Business Process Standardization And Operational Performance Of Large Manufacturing Firms In Kenya

Abstract

Companies can only remain competitive and ensure survival in the current market environment if they adopt efficient mechanisms and operations. This would be achieved through standardizing business processes. The general objective was the determination of how business process standardization affects the extent to which large manufacturing in Kenya perform operationally. Specifically, it was meant to establish the degree of implementation of business process standardization and determine how business process standardization affects the degree of performance of large manufacturing firms in Kenya operationally. It employed descriptive cross-sectional approach. The target was all large manufacturing companies in Kenya. There were 511 of these firms as per the information provided in KAM directory (Kenya Association of Manufacturers (KAMs), 2021). The study used stratification to sample the needed informants randomly to avoid biasness making the outcome applicable. The exact sample size was 77. The study employed primary data obtained through a questionnaire. SPSS was used to provide both inferential and descriptive statistics. Descriptive statistics helped give information on the informants. Multiple regression helped to ascertain how the study constructs are linked. The findings indicate that large manufacturing firms in Kenya adopted process execution to a moderate extent. The correlational findings established that process execution and operational performance positively and significantly correlate, given r =.709, p< 0.05. Process documentation and collaboration and communication equally strongly correlate positively and significantly having r =.789, p<0.05 and r=.806, p<0.05 discretely. Collaboration and communication and operational performance have a weak direct and insignificant correlation of r =.152, p>0.05. The implication was that increased process execution, process documentation and data management lead to improved operational performance. Improved collaboration and communication equally do not significantly affect operational performance. The research also found a direct relationship connecting BPS and operational performance given by R = 0.862. The adjusted R2 of 0.726 imply that 72.6% of changes in operational performance arise due to changes in BPS practices studied in this research. This implies that there are other factors causing 27.4% variations in operational performance that are not studied in the current model. The conclusion of the study was that BPS and operational performance positively and significantly relate. Further BPS practices affect the extent to which manufacturing firms in Kenya perform operationally. The study also reached a conclusion that large manufacturing firms have embraced BPS activities to a moderate extent. These included process execution, process documentation, data management and collaboration and communication. The study recommended that managers of large manufacturing firms should seek how to improve operational performance by incorporating standardized processes. The managers should also focus on factors that may negatively affect the process of standardization. The researcher also recommends that management should exploit other operational performance factors to help achieve sustainable operational superiority.