Analysis of Macro-Environmental Influence on Performance of Plastic Tank Manufacturers in Kenya: A Case of Nairobi County

Abstract

Purpose: This study sought to investigate the influence of the macro environment on the performance plastic tank manufacturing firms in Nairobi’s industrial area.
 Methodology: Respondents were four department managers who were the finance manager, the marketing manager, the production manager, and the supply chain manager who responded to each performance parameter respectively. The sample was a census sample considering there were only 18 plastic tank manufactures in this area. This yielded 72 respondents. Data was collected using semi-structured questionnaires administered to the various respondents. Once collected, the questionnaires were edited for completeness before being entered into the Statistical Package for Social Sciences Computer Package for Analysis. Both descriptive and inferential statistics were obtained and used. Expected outcomes were the different weights that each environmental factor exerted on each performance parameter
 Findings: Energy cost had a negative and significant relationship with the performance of performance of plastic tanks manufacturing companies in Kenya. Exchange rates, interest rates and income distribution had a negative but insignificant relationship whereas transport costs had an insignificant positive relationship. Ethics was also found to have a positive and significant relationship with performance of plastics tanks manufacturing firms in Kenya. Purchasing power had an insignificant relationship with firm performance. Result further established that new production technologies, new distribution technologies and new marketing technologies was positively and significantly related to performance of plastics tanks manufacturing firms in Keny.:This study concluded that stakeholders in the matters of security should come with measures to ensure that is favourable for functioning of manufacturing companies in Kenya. The study concluded that stakeholders should keenly study the economic environment such exchange rates, interest rates, energy and transports costs to ensure they come counter measures to mitigate their influence on the performance of the companies.
 Unique Contributions to Theory, Policy and Practice:The study recommended that manufacturing sectors stakeholders should work closely with the ministry of internal security and other relevant authority to provide a secure environment which will enhance their performance. The stakeholders in the manufacturing sector should also come up with measures that will enable them to mitigate the effects of macro-economic factors. The study finally recommended that manufacturing companies in Kenya must adopt latest technology in production, marketing and distribution of their products if they are to perform highly