Resource Management and Firm Performance of Tyre Firms in Kenya
Loading...
Date
2021
Authors
Mukami, Karen
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
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.
Description
A Research Project Submitted to the School of Business in Partial Fulfilment of the Award of the Degree in Master of Business Administration (Strategic Management) of Kenyatta University, June 2021
Keywords
Resource Management, Firm Performance, Tyre Firms, Kenya