The influence of ecological factors on strategy within large-scale manufacturing firms in Nairobi
Abstract
Concerns over ecological factors have evolved through several distinct phases from the
1960's when movements focused on pollution and energy conservation to to-date when
ecological factors are seen as a source of competitive advantage as comprehensive
strategies continue to be adopted. With oil and energy prices rising and expected to rise
more and with the growing awareness of the intensity of change that is being wrought on
our planet and the centrality of human effort in provoking this change, pressures in the
global market place require firms to develop universally-applied standards of care of the
ecological environment hence the manufacturing industry landscape is changing, as are
the views of the professionals within it. At the same time, the issue of climate change has
sparked a debate weighing the benefits of limiting industrial emissions. Where ecological
factors were once seen as little more than a necessary evil, today the business case for
environmental initiatives is taking the fore in the public consciousness and the thinking of
business leaders.
With these imperatives in mind, the study examined the influence of ecological factors on
strategy within large-scale manufacturing firms located in Nairobi. The objectives of the
study were to establish the extent to which ecological factors were evident in the
espoused and enacted strategies of large-scale manufacturing firms in Nairobi and to
determine how these ecological factors influenced strategy of the large- scale
manufacturing companies.
To explore the issues, primary data was collected via mail questionnaires distributed to
senior executives and managers. Findings were then analyzed using descriptive statistics.
Frequency tables, percentages and graphs were used to present the findings. The study
sample comprised of 50 large-scale manufacturing companies based in Nairobi out of
which 26 companies responded representing a 52% response rate. The rest were either
unwilling to respond due to the fact that they considered the issues sensitive and
confidential or took too long to fill the questionnaires. Majority of the companies that
responded were predominantly foreign owned.
The study established that there was a general recognition that the ecological
environment had gained attention and focus in the past few years with manufacturing
companies trying to find potentially win opportunities. Majority of the respondents
displayed consistency to the fact that they did have reasonable commitment from their
top management on ecological issues. Ecological factors were evident in the espoused
strategies of most large-scale manufacturing firms but there still seemed to be conflict in
implementation as ecological initiatives adopted were more of minimization rather than
elimination strategies. The overriding attitude was that although majority of companies
had formal departments like the environmental and safety departments, these departments
were expected to deal with ecological issues and not interfere with core business. At the
same time most respondents saw ecological initiatives as costly as respondents felt that
resources were still limited therefore it was unrealistic to expect huge capital investments
just for the environment. Lack of awareness and knowledge on ecological issues stood
out as a key barrier to integration.
The research study was broad hence the level of detail it could delve into given the two
objectives was limited, while a more comprehensive study was desirable, this could not
be entirely possible in view of the limited resources at the researcher's disposal. The
other limitation was that the study was based on a sample limited to Nairobi area and
sample limited to large-scale manufacturing firms. At the same time references and
comparisons made were mainly from studies done in other countries since no previous
research had been done exactly on this topic in the Kenyan context. The study used
questionnaire method and ignored other methods of data collection hence there was likely
to be questionnaire bias in that respondents may have misunderstood some questions or
gave biased opinions. The reluctance of some managers to respond was also a major
limiting factor.
There is need for replication of the study to be done on other sectors of the economy
since the research concentrated on the manufacturing sector. There is also need to
research on other large-scale manufacturing firms outside Nairobi since this research
concentrated only on companies located within Nairobi area.
To conclude, the importance of developing effective ecological policies was recognized.
The success and profitability in the future requires thinking and acting today and staying
ahead of the game through good research into the latest technologies and strategies. There
is also a need for progressive, developmental and workable models and information that
make the area more accessible for companies across industry sectors. These could be
used to identify and share best practice at overcoming the barriers for integration of
ecological factors into corporate strategy. This implies that the role of environmental
legislation in companies needs to be further investigated as well as its role and
effectiveness in protecting the ecological environment.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences