Operational Strategies and Performance of Kenya Vehicle Manufacturers Limited Thika, Kiambu County, Kenya

Abstract

Organizational performance at Kenya Vehicle Manufacturing Limited has declined due to failure to meet set targets and inefficiencies, defiance with policy guidelines, noncompliance with the service charter, and a delayed process of core function automation. This study’s general objective was to establish the degree to which operational strategies influence the organizational performance at Kenya vehicle manufacturers limited Thika, Kiambu County. This study is based on the following specific objectives: to understand how performance is influenced by systems and processes, examine the influence of innovations, demonstrate how performance is influenced by stakeholder involvement and finally, to examine the influence of internal control practices on organizational performance at Motor Vehicle Assemblies in Thika, Kenya. The research builds upon three theories: Resource-Based View Theory, Systems Theory, Stakeholder theory and Balanced Scorecard Theory, all of which were useful in supporting the study's variables. In this study, a cross-sectional study design was employed. The study centered on a population of 139 employees comprising of 98 from technical department, 22 from procurement department, 10 from marketing department, 3 from finance department and 6 employees from administration department at the Kenya Vehicle manufacturers limited in Thika Town, Kiambu County. The study specifically sampled the employees in all departments including the 62 from technical, 14 procurement 6 marketing and 2 from finance and 4 in the administration. The researcher randomly administered both open and close ended questionnaires that were used to collect data. On reliability of instruments, it was first discussed by the researcher and the supervisors, who offered their expertise and made sure the instruments, measured what they were intended to measure. The Cronbach’s coefficient Alpha, a method of testing the internal constancy of a test was used in the study to assess the internal reliability and consistency of the questionnaire. Purposive sampling was utilized to take note of the important participants and key informants, including managers and supervisors while simple random sampling was utilized in assembling data from junior employees. The researcher analyzed data from questionnaires through the use of descriptive statistics, subjecting the data to percentages and frequencies. Pearson's correlation test was used to determine whether there was any correlation between any two variables. The predictive impact of strategic management operations on employee performance was under review using regression analysis. The qualitative statistics went through thematic analysis. The findings showed that that for every unit increase in systems and controls, organizational performance increased by 62.1 percent; however, every unit decreased in innovations, organizational performance decreased by 27.3 percent. According to the study, the drop in innovations was as a result of the fact that some staff members' skill levels was not in synchronization with the Vehicle Manufacturers Limited's specific organizational performance needs. Employees may have possessed the academic credentials to manage administrative issues for others, but not operational performance. The study also found out that every unit increase in stakeholder involvement boosted organizational performance by 18.0 percent, and every unit increase in internal controls on organizational performance increased organizational performance by 45.5 percent.