Strategic Operations Management and Performance of Petroleum Marketing Firms in Kenya

Abstract

The main objective was to establish the relationship between strategic operation management and performance of oil marketing firms in Kenya. The specific objectives were to establish the strategic operations management initiatives implemented by oil marketing firms in Kenya and their effects on the firm performance, and to recommend implementable supply chain efficiency initiatives that can enhance affordability of petroleum products in Kenya. This study was based on resource-based theory and dynamic capabilities theory. Descriptive survey approach was employed to collect data from respondents. The target population was all the 35 oil marketing companies have their head offices in Nairobi. It was therefore a census survey. A questionnaire was utilized to collect primary data. The drop-and-pick method was used. The questionnaires were personally administered to the respondents by the researcher. This method made the data collection simpler and the researcher was able to facilitate accuracy in the data collection as the method entailed a personal appeal. The data from the field was thoroughly checked to ensure completeness, consistency, and accuracy. The data was then coded and tabulated to facilitate data analysis. The researcher further analyzed the data and presented the results in form of percentages, frequencies, graphs, and tables. In addition, the researcher used descriptive statistics such as the mean and standard deviation to also present the data. SPSS and Microsoft Excel were also used to produce the output of the data. Further, the study utilized simple regression to find out the relationship between strategic operational management and firm performance. The study found that new features are often added to the existing system which promotes strategic operational management. The study found that the steps included appropriate planning, having the right decisions, having adequate resources, as well as preparing and having the right personnel for the implementation of the decisions. The study found that at a 5% level of significance and 95% level of confidence, strategic capacity planning, strategic scheduling, and leveraging were significant to the performance of oil marketing firms in Kenya. The study concluded that new features are often added to the existing system which promotes strategic operational management. The study concluded that the steps included appropriate planning, having the right decisions, having adequate resources, as well as preparing and having the right personnel for the implementation of the decisions. On policy, the study recommends that the management should support strategic operations management through the use of technology by ensuring that the employees are committed to the course and that they are trained on how well they can implement strategies through the use of modern technology. In practice, the study recommends that oil marketing firms need to have adequate resources which are well coined to the organization’s strategies. The management should ensure that every step of strategic operations management and its objectives are allocated adequate resources as well as personnel. The team involved in the strategic operations management process should have adequate training for them to have the necessary skills that will increase the rate at which strategies are implemented.