Operational Strategies and Organizational Performance of Kenya Vehicle Manufacturers Limited Thika, Kiambu County, Kenya
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Date
2024-04
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Kenyatta University
Abstract
Organizational performance at Kenya Vehicle Manufacturing Limited has declined as shown by the failure to meet set targets and inefficiencies, noncompliance with the service charter, and a delayed process of core function automation. This study’s general objective was to establish the degree to which operational strategies influence the organizational performance at Kenya vehicle manufacturers limited Thika, Kiambu County. This study was based on the following specific objectives: to understand how performance is influenced by systems and processes, examine the
influence of innovations, demonstrate how performance is influenced bystakeholder involvementand finally, to examine the influence of internal control practices on organizational performance at Motor Vehicle Assemblies in Thika, Kenya. Stakeholder involvement refers to the active engagement and participation of various entities in decision-making processes and activities relevant to a particular project, policy, or initiative, where at Kenya Vehicle Manufacturing Limited in Thika, Kiambu County, the declining organizational performance, evidenced by failure
to meet set targets, inefficiencies, noncompliance with the service charter, and delayed core function automation, prompted this study's objective to establish the influence of operational strategies on organizational performance. Drawing from Resource-Based View Theory, Systems Theory, Stakeholder theory, and Balanced Scorecard Theory, the study focused on understanding how systems and processes, innovations, stakeholder involvement, and internal control practices affect performance. A cross-sectional study design was utilized, surveying 139 employees across different departments. The data were generated through the administration of both open and close ended questionnaires to employees across various departments at Kenya Vehicle Manufacturing Limited in Thika, Kiambu County. Questionnaires, validated through Cronbach’s coefficient Alpha, were administered, and data were analyzed using descriptive statistics, Pearson's correlation test, regression analysis, and thematic analysis. Results revealed a positive correlation
between systems and controls, stakeholder involvement, internal controls, and organizational performance, highlighting the need for skill alignment with organizational performance needs and emphasizing the importance of strategic management operations. Consequently, key recommendations include aligning employee skill sets with organizational needs, enhancing innovation management, fostering stakeholder engagement, and strengthening internal control practices, which are anticipated to enhance organizational performance upon implementation
Description
A Research Project Submitted to the School Of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Masters of Business Administration (Strategic Management) of Kenyatta University, April, 2024
Supervisor:
Eliud Obere