An investigation of the impact of enterprise based training on the performance of manufacturing enterprises in Nairobi, Kenya
Mbugua, George Karugu Ndungu
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The general objective of this study was to investigate the impact of Enterprise Based Training (EBT) on the performance manufacturing enterprises in Nairobi. The specific objectives on the other hand were: to determine the prevalence of the various categories of EBT; to establish the extent to which enterprise based training had impacted on enterprise performance; To determine whether the differences between training and nominal non-training manufacturing enterprises were significant and to establish the constraints hindering the delivery of enterprise based training among the Directorate of Industrial Training customers. The design of the study was descriptive and crosssectional. The target sample was one hundred and sixty eight enterprises out of a population of three hundred and fourty five manufacturing enterprises in the Nairobi area. This was 49% of the total population. Eighty of the one hundred and sixty eight enterprises had trained with the DIT (training enterprises) in the 2002-2004 period while the balance of eighty eight enterprises had not (nominal non-training enterprises). Systematic random sampling was used in both cases to determine the enterprises targeted for the study. The study used two questionnaires. The questionnaire category one was targeted at the one hundred and sixty eight manufacturing enterprises while the questionnaire category two was targeted at fourty purposively selected key informants among the stakeholders ofDIT. Ten of the questionnaires were each administered to DIT management, workers', employers' and other interests' representatives. The researcher collected data by directly delivering and then later collecting the filled questionnaires. The minimum sample size for questionnaire category one was 60 but 69 responses were received The overall response rate was 47.6% Data analysis was conducted through descriptive and inferential statistics as well as content analysis. In linear regression analysis the Statistical Package for Social Scientists (SPSS version 11) was used while in ANOV A Microsoft Excel (2003) was employed on account of its higher display quality. The study established that: There were high levels of prevalence of (EBT) among manufacturing enterprises (87%) in the Nairobi area but that the prevalence was higher amongst those supported by the ITLF; there was a positive though low causal relationship between EBT and enterprise performance (bl= 0.d994) ; the constraints facing the DIT were both structural and operational; there were significant differences at the 5% level of significance between the training and the nominal non-training manufacturing enterprises .with regard to Innovativeness while there were no significant differences established with regard to Growth and the overall Enterprise performance It was hence concluded that the ITLF supported BBT had contributed to the performance of the participating manufacturing enterprises and that EBT was a viable instrument for both policy and programme intervention and that the established residual enterprise performance (at zero EBT) was consistent with the existence of other contributing factors towards Enterprise performance. The researcher recommended that the DIT be made semi-autonomous by the government so as to facilitate efficient delivery ofEBT and that DIT should extend its support to all small scale enterprises and that in addition it should cater for all cadres of persons engaged in industry in Kenya. This study has established that there is a positive relationship between EBT and enterprise performance and that EBT is a valid instrument for development intervention. The results of this study support the theory that training can be used as an instrument to enhance development.