A survey of downsizing strategies and performance of chemical manufacturing firms in Kenya
Abstract
The central problem of this study was that while downsizing had been practiced in Kenya for
some time, there was little enquiry about downsizing within the chemical manufacturing
context. The purpose of this study was to gain a deeper understanding of the various forms of
downsizing strategies adopted by chemical manufacturing firms in Kenya. The objectives of
the study were to establish the prevalent downsizing strategies practiced by chemical
manufacturing firms in Kenya and to determine whether these had any effect on performance.
A descriptive research design was used in this study. The population of interest was all the
registered chemical manufacturing firms in Kenya. A sample survey study was done.
Descriptive research design was chosen because the study objectives aimed at determining the
what, when and how of a phenomenon which was the concern of the study.
Primary data was collected using semi-structured questionnaires. The questionnaires were
administered by the researcher or mailed for distant targets. For the purpose of showing the
relationship among various variables, quantitative analysis was done using both descriptive
statistics. The techniques used were, mean scores, standard deviations. The findings from the
study were presented in tables.
The research found that chemical manufa~turing firms in Kenya pursue the three downsizing
strategies. The most prevalent strategy was retrenchment followed by downscaling and
p
downscoping. Their resultant effects on subsequent firm performance were improvements in
both financial and non-financial measures of performance.
Based on these findings, it is recommended that chemical manufacturing firms in Kenya
should adopt downsizing. Retrenchment was found to be the most reasonable due to the
productivity challenge facing chemical manufacturing firms. The major limitation of the study
was difficulty in providing the objective measures of performance by chemical manufacturing
firms.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences