Total Quality Management Practices and Performance of Manufacturing Firms in Nakuru County, Kenya
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Date
2025-03
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Kenyatta University
Abstract
Kenya's industrial sector encountered various challenges in the past. While the manufacturing sector's contribution to Kenya's overall economic output remained steady at 10%, its proportion of total wage employment declined. In Nakuru, manufacturing companies like Eveready Ltd. have reduced their annual production capacity from a previous high of 180 million units to 50 million units. The adoption of total quality management was considered a potential enhancer for the financial performance of manufacturing companies. The primary objective of the study was to explore the correlation between the performance of manufacturing firms and the implementation of total quality management techniques in Nakuru County, Kenya. The research focused on four objectives influencing manufacturing firms' performance: customer focus, top management commitment, process approach, and employee involvement. The study was guided by Quality Improvement Theory, Juran Theory, and Performance Theory. A descriptive research design was utilized for the investigation conducted in Nakuru County. The study encompassed 34 manufacturing companies in Nakuru County, all of which were members of the Kenya Association of Manufacturers, serving as the units of observation. Additionally, 89 top and middle management personnel in the human resources division of these manufacturing companies were the units of analysis. The study encompassed the entire target population using a census approach. Data collection was carried out through the use of questionnaires. A pilot study was conducted in Nairobi County, involving a sample of nine randomly selected respondents from the general community, distinct from the final sample. The questionnaire's content validity was assessed by the supervisor for relevance and appropriateness to the study's objectives. The research questionnaire's validity for this study was determined through the Cronbach alpha value. The Cronbach's alpha reliability coefficient typically ranges from 0 to 1, and values exceeding 0.7 were considered indicative of instrument reliability. The study employed both quantitative and qualitative data collection methods. Qualitative analysis utilized themes and narratives, employing content analysis. Quantitative data were analyzed using descriptive statistics with the Statistical Package for Social Sciences (SPSS) version 25, and the results were presented through tables, pie charts, and bar charts. There is a positive association between customer focus and performance of manufacturing firms as shown by a correlation coefficient of 0.605 and a p-value of 0.034. Findings indicated that there is positive significant association between effect of top management commitment and performance of manufacturing firms as shown by a correlation coefficient of 0.387 and a p-value of 0.004. The study established that there is a positive significant association between process approach and performance of manufacturing firms as shown by a correlation coefficient of 0.266 and a p-value of 0.005. The study established that there is a positive significant association between employee involvement and performance of manufacturing firms as shown by a correlation coefficient of 0.447 and a p-value of 0.001. From the study the researcher concluded that there is an indirect relationship between customer focus and firm levels of performance. On the second objective the researcher concluded that senior management needs to make a commitment to putting forth a quality effort while following by the organization's terms, regulations, and policies. On the third objective the researcher concluded that the firm should ensure that there is a clear process consistency to improve the operations of the firm. The study recommends that Manufacturing firms should adopt customer focus as a practice of TQM with the aim of enhancing organizational performance through customer satisfaction. The researcher recommends that the manufacturing firms should embrace employee involvement as quality management strategy to enhance organizational performance. The study recommends there is need for future researchers on the effect of quality management practices, recent practices, trends in another sector other than manufacturing firms in Kenya
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of a Masters Degree in
Business Administration (Strategic Management)
of Kenyatta University, March, 2025
Supervisor:
1.Paul Waithaka