Strategic Orientation and Competitiveness of Manufacturing Firms in Kenya

Abstract

Manufacturing as any other sector in the economy is affected by the complexity and dynamism in the business environment. In order to endure the rivalry and remain competitive, manufacturing firms have to adopt improved approaches to management that will makes them strategic in their operations, and this therefore calls for adoption strategic orientation. Strategic orientation is an important pillar on firm’s structure, activities, investment and its competitiveness as it helps in finding solutions to challenges that exists in the operating environment. The main emphasis of this study was to establish the role of strategic orientation on competitiveness of manufacturing firms in Kenya. Specifically, the study was guided by the following objectives; to assess the role of market orientation on competitiveness, to determine the role of technology orientation on competitiveness, to examine the role of learning orientation on competitiveness, to establish the role of entrepreneurial orientation on competitiveness and finally, to determine the moderating role of the top management commitment on the relationship between strategic orientation and the competitiveness of manufacturing firms in Kenya. To achieve the set objectives, null hypotheses were developed and used. Dynamic capability theory, game theory, resource based theory, diffusion of innovation theory and finally, the upper echelon theory were adopted as the theoretical frameworks that guided this study. The study adopted descriptive and correlational research designs while the research philosophy was positivism. The target population of the examination were the one hundred and thirty four (134) manufacturing firms that are registered members of Kenya Association of Manufacturers, Machakos and Central Kenya Region Chapters. A census was undertaken of all the 134 firms that are classified as medium and large manufacturing enterprises in the two regions. Semi structured questionnaires were dropped to the office of the chief executive officers/directors who latter marked them to relevant technical department in the firm for response. Quantitative and qualitative data was generated of which was coded, processed and evaluated for both descriptive and inferential statistics generation. Regression Analysis was used to determine the association between the hypothesized variables whereas the Analysis of Variance (ANOVA) was used to determine the relationship between independent and dependent variables. The major findings of the study show that market orientation, technology orientation, learning orientation, entrepreneurial orientation have a positive and statistically substantial role on competitiveness of manufacturing firms in Kenya. The study also found that top management commitment has a moderating role on strategic orientation and competitiveness of manufacturing organizations in Kenya. The research recommends that manufacturing firms should put in place well guided initiatives that will assist in gathering information in regard to customers’ needs and requirements. A strong investment in technology as this is critical in production of goods in a faster and efficient way thereby responding to the market demands appropriately. Firms also need to enhance knowledge generation and sharing within departments. Employees need to be given some autonomy in making operational decisions. Finally, the top management should support initiatives that are geared towards making the firm competitive through provision of resources, communication and involvement of everybody. The study concluded that firms in which the top management allocate resources and are involved are in a better position to be competitive in the market. The study findings will benefit the government, financiers and policy makers in having a better understanding of the sector. It also adds to the existing body of knowledge hence researchers and academicians will use the findings to undertake further research in areas of strategic orientation in other areas and sectors.