INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT ON PERFORMANCE OF MANUFACTURING FIRMS IN KENYA
DOI:
https://doi.org/10.47604/ijscm.1219Keywords:
Customer Relationship Management, Performance and Manufacturing FirmsAbstract
Purpose: The study sought to determine the influence of customer relationship management on performance of manufacturing firms in Kenya.
Methodology: This study employed descriptive research design. The targeted population of this study was comprised of 499 manufacturing companies which are all located in Nairobi and its environs. In order to come up with a representative sample, stratified random sampling method was used since the population is heterogeneous. The stratified technique ensured that each sector in the target population has an equal chance of being selected. There were 217 respondents sampled from the 499 manufacturing firms out of 217,180 respondents returned the questionnaires for analysis. The study adopted a descriptive survey design. Data was collected using self-administered questionnaires which were tested for validity and reliability using 10% of the total sample respondents. Quantitative data was analyzed using both descriptive and inferential statistics and with the help of SPSS version 23 while qualitative data was analyzed descriptively. Linear and multiple regression models were used to show the relationship between the dependent variable and the independent variables. The information was presented using tables, charts, frequencies, percentages and graphs.
Findings: The study established that there exists a positive influence of customer relations management on performance management of manufacturing firms in Kenya at 5% level of significant (β=0.595, P<0.05). This indicates that as customer relationship management increases to certain level then performance of manufacturing firms in Kenya also increases significantly and vice-versa
Unique contribution to theory, practice and policy: The study recommends that the government of Kenya should create awareness of their policies through training of the key stakeholders for this organization. Customer relationship management requires to improve on quality production and lead time, manufacturing firms must also improve their customer relationship management. Since the quality of the products has not significantly improved for the last 5 years, more strategies must be put in place to incorporate technology which will aid to improve the quality and also maintain required lead time in these organizations. The study was guided by Social Exchange Theory which was beneficial in explaining the influence of customer relationship management and performance of manufacturing firms.
Downloads
References
Achuka V. (2016), "˜Bribes you have to pay "˜to survive' in Kenya', Africa Review, March 20.
Arani, W., Mukulu, E., Waiganjo, E., Wambua, J., & Wambua, J. (2016). Strategic Sourcing an Antecedent of Supply Chain Resilience in Manufacturing Firms in Kenya. International Journal of Academic Research in Business and Social Science, 6(10), 1-18.
Ashwood-Smith, P., Mohammadi, M. A. A., & Evelyne, R. O. C. H. (2017). U.S. Patent No. 9,847,915. Washington, DC: U.S. Patent and Trademark Office.
Bagozzi, R. P., Yi, Y., & Phillips, L. (1991a). Assessing construct validity in organizational research. Administrative Science Quarterly, 36,421-458
Bandura, A. (1986). Social foundations of thought and action. Englewood Cliffs, NJ, 1986(23-28).
Berg, A. et al. (2015) East Africa: The next hub for apparel sourcing? McKinsey & Company.
Berkowitz, L., & Harmon-Jones, E. (2004). Toward an understanding of the determinants of anger. Emotion, 4(2), 107.
Cao, M., & Zhang, Q. (2011). Supply chain collaboration: Impact on collaborative advantage and firm performance. Journal of operations management, 29(3), 163-180.
Chetty, S., & Eriksson, K. (2002). Mutual commitment and experiential knowledge in mature international business relationship. International business review, 11(3), 305-324.
Danese, P., Romano, P., & Formentini, M. (2013). The impact of supply chain integration on responsiveness: The moderating effect of using an international supplier network. Transportation Research Part E: Logistics and Transportation Review, 49(1), 125-140.
David, F. R. (2011) Strategic Management: concepts and cases. 13th ed. New Jersey: Prentice Hall.
De Souza Miguel, P. L., & Brito, L. A. L. (2011). Supply chain management measurement and its influence on operational performance. Journal of Operations and Supply Chain Management, 4(2), 56-70.
Emerson, R. M. (1987). Social exchange theory.
Ekinci, Ö, Celik, T., SAVAŞ, N., & Toros, F. Association between internet use and sleep problems in adolescents. Nöro Psikiyatri Arşivi, 2014; 51(2), 122.
Hartley, J. L., & Choi, T. Y. (1996). Supplier development: customers as a catalyst of process change. Business horizons, 39(4), 37-44.
Hausman, A., & Johnston, W. J. (2010). The impact of coercive and non-coercive forms of influence on trust, commitment, and compliance in supply chains. Industrial Marketing Management, 39(3), 519-526.
Hogan, S. J. & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test of Schein's model. Journal of Business Research, 67(8), 1609-1621.
Holm, D. B., Eriksson, K., & Johanson, J. (1999). Creating value through mutual commitment to business network relationships. Strategic management journal, 20(5), 467-486.
Hubbard, D. W. (2009). The failure of Risk Management: Why It's Broken and How to Fix It. New Jersey: John wiley & sons.
ICJ (International Commission of Jurists) (2013) Handbook on devolution. Nairobi: ICJ Kenya. Kenya Association of Manufacturers. (2016) Sectors
International Institute for Environment and Development- IIED. (2015) The rural informal economy.
International Labour Organisation. (2013) Transitioning from the informal to the formal economy. Geneva, ILO.
Kenya National Bureau of Statistics (2016) Economic Survey 2016.
Kenya National Bureau of Statistics (2016) Economic Survey 2016.
Kenya National Bureau of Statistics (KNBS) (2012). Economic Survey 2011. Nairobi, Kenya: Government Printer
Kenya National Bureau of Statistics (KNBS) (2012). Economic Survey 2011. Nairobi, Kenya: Government Printer
Lewis, S. (2015). Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, 16(4), 473-475.
Ministry of Industry, Trade and Cooperatives. (2016) Kenya's Industrial Transformation Programme.
National Association of Manufacturers (2015). Facts About Manufacturing in the United States. Retrieved from http://www.nam.org/Newsroom/Facts-About-Manufacturing.
Narasimhan, R., & Talluri, S. (2009). Perspectives on risk management in supply chains.
Nel, C. &Beudeker, N. (2009). (R) evolution: How to Create a High Performance Organisation. Village of Leaders Products. Thousand Oaks: Sage Publications.
Orodho, A. J. (2012). Techniques of Writing Proposals and Research Reports in Education and Social Science Research Methods: Maseno. Kenya: Kanezja Publishers.
Prenkert, F., & Halln, L. (2006). Conceptualising, delineating and analysing business networks. European Journal of Marketing.
Rostami, A. R., Valmohammadi, C., & Yousefpoor, J. (2014). The relationship between customer satisfaction and customer relationship management system; a case study of Ghavamin Bank. Industrial and Commercial Training.
Schein, E. H. (2010). Organizational culture and leadership. New Jersey: John Wiley & Sons.
.
Shields, P. M., & Rangarajan, N. (2013). A playbook for research methods: Integrating conceptual frameworks and project management. New Forums Press.
Shin, H., Collier, D. A., & Wilson, D. D. (2000). Supply management orientation and supplier/buyer performance. Journal of operations management, 18(3), 317-333.
Srinivasan, M., Mukherjee, D., & Gaur, A. S. (2011). Buyer-supplier partnership quality and supply chain performance: Moderating role of risks, and environmental uncertainty. European Management Journal, 29(4), 260-271.
Tarafdar, M., & Qrunfleh, S. (2017). Agile supply chain strategy and supply chain performance: complementary roles of supply chain practices and information systems capability for agility. International Journal of Production Research, 55(4), 925-938.
Wang, K. T. (2015). Research design in counseling. Chicago: Nelson Education.
World Bank (2016a) Kenya Economic Update. Washington, DC: World Bank.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Fatuma Ali Rajab, Dr. Patrick Karanja Ngugi, Dr. David Mburu Kiarie
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.
