BEST PRACTICES CRAFTED BY LOCAL COMPANIES IN THE CURRENT VOLATILE GLOBAL BUSINESS WORLD: A SURVEY OF SELECTED MANUFACTURING COMPANIES

IN KENYA

TOM WAMBUA DOCTOR OF PHILOSOPHY (STRATEGIC MANAGEMENT)

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

Best Pr !t"!es !r #te$ %& '(! ' !()* +"es "+ t,e C-rre+t V(' t"'e G'(% ' B-s"+ess W(r'$. A S-r/e& (# Se'e!te$ M +-# !t-r"+0 C()* +"es "+ Ke+&

T() M%(& W )%-

A t,es"s *r(*(s ' s-%)"tte$ "+ * rt" ' #-'#"'')e+t #(r t,e De0ree (# D(!t(r (# P,"'(s(*,& "+ Str te0"! M + 0e)e+t "+ t,e J()( Ke+& tt -+"/ers"t& (# A0r"!-'t-re +$ Te!,+('(0&

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DECLARATION This thesis is my original work and has not been presented for a degree in any other University Signed: ____________________ TOM MBOYA WAMBUA Date: ______________

This thesis proposal has been submitted foe examination with our approval as University Supervisors Signature: -----------------------------------------DR1 W 'ter O2"%( B"!, +0 3 P,D J U!T" enya Date: ---------------------------------------

Signature: -----------------------------------------DR1 O'(2(3 P,D J U!T" enya

Date: ---------------------------------------

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DEDICATION #y study is dedi$ated to the following% my loving wife !nn &es$a for her support and patien$e during the entire period of my study" my $hildren #i$kella 'se$ond names ( and )esley for their en$ouragement and $ontinued prayers towards su$$essful $ompletion of this $ourse* + am grateful to my mother" brothers" sisters and entire )ambua, family whose love and support was invaluable* To my fellow students: Daniel itonga" -hristopher .agat" Saad /kwiri" and 0eoffrey Sigei for

their en$ouragement and unlimited* Thank you and 0od bless you abundantly*

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ACKNOWLEDGEMENT 1irst + thank !lmighty 0od as my sour$e of all inspiration and gra$e that empowers us to be all that 2e $reated us to be% thank you in allowing me to undertake this pro3e$t that is too involving in term of time and resour$es" for imparting wisdom" knowledge and revelation to be where + am today* To you belong all the 0lory" 4raise and 2onour* + would like to express my sin$ere thanks to the .e$turer Dr )alter 5i$hanga at Jomo supervise this resear$h paper* + am grateful to my family for giving the invaluable support to $on$entrate on this resear$h* enyatta

University of !gri$ulture and Te$hnology 4hD programme in S$hool of 5usiness for agreeing to

TABLE OF CONTENTS
DECLARATION........................................................................................................................... iii DEDICATION.............................................................................................................................. iv ACKNOWLEDGEMENT...............................................................................................................v LIST OF TABLES....................................................................................................................... viii LIST OF FIGURES...................................................................................................................... ix DEFINATION OF TERMS........................................................................................................... xi LIST OF ABBREVIATIONS.........................................................................................................xii ABSTRACT................................................................................................................................ 14 CHAPTER ONE......................................................................................................................... 15 INTRODUCTION....................................................................................................................... 15 1.1.0In !"#$% i"n..................................................................................................................... 15 1.& B'%()!"$n# "* S $#+........................................................................................................15 1., P!"-./0 S ' /0/n ........................................................................................................... 11 1.4 O-2/% iv/3 "* 4/ S $#+.....................................................................................................&0 1.5 R/3/'!%4 5$/3 i"n3 6Av"i# 7/**/% 8 i09'% 8 in !/3/'!%4 5$/3 i"n3:...................................&1 1.; S%"9/ "* S $#+................................................................................................................. &1 1.< =$3 i*i%' i"n "* 4/ S $#+...................................................................................................&1 1.> Si)ni*i%'n%/ "* 4/ S $#+..................................................................................................&& 1.1 Li0i ' i"n3 "* 4/ S $#+....................................................................................................&& 1.10 D/.i0i ' i"n3 "* 4/ 3 $#+...............................................................................................&, CHAPTER TWO........................................................................................................................ &4 LITERATURE REVIEW 6Ci / *!"0 &004 "n?'!#3:.....................................................................&4 &.1 In !"#$% i"n....................................................................................................................... &4 &.& T4/ C"n%/9 "* B/3 P!'% i%/3.........................................................................................&4 vi

&., T4/"!/ i%'. F!'0/?"!(R/vi/?.........................................................................................&; &.,.1 T4/ @$'.i + M'n')/0/n T4/"!+ ..............................................................................&< &.4 E09i!i%'. R/vi/?.............................................................................................................. ,0 &.4 C"n%/9 $'. F!'0/?"!(....................................................................................................,0 &.4.1 U3/ "* T/%4n".")+ 'n# Inn"v' i"n.............................................................................,1 &.4.& P'! i%i9' "!+ M'n')/0/n B/n%40'!(in)..................................................................,, &.4., En/!)+ E**i%i/n%+ P!'% i%/3........................................................................................,5 &.4.4 D/.'+/!in).................................................................................................................. ,> &.5 E09i!i%'. R/vi/? "* Li /!' $!/..........................................................................................,1 &.; C4'../n)/3 In4i-i in) A%4i/v/0/n "* W"!.# C.'33 S/.*AS$3 'in'-i.i + S ' $3...................41 &.< R/3/'!%4 "! Kn"?./#)/ G'9...........................................................................................4& RESEARCH METHODOLOGB..................................................................................................4, ,.1 In !"#$% i"n....................................................................................................................... 4, ,.& R/3/'!%4 D/3i)n.............................................................................................................. 4, ,., S $#+ P"9$.' i"n 'n# T'!)/ P"9$.' i"n...........................................................................4, ,.4 S'09./ SiC/ 'n# S'09.in) T/%4ni5$/.............................................................................44 ,.5 D' ' C"../% i"n................................................................................................................. 44 ,.; D' ' An'.+3i3.................................................................................................................... 44 REFERENCES.......................................................................................................................... 45 APPENDICES............................................................................................................................ 50 APPENDID IE LETTER OF INTRODUCTION.........................................................................50 APPENDID IIE @UESTIONNAIRE...........................................................................................51 APPENDID IIIE BUDGET........................................................................................................ 5; APPENDID IVE WORK PLAN..................................................................................................5<

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LIST OF TABLES

viii

LIST OF FIGURES
Fi)$!/ 1E C"n%/9 $'. F!'0/?"!(...............................................................................................,0

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DEFINATION OF TERMS
Best practices is a set of guidelines, ethics or ideas that represent the most efficient or prudent course of action. Best practices are often set forth by an authority, such as a governing body or management, depending on the circumstances. While best practices generally dictate the recommended course of action, some situations require that such practices be followed. Crafted is an activity involving skill in making things happen, the skills in carrying out ones work Sustainability is based on one principle; everything that we need for our survival and well being depends, either directly or indirectly on. Sustainability creates and maintains the conditions under which human (firms) and nature can exist in productive harmony, that fulfilling the social, economic and other requirements of present and future generations. Manufacturing Technology Innovation Participatory ManagementBenchmarking (capture the same in Lit. review under variables) Energy Efficiency Practice Delayering Sustainability Volatile Environment GDP Globalization

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LIST OF ABBREVIATIONS
BP GDP EABL EAI EAPCC EPC EPZA EU FDI FKE GDP IDBC ICT IT JIT KCC KEBS Kenlnvest KEPSA KEBS KIE KIPPRA KIRDI KNCC&I KNFJKA KNTC Best Practice Gross Domestic Product East Africa Breweries Limited East Africa Industries East African Portland Cement Company Export Promotion Council Export Processing Zone Authority European Union Foreign Direct Investment Federation of Kenya Employers Gross Domestic Product Industrial Development Bank Capital Limited Information Communication Technology Information Technology Just in Time Kenya Cooperative Creameries Kenya Bureau of Standards Kenya Investment Authority Kenya Private Sector Alliance Kenya Bureau of Statistics Kenya Industrial Estates Kenya Institute for Public Research and Analysis Kenya Industrial Research and Development Institute Kenya National Chamber of Commerce & Industry Kenya National Federation of Jua Kali Associations Kenya National Trade Corporation
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KPMG KRA KPLC MC MRP MDGs MOl MSEs MSMIs MTP NEMA NMC OPT SME TQM R&D UNEP UNDP UNIDO WB WTO

Klynveld Peat Marwick Goerdeler Kenya Revenue Authority

Kenya Power and Lighting Company Manufacturing Companies Material Registration Planning Millennium Development Goals Ministry of Industrialization Micro and Small Enterprises Micro, Small and Medium Industries Medium Term Plan National Environment Management Authority Numerical Machining Complex Optimized Production Technology Small Medium Enterprises Total Quality Management Research and Development United Nations Environment Programme United Nations Development Programme United Nations Industrial Development Organization World Bank World Trade Organization

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ABSTRACT This study attempts to evaluate the best practices crafted by local manufacturing companies in order to sustain their businesses in this current volatile global business world. Globalization has led companies to finding best ways of doing business in order to achieve a companys business overall objectives in a very volatile business environment. Rising cost of production has necessitated manufacturing companies to craft business practices in order to remain in operation in a volatile business world. Rising energy costs resulted to some manufacturing companies like Colgate Palmolive relocate their manufacturing facilities to South Africa which has lower energy costs. Proctor and Gamble relocated to Egypt leaving their marketing function to Kenya. Kenya is the most industrially developed economy in East Africa with manufacturing accounting for 14% of its Gross Domestic Product which is a minimal increase since independence. Manufacturing companies with best crafted practice stand a higher chance of survival in a highly volatile business environment and increases ability of achieving competitive age. In this study, other specific objectives include the use of information technology and innovation, energy efficiency, participatory management and delayering on sustainability of manufacturing companies in Kenya. British American Tobacco Kenya faced hard economic times in year 2002 and crafted a strategy called Beating the storm aimed at reduction of expenses. This study will use descriptive survey design. The study population will comprise of the manufacturing companies in Nairobi City and its environs. The researcher will select 8 respondents from each company; the CEO, general managers, ICT manager and assistants, production managers and their assistants. In addition, the researcher will select 8 respondents from the Kenya Association of Manufacturers. Primary data will be collected through semi-structured questionnaires with both open and closed ended questions. Secondary data will be collected from publications and relevant records on the manufacturing companies in Nairobi. Data collection will yield both quantitative and qualitative data. Quantitative data will be analyzed using descriptive statistics such as frequencies, percentages and mean standard scores.
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Introduce

topic/Give

reasons

why

some

businesses

closed/thrived

plus

examples,Challenges faced by companies, CHAPTER ONE INTRODUCTION 41415 I+tr($-!t"(+

#anagement best pra$ti$e involves $ommuni$ation of a $lear mission and strategy" setting up stret$hing realisti$ targets" open and $ommuni$ative management style" $lear and $areful% strategi$ planning* 0uiramaraes '6778( posts that best pra$ti$es $rafted have been adopted to address whatever ailed and sustained business organi9ations sin$e the early seventies and the years forward* #anufa$turing is one of the strong pillars of enya,s vision 67:7 under the ministry of industriali9ation whi$h involves the development of small and medium enterprise enterprise'S#;( industrial parks in key urban $entres*Upon su$$efful implementation of the e$onomi$ re$overy Strategy'677:-677<( whi$h enabled the enya government to re$over from 7*8= in 6776 to grow at >*?= in 677> and <= in 677< the government found it ne$essary to formulate a long term poli$y and planning blue print $alled The enya @ision 67:7 aimed at transforming enya into a newly industriali9ed middle in$ome $ountry by 67:7* Under the e$onomi$ pillar of this vision" manufa$turing is one of the key se$tors expe$ted to deliver the targeted ?7= per annum through $reation of 3obs"generation of foreign ex$hange and by attra$ting lo$al and foreign investments*' enya vision 67:7 se$tor plan for manufa$turing 677A67?6( ?*?*? ?*?*6 ?*?*: 5est pra$ti$es Sustainability .ink between best pra$ti$es and sustainabilty

416 B !20r(-+$ (# St-$& 5est pra$ti$es '54( means finding and using the best ways of doing business in order to a$hieve a $ompany,s business general ob3e$tives* +t involves keeping up to date with ways that su$$essful businesses operate and measuring your ways of working against those used by the market leaders otherwise also referred to as ben$h-marking** enyas manufa$turing se$tor $omprises of food and beverages" toba$$o" paper and paper board"leather produ$ts and footwear" timber" wood produ$ts and furnitrure" pharma$euti$als and medi$al eBuipment" $hemi$al and allied"plasti$s and rubber" metal" motor vehi$le assembly ele$tri$al and ele$troni$s*
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#anufa$turing is one of the strong pillars of

enya,s vision 67:7 under the ministry of

+ndustriali9ation whi$h involves the development of small and medium enterprise 'S#;( industrial parks in key urban $entres*)hile #i$ro and Small ;nterprises'#S;s( provide dire$t employment to more than six > million enyans" #i$ro" small and #edium enya*' enya +ndustries '#S#+s("whi$h are an intergrat part of #S;s" $onstitute over A7= of industries and are also a seed bed for innovation and industriali9ation in vision 67:7 se$tor plan for manufa$turing 677A-67?6(* enya manufa$turing se$tor is mainly agro based and $hara$teri9ed by low value addition" modest employment" poor $apa$ity utili9ation and weak linkages to other se$tors* #afu$aturing a$tivities a$$ount for the greatest share of industrial produ$tion output and form the $ore of the industry* The industrial se$tor,s share of 0D4 has remained about ?8-?>= while that of manufa$turing se$tor has remained at about ?7= over the last five years* +t forms an important sour$e of employment for the $ountry,s labour for$e as it is employs ?:*<= of total employmet*;mployment within this se$tor grew by an annual average of 6*>= in 677< while lo$ally manufa$tured goods $omprise 688 of enya,s exports*The performan$e of the se$tor has been on the de$line for a $onsiderable period of time and its $ontribution to the 0D4 has remained stagnant at about ?7= sin$e the ?C>7s* The de$line in growth is attributed to a number of fa$tors namely: weak industial linkages and low $ollaboration% informality"poor survival and low graduation of #S#+s" influx of substandard "$ounterfeits and $ontraband goods" inadeBuate $apa$ity of industries to meet produ$t Buality standard and +S/ $ertifi$ation" de$lining lo$al and foreign dire$t investments'1D+( " narrow export base and low value addition " low adaptation of +-T in industries" low te$hnology and innovation uptake" inadeBuate and run down infrastru$ture" limited a$eess to finan$ial servi$es for industrial development" limited te$hni$al and managerial skills" weak publi$ Dprivate partneshipa" inse$urity"Unbalan$ed regional industriali9ation* The manufa$turing se$tor $ontributes about ?8-?>= to kenyas 0D4 with the greatest share $oming from industrial produ$tion *The se$tor is an important sour$e of employment for $ontrys labor for$e* +t $urrently employs more than ?*C million people in both the formal and informal se$tor* .o$ally manufa$tured goods $omprise 68= of enya,s exports however these produ$ts are not $ompetitive in the market due to high
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$ost of produ$tions" poor or la$k of 54s" and stringent international market $omplian$e standards' enya vision 67:7 se$tor plan for manufa$turing(*#anufa$turing a$tivities are heavily dependent on the types of 54s available and applied* +n re$ent years manufa$turing $ompanies that do not $ontinuously $raft best pra$ti$e initiatives are driven out of business* ;nergy $osts forms a big operating expense for manufa$turing firms and hen$e determining their profitability and sustainability in the industry* enya ;nergy $ost is $onsidered one of the highest in the $ontinent and some $ompanies have had to relo$ate their manufa$turing fa$ilities to $ountries with $heaper energy* -olgate 4almolive relo$ated their manufa$turing plant to South !fri$a while 4ro$tor and 0amble relo$ated to ;gypt leaving their marketing fun$tion in their business performan$e and profitability* The need for 54 arose with in$reasing power of $ustomers" $ompetitors and today,s $onstantly $hanging business environment" whi$h have for$ed many organi9ations to re$ogni9e the need to move away from fo$using on individual tasks and fun$tions to fo$using on more $ommuni$ated" integrated and $oordinated ways of work by looking at operations in terms of business sustainability* +ndeed" the effe$t of globali9ation brought about higher $ost of doing business" in$reased privati9ation of publi$ firms through in$reased pressure from then $alled donors" intensified $ompetition and eventually pri$es de$lined whi$h resulted to registration of losses in most firms 'Davenport" ?CC:(* !ll these fa$tors $ontribute to high $ost of doing business and has ne$essitated manufa$turing $ompanies '#-( to $raft 54 in order to sustain their businesses in the volatile business world otherwise they will be driven out of operations like the $ase of enya -ooperative -reameries ' --( before it reopened as new --* !lthough enya is the most industrially developed $ountry in ;ast !fri$a ';!(" enya* 2ow manufa$turing firms respond to tighter energy as a best pra$ti$e will in$reasingly affe$t

manufa$turing a$$ounts for only ?E= of 0D4 *This level of 0D4 represents only a slight in$rease sin$e independen$e* ;xpansion of the se$tor after independen$e" initially rapid has stagnated sin$e the ?CA7s" hampered by shortages in high power" high energy $osts" dilapidated transport infrastru$ture" $orruption and dumping of $heap imports
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*#anufa$turing a$tivity is $on$entrated around the : largest urban $entres &airobi " #ombasa and isumu* enya,s in$lusion among the US benefi$iaries of the U*S enya,s $lothing sales to the US almost tripled between 677? government !fri$an 0rowth F /pportunity '!0/!( has given boost to manufa$turing in re$ent years* Under !goa" F 677: to US ?A< million* ! 54 strategy $an help #- eliminate wastes" improve Buality of goods" in$rease sales" develop existing as well as new markets" redu$tion of produ$tion $osts" improve effi$ien$y" effe$tive use of te$hnology" be$ome innovative and more importantly develop the skills of its workfor$e* ! #- has a $ompetitive advantage when it $an implement a strategy that its $ompetitors are unable to dupli$ate or find it too $ostly to imitate '5arney and -lark" 677<(* Strategy is a long term plan in response $hanging volatile global business environment and $alls for de$isions that mat$h $ompany,s resour$es to the environment* )hile the promises from 54 implementation have been impressive for $redited business sustainability" the en$ountered problems have also been numerous* 1ew organi9ations reaped the benefits they expe$ted from 54G '-ummings" ?CC:(* #ost organi9ation pro$esses are simple and effi$ient when initially designed* 2owever with passage of time" addition of sub-pro$esses to handle ex$eptions" $hanges in the business environment and in$rease in $ustomer expe$tations and demands" the same pro$esses be$ome more $omplex and ineffi$ient* Solution design to su$h $omplex" ineffi$ient and $ostly business pro$esses has brought about the best $rafted business pra$ti$es '5usiness 4ro$ess Geengineering( into the sub3e$t of a$ademi$ resear$h* -a$$iaa '677<( $ites that before globali9ation" monopolists existed in the early <7s and A7 $ontrolling the manufa$turing se$tor and firms a$tually determined both Buantities supplied and pri$ing* #oreover" these early manufa$turing firms apart from di$tating what wholesalers had to buy for$ed them to buy other slow or non moving produ$ts e*g* ;ast !fri$a +ndustries" there were no trained $ompany sales representatives" the few who were available re$eived or were persuaded by wholesalers for goods orders while seated
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in the $omfort of their sales vehi$les*;!+ had to Bui$kly $raft 54 in order to remain in business selling off some of its produ$ts like imbo $ooking oils to its rival 5+D-/* ;!+ $hanged its lo$al name to parent global name Unilever and is one of the su$$eeeful $ompanies* #umias Sugar -ompany was $onsistently making losses before $rafted 54 that made it one of the leading profitable #-s in enya today* enya #eat -ommission though with government funding initially $losed down and was reopened in the early 6777s with new management team and adoption of 54s* /ther lo$al #-s whi$h have sustained their businesses through adoption of 54 in$lude Spin ;abl* !pproximately one Buarter of :77 54G pro3e$ts in &orth !meri$a failed and the authors spe$ulated industry wide figure at $losely <7 per$ent '-afasso" 677:% 2ammer and -hampy" ?CC:(* Spe$ifi$ally" many managers said that the a$tual 54G pro3e$t benefits fell short of expe$tations along the dimensions of $ustomer servi$e" pro$ess timeliness" Buality" $ost redu$tion" $ompetitiveness" improved te$hnology and revenues '2ayley et al*" ?CC:(* )ith more a$$umulated experien$e" however" there is growing reali9ation in most manufa$turing firms that best $rafted business pra$ti$es su$h as +nformation Te$hnology" delayering" energy effi$ien$y" improving business operations" en$ouraging +nnovation" people management" ben$hmarking" best pra$ti$e in sales and marketing and set Standards ' ;5S( are a $riti$al business sustainability enabler* 417 Pr(%'e) St te)e+t +n today,s $ompetitive $orporate world" organi9ations are $hallenged to improve their business pra$ti$es to be more effi$ient and $ost-effe$tive in order to remain $ompetitive in the fa$e of fier$e $ompetition and dynami$ $ustomer demands and eventually remain self-sustainable* -onseBuently" 54 has emerged and has been embra$ed by many $orporations as a fundamental business pro$ess $hange instrument*To survive in a dynami$ and highly $ompetitive business environment" different organi9ations have had to engage various strategies and 54s to survive*1irms $ollapse due to non appli$ation or appli$ation of inappropriate 54s and fail to deliver their $riti$al key ob3e$tives hen$e the
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nit.td" Top Tank" and

need for investigation of where they go wrong* /ne su$h strategy is the appli$ation of the best $rafted business pra$ti$es* 5est $rafted business pra$ti$es are one of pointing out to a new dire$tion to ma3ority of $urrent well performing lo$al manufa$turing firms in enya su$h as Spin knit .td" 5!T to name but a few* #iwani Sugar -ompany $losed down operations as a result of not adopting best pra$ti$es 'referen$es(* +n early 6777s 5ritish !meri$an Toba$$o enya underwent a turbulent time experien$ing de$lining sales revenue" profitability and in$reasing operating $osts" the management $rafted best pra$ti$e initiatives dubbed Hbeating the stormI aimed at getting ba$k the $ompany to high profitability* Today and in 67?6 the $ompany was ranked the fourth highest in tax revenue $ontributor by enya Gevenue !uthority ' G!(* !ppli$ation of best pra$ti$es is a $omplete $hange in a self-sustainable dire$tion of a firm to avoid a $orporate distress whi$h $an easily lead to $ollapse of a $ompany unless a plan of $orporate survival and renewal is devised and su$$essfully exe$uted" 4ear$e F Gobinson '677<(* ! firm has a $ompetitive advantage when it $an implement a strategy $ompetitors are unable to dupli$ate of find too $ostly to imitate' 5arney and -lark" 677<(*+n order to a$hieve su$$ess in manufa$turing and profitability" these best $rafted business pra$ti$es should be analy9ed and advo$ated for through intensive s$holarly resear$h in order to s$ale down the failure rates of many manufa$turing firms* This study therefore is determined to ne$essitate that the most important and $riti$al best $rafted business pra$ti$es in the enyan $ontext be known" do$umented and $onseBuently addressed" systemati$ally exe$uted and shared by other manufa$turing $ompanies* 418 O%9e!t"/es (# t,e St-$& ?*E*? Ge+er ' O%9e!t"/e The general ob3e$tive is to analy9e the best pra$ti$es $rafted by lo$al manufa$turing $ompanies in the $urrent volatile global business world and it will be a survey of sele$ted manufa$turing $ompanies* ?*E*6 S*e!"#"! O%9e!t"/es +n line with the above general ob3e$tive the spe$ifi$ ob3e$tives are %
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i* To establish the influen$e of information te$hnology and innovation on sustainability of manufa$turing $ompanies in enya ii* To determine effi$ien$y use of energy by manufa$turing $ompanies in order to be sustainable in a volatile environment iii* To examine the influen$e of ben$hmarking on sustainability of manufa$turing $ompanies in enya iv* To as$ertain how Delayering enhan$es sustainability of manufa$turing $ompanies in enya 41: Rese r!, ;-est"(+s (A/("$ <e##e!t3 ")* !t3 "+ rese r!, ;-est"(+s) The study aims to answer the following pertinent Buestions pertaining sustainability of manufa$turing $ompanies in global volatile business environment in enya% i* 2ow does )hat are the effe$ts does +T and innovations influen$e have on sustainability of manufa$turing $ompanies in enyaJ ii* 2ow does energy effi$ien$y pra$ti$e impa$t on sustainability of manufa$turing $ompanies in enyaJ iii* )hat effe$ts will ben$hmarking have on manufa$turing $ompanies, sustainability in enyaJ iv* )hi$h effe$ts will be $aused on manufa$turing $ompany,s sustainability by adopting delayering as a best pra$ti$eJ 41= S!(*e (# St-$& This study targets the expressions of staff at top management" middle management and lower management levels dire$tly involved in making and implementing de$isions and or strategies that affe$t the overall bottom line of the manufa$turing $ompanies* The staff will be drawn from 5ritish !meri$an Toba$$o enya" Spin nit industries" ;ast !fri$a 5reweries and enya !sso$iation of #anufa$turers a$ross the $ountry* 41> J-st"#"! t"(+ (# t,e St-$& The findings will provide $ru$ial information to manufa$turing $ompanies on the best pra$ti$es in the $urrent volatile global business world in
&1

enya in

enya* 1urthermore this

resear$h is to study the best pra$ti$es $rafted by lo$al $ompanies in the $urrent volatile global business world* Su$h an assessment may validate $urrent pra$ti$e or suggest ways to refine $urrent poli$y and explore alternative ways and means to improve the business performan$e in the $urrent volatile global business world* 41? S"0+"#"! +!e (# t,e St-$& 5y analy9ing the best $rafted business pra$ti$es for sustainability of manufa$turing $ompanies in enya" various sto$kholders $an benefit" the study will a$t as a mirror against whi$h the government will examine and review existing poli$ies on business pra$ti$es to mat$h with the $urrent situation needs* ;*g* 4oli$y on energy provision $osts to manufa$turing $ompanies* !s the most affe$ted stakeholders in the study" manufa$turing firms $an be aware of the best pra$ti$es to apply and ways that they $an in$rease their effi$ien$y and effe$tiveness hen$e a$hieve sustainability* !ny resear$her who may wish to gather or venture into sub3e$t may find the report useful in ba$king their findings* The report will also be used for furthering a$ademi$ and related resear$h initiatives* 41@ L")"t t"(+s (# t,e St-$& 41@14 L")"t t"(+s .o$al private manufa$turing firms may be unwilling to divulge information regarding their best pra$ti$es for fear of been adopted by $ompetition* Due to the nature of their work and tight s$hedules" respondents at top management may not be available to respond to Buestionnaires or may see it as a waste of their time* /ne of the identified manufa$turing $ompanies is 5ritish !meri$an Toba$$o whi$h has respondents in leaf growing areas* The roads in these areas may be in a$$essible during wet period* 41@16 Me s-res t( t,e '")"t t"(+s Thus they need to be assured of $onfidentiality and usage will be $onfined to the ob3e$tives of the study* The resear$her needs to seek prior appointment with all senior managers to sell in the benefits of the study* +t,s advisable to get approval from the -hief exe$utive offi$er or any senior exe$utive from the firm* The resear$her will also reBuire seeking written authority from the relevant ministry of +ndustriali9ation*
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4145 De'")"t t"(+s (# t,e st-$& #anufa$turing $ompanies are physi$ally spread all over the $ountry but the study will be $onfined to a survey of 5!T" Spin nit" ;ast !fri$an 5reweries limited and enya !sso$iation of #anufa$turers* 2owever this may not give a good representation of the study that $an be applied to the entire industry* The resear$her will have to do an in depth study to ensure the results $an be applied to a large extent to the manufa$turing industry* There are Buite several books written by distinguished s$holars on the sub3e$t of best pra$ti$es $rafted by manufa$turing $ompanies" the resear$her $an,t $over all of them but will endeavor to review on the most updated books with latest literature on the sub3e$t* The existing books may also not be able give enough data to fill in knowledge gap intended by the resear$h*

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CHAPTER TWO LITERATURE REVIEW (C"te #r() 6558 (+A r$s) 614 I+tr($-!t"(+ +ntrodu$e the topi$ plus relevant $itations" This se$tion highlights the literature and theories on the sub3e$t of best pra$ti$es on sustainability of businesses with spe$ial fo$us on manufa$turing in enya and the rest of the world* ! good number of books" maga9ines" government publi$ations" 3ournals and internet are $ited for literature* Different theories are reviewed among them by 4rofessor #i$hael 4orters, diamond model of nations,s $ompetitive advantage" Total Buality management theory by '!uthor( and Gesour$e 5ased Theory 'G5T( by 5arney and -lark"677<* !ll the independent variables are reviewed in depth in order to understand their relationship with the dependent variable* -riti$ism of best pra$ti$es by S$ott !mbler and ;ugene 5arda$h is also reviewed* 616 T,e C(+!e*t (# Best Pr !t"!es #eybodi '677:( in his study of firms that had implemented 3ust-in-time manufa$turing pra$ti$es found that these firms had better new produ$t development pro$ess* 2e found that" $ompared to traditional firms" J+T firms performed better in produ$t Buality" produ$t development time" produ$t development $ost" manufa$turing $ost" and freBuen$y of new produ$t introdu$tion* 4rimo and !mundson '6776( found positive effe$ts of supplier involvement on new produ$t development* )riting on best pra$ti$e has $ome from many sour$es% #aterial GeBuirement 4lanning'#G4( from the US!" /ptimi9ed 4rodu$tion Te$hnology '/4T( 1G/# +srael" 1lexible #anufa$turing Systems '1#S( from the U group te$hnology from Gussia 3ust to name a few* ! @oss '?CC8( note that,s in re$ent years" best pra$ti$e literature has in$luded 3ust in time" whi$h has evolved into lean produ$tion% total Buality management and $on$urrent engineering* ! signifi$ant per$entage of re$ent literature in the areas of business and manufa$turing makes referen$e to HbestI pra$ti$es* H-on$ern for information about Kbest pra$ti$e," as the key to unlo$king the se$rets of global
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$ompetition moved into higher gear with the introdu$tion of various league tables and awards for high performing $ompaniesI ')hittle et al*" ?CC6(* 2owever" 2ughes and Smart '?CCEa( suggest that it is unlikely that all industrialists understand fully what best pra$ti$e a$tually means and how it might be determined* -amp '?CAC( defines best pra$ti$es as those Hthat will lead to the superior performan$e of a $ompanyI* Thus" best pra$ti$e is asso$iated with higher performan$e levels* 2eibeler et al* '?CCA( des$ribe best pra$ti$es as Hthe best ways to perform a business pro$essI* 2ughes and Smart '?CCEb( propose a more detailed definition of best pra$ti$e as Han a$tivity or a$tion whi$h is performed to a standard whi$h is better or eBual to the standard a$hieved by other $ompanies in $ir$umstan$es that are suffi$iently similar to make meaningful $omparison possibleI* -aution must be exer$ised when using the word HbestI* This $an be illustrated by the +LS study '?CC:( whi$h defines best pra$ti$es as those that have aided the lower performing organi9ations to improve to medium performan$e" medium performers improve to higher performers" and higher performers to stay on top and a$hieve further benefits* This study stated that there are $ertain pra$ti$es that are relevant to $ompanies at parti$ular points in their development" and thus for some $ompanies individual best pra$ti$es may not be appropriate at any parti$ular point in time* Thus" best pra$ti$es $an be $ontext spe$ifi$* 2iebeler et al* '?CCA( also state that in the experien$e of !rthur !nderson: no single pra$ti$e works for everyone in any given situation* 5est is a $ontextual term* +t means Hbest for youI D in the $ontext of your business" your $ompany $ulture" your use of te$hnology" and your $ompetitive strategies* 5est pra$ti$e is a$tually the finding and using the best ways of working effi$iently and effe$tively in order to a$hieve firms, business ob3e$tives* +t involves keeping up to date with ways that su$$essful businesses operate and measuring your ways against those used by market leaders* 5est pra$ti$e are normally set and implemented by su$$essful market leaders around the globe* ! best pra$ti$e $an evolve to be$ome better as improvements are dis$overed* 5est pra$ti$es are used to maintain Buality and $an be used effe$tively for ben$hmarking
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5est pra$ti$es $an give rise to good strategy formulation and implementation* 1inan$ial strategy,s goal is to provide the $orporation with the appropriate finan$ial stru$ture and fund to a$hieve the overall ob3e$tives* ')heelen" ?CC8( +n addition" it examines the finan$ial impli$ations of $orporate and business-level strategi$ options and identifies the best finan$ial $ourse of a$tion* +t $an also provide $ompetitive advantage through a lower $ost of funds and flexible ability to raise $apital to support a business strategy* 1inan$ial strategy usually attempts to maximi9e the finan$ial value of the firm 'Gobinson" ?CC<(* !$$ording to !nsoff '?CAA( organisations plan and exe$ute a $orporate strategy to provide dire$tion and fo$us in un$ertain operating environments and also set ob3e$tives" define the business" poli$ies" means" and a$tions to be implemented over the short and long term period* 5usiness strategies give dire$tion and purpose" deploy resour$es in the most effe$tive manner" and $oordinate the stream of de$isions being made by different members of the organi9ation 2owever existen$e of best pra$ti$e is $riti$i9ed" ;ugene 5arba$h '?CCA( is a $riti$ of best pra$ti$e $laiming that the work ne$essary to deem and pra$ti$e the best is rarely done and mostly good pra$ti$es may not offer solutions to ones uniBue situations* S$ott !mbler argues there $annot be assumptions that are re$ommended pra$ti$e best in all $ases* 2e instead offers an alternative view of $ontextual pra$ti$e in whi$h the notion of what is best will vary with the $ontext 617 T,e(ret"! ' Fr )eA(r2Re/"eA Theoreti$al orientation is a $olle$tion of existing theories 'i*e* theories organi9e knowledge and isolated findings from different resear$h studies into powerful explanatory framework( and models from literature or professional hun$h whi$h underpin $on$eptual framework and subseBuently inform the problem statement '#ugenda" 677A(* 6*:*? Theory /ne 6*:*6 Theory Two 6*:*: Theory Three Theoreti$al studies have demonstrated an emerging trend over time on what $onstitutes
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key su$$ess fa$tors for servi$e and other organi9ations* !pplying best pra$ti$es is similar to development and implementation of a good strategy* #ost of these studies tend to argue that strategy" whether formal or not" is the starting point for su$$ess* #int9berg '?CCE( argues that strategy is about winning" and in business and as in the military" strategy bridges the gap between poli$y and ta$ti$s* Together" strategy and ta$ti$s bridge the gap between the end and the means* +t is a unifying theme that gives $oheren$e and dire$tion to the a$tions and de$isions of an individual or an organi9ation '!nsoff" ?CAA(* The role of strategy in su$$ess is $riti$al" as su$$essful organi9ations are seldom the out$ome of a purely random pro$ess* Strategy is about having $lear goals" understanding the $ompetitive environment" resour$e appraisal and effe$tive implementation* 61714 T,e B- '"t& M + 0e)e+t T,e(r& Luality management 'L#( has be$ome an all-pervasive management philosophy" finding its way into more se$tors of today,s business so$iety* Luality management 'L#( was born almost two de$ades with the $ore ideas of )* ;dwards Deming" Joseph Juran" 4hilip -rosby and aoru +shikawa* Sin$e then it has be$ome an all-pervasive management philosophy finding its way into more se$tors of today,s business so$iety* #any $ompanies have now embedded L# pra$ti$es into their normal pra$ti$es and" more and more these pra$ti$es are being stripped off their faddish $onnotations to the point that nowadays" it is generally a$$epted that L# is here to stay* ! substantial literature review was published by ! hire et al '?CC8(* 2is was mainly des$riptive review" providing a thorough synthesis of arti$les published from ?C<7 to ?CC: and $ategori9ing the literature along the several $omponents of L#* The existing L# has been defined as a Hphilosophy or an approa$h to managementI made up of a Hset of mutually reinfor$ing prin$iples" ea$h of whi$h is supported by a set of pra$ti$es and te$hniBuesI 'Dean and 5owen" ?CCE(* !s L# has be$ome embedded in more and more organi9ations in the last two de$ades" it has $ome to mean different things to different people ')atson and orukonda" ?CC8(" to su$h an extent that it begs the Buestion: +s there su$h a thing as L#J 2a$kman validity" sin$e there is substantial agreement among the movement,s founders about the key prin$iples and pra$ti$es of L#* 1urthermore" they also attribute dis$riminate validity to L# arguing that" as
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espoused by the movement,s founders" L# philosophy and pra$ti$e $an be reliably distinguished from other strategies for organi9ational strategies for organi9ational improvement* !t the empiri$al level" the assessment of whether su$h a thing as L# exists and what $onstitutes L# should be made at the level of pra$ti$es: pra$ti$es are the observable fa$t of L#" and it is through them that the managers work to reali9e organi9ational improvements* 4rin$iples are too general for empiri$al resear$h and te$hniBues are too detailed to obtain reliable results 'e*g* one pra$ti$e may be implemented via optional te$hniBues(* 1or example" the L# prin$iple $ontinuous improvement $an be supported by the pra$ti$e Hpro$ess managementI" whi$h in turn $an resort to several te$hniBues su$h as statisti$s pro$ess $ontrol and pareto analysis* L# literature and identify the key L# pra$ti$e dimensions* The agreement in the literature on what $onstitute L# indi$ates that L# as a field indeed matured and is lay down on solid definitional foundations* Despite this" future resear$h should in$rementally build on the already existing base* Some of the $onfli$ting results reported in the literature may have to do with different levels of analysis of L# 'e*g* while S4--a te$hniBue supportive of the pra$ti$e Hpro$ess managementI-maybe observed as not being in use in a $ertain plant" the other te$hniBues supportive of the same pra$ti$e" e*g* pro$ess data $olle$tion and analysis" may well be used instead" representing a good overall use of pra$ti$e Hpro$ess managementI(* Gesear$h in L# has been unable to arrive at a signal definition of a produ$t Buality* !t best" several optional definitions were proposed* 0arvin '?CCE( identified five ma3or approa$hes to the definition of Buality and the dis$ipline in whi$h they are rooted* !nother important reali9ation is that Buality seems to be a multi-dimensional $onstru$t '0arvin" ?CAE% 23orth-!nderson" ?CAE(* 0arvin '?CAE" ?CA<( proposed eight dimensions of produ$t Buality 'performan$e" features" reliability" $onforman$e" durability" servi$eability" aestheti$ and per$eived Buality( and there is empiri$al eviden$e of the multi-dimensionality of the $onstru$t 'stone-Gomeo et al" ?CC<(* Despite the above findings" most resear$h to date treats Buality as one-dimensional $onstru$t and does not take ne$essary $are to state $learly the definition of Buality used 'stone-Gomero et al
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?CC<(* !n organi9ation will only a$hieve $ompetitive advantage through Buality if there is a mat$h between the importan$e that the markets assign to the individual Buality dimensions and the organi9ation,s performan$e along those individual dimensions '0arvin,s" ?CCA(* Defi$ien$ies of the existing L# literature in defining produ$t Buality have been identified as being responsible for $onfli$ting results reported in the literature linking Buality to out$omes su$h as market share" $ost and profits 'Geeves and 5ednar" ?CCE(* 1inally" provision of different Buality dimension poses different demands on different organi9ational fun$tions 'e*g* marketing" design" manufa$turing" pur$hasing( and may reBuire different organi9ational pra$ti$es 'in$luding L# pra$ti$es( depending on the Buality dimension in Buestion '1lynn et al" ?CC8a(* /ne important area of resear$h in L# has been the examination of the extent to whi$h L# pra$ti$es have an impa$t on firm performan$e* L# proponents argue that the set of L# pra$ti$es redu$e the manufa$turing pro$ess variability 'thus in$reasing internal pro$ess Buality and subseBuently produ$t $onforman$e Buality(" e*g* by using statisti$al pro$ess $ontrol* #oreover" all other produ$ts Buality dimensions will also be improved" e*g* by using design and $ustomer minded L# pra$ti$es* 0arvin '?CAE( showed how" in turn" internal pro$ess Buality and produ$t Buality performan$e $ould impa$t on the operational and business performan$e* 2e proposed to two main routes for the effe$t of Buality on business performan$e the manufa$turing route and the market route* +n the manufa$turing route" improved internal pro$ess Buality" meaning fewer defe$ts" s$raps and rework" results in improved operational performan$e 'e*g* lower manufa$turing $osts" more dependable pro$ess(" and subseBuent improvement in terms of manufa$turing related order-winners and Bualifiers* These in turn lead to improved business performan$e* +n the market route" improvements in produ$t Buality lead to in$reased sales and large market shares" or alternatively" less elasti$ demand and higher pri$es* +f the $ost of a$hieving these gains is outweighed by the in$reases in $ontribution re$eived by the firm" higher profits will results* .arge market shares $an improve business performan$e dire$tly and $an also lead to indire$t experien$e based $ost savings and further gains in profitability*

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1inally" improved produ$t Buality $an lead to lower warranty and liability $osts" servi$e $osts and improved business performan$e* 1lynn et al*,s C?CC8a( $ategori9ation of the role of L# pra$ti$es into $ore and infrastru$ture 'infrastru$ture pra$ti$es $reate an environment supportive of the use of the $ore pra$ti$es( proved to be enlightening in interpreting and $omparing the results of these studies(* 2a$kman and )egman '?CC8( list several diffi$ulties in dete$ting statisti$ally the dire$t effe$ts of L# by using out$ome $riteria su$h as business performan$e* ! se$ond interpretation may be that the impa$t of L# pra$ti$e on business performan$e is $ontingent on other fa$tors" su$h as the nature of the market environment 'e*g* in terms of market si9e and stru$ture" e*g* perfe$t $ompetition versus monopoly( armakar and 4itbladdo" ?CC<(* !$$ording to this interpretation" Buality may not always be free* That is" although the Buality performan$e model delineates possible me$hanism by whi$h in$reased Buality performan$e may lead to in$reased operation and business performan$e" it should not be taken for granted that the final result of these me$hanisms will always will always be in$reased performan$e* )ithin this paradigm" Buality improvements should be assessed by the return on the investment made as any other produ$tivity enhan$ing or $ost redu$ing initiative ' armakar and 4itbladdo" ?CC<(* 618 E)*"r"! ' Re/"eA -itations from 677E onwards 618 C(+!e*t- ' Fr )eA(r2 .iterature has it that organi9ation best $rafted pra$ti$es are motivated by either or 3ointly by external and internal drivers* ;xternal drivers are related mainly to the in$reased level of $ompetition" the $hanges in $ustomers, needs" +T $hanges" and $hanges in regulations '0rover et al*" ?CC8( while internal drivers are mainly related to $hanges in both organi9ational strategies and stru$tures* The $urrent study is however not fo$used on the key 54G pro3e$t drivers but rather the fa$tors $orporations implementing 54G pro3e$t should address in order to a$hieve su$$ess* 2ighlight the pointers in ea$h +@

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F"0-re 4: C(+!e*t- ' Fr )eA(r2

Use of Technology and Innovation Participatory managementBenc hmarking (BAT) Energy efficiency practices De' &er"+0 Firms sustainability

I+$e*e+$e+t V r" %'es S(-r!e: A-t,(r (6546) 61814 Use (# Te!,+('(0& +$ I++(/ t"(+

De*e+$e+t V r" %'e

4rogress in human so$iety has been a$$omplished by the $reation of new te$hnologies* The last few years have witnessed unparalleled $hanges throughout the world* Gapid $hanges in the markets demand drasti$ally shortened produ$t life $y$les and high-Buality produ$ts at $ompetitive pri$es* -ustomers now prefer a large variety of produ$ts* This phenomenon has inspired manufa$turing firms to look for progressive $omputeri9ed automation in various pro$esses* Thus mass produ$tion is being repla$ed by low-volume" high-variety produ$tion* #anufa$turing firms have re$ogni9ed the importan$e of flexibility in the manufa$turing system to meet the $hallenges posed by the pluralisti$ market* The $on$ept of flexibility in manufa$turing systems has attained signifi$ant importan$e in meeting the $hallenges for a variety of produ$ts of shorter lead-times" together with higher produ$tivity and Buality* The flexibility is the underlying $on$ept behind the transition from traditional methods of produ$tion to the more automated and integrated methods* They stress that firms implementing automation pro3e$ts should prioriti9e their needs for different flexibilities for long-range strategi$ perspe$tives* +ntensifying global $ompetition and rapid advan$ement of manufa$turing te$hnology are
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two realties in today,s business environment* These have $ombined to shift the business strategi$ priorities toward Buality" $ost effe$tiveness and responsiveness to marketpla$e $hanges* The Buest for lower operating $osts and improved manufa$turing effi$ien$y has for$ed a large number of manufa$turing firms to embark on !#Ts pro3e$ts of various types* Dramati$ developments in !#T at various organi9ational levels $an be attributed to numerous benefits that improve the $ompetitive position of the adopting $ompanies* !#T $an also provide distin$tive $ompetitive advantages in $ost and pro$ess leadership* ;vents of the last de$ade" su$h as the US produ$tivity problems" Japanese manufa$turing su$$ess stories and the $ompetitive global e$onomy" have moved manufa$turing strategy and pro$ess te$hnology issues from the bottom to the top of the firm,s priority list* The issues surrounding manufa$turing te$hnologies and their implementations have assumed greater importan$e in the manufa$turing strategy debate* 4ra$titioners and resear$hers have developed strong interest in how !#T $an be used as a $ompetitive tool in the global e$onomy* ! growing number of organi9ations are now adopting !#T to $ope with re$ent phenomena in today,s $ompetitive environment su$h as fragmented mass markets" shorter produ$t life $y$le and in$reased demand for $ustomi9ation* !lthough !#T $an help manufa$turers $ompete under these $hallenging $ir$umstan$es" they often serve as a double-edged sword" imposing organi9ational $hallenges while providing distin$t $ompetitive advantage when su$$essfully implemented* The relationship between +-T investment and business performan$e in various $ountries has only re$ently been investigated in less developed business environments* These findings are not in $on$ert with the $ommon understanding of the use of +-T in strategy found in the studies $ondu$ted in industriali9ed nations* Serafeimidis and Doukidis '?CCC( used the $ase study approa$h to investigate the impa$t of +-T investment on business performan$e in 0ree$e* They $on$luded that in their sample" +-T investments $ould not be related to business finan$ial su$$ess* They argue that part of the reason +-T did not impa$t finan$ial su$$ess in their sample was be$ause managers did not have the edu$ation to make the best use of strategi$ information systems*
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!lthough $ompetitive advantages are broadly expressed in terms of low $osts" flexibility" Buality" and delivery ')ard et al*" ?CC8% 5erry et al*" ?CC?% 2ayes and )heelwright" ?CAE(" they have been $ategori9ed into three dimensions in :4. settings D $ost advantage" servi$e variety advantage" and servi$e Buality advantage '.ai et al*" 677>(* -ost advantage refers to the relative $apability to offer servi$es at low $ost* The servi$e variety advantage is defined as the $apability to offer more servi$e produ$ts and fulfil $ustomi9ed servi$es* Servi$e Buality refers to the $apa$ity for a$$urate ordering" prompt and reliable delivery" smooth $ommuni$ation" and Bui$k response to $ustomersM inBuiries" $omplaints" and $laims* !lthough the literature shows that +T influen$es $ompetitive advantages most studies have assumed that the relationship between $ompetitive advantages and +T is linear" and no study has empiri$ally tested a nonlinear relationship* The importan$e of innovation is in$reasing" and in$reasing signifi$antly* +n the $urrent day e$onomi$ s$enario" innovativeness has be$ome a ma3or fa$tor in influen$ing strategi$ planning* #ost often planned and measured $ombination of ideas" ob3e$ts and people leads to innovation resulting in new business ideas and te$hnologi$al revolutions that $an deliver new produ$ts and business system effi$ien$ies* #anagement expert 4eter Dru$ker '6776( said that if an organi9ation" whi$h in this age ne$essitating innovation" is not able to innovate" it fa$es de$line and extin$tion* 61816 P rt"!"* t(r& M + 0e)e+tBe+!,) r2"+0 #anagement is one of the oldest professions in the world '0riffin" ?CC<(* &early two thousand years ago" the -hinese developed the management organi9ation stru$ture known today as traditional line authority stru$ture* Under this form of management style" organi9ations are usually organi9ed fun$tionally" putting similar people together into departments: human resour$es" a$$ounting" engineering" et$* +n re$ent years however" a relatively new phenomenon has begun to $hange the !meri$an workpla$e* That $hange is parti$ipatory management* Some $all it work team" total Buality management% others $all it self-managing team" et$* )hatever terminology you $hoose" the meaning is the same involving the workers in the de$ision making pro$ess of
,,

the organi9ation* 4arti$ipatory #anagement is a pro$ess where subordinates share signifi$ant degree of de$ision-making power with their immediate superiors* 4arti$ipatory de$ision-making is often referred to as a manifestation of group $ohesiveness 'Sparrowe and .iden" ?CC<( whi$h has been shown to be asso$iated with the Buantity of intera$tion among group members ')hitney" ?CCE(* -ohesion is a psy$hologi$al" affe$tive state that mirrors shared $ommitment" attra$tion" and team pride that emanates from intera$tions among team members '5arri$k et al* 677<(* +nterpersonal $ohesion therefore is the embodiment of the atta$hment among team members" whi$h affe$ts the exe$ution of subseBuent teamwork pro$esses and out$omes '5eal et al*" 677:(* #embers of $ohesive groups maintain freBuent $ommuni$ation" and intera$tion is often more informal and positive 'Smith et al*" ?CCE(* ;ffe$tive $ommuni$ation is therefore strongly intertwined with and $ontributes to effe$tive $ooperation and integration parti$ularly among T#T members seeking to attain $olle$tive goals '#arks et al* 677?(* ;ffe$tive $ooperation and integration typify $ohesive groups '-hen et al*" 6778( and $onstitute building blo$ks of behavioral integration whi$h a$$ording to 2ambri$k '?CCA(" .i and 2ambri$k '6778( and .ubatkin et al* '677>( positively affe$t organi9ational pro$esses and out$omes* 4arti$ipatory management be$ame an a$$eptable pra$ti$e following the published work on theory N and theory O management style 'Sto$ki et al" 677A(* The theory defined as managers sharing their power and influen$e by regularly asking employees for input while maintaining at a minimum a veto over their ideas '5rown et al*" ?CCE(* +t represents a signifi$ant in$rease in empowerment from traditional management style whose philosophy is to simply figure out what should be done and to tell people to do it '5rown et al* ?CCE(* The prin$iples of open-book management: timely sharing of $ru$ial finan$ial information with employees% edu$ating the employees to understand and apply the information% empowering employees to apply the information to their own work% and offering employees a stake in the su$$essful implementation of their ideas* !$$ording to -hallenge '?CC8(" hourly workers" professional and te$hni$al employees" and supervisors $onsistently stated that among the things they value most in a 3ob are
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variety" freedom to de$ide how to do their work without $losed supervision* They also reported that they value information and $ommuni$ation regarding things that affe$t their work and their firm" and eviden$e that their employers seek value and a$t on their suggestions for improvement at their workpla$e '-hallenge" ?CC8(* 0ono" -* S '677?(" HThe +mpa$t of 4arti$ipatory #anagement on 4rodu$tivity" Luality" and ;mployeesM #oraleI ! Gesear$h 4aper Submitted +n 4artial 1ulfilhnent of the GeBuirements for the #aster of S$ien$e Degree with a #a3or in Studies of total parti$ipation management 'T4#( has shown" in $ontrast to other more traditionally managed $ompanies" new per$eption of their employees* ;a$h of them has a spe$ifi$ Ptheory of the hidden peopleP" whi$h has $onseBuen$es in terms of their effi$ien$y in governan$e* +mplementation of full parti$ipation to a greater involvement of workers" $reative atmosphere of work" better $ommuni$ation - and in$reased the effi$ien$y of teams" the loyalty of employees - less staff turnover* The open book management also many traditional management te$hniBues were applied" but also pra$ti$es that differ from the $ompany parti$ipative managed* /nly in fully parti$ipatory organi9ation that uses T4# $an produ$e a highly effe$tive and effi$ient working environment 'Summers and 2yman" 6778(* 4arti$ipation is the pro$ess of development of individual so$ial intera$tion" whi$h is a refle$tion of both the so$ial meaning '$ognition( and voluntary '$ognitive( a$ts of persons* Together" the pro$esses involving all members of the development of individuals and $ommunities and systems - are members in the pro$ess of transmission of meanings in whi$h the individual and the $ommon good is a$hieved through su$h pro$esses of so$ial intera$tion" that ea$h person will have a guaranteed freedom to express their * 61817 E+er0& E##"!"e+!& Pr !t"!es The term energy effi$ien$y is widely used but not always well understood* +t may be defined as the ratio of useful outputs to energy inputs for a system" where the latter may be an individual energy $onversion devi$e 'e*g*" a boiler(" a building" an industrial pro$ess" a firm" a se$tor or an entire e$onomy* +n all $ases" the measure of energy

,5

effi$ien$y will depend upon how Kuseful, is defined and how inputs and outputs are measured '4atterson" ?CC>(* The options in$lude: Thermodynami$ measures: where the outputs are defined in terms of either heat $ontent or the $apa$ity to perform useful work% 4hysi$al measures: where the outputs are defined in physi$al terms" su$h as vehi$le kilometres or tonnes of steel% or ;$onomi$ measures: where the outputs 'and sometimes also the inputs( are defined in e$onomi$ terms" su$h as value-added or 0D4* ;$onomists are primarily interested in energy effi$ien$y improvements that are $onsistent with the best use of all e$onomi$ resour$es* These are $onventionally divided into two $ategories: those that are asso$iated with improvements in overall" or Ktotal fa$tor, produ$tivity 'Kte$hni$al $hange,(" and those that are not 'Ksubstitution,(* The latter is assumed to be indu$ed by $hanges in the pri$e of energy relative to other inputs* The $onseBuen$es of te$hni$al $hange are of parti$ular interest" sin$e this $ontributes to the growth in e$onomi$ output* 2owever" distinguishing empiri$ally between these two $ategories $an be $hallenging" not least be$ause $hanges in relative pri$es also indu$e te$hni$al $hange* 4atterson" #* 0* '?CC>(* P)hat is energy effi$ien$y: $on$epts" indi$ators and methodologi$al issues*P Energy Policy" 6E:8" pp* :<<-C7* Gogers" #* '677:(* Knowledge, technological catch-up and economic growth* -heltenham" U : ;dward ;lgar* Gohdin" 4*" 4* Thollander" and 4* Solding* '677<(* P5arriers to and drivers for energy effi$ien$y in the Swedish foundry industry*P Energy Policy" :8" pp* ><6-<<* S$hlei$h" J* and ;* 0ruber* '677A(* P5eyond $ase studies: 5arriers to energy effi$ien$y in $ommer$e and the servi$es se$tor*P Energy Economics::7" pp* EECD>E*

Throughout the world" energy $onservation is ranked as a high priority on the environmental agenda* 5e$ause of its large share of overall energy $onsumption ':7-E7 per $ent( and the potential for e$onomi$ improvements" the presents a ma3or energy $onservation opportunity '0eorgopoulou et al*" 677>% #$0regor" ?CCE% 2anemann and

,;

1arrell" 677>% U&;4" 677<(* /ne of the dilemmas of energy $onservation in is the minor finan$ial signifi$an$e energy represents in most end-user organisations* +n offi$e buildings" the energy $osts are often dwarfed by the initial investment $ost or the rent of the premises 'Davies and -han" 677?(* /ften" even the most profitable energy improvement measures" remain unimplemented* The $ontrast is even more extreme when the energy $osts are $ompared with labor and other operating $osts of the end-user organisation% the energy $osts are typi$ally less than ten per$ent of the running $osts of a firm 'Junnila" 677E% 677:% .eibowit9" 677?(* 6181714 E+er0& Re' te$ Pr !t"!es Geali9ing a sustainable firm is a long 3ourney that reBuires hard work* !mong the $riti$al aspe$ts of a sustainable firm are waste" su$h as food waste and re$y$ling" energy $onsumption and transportation* ;a$h aspe$t potentially $ontributes to lower total firm $arbon emission* 2en$e" a set of implementation strategies targeted at the spe$ifi$ aspe$ts is essential to support the whole pro$ess* The following five-implementation strategies" proposed within the energy $ontext" aim to redu$e overall energy $onsumption" and thus enable the establishment of a sustainable* 6181716 R "s"+0 E+er0& AA re+ess The se$ond proposed implementation strategy to redu$e the overall energy $onsumption is to raise energy awareness among the $ommunity* )ong '?CC<( has asserted that Hawareness is the seed for tomorrowMs $hangesI* -hanges always begin after awareness* 1or instan$e" a person will only start to turn off unne$essary lighting at home after he or she be$omes aware of the expensive utility bill* !wareness is defined in the Di$tionary of 4sy$hology as H$ons$iousness" alertness" and $ogni9an$e of something" a state of knowledge or understanding of environmental or internal eventsI '-orsini" 6776(* 0enerally" awareness refers to someone having knowledge of something after be$oming mindful of its existen$e" or being well informed about the $urrent development of a parti$ular a$tivity* +n the present $ontext" raising energy awareness $an be explained as
,<

ats et al*"

the pro$ess of generating positive attitudes and beliefs towards energy $onservation on firms* 6181717 Pr(/"$"+0 E+er0& E$-! t"(+ 4roviding adeBuate energy edu$ation to the $ommunity $an help to improve overall energy $onservation performan$e on firms" and promote the image that the top management is highly $ommitted to reali9ing sustainable firms* Gelevant energy edu$ation materials $an be adapted from other universities" whi$h have relevant experien$e* #oreover" $ollaboration among lo$al universities is a good way of sharing similar $ulture and $ontext* There are various methods to edu$ate the $ommunity on energy knowledge" in$luding $lassroom tea$hing" in$orporated into $o-$urri$ular syllabus" Bui9 $ontests on energy knowledge and other relevant a$tivities* 6181718 De/e'(*"+0 E+er0& C(+ser/ t"(+ Be, /"(-r 5esides gaining top management for suffi$ient resour$es allo$ation" raising energy awareness among the $ommunity and edu$ating the $ommunity" developing energy $onservation is proposed as another $ru$ial implementation strategy for firms* 2uman behaviour is an important element in energy $onservation a$tivities '5ream" ?CA>(* )edge '677:( has stated that Hthe out$ome of behavioral approa$h is very effe$tive and helpful in energy $onservationI* 61818 De' &er"+0 Delayering" also known as flattening typi$ally refers to the elimination of layers in a firm,s organi9ational hierar$hy" and the broadening of managers, spans of $ontrol* The most fundamental elements to des$ribe the shape of an organi9ation are its breadth and its depth '-olombo and Delmastro" 677A(* The depth of an organi9ation is the number of hierar$hi$al layers or management levels between the top management and operational employees* Delayering means the redu$tion of the number of management levels in an organi9ation" i*e* the flattening of an organi9ation,s hierar$hy* !$$ording to Ga3an and )ulf '677>(" most firms s t a r t e d d elayering in the mid-?CA7s* Sin$e then" they have

,>

systemati$ally eliminated layers in the hierar$hi$al stru$ture of senior management* 4art of this delayering $an be attributed to the elimination of key senior management positions that served as intermediaries* The rationale for flattening seems sound: to remain $ompetitive in the fa$e of in$reased $ompetition" for instan$e" firms must pursue a streamlined" effi$ient organi9ation that $an respond more Bui$kly to $ustomers* )hile flattening is said to redu$e $osts" its alleged benefits flow primarily from $hanges in internal governan$e: by pushing de$isions downward" firms not only enhan$e $ustomer and market responsiveness" but also improve a$$ountability and morale* 2owever" it should not be $onfused with other related $on$epts of $orporate restru$turing" su$h as downsi9ing or de$entrali9ation 'Ga3an and )ulf" 677>(* Downsi9ing basi$ally means workfor$e redu$tion* +f $ertain management levels are targeted" this $an lead to delayering* !$$ordingly" most delayering programs involve downsi9ing '.ittler and +nnes" 677E(* /n the other hand" larger have even found to in$rease the number of hierar$hi$al layers while downsi9ing ')ang 677<(* De$entrali9ation means the delegation of de$ision-making authority to lower management levels* 61: E)*"r"! ' Re/"eA (# L"ter t-re 5atley '?CC>( studied the best manufa$turing pra$ti$es in !ustralia and &ew Oealand and examined the link between manufa$turing pra$ti$es and firm performan$e* They found that firms had improved their pra$ti$es in the pre$eding five years* There was also a strong $orrelation between adoption of best manufa$turing pra$ti$es and performan$e in the areas of sales growth" export growth and $ash flows* -orbett '?CC>( found that globally-oriented manufa$turing firms emphasi9ed more on Buality improvement" pro$ess improvement" and design for manufa$ture" and these firms had world-$lass manufa$turing performan$e* 5atley '?CCC( reported that there was general a$$eptan$e of the $on$epts of total Buality management in &ew Oealand" although not all tenets were pra$ti$ed* nu$key" .eung-)al and #eskeill '?CCC( adapted the best pra$ti$es model of !ustralian #anufa$turing -oun$il '!nonymous" ?CCE( to further assess the manufa$turing pra$ti$es in &ew Oealand* They found that &ew Oealand firms had
,1

improved their pra$ti$es in a holisti$ way* +n parti$ular" the improvement was fo$used on the relationships in the supply $hain" from the suppliers to the $ustomers* /n the negative side" they stressed that improvements were needed in the areas of human resour$e management" te$hnology" and ben$hmarking* 2owever" suppliers* @oss and 5la$kmon '?CCE( state that the introdu$tion of new pra$ti$es in manufa$turing is normally asso$iated with expe$ted benefits in terms of improved performan$e in spe$ified areas* !ny investment of time or resour$es in a new pra$ti$e will ne$essitate the provision of benefits in terms of improved performan$e* The +nternational Luality Study '?CC:( also supports this statement as it reports that Hthe ultimate result of management pra$ti$es of an organi9ation is performan$e D market performan$e" operational performan$e" finan$ial performan$eI* The #ade in 5ritain '+5# -onsulting 0roup" ?CC:( and #ade in ;urope '+5# -onsulting 0roup" ?CCE( studies proposed that Hthe adoption of best pra$ti$e will be linked dire$tly to the attainment of high operating performan$e* Superior operating performan$e will in turn lead to superior business performan$e and $ompetitivenessI '@oss et al*" ?CC8(* +f this is the $ase" then it is ne$essary to define links between pra$ti$es and measures* 4erforman$e measures $an be used to identify the areas in whi$h performan$e must be improved and should measure the effe$tiveness of pra$ti$es 'Davies and o$hhar" ?CCC(* 4ra$ti$es should be implemented to improve performan$e* The two a$tivities should not be mutually ex$lusive* 1lynn et al* '?CC8a( des$ribe pra$ti$es as Happroa$hes used by management and workers with the goal of a$hieving $ertain types of performan$eI* They $ite the example of using J+T pra$ti$es to improve J+T performan$e* 2owever" they also state that using J+T pra$ti$es may also affe$t other types of performan$e* J+T pra$ti$es $an lead to improvements in Buality performan$e as they provide alternative means of redu$ing the potential for damage" identifying problems in the pro$ess" improving pro$ess feedba$k and redu$ing pro$ess variability* +n addition" total Buality management 'TL#( pra$ti$es
40

nu$key and Johnston '6776(

found that the fo$us in supply $hain relationships was more on $ustomers rather than

$an also have a relationship with J+T measures* 1or example" TL# pra$ti$es $an lead to a less variable manufa$turing pro$ess that redu$es the need for safety sto$k buffers* This indi$ates the need to evaluate pra$ti$es based on their ability to improve overall performan$e rather than 3ust the improvement of one spe$ifi$ area* The need to link pra$ti$es to performan$e has be$ome espe$ially important for $ompanies striving to a$hieve the goal of world-$lass manufa$turing* This has been the sub3e$t of studies by +5# -onsulting 0roup '?CC:" ?CCE( and !ndersen -onsulting '?CC:" ?CCE(* Su$h studies indi$ate that operating performan$e is $riti$al to overall $ompetitiveness" and that operating pra$ti$e is $riti$al to operating performan$e '@oss and 5la$kmon" ?CCE(* Thus" the $ausal relationships between operational pra$ti$e and operational performan$e are key to improving overall $ompetitiveness* /ne of the ob3e$tives of the #ade in 5ritain '+5# -onsulting 0roup" ?CC:( and #ade in ;urope '+5# -onsulting 0roup" ?CCE( studies was to test the relationship between pra$ti$e and performan$e and to investigate whether $ompanies that implement best pra$ti$es perform better* They found that the most su$$essful $ompanies were those that adopted best pra$ti$es to improve operational performan$e in every area of manufa$turing* +t was also $on$luded that the leading $ompanies had adopted best pra$ti$es whi$h had resulted in strong operational performan$e '@oss et al*" ?CC8(* Thus" there is a need to investigate whi$h pra$ti$es improve whi$h areas of performan$e in order that guidan$e $an be given to improve spe$ifi$ areas of performan$e* 61= C, ''e+0es I+,"%"t"+0 A!,"e/e)e+t (# W(r'$ C' ss Se'#CS-st "+ %"'"t& St t-s /ne of the environmental influen$es to a business arises from $ompetition* +n$reased $ompetition threatens the attra$tiveness of an industry and redu$ing the profitability of the players* +t exerts pressure on firms to be proa$tive and to formulate su$$essful strategies that fa$ilitate proa$tive response to anti$ipated and a$tual $hanges in the $ompetitive environment* 1irms respond to $ompetition in different ways* Some may opt to produ$t improvement" divestiture" and diversifi$ation" entry into new markets or even merging or buying out
41

$ompetitors* 4orter '?CA7( postulates that there is the essen$e of strategy formulation is $oping with $ompetition* ! $ompany has $ompetitive advantage whenever it has an edge over its rivals in se$uring $ustomers and defending against $ompetitive for$es 'Thompson F Stri$kland" 6776(* Sustainable $ompetitive advantage is born out of $ore $ompeten$ies that yield long term benefit to the $ompany* 4rahalad and 2amel '?CC7( define a $ore $ompeten$e as an area of spe$iali9ed expertise that is the result of harmoni9ing $omplex streams of te$hnology and work a$tivity* They further explain that a $ore $ompeten$e has three $hara$teristi$s first it provides a$$ess to a wide variety of markets" se$ondly it in$reases per$eived $ustomer benefits and lastly it is hard for $ompetitors to imitate* Sour$es of $ompetitive advantage in$lude high Buality produ$ts" superior $ustomer servi$e and a$hieving lower $osts than its rivals* To su$$eed in building a sustainable $ompetitive advantage" a firm must try to provide what buyers will" per$eive as superior value* This entails either a good Buality produ$t at a low pri$e" or a better Buality produ$t that is worth paying more for 'Thompson F Stri$kland" 6776(* 61> Rese r!, (r K+(A'e$0e G * This study intends to bridge the knowledge gap of la$k a $lear and systemati$ ranking of the best $rafted pra$ti$es in their relative order of importan$e* +n this regard" the resear$her poses the following resear$h Buestions% what are the most important best $rafted pra$ti$es of best manufa$turing firms in enya* 0ap between the theories and the empiri$al studies '2ighlight the .+& (

4&

RESEARCH METHODOLOGY 714 I+tr($-!t"(+ This $hapter presents the methods and pro$edures that will be employed to a$hieve the set ob3e$tives of the study* These in$lude the resear$h design that will be used" a des$ription of the study population and the sampling pro$edures that will be used to obtain the study sample* The $hapter also $overs how data will be $olle$ted" analy9ed and presented* 716 Rese r!, Des"0+ This study will use des$riptive survey design* Survey method will be useful as the resear$her wants to $olle$t data on phenomena that $annot be observed dire$tly* This method is deemed appropriate sin$e it will allow $olle$tion of large amounts of data from manufa$turing $ompanies in a highly effe$tive" easily and in an e$onomi$al way* !$$ording to 5abbie '6776(" this design refers to a set of methods and pro$edures that des$ribe variables* +t involves gathering data that des$ribe events and then organi9es" tabulates" depi$ts" and des$ribes the data* Des$riptive surveys portray the variables by answering who" what" and how Buestions '5abbie" 6776(* 717 St-$& P(*-' t"(+ +$ T r0et P(*-' t"(+ A study population comprises the entire groups of individuals, objects, items, cases, articles, or things with common attributes or characteristics existing in space at a particular point of time (Baker, 1999; Majumdar, 2005). The study population will comprise of the manufacturing companies in Nairobi City and its environs. A target population, according to Mugenda and Mugenda (1999), is that population which the researcher wants to generalize results. The target population in this study will $onsist of the senior managers and -;/s in the following $ompanies% 5!T" Spin !fri$an 5reweries limited and key stakeholders in nit" and ;ast enya !sso$iation of #anufa$turers*

The target respondents are deemed appropriate owing to their positions in the $ompanies and the information they have pertaining to the study sub3e$t*
4,

718 S )*'e S"De +$ S )*'"+0 Te!,+";-e A sample is a subset of a particular population while sampling is the practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern especially for the purpose of statistical inference (Mugenda and Mugenda, 1999). The sample size is a representative of the target population. The resear$her will sele$t A respondents from ea$h $ompany% the -;/" general managers" +-T manager and assistants" produ$tion managers and their assistants* +n addition" the resear$her will sele$t A respondents from the te$hniBue will be used to obtain the study sample* 71: D t C(''e!t"(+ 4rimary data and se$ondary data will be $olle$ted* 4rimary data will be $olle$ted through semi-stru$tured Buestionnaires with both open and $losed ended Buestions* The Buestionnaire will be divided in se$tions where ea$h se$tion will seek information on a spe$ifi$ ob3e$tive* /ne Buestionnaire will be administered to ea$h $ompany and addressed to a senior manager or a -;/* Drop-and-pi$k later method will be used to administer the Buestionnaires* This will enhan$e the response rate given that the managers of the manufa$turing $ompanies are busy and might need to respond to this Buestionnaire at their $onvenient time* Se$ondary data will be $olle$ted from publi$ations and relevant re$ords on the manufa$turing $ompanies in &airobi* 3.6 Data Analysis Data $olle$tion will yield both Buantitative and Bualitative data* Luantitative data will be analy9ed using des$riptive statisti$s su$h as freBuen$ies" per$entages and mean standard s$ores* The results of Buantitative data analysis will be presented in tables and figures* Lualitative data on the other hand will be analy9ed using $ontent analysis* Gesponses will be analy9ed based on ob3e$tives and running themes will be identified and grouped a$$ording to $ategories* -on$lusions will be made from the most $ited them es. Results of qualitative data analysis will be presented in prose or narrative format*
44

enya !sso$iation of #anufa$turers*

Therefore" a sample of E7 respondents will be sele$ted for the study* 4urposive sampling

REFERENCES 0riffin" G* )* '?CC<(" Fundamentals of Management: Core Concepts and Applications , 5oston" #!: 2oughton #iffin* 5atley" T*)* '?CC>(* Striving for better operations management pra$ti$es in &ew Oealand and !ustralian manufa$turing firms* !ntegrated Manufacturing "ystems" <':(: ::* 5atley" T*)* '?CCC(" Total Buality: The &ew Oealand way* #otal $uality Management" ?7 'EQ8(: SE:8-SE:A* nu$key" S*" .eung-)al" J*" and #eskeill" #* '?CCC(* %earing up: A study of &est manufacturing practice in 'ew (ealand" $ommissioned by the #inistry of ;$onomi$ Development" &ew Oealand 0overnment* nu$key" S*" and Johnston" 2* '6776(* Firm Foundations: A "tudy of 'ew (ealand )usiness Practices and Performances" -ommissioned by the #inistry of ;$onomi$ Development" &ew Oealand 0overnment* !nonymous '?CCE(* *eading the +ay: A "tudy of )est Manufacturing Practice in Australia and 'ew (ealand, !ustralian #anufa$turing -oun$il" !ustralia* 5rown" 4*" 2it$h$o$k" T* and )illard" 4* '?CCE(" +hy #-M Fails and +hat to do a&out itI" #$graw2ill" &ew Nork* -remer" Ja$Bues" .uis 0ari$ano and !ndrea 4rat* '677<(* H.anguage and the Theory of the 1irm"I $uarterly .ournal of Economics" ?66 '?(: :<:-E7<* Dessein" )outer" .uis 0ari$ano and Gobert 0ertner* '67?7(* H/rgani9ing for Synergies"I American Economic .ournal: Microeconomics" 6 'E(: <<-??E* 0ari$ano" .uis* '6777(* H2ierar$hies and the /rgani9ation of 4rodu$tion"I .ournal of Political Economy, ?7A '8(: A<E-C7E* 2art" /liver and 5engt 2olmstrom* '67?7(" H! Theory of 1irm S$opeI" #he $uarterly .ournal of Economics" ?68 '6(" EA:-8?:* Ga3an" Gaghuram 0* and Julie )ulf* '677>(* HThe 1lattening 1irm: ;viden$e from 4anel Data on the -hanging &ature of -orporate 2ierar$hies*I /e0iew of Economics and "tatistics, AA 'E(I <8C-<<:*
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41

APPENDICES APPENDIE I: LETTER OF INTRODUCTION The Gespondent" Dear SirQ#adam" Re: Re;-est #(r Rese r!, D t + am a 4ostgraduate student at the Jomo enya University of !gri$ulture and

Te$hnology an exe$utive #aster in 5usiness !dministration ';-#5!( program* #y resear$h pro3e$t topi$ is H5est 4ra$ti$es -rafted by .o$al -ompanies in the -urrent @olatile 0lobal 5usiness )orld: ! Survey of Sele$ted #anufa$turing -ompanies in enyaI* +n order to $arry out the resear$h" you have been sele$ted to form part of those to provide the ne$essary data* The data will be gathered through personal interview with the undersigned* Nou are therefore kindly reBuested to assist by granting an opportunity for the interview at your $onvenient when $onta$ted for an appointment* The information you provide will be treated in stri$t $onfiden$e and is purely for a$ademi$ purpose* +n no way will your name appear in the final resear$h report* ! $opy of sample Buestion to assist in preparation is atta$hed* Nour assistan$e and $ooperation will be highly appre$iated* Student T() W )%Supervisor

50

APPENDIE II: BUESTIONNAIRE I+tr($-!t"(+ This study seeks to find out the fa$tors affe$ting outsour$ing of a$$ountan$y servi$es by small and medium si9ed $ompanies in &airobi" enya* The Buestionnaire has five se$tions !-;* indly ti$k or write in the spa$es provided as appropriate* Se!t"(+ A: Ge+er ' I+#(r) t"(+ ?* indly indi$ate where $ompany headBuarters are situated* 6* Does the $ompany have bran$hesJ i( Nes R S

ii( &o R S +f yes" above" how manyJ TTTTTTTTTT* :* 2ow many years have this $ompany been in operationJ i( ii( iii( iv( v( E* i( ii( iii( iv( 8* i( ii( iii( iv( v( .ess than 6 years R S :-8 years R S >-A years R S C-?? years R S !bove ?6 years R S 2ow many employees does the $ompany haveJ ?-?C R S 67-:C R S E7-8C R S !bove >7 R S 2ow long have you worked for this $ompanyJ .ess than 6 years :-8 years >-A years C-?? years !bove ?6 years R R R R R S S S S S

Se!t"(+ B: IT +$ "++(/ t"(+s >* Does your $ompany engage in +T and innovationsJ i( Nes R S

ii( &o R S <* .ist some of the +T appli$ations and innovations in your $ompany in the last five years
51

___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ________________To what extent does the use of +T and innovations affe$t the sustainability of your $ompanyJ i( @ery little extent ' ( ii( .ittle extent ' ( iii( &o effe$t ' ( iv( 0reat ;xtent ' ( v( @ery 0reat ;xtent ' ( A* To what extent does the use of +T and innovations affe$t the sustainability of your $ompanyJ Key: 12 'ot at all, 32 *ittle E4tent, 52 Moderate E4tent, 62 %reat e4tent, 72 8ery %reat E4tent IT +$ I++(/ t"(+ !$$ountingQfinan$e software ;le$troni$ staff inputQoutput $ontrol system !rtifi$ial intelligen$eQ expert systems +nternet and ;mail ;le$troni$ bar $oding systems )ord pro$essing SalesQmarketing software 4rodu$tion $ontrolQplanning software #anufa$turing resour$e planning #aterials reBuirements -omputeri9ed maintenan$e management software -orporate website +nventory management software Transportation management systems Luality $ontrolQBuality assuran$e .o$al area network Se!t"(+ C: P rt"!"* t(r& M + 0e)e+t C* 4 6 7 8 8

1or how many years has parti$ipatory management been pra$ti$ed in your $ompanyJ i( 8 or less ' ii( >-?7 ' iii( ??-?8 ' iv( ?> or more ' 2ow does parti$ipatory $ompanyJ i( ii( +n$rease De$rease ( ( ( ( management impa$t on produ$tivity of your

?7*

' ( ' (
5&

??*

iii( &o -hange ' ( )hat is the impa$t of parti$ipatory management on Buality of produ$ts from your $ompanyJ i( +n$rease ' ( ii( De$rease ' ( iii( &o $hange ' ( +mpa$t of parti$ipatory management on employee moraleJ i( +n$rease ' ( ii( De$rease ' ( iii( &o $hange ' ( To what extent does parti$ipatory management affe$t the sustainability of your $ompanyJ i( ii( iii( iv( v( @ery little extent .ittle extent &o effe$t 0reat ;xtent @ery 0reat ;xtent ' ' ' ' ' ( ( ( ( (

?6*

?:*

Se!t"(+ D: E+er0& E##"!"e+!& Pr !t"!es ?E* Does your $ompany have any energy effi$ien$y pra$ti$esJ i( ii( Nes &o R S R S

+f yes" whi$h are theyJ

+f no" whyJ

5,

?8*

To what extent do the following energy effi$ien$y pra$ti$es influen$e the sustainability of your $ompanyJ Key: 12 'ot at all, 32 *ittle E4tent, 52 Moderate E4tent, 62 %reat e4tent, 72 8ery %reat E4tent Pr !t"!e 4 6 7 8 8

!dopting new building te$hniBues for natural lighting F ventilation

;mployees engagement into Kenergy saving, behaviour

!dopting systems ad3usting light intensity for varying daytime needs

+nvesting in alternative F renewable energy supply 'solar( +nstallation of heat re$overy systems in $old produ$tion fa$ilities +nstallation of hinged doors for refrigerated spa$e Use of motion sensors to swit$h onQoff the lights automati$ally +nstallation of energy effi$ient bulbs Se!t"(+ E: De' &er"+0 ?>* 1or how many years has delayering been pra$ti$ed in your $ompanyJ v( 8 or less vi( >-?7 vii( ??-?8 viii( ?> or more indly indi$ate the $ompany iv( +n$rease v( De$rease vi( &o -hange )hat is the impa$t $ompanyJ ' ( ' ( ' ( ' ( impa$t of delayering on produ$tivity of your ' ( ' ( ' ( of delayering on Buality of produ$ts from your

?<*

?A*

?C*

iv( +n$rease ' ( v( De$rease ' ( vi( &o $hange ' ( 2ow does delayering impa$t on employee moraleJ iv( +n$rease ' ( v( De$rease ' ( vi( &o $hange ' ( To what extent does delayering affe$t the sustainability of your $ompanyJ vi( vii( viii( ix( @ery little extent .ittle extent &o effe$t 0reat ;xtent
54

67*

' ' ' '

( ( ( (

x(

@ery 0reat ;xtent

' (

T, +2 &(- #(r * rt"!"* t"(+1

55

APPENDIE III: BUDGET Ite) FA!t"/"t& Gesear$h materials 4rinting proposal and binding Data $olle$tion expenses Data analysis materials 'S4SS( 4rinting of 4ro3e$t Geport and binding T(t ' 8"777 473:55 C(st (# "te) -----877 ----T(t ' !(st :7"777 ?877 A7"777 E8"777 8"777 4=43:55

5;

APPENDIX IV: WORK PLAN

A weeks 4roposal writing and Buestionnaire drafting Data $olle$tion pro$ess Data !nalysis )riting of the resear$h report Submitting the resear$h pro3e$t report

Duration : wks ? wk

? wk

? wk

5<