Strategic operations and organizational performance of sugar companies in western Kenya

Abstract

The focus of the study was to assess the effect strategic operations applications on the organizational performance. Specifically, the study focused on finding out the effects of product reengineering, product development and operation risk mitigation on the organizational performance of western sugar companies. The study adopted a descriptive survey study design, guided by transaction cost theory, RBV theory and system theory. The target population for the study was 10 sugar companies in Western Kenyan region. A total of 30 respondents for the study were selected using clustered random sampling. Data was then collected using structured questionnaires distributed using the drop and collect method. Collected data was first cleaned, sorted and coded in ordinal scale using numerical numbers then entered into SPSS software version 24. The resultant data was then analyzed using both inferential and descriptive analysis. Descriptive statistics included frequencies, percentages, and means to summarize and relate variables under study. The analyzed results were then presented using tables. A regression analysis was also used to generate a model to explain the relationship between the studies’ independent and dependent variables. The study concludes that product reengineering has a significant and positive influence on organizational performance. This shows that improvement of product reengineering will definitely improve performance of tea organizations. In addition, the study concludes that product development has a significant and positive influence on organizational performance. This shows that improving product development led to improvement on organizational development. Further, the study concludes that operation risk mitigation has a positive and significant influence on organizational performance. This shows that improving operation risk mitigation leads to improvement organizations. The study recommends that the sugar firms should always understand market competition through product reengineering in order to realize product performance, compliance, durability and serviceability. Also, it recommends that sugar firms should incorporate appropriate technology to make them more competitive from the threat of new competitors. Also, they should use an effective method in knowledge management to establish new product development.