals and that employees need to feel empowered towards making key specific decisions that affects their Job. “The four variables that were studied, explain only 78.6% of the competitive strategies as represented by the adjusted R2. This therefore implied that other factors that were not studied in this research contributed 21.4% of the competitive strategies of the manufacturing firms. Therefore, further research should be conducted to investigate the other factors (21.4%) of the competitive strategies. The study recommends that manufacturing firms should focus on implementation of the competitive strategies so as to improve the firm out puts through increasing asset quality, the quality of service and also through increasing the market share.