IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v7y2018i2p01-13.html
   My bibliography  Save this article

Operations Management and Performance of Manufacturing Small and Medium Enterprises in Kenya

Author

Listed:
  • MwamishaD. Mkala

    (Department of Business and Entrepreneurship, School of Business)

  • Kenneth L. Wanjau

    (Professor of Entrepreneurship,Department of Business and Entrepreneurship,School of Business)

  • TeresiaN. Kyalo

    (Department of Business and Entrepreneurship, Karatina University, Kenya)

Abstract

Manufacturing small and medium enterprises (SMEs) are the breeding ground for human capitalcompetencies, creativityand innovation,which are important inputs for manufacturing competitiveness. In Kenya, manufacturing SMEs contribute 14% of gross domestic product (GDP), and trainand employ 30% of the workforce. However, their growth and competitiveness are undermined by challenges in the firms’ operations management. Consequently, the firmsstruggle to survive as competitive enterprises,both domestically and globally. The purpose of this study was to establish how entrepreneurial orientation (EO) enhances the relationship between operations management and firm performance. Quantitative primary data were collected from managers of 83firms registered by the Kenya Association of Manufacturers in the food and beverage sub-sector using a self-administered questionnaire. Structural equation modelling was used to analysethe data for relationships between the study variables. The study found a positive relationship between operations management and EO, and between EO and firm performance. The study also found that EO is a mediator of the relationship between operations management and performance of manufacturing SMEs in Kenya.The study recommends that for manufacturing SMEs toeffectivelydeploy operations management competencies and gain global competitiveness, they mustengageEO as astrategyto foment organisational experimentation and exploration and commercialize the resultant innovations. At the macroeconomic level, the government should support manufacturing SMEs through enactment and promotion of policies that enableoperationsmanagers to exploit their firm’s EO stock. Key Words: Operations Management; Business Plan; Production Schedules; Quality Control Measures

Suggested Citation

  • MwamishaD. Mkala & Kenneth L. Wanjau & TeresiaN. Kyalo, 2018. "Operations Management and Performance of Manufacturing Small and Medium Enterprises in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 7(2), pages 01-13, April.
    • Handle: RePEc:rbs:ijbrss:v:7:y:2018:i:2:p:01-13
    as

    Download full text from publisher

    File URL: http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/43/45
    Download Restriction: no
    File URL: http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/43
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frank Hermann & Alexander Kessler & Matthias Fink, 2010. "Entrepreneurial Orientation and Business Performance – A Replication Study," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 62(2), pages 175-198, April.
    2. Jacob Chege & Dianah Ngui & Peter Kimuyu, 2014. "Scoping Paper on Kenyan Manufacturing," WIDER Working Paper Series wp-2014-136, World Institute for Development Economic Research (UNU-WIDER).
    3. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    4. Thomas Farole & Megha Mukim, 2013. "Manufacturing Export Competitiveness in Kenya : A Policy Note on Revitalizing and Diversifying Kenya's Manufacturing Sector," World Bank Publications - Reports 16993, The World Bank Group.
    5. Chege, Jacob & Ngui, Dianah & Kimuyu, Peter, 2014. "Scoping paper on Kenyan manufacturing," WIDER Working Paper Series 136, World Institute for Development Economic Research (UNU-WIDER).
    6. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Victor Otieno & Stephen Muathe, 2023. "A Reflection Approach on Business Incubation Services: Accelerating Startup Businesses in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 1375-1400, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    2. Manrique Hernández-Ramírez & Ronald Mora-Esquivel & Juan Carlos Leiva, 2022. "Orientación emprendedora y desempeno innovador en mipymes. El rol moderador de la orientación estratégica," Estudios Gerenciales, Universidad Icesi, vol. 38(162), pages 95-108, March.
    3. Lie Heng & Nur Afifah, 2020. "Entrepreneurial Orientation for Enhancement of Marketing Performance," International Review of Management and Marketing, Econjournals, vol. 10(3), pages 46-53.
    4. Eduard Gabriel Ceptureanu, 2015. "Connection Between Entrepreneurship And Innovation Into Romanian Small And Medium-Size Enterprises," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 127-134.
    5. Winnie Rugutt & Maria Nzomo & Pontian Godfrey Okoth, 2023. "Industrialization in Africa and the Role of Foreign Aid: Lessons from Kenya and Mauritius," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 930-944, September.
    6. Rodney C. Runyan & Baoshan Ge & Baobao Dong & Jane L. Swinney, 2012. "Entrepreneurial Orientation in Cross–Cultural Research: Assessing Measurement Invariance in the Construct," Entrepreneurship Theory and Practice, , vol. 36(4), pages 819-836, July.
    7. Jelle Schepers & Wim Voordeckers & Tensie Steijvers & Eddy Laveren, 2014. "The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth," Small Business Economics, Springer, vol. 43(1), pages 39-55, June.
    8. Galina Shirokova & Karina Bogatyreva & Tatiana Beliaeva, 2015. "Entrepreneurial Orientation of Russian Firms: The Role of External Environment," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 9(3), pages 6-25.
    9. Pejman Ebrahimi & Seyed Mozaffar Mirbargkar, 2017. "Green entrepreneurship and green innovation for SME development in market turbulence," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(2), pages 203-228, August.
    10. Catherine C. Sang & Daniel O. Olago & Tobias O. Nyumba & Robert Marchant & Jessica P. R. Thorn, 2022. "Assessing the Underlying Drivers of Change over Two Decades of Land Use and Land Cover Dynamics along the Standard Gauge Railway Corridor, Kenya," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    11. Karim, Mohammed Shamsul & Nahar, Sharmin & Demirbag, Mehmet, 2022. "Resource-Based Perspective on ICT Use and Firm Performance: A Meta-analysis Investigating the Moderating Role of Cross-Country ICT Development Status," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    12. Ricarda Bouncken & Boris Plüschke & Robin Pesch & Sascha Kraus, 2016. "Entrepreneurial orientation in vertical alliances: joint product innovation and learning from allies," Review of Managerial Science, Springer, vol. 10(2), pages 381-409, March.
    13. Milovanović Bojan Morić & Bubaš Zoran & Mikić Mihaela, 2021. "Entrepreneurial Orientation, Strategic Networking, and Croatian SMEs Performance: A Configurational Approach," Business Systems Research, Sciendo, vol. 12(2), pages 236-252, December.
    14. Shirokova, G. & Puffer, S.M. & Bogatyreva, K. & Beliaeva, T., 2015. "Entrepreneurial orientation in different environmental settings: A comparative cross-country study," Working Papers 6416, Graduate School of Management, St. Petersburg State University.
    15. Antonio Rodríguez-Peña, 2021. "Assessing the impact of corporate entrepreneurship in the financial performance of subsidiaries of Colombian business groups: under environmental dynamism moderation," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-27, December.
    16. Wojciech Dyduch, 2016. "Value Creation and Capture in Entrepreneurial Organizations (Tworzenie, zatrzymywanie i przechwytywanie wartosci w organizacjach przedsiebiorczych)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 14(62), pages 11-23.
    17. Vishal K. Gupta & William J. Wales, 2017. "Assessing Organisational Performance Within Entrepreneurial Orientation Research: Where Have We Been and Where Can We Go from Here?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 26(1), pages 51-76, March.
    18. Lawrence Edwards & Nicholas Masiyandima, 2018. "Shaking out or shaking in: The impact of Zimbabwe’s economic crisis on the country’s manufacturing sector allocative efficiency," Working Papers 749, Economic Research Southern Africa.
    19. David KOVACS & Katrin ZULAUF & Taylan ÃœRKMEZ & Dominik BROCKHAUS & Ralf WAGNER, 2016. "Linking Entrepreneurial Orientation to Firm Performance in a Post-Socialist Market Context: the Case of Hungary," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 4(4), pages 571-589, December.
    20. Nida Nazar & Sara Ravan Ramzani & Temoor Anjum & Imran Ahmed Shahzad, 2018. "Impact of Entrepreneurial Orientation of Bank Performance in Pakistan," Business Management and Strategy, Macrothink Institute, vol. 9(1), pages 290-309, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:7:y:2018:i:2:p:01-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.