Strategic Choices and Organizational Performance of Manufacturing Firms in Athi River, Kenya

Abstract

Strategic choices are contingent to an organization in posting positive performance and also ensuring that a firm survives in the long run. Manufacturing firms in Kenya are operating in a dynamic environment and due to this, companies are facing challenges such as obsolete technology, inadequate resources, inadequate adoption of the Occupational Safety and Health Act and unfavorable management styles. This motivated the initiation of this research which was guided by four main objectives namely, to establish the effects of technology, organizational resources, occupational safety and health and role of management on organizational performance of manufacturing firms in Athi River, Kenya. The research was supported by theories which included: Resource Based View, Human capital theory and the Goal setting theory. A descriptive research design was used targeting a population of 240 respondents who were selected from 4 companies that lie in different sectors in Athi River area. Data was collected by use of a structured questionnaire. Data was analyzed by use of descriptive and inferential statistics; including multiple regression analysis and correlation analysis. Data was presented through tables and figures, for analysis and interpretation. The findings established that technology and organizational resources had a positive and significant impact on organizational performance. The study concluded that the two independent variables were significant predictors of organizational performance. On the other hand, role of management and employee occupational safety and health were not significant in predicting organizational performance, concluding that they were not significant predictors of organizational performance. Recommendations were made that the government through the Kenya Association of Manufacturers should put in place strict policies and procedures on efficient technology, adequate resources, good management and adoption of the occupational safety and health Act so as to improve the performance of manufacturing firms in Kenya. It was also recommended that more studies should be done on more manufacturing firms across the country, in different sectors using other strategic choices to understand their impact on organizational performance and enhance this study.