Quality management practices and firm performance among manufacturing firms in Kenya
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Date
2016-06
Authors
Wanyoike, Rosemarie W.
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
A firm’s performance is a function of how well managers use quality management
practices to improve the quality of products and services. In today’s global environment,
organizations are constantly looking for ways to expand and improve their businesses in
terms of quality to enhance performance. Quality management practices have been used
by manufacturing firms in Kenya to improve on performance. However, customers are
still complaining that the quality of manufactured products has been compromised. The
purpose of this study was to establish the effect of quality management practices on
performance of manufacturing firms in Kenya. The specific objectives were: To establish
the effect of continuous improvement on firm performance; to assess the influence of
customer focus on firm performance; to determine the extent to which top management
commitment affects the performance of manufacturing firms in Kenya; to assess the
extent to which the operating environment moderates the relationship between quality
management practices and the performance of manufacturing firms in Kenya; and to
establish the mediating effect of organizational capability on the relationship between
quality management practices and performance. The philosophical foundation of the
study was positivism. The study used both descriptive and explanatory research design.
The target population comprised all 60 manufacturing firms in Kenya and a sample size
of 120 respondents. The study adopted census sampling technique. The study used
primary data which was collected using self-administered questionnaires. Validity of the
instruments was ensured through face, and content validity and reliability was tested
using Cronbach’s Alpha with a coefficient of 0.7, which was considered acceptable. Data
was analyzed using descriptive and inferential statistics. Descriptive statistics was used to
summarize data while inferential statistics, specifically Multiple Linear Regression, was
used to test hypothesis. The analysis used SPSS version 21 to aid in data analysis. The
results were presented using tables. The findings indicate that continuous improvement
had positive and significant effect on performance of manufacturing firms. Customer
focus was found to be significant in explaining the variation of performance and top
management commitment was found to have a significant effect of performance of
manufacturing firms. Organizational capability had a partial mediating effect on the
relationship between quality management practices and performance. Operating
environment had a moderating effect on the relationship between quality management
practices and performance. The study recommends that the management should be
committed to quality by providing strategic direction with respect to quality management
practices, which should be aligned to the firms’ objectives. Policy makers should create a
quality framework that is geared towards improving performance and ensure it is adhered
to by all stakeholders in the manufacturing firms in Kenya. Finally, the study
recommends that similar research be done in other sectors like service industries.
Description
Thesis submitted to the school of business in partial fulfillment for the Award of
the Degree of Doctor of Philosophy in Business Administration (Human Resource
Management) of Kenyatta University. June, 2016