Resource Management and Firm Performance of Tyre Firms in Kenya
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In the last two decades, there has been an influx of new entrants in Kenyan tyre sector with key players being Kingsway Tyres Limited Sameer Africa Limited as well as Auto Express Limited among others, which import quality and cheap tyres from Asian countries including China. In response, Kenyan tyre firms have greatly invested in technological resources, inventory management and human capital to ensure survival within the industry. Nevertheless, despite this investment, there has been a decline in performance of market share and customer satisfaction. Therefore, this study examined how resource management influences firms’ performance of Kenyan tyre firms. The study also sought to assess the effect of financial resource management, human capital management, technological resource management and inventory management on firm performance of tyre firms in Kenya. This study deployed descriptive research design. Moreover, the study population comprised of 170 heads of finance, human resource, sales and marketing, warehouse, IT and audit departments in 29 Kenyan tyre firms. Krejcie and Morgan sample size determination formula was deployed to determine the sample size. Moreover, stratified random sampling was employed to select a total of 118 individuals from study population. Primary data which was collected using questionnaires was deployed during the study. Questionnaire was employed to gather primary data. Questionnaire composed of close ended as well as open ended questions. Quantitative data was collected using close ended questions while qualitative data was obtained by employing open ended questions. Moreover, quantitative data was then analyzed using inferential as well as descriptive statistics through the support of SPSS version 22. Additionally, descriptive statistics concentrated on computation of percentages, frequency distribution, standard deviation and mean. Inferential statistic focused on multivariate regression analysis, which was deployed to determine an association between independent study variables and dependent study variable. Results were then given in tables as well as figures (pie charts and bar charts). The study found that financial resource management has a very strong and positive influence on performance of Kenyan tyre firms. Moreover, study discovered that human capital management has positive as well as significant effect on firm performance of tyre firms. Further, the study found that technological resource management has positive as well as significant effect on firm performance of tyre firms in Kenya. The research found that inventory management has a positive as well as significant influence on firm performance of tyre firms in Kenya. Therefore, this study recommends adoption of resource management by the tyre firms to maximize utilization of resources, minimize wastage and improve the firm overall performance. In addition, tyre firms in Kenya should organize for regular employee training so that they can be equipped with proper knowledge as well as skills on how they should relate with customers in order to increase customer retention.