Influence of Competitive Priorities Strategy on Organizational Performance of Cement Manufacturing Firms in Kenya
DOI:
https://doi.org/10.47604/ejbsm.1961Keywords:
Competitive Priorities Strategy, Organizational Performance, Cement Manufacturing FirmsAbstract
Purpose: The study sought to assess the influence of competitive priorities strategy on organizational performance of cement manufacturing firms in Kenya.
Methodology: The study adopted the positivism research philosophy and the concurrent triangulation research design. The target population consisted of eight cement production companies located in the counties of Kisumu, Nairobi, Mombasa, Machakos, Nakuru, and Kajiado were the subject of the study. The study purposely excluded Savannah Cement Limited from the main study since it had been "temporarily" shut down at the time of data collection due to financial and ownership wrangles. Census sampling method and proportional stratified random sampling were used to select 365 employees which included 37 managers, 322 non-managers and 6 CEOs. Both primary and secondary sources were used to gather data for this study, and both quantitative and qualitative data gathering techniques were employed. The qualitative data was analyzed using content analysis technique (Hsieh & Shannon, 2015), while the quantitative data was analyzed using MS Excel 2016 and IBM's SPSS version 28.
Findings: the study results indicated that competitive priorities strategies is an operational strategy that is often utilized by the cement manufacturing firms to improve their organizational performance. This was supported by the high level of agreement in all statement by most of the respondents. The study also concluded that competitive priorities strategies had a positive and significant relationship with organizational performance of cement manufacturing firms in Kenya. The regression results led to the rejection of the null hypothesis, thus adopting the alternative hypothesis; competitive priorities strategy has a significant influence on organizational performance of cement manufacturing firms in Kenya.
Unique Contribution to Theory, Practice and Policy: The theory used in this study advocated for the need of cement manufacturing firms in Kenya, to focus on identifying strategic resources that are critical for success and improved performance of the industry. Hence, the theory will also be applicable to other studies with such related research topics. The study recommended that the management of cement manufacturing firms in Kenya should invest more in automated systems especially in production and delivery so as to increase their production, operational and supply-chain efficiency. They should also invest in better training programs so as to equip their employees with the necessary skills needed to improve their work efficiency. Moreover, policymakers should also formulate better policies to enhance the competitiveness between manufacturing firms in Kenya.
Downloads
References
Abdulkareem, A. A. (2010). Competitive Priorities and Competitive Advantage in Jordanian Manufacturing. University of Huddersfield, Emerging Markets Research Group. Huddersfield, UK.: University of Huddersfield. Retrieved May 9th, 2016, from http://eprints.hud.ac.uk/7506/
Ahmed, A., Khuwaja, F. M., Brohi, N. A., Othman, I., & Bin, L. (2018). Organizational factors and organizational performance: A resource-based view and social exchange theory viewpoint. International Journal of Academic Research in Business and Social Sciences, 8(3), 579-599
Alaaraj, S., Mohamed, Z. A., & Bustamam, U. S. A. (2018). External growth strategies and organizational performance in emerging markets: The mediating role of inter-organizational trust. Review of International Business and Strategy.
Ali, A. H., Gruchmann, T., & Melkonyan, A. (2022). Assessing the impact of sustainable logistics service quality on relationship quality: Survey-based evidence in Egypt. Cleaner Logistics and Supply Chain, 4, 100036.
Anyanzwa (2021). Kenyan Cement Makers Suffer Clinker Shortfall. The East African. https://www.theeastafrican.co.ke/tea/business/kenyan-cement-makers-suffer-clinker-shortfall3580302#:~:text=Kenya's%20cement%20manufacturing%20sector%20is,Committee%20released%20last%20week%20showed.
Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of management, 27(6), 643-650.
Bayne, L., Schepis, D., & Purchase, S. (2017). A framework for understanding strategic network performance: Exploring efficiency and effectiveness at the network level. Industrial Marketing Management, 67, 134-147.
Boyer, K. & Lewis. (2012,). Competitive Priorities: Investigating the Need for Trade-Offs in Operations Strategy. Production and Operations Management., 11(1), 9 - 19. Retrieved January 26th, 2016, from http://www.sciencedirect.com/science/article/pii/S0272696398000424.
Boyer, Swink and Rosenzweig (2015): Operations Strategy Research in the POMS Journal. Production and operations Management Society., 14(4), 442 - 449. Retrieved February 14th, 2016, from www.msu.ed/osr_emory.pdf
Brown, S. & Square. (2016). Capabilities And Competencies - Toward Strategic Resonance Between Operations And Strategy Processes Within Firms. (B. Square, Ed.) International Journal of Operations Management., 7, 1 - 30. Retrieved February 1st, March, 2016, from www.exeter.ac.uk
CemNet. 2020. "Impact of COVID-19 on the Cement Industry." Live Webinar presented at the CemTech International Cement Conference, April 15. https://www.cemnet.com/Conference/ Item/185258/impact-of-covid-19-on-the-cement-industry-live-webinar.html.
Creswell, J. W. (2016). Research Designs: Quantitative, Qualitative and Mixed Method Approaches. (2nd ed.). (C. D. Laughton, Ed.) London, California, United Kingdom: Sage Publications, Inc.
ECA. (2017). Global Cement Production. Trade Finance Global. Retrieved March 29, 2023, from https://www.tradefinanceglobal.com/export-finance/export-credit-agencies-eca/
Economic Review Magazine. (2022). Cement Production Economic Review. Hodder Education - Learn More. Retrieved from https://www.hoddereducation.co.uk/subjects/economics/products/16-18/economic-review
Global Cement Magazine (2021). Kenyan Cement Production. The Global Cement news: The online portal for everything related to cementhttps://www.globalcement.com/
Gong, Y. (2013). Global Operations Strategy: Fundamentals and Practice. Springer Texts in Business and Economics, . Ecully., France.: Springer.
Hallgren, M. (2010). Manufacturing Strategy, Capabilities and Performance. (UniTryck, Ed.) Linköping Studies in Science and Technology, 1(1), 1 - 33
Hallgren, M. (2010, Spring 2). Manufacturing Strategy, Capabilities and Performance. (UniTryck, Ed.) Linköping Studies in Science and Technology, 1(1), 1 - 33. Retrieved December. 22nd, 2015, from www.Linköping.sst/ production-economics-managerial engeneering/pdf
Hallgren, M. (2016, Spring 2). Manufacturing Strategy, Capabilities and Performance. (UniTryck, Ed.) Linköping Studies in Science and Technology, 1(1), 1 - 33.
Heizer, J. H., & Render, B. (2009). Principles of operations management. Pearson Educación.
Hsieh, H. F. (2015, November). Three Approaches to Qualitative Content Analysis. QUALITATIVE HEALTH RESEARCH, 15(9), 1277-1288.
International Cement Review. (2018). International Cement Review News, Reports. International Cement Review. Retrieved from https://www.cemnet.com/
James, T. (2011). Operations Strategy (3RD ed.). Book-Boon. Retrieved September 23rd, 2015, from www.book-boon.com
Javier, A. B. (2002). Public Entrepreneurship as a Local Governance Strategy in Decentralizing Polity.
Kartono, K., & Rusilowati, A. (2019). Development of Assessment Instruments Mathematic Creative Thinking Ability on Junior High School Students. Journal of Research and Educational Research Evaluation, 8(1), 84-90.
Kasongo, P., & Misango, S. (2019). Effects of Generic Competitive Strategies on organizational performance in the Manufacturing Industry: a case of Bamburi Cement Limited, head office, Nairobi. International Journal of Economics, Business and Management Research, 3(2).
Kasongo, P., & Misango, S. (2019). Effects of Generic Competitive Strategies on organizational performance in the Manufacturing Industry: a case of Bamburi Cement Limited, head office, nairobi. International Journal of Economics, Business and Management Research, 3(2).
Kenya National Bureau of Statistics (2020): Economic Survey. Nairobi: Republic of Kenya.
Kenya National Bureau of Statistics (2021): Economic Survey. Nairobi: Republic of Kenya
Kenya National Bureau of Statistics (2022): Economic Survey. Nairobi: Republic of Kenya
Ketema, G. B. (2015). Drivers of Manufacturing Performance in Medium and Large Scale Firms in Ethiopia (Evidence from Addis Ababa and its Periphery). UNISA, Business Leadership. UNISA. doi:45682747
Kibos, F. J. (2019). Effect of Operations Strategy on the Performance of State Corporations in Kenya (Doctoral dissertation, University of Nairobi).
Kiilu, M. K. (2018). Manufacturing Strategies and Operational Performance of Cement Manufacturing Firms in Kenya. Unpublished MBA Thesis, School of Business, University of Nairobi.
Kombo, D. K &. Tromp, D. L. (2012). Proposal and Thesis Writing: An Introduction. Nairobi, Kenya.: Paulines Publications Africa.
Kotha, S. &.Orne (2011, September.). Generic Manufacturing Strategies: A Conceptual Synthesis. Strategic Management Journal., 10, 211 - 231. Retrieved April 13th, 2016, from onlinelibrary.wiley.com/doi/10.1002/smj.4250100303/abstract
Kumar, R. (2018). Research methodology: A step-by-step guide for beginners. Sage.
Mbeche, I. M., & Nyamwange, S. O. (2004). Operations Strategies Applied for the Competitiveness of Kenyan Large Manufacturing Firms.
Mouzas, S. (2006). Efficiency versus effectiveness in business networks. Journal of business research, 59(10-11), 1124-1132.
Munyoki, C. (2015). Competitive strategies, organizational autonomy, positioning and
Mwanyika, P. N. (2017). Influence of Balanced Scorecard on Organizational Performance of Kenya Electricity Generating Company Limited: a Case of Central Office in Nairobi City County (Doctoral dissertation, University of Nairobi).
Odollo, L. O. (2019): Effect of Operations Strategies on the Performance of Sugar Manufacturing Sector in Kenya. International Journal of Management Science. 4 (3), 136 - 145.
Onyango, M. (2015). Operations strategy and service delivery by county government of Kisumu (Doctoral dissertation, University of Nairobi).
Penrose, E. T. (1959). The Theory of the Growth of the Firm. New York: John Wiley performance of Kenyan state corporations (Doctoral dissertation, University of Nairobi).
Porter M. 1985. Competitive Advantage: Creating and Sustaining Superior Performance. Free Press: New York
Ricardo, R.,& Wade, D. (2001). Corporate Performance Management: How to Build a Better Organization Through Measurement Driven Strategies Alignment. Butterworth Heinemann.
Sanders (2014). Process management, innovation and efficiency performance: The moderating effect of competitive intensity. Business Process Management Journal, 20(2), 335-358.
Schneider, M., Romer, M., Tschudin, M., & Bolio, H. (2011). Sustainable cement production"”present and future. Cement and concrete research, 41(7), 642-650.
Sciuto, J. M. (2013). Operation Strategy and Lean Manufacturing: A Study in A Metallurgical Company. International Conference on Industrial Engeneering and Operations Management. (pp. 1 - 8). Valladolid, Spain.: ICIEOM.
Slack, N & Lewis, M., (2009). Operations Strategy.
Slack, N. &. Lewis, M. (2011). Operations Strategy. (4th. ed.). Prentice Hall.Accessed on 27th January, 2017 from
www.amazon.com/Operations-Strategy-4th-Nigel-Slack/dp/1292017791
Slack, N., Lewis, M., & Bates, H. (2004). The two worlds of operations management research and practice: can they meet, should they meet?. International Journal of Operations & Production Management, 24(4), 372-387.
Slack, N., Lewis, M., & Bates, H. (2004). The two worlds of operations management research and practice: can they meet, should they meet?. International Journal of Operations & Production Management, 24(4), 372-387.
Sohel, A. (2013). Dimensions Of Competitive Priorities: Are They Clear, Communicated, And Consistent? The Journal of Applied Business Research., 18(1), 77 - 87. Retrieved October 1st , 2015, from www. stcloudstate.edu
Spekle, R. F., & Verbeeten, F. H. (2014). The use of performance measurement systems in the public sector: Effects on performance. Management accounting research, 25(2), 131-146.
Statista Magazine (2023). Topic: Cement industry worldwide. Statista. Retrieved from https://www.statista.com/topics/8700/cement-industry-worldwide/
Suzana, N. R. & Harvey, M.H., (2014). Competitive Priorities of Manufacturing firms in the Carbbean. IOSR Journal of Business and Management, 16(10), 72 - 82.
Teeratansirikool, L., Siengthai, S., Badir, Y., & Charoenngam, C. (2013). Competitive strategies and firm performance: the mediating role of performance measurement. International Journal of Productivity and Performance Management, 62(2), 168-184.
Verbeeten, F. H. (2008). Performance management practices in public sector organizations: Impact on performance. Accounting, Auditing & Accountability Journal, 21(3), 427-454.
Wandiga, E., Kilika, J. M., & James, R. (2019). The effect of operations strategy on performance of consultancy firms? An empirical survey of management consultancy firms in Nairobi, Kenya. Journal of Economics and Business, 2(2).
Wheelwright, S. C. (2001). Reflecting Corporate Strategy in Manufacturing Strategy. Business Horizons, 57 - 67. Accessed on 2nd, February, 2017. Retrieved from https://www.researchgate.net/publication/222460309_Reflecting_Corporate_Strategy_in_Manufacturing_Decisions.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Charles Karuga, Dr. Henry Kiptum Yatich, Dr. Kibe Lucy Wairimu
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.