Influence of Operations and Processes on Performance of Manufacturing Firms in Kenya

Abstract

Purpose: The purpose of this study was to analyse the influence of operations and processes on performance of manufacturing firms in Kenya.
 Methodology: In this study, descriptive and cross-sectional research designs were used. According to the directory, there are 461 large-sized registered members. In order to sample 160 large industrial companies from the entire population, this study used Cochran's formula. Data was gathered using a standardized questionnaire, and both qualitative and quantitative analysis were performed on it. Both a descriptive and an inferential data analysis were used in this investigation. Tables, graphs, and pie charts were used to present the analysed data.
 Results: The findings of the study revealed that the relationship between operations and processes and performance was significant at 5% level of significance. The model summary in the hypothesis testing revealed that the R2 for the model was 0.305. This is to imply that 30.5% of the variations in performance of manufacturing firms in Kenya are as a result of operations and processes. The p-value for the variable was 0.000 which is less than the standard P-value of 0.05. This is to mean that operations and processes had a significant influence on the performance of manufacturing firms in Kenya. To this end, we therefore, reject the null hypothesis that there is no significant relationship between operations and processes and performance of manufacturing firms in Kenya.
 Unique contribution to theory, practice and policy: While the existing Supply Chain Operations Reference (SCOR) Model used in this study was validated, the study recommends that the policy makers and management of manufacturing firms should come up with policies and legislations that cover the concept of supply chain operations and processes as an essential driver to the performance of the manufacturing sector in the country. The policy makers hold a major role in determining how key sectors such as the manufacturing sector are run. The regulators and the legislators formulate policies and guidelines that guide on how manufacturing firms should carry out their operations including supply chain processes. The study also recommended that manufacturing firms policy makers should develop a policy and regulatory framework to accelerate effective implementation supply chain processes and operations to enhance their performance.