Business Excellence Practices and Performance of Fast Moving Consumer Goods Manufacturing Firms in Nairobi County, Kenya
Otieno, Belinda Akinyi
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In terms of retail sales, Kenya is Africa's second-largest structured economy following South Africa. Kenyan FMCG has a huge potential but recently some of them closed down. For example, Cadbury recently shuttered its Nairobi factory owing to poor performances, while others, such as Eveready, had difficulty competing in the Kenyan market. This study’s general objective was to establish the influence of business excellence practices on performance of fast moving consumer goods manufacturing firms in Nairobi County Kenya. Specific objectives were to determine the influence of continuous improvement, people focus, strategic management and leadership support on performance of FMCG firms in Nairobi County Kenya. The theoretical foundation for this study was resource based view, strategic success and contingency theories. This study used a descriptive research design. The study respondents were 154 management level employees in the FMCG manufacturers. The study employed stratified random sampling for the purpose of getting equal representations of respondents. The study sample size was calculated using the Yamane formula. The sample was 111 respondents. Structured questionnaires were used to collect primary data. A pilot test was conducted to determine the validity and reliability of the questionnaire. Descriptive statistics that included measures central tendency (mean), measures of frequency, and measures of variability (standard deviation, variance) was used to analyze quantitative data. The information was presented in form of tables, figures and pie charts. The inferential statistics that include correlational and regression analysis was also used in analyzing quantitative data. Correlational analysis determines the strength and direction of the link between the study variables. Multiple regression analysis method was used to establish the effect of business excellence practices on performance of fast moving consumer goods manufacturing firms in Nairobi County Kenya. The study found that continuous improvement was statistically significant to performance FMCG manufacturers. People focus had a significant positive relationship with performance FMCG manufacturers in Nairobi County. Strategic management had a significant positive relationship with performance FMCG manufacturers. leadership support had a significant positive relationship with performance FMCG manufacturers in Nairobi County. The study suggests that the manufacturers should adopt a methodical approach to problem solving to ensure constant improvement inside a company. The study recommends that the FMCG manufacturers must pay attention to whole supply chain, including finding competent suppliers, creating goods that meet consumer expectations, delivering products on time, pricing items competitively, and providing efficient after-sales support. The study recommends that the manufacturers need to adapt its operations to the external business environment and for the internal operations to be readjusted in a way that support the market. The study suggests that leaders in the organization should act as examples or advocates for business initiatives, encouraging managers and workers to promote the company's efforts through a supportive work environment, and allocating the appropriate resources to the firm's efforts.