PRODUCT INNOVATION AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA: A CASE OF BAMBURI CEMENT LIMITED (LAFARGE HOLCIM)

2021 ◽  
pp. 66-79
Author(s):  
Kimberly Mwaura ◽  
Washington Okeyo
Keyword(s):  
Product Innovation ◽  
Resource Dependence ◽  
Industrial Area ◽  
Resource Dependence Theory ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Manufacturing Companies ◽  
Innovation Research ◽  
And Performance ◽  
Corporate Office

ABSTRACT The increasing demand for cement in Kenya has attracted new entrants into the market, increasing competition amongst producers of cement. This study finds out the role of product innovation on performance of large manufacturing firms, a case study of Bamburi Cement Limited. The study was guided by Innovative Firm theory, theory of Dynamic Capability, Resource Dependence Theory and the Institutional Theory. This study adopted a descriptive research design. The study's population entailed all workers of BCL serving in 6 departments in the Corporate Office, Industrial Area and also in Athi River. The departments include Innovation and Technical Services Department, the Commercial Department, the IT Department, Human Resource Department, Production & Maintenance Department and the Finance Department. A total of 470 employees formed the target. The Yamane formula (1967) was applied to obtain the sample for the study. From the 470 workers 216 of them were to be obtained from the targeted departments. A Stratified random sampling was applied for proportionately selecting the 216 sample of employees from the population targeted. A questionnaire was used to collect primary data. Qualitative data was analysed using content analysis and presented in different themes. The study concluded that there exists a positive relationship between product innovation strategy and performance of large manufacturing firms. Therefore, large manufacturing firms should continually embrace product innovation as this strategy provides a framework for creating new products and improving the performance. Manufacturing companies need to implement policies that encourage a process innovation culture. Keyword: Product, innovation, research and development, performance.

scholarly journals Supply chain strategies in an era of natural resource scarcity

2018 ◽  
Vol 38 (3) ◽  
pp. 784-809 ◽  
Author(s):  
Dimitra Kalaitzi ◽  
Aristides Matopoulos ◽  
Michael Bourlakis ◽  
Wendy Tate
Keyword(s):  
Supply Chain ◽  
Natural Resource ◽  
Resource Dependence ◽  
Empirical Work ◽  
Resource Dependence Theory ◽  
Resource Scarcity ◽  
The Body ◽  
Manufacturing Companies ◽  
Content Type ◽  
Natural Resource Scarcity

Purpose The purpose of this paper is to explore the implications of natural resource scarcity (NRS) for companies’ supply chain strategies. Design/methodology/approach Drawing on the resource dependence theory (RDT), a conceptual model is developed and validated through the means of exploratory research. The empirical work includes the assessment of qualitative data collected via 22 interviews representing six large multinational companies from the manufacturing sector. Findings When the resources are scarce and vitally important, companies use buffering strategies. Buffering and bridging strategies are preferred when there are a few alternative suppliers for the specific resource and when there is limited access to scarce natural resources. Research limitations/implications The research focuses on large multinational manufacturing companies so results may not be generalised to other sectors and to small- and medium-sized firms. Future research needs to examine the implications of NRS for organisational performance. Practical implications This research provides direction to manufacturing companies for adopting the best supply chain strategy to cope with NRS. Originality/value This paper adds to the body of knowledge by providing new data and empirical insights into the issue of NRS in supply chains. The RDT has not been previously employed in this context. Past studies are mainly conceptual and, thus, the value of this paper comes from using a qualitative approach on gaining in-depth insights into supply chain-related NRS strategies and its antecedents.

Developing process and product innovation through internal and external knowledge sources in manufacturing Malaysian firms: the role of absorptive capacity

2020 ◽  
Vol 26 (5) ◽  
pp. 1021-1039 ◽  
Author(s):  
T. Ramayah ◽  
Pedro Soto-Acosta ◽  
Khoo Kah Kheng ◽  
Imran Mahmud
Keyword(s):  
Absorptive Capacity ◽  
Product Innovation ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Knowledge Sources ◽  
Manufacturing Companies ◽  
Organizational Capability ◽  
Data Set ◽  
Content Type ◽  
External Knowledge

PurposeFirms' knowledge-processing capabilities have a central role in achieving innovation performance and competitive advantage. Absorptive capacity capabilities and innovation are viewed as essential for enterprise success. Absorptive capacity is deemed as a highly important organizational capability to recognize value and assimilate both external and internal knowledge in order to enhance firm innovation. The aim of this study is to determine if innovation performance can be improved through absorptive capacity (knowledge acquisition, dissemination and utilization), when it is supported by internal (firm experience) and external knowledge sources (R&D cooperation and contracted R&D).Design/methodology/approachA quantitative methodology based on employing a structured questionnaire was used for data collection. The proposed research model and its associated hypotheses are tested by using Partial Least Squares (PLS) structural equation modelling (SEM) on a data set of 248 manufacturing companies located in the Northern Region of Malaysia.FindingsResults showed that firms' experience is significantly related to absorptive capacity, while for R&D cooperation and contracted R&D findings were mixed. In addition, absorptive capacity was found as a strong predictor of innovation performance.Originality/valueOne of the defining features of competition in many industries has been the extremely rapid pace of technological change, marked by a continuous stream of innovations. Manufacturing firms, therefore, face the challenge of nurturing existing knowledge and developing novel knowledge in order to create new business opportunities. This study makes valuable contributions with regard to understanding the behavioural of manufacturing firms towards process and product innovation.

scholarly journals Foreign Direct Investment and Local Firm’s Performance

2021 ◽  
Vol 6 (6) ◽  
pp. 216-222
Author(s):  
M. D. Wanjere ◽  
M. Ogutu ◽  
M. Kinoti ◽  
X. N. Iraki
Keyword(s):  
Firm Performance ◽  
Direct Investment ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Simple Linear Regression ◽  
Key Sectors ◽  
The Government ◽  
To Come ◽  
And Performance ◽  
Structured Questionnaire

This paper investigates the effect of FDI on performance of manufacturing firms in Kenya. Little is documented about the link between FDI and performance of local firms in Kenya . The study has sought to establish the overall effect of FDI on the performance-manufacturing firms in Kenya. The population of study comprised 100 companies registered with Kenya Association Manufacturing as at the time of data collection in 2019 and that had over 10 percent foreign ownership. The respondents were the CEOs of organization. The study used a structured questionnaire to collect primary data. Descriptive and inferential statistics were both used to analyze the data. Data was pretested for normality, linearity, multicollinearity, autocorrelation and homoscedasticity and the data found to meet most of these preconditions. The study developed hypothesis which was tested using simple linear regression to establish the effect of FDI on performance of manufacturing firms. The results revealed that there was a statistically significant relationship between FDI and firm performance. This imply that to achieve better firm performance, the government need to come up with polices geared to attracting more FDI into the key sectors of the economy.

scholarly journals Technology-Independent Directors and Innovative Knowledge Assets: A Contingency Perspective

2021 ◽  
Vol 13 (16) ◽  
pp. 9106
Author(s):  
Yexin Liu ◽  
Weiwei Wu ◽  
Ruixiang Han
Keyword(s):  
Resource Dependence ◽  
Positive Impact ◽  
Fixed Effect Model ◽  
Resource Dependence Theory ◽  
Independent Directors ◽  
Sustainable Competitive Advantage ◽  
Knowledge Assets ◽  
Innovation Research ◽  
Impact Of Technology ◽  
The Impact

In the current dynamic and competitive environment, the sustainable competitive advantage of firms has flowed to the development of innovative knowledge assets. Drawing on resource dependence theory, this paper develops a contingency research model to explore how technology-independent directors affect innovative knowledge assets. A sample of Chinese manufacturing firms listed on Shanghai and Shenzhen Stock Exchanges between 2010 and 2019 was used for the regression analysis. By employing the fixed effect model, the results show that technology-independent directors have a significant positive impact on innovative knowledge assets. Furthermore, the impact of technology-independent directors on innovative knowledge assets is strengthened in the firms that are state-owned, larger, and older. These results provide important insights related to innovation research.

The houbara bustard: a thematic analysis of a bird's threatened extinction and a government's accountability failure

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ralph Adler ◽  
Mansi Mansi ◽  
Rakesh Pandey
Keyword(s):  
Thematic Analysis ◽  
Resource Dependence ◽  
Developed Countries ◽  
Resource Dependence Theory ◽  
Environmental Accounting ◽  
Primary Data ◽  
Content Type ◽  
Houbara Bustard ◽  
Prior Literature ◽  
Media Reports

PurposeThis paper provides a thematic analysis of an IUCN Red-Listed bird, the houbara bustard, which Pakistan uses as a fungible resource to appease its wealthy Arab benefactors.Design/methodology/approachThematic analysis of relevant media reports and government ministry and NGO websites comprise the study's data. Media reports were located using Dow Jones' Factiva database.FindingsPakistan's Ministry of Foreign Affairs issues wealthy Arabs special permits for hunting the houbara bustard as a “soft” foreign diplomacy strategy aimed at propping up the country's fragile economy. Although illegal under international and Pakistan's own wildlife laws, resource dependence theory helps explain how various country-specific issues (e.g. dysfunctional political and judicial systems) enable Pakistan's unlawful exchange of hunting permits for Arab oil and short-term financing. Surrogate accountability and agencement are examined as two means for arresting the bird's trajectory toward extinction.Research limitations/implicationsMedia reports comprise the primary data. Pakistani government officials were approached for interviews, but failed to reply. Although unfortunate, the pervasive corruption and mistrust that characterise Pakistan's culture would have likely tainted the responses. For this reason, media reports were always the primary data sought.Originality/valueThe present study extends prior literature by exploring how country context can subvert the transferability of social and political approaches used in developed countries to address environmental accounting issues and challenges. As this study shows, a developing country's economic vulnerability, combined with its dysfunctional political systems, impotent judiciary and feckless regulatory mechanisms, can undermine legislation meant to protect the country's natural environment, in general, and a threatened bird's existence, in particular.

Linkages between firm innovation strategy, suppliers, product innovation, and business performance

2017 ◽  
Vol 37 (8) ◽  
pp. 1054-1075 ◽  
Author(s):  
Muhammad Shakeel Sadiq Jajja ◽  
Vijay R. Kannan ◽  
Shaukat Ali Brah ◽  
Syed Zahoor Hassan
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Innovation Strategy ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
Innovation Outcomes ◽  
Supplier Relationship

Purpose The purpose of this paper is to use resource dependence theory to hypothesize that a buyer’s innovation strategy enhances supplier innovation focus and a buyer-supplier relationship that supports product innovation. These in turn positively impact buyer product innovation outcomes and business performance. Moreover, it is argued that the buyer-supplier relationship positively moderates the impact of supplier innovation focus on product innovation. Design/methodology/approach Structural equation modeling and hierarchical linear regression are used to test hypotheses. Findings The results support all hypotheses and suggest that company (buyer) age and variables related to buyer engagement with international markets directly influence performance. The results also indicate that the buyer-supplier relationship does not moderate the relationship between innovation strategy and innovation performance. Research limitations/implications This study demonstrates that how a firm builds the conditions to effectively leverage the complementary resources and capabilities of suppliers directly influence innovation outcomes and business performance. Practical implications An important factor in firms achieving their product innovation goals is the selection and management of suppliers that are strategically aligned with regard to innovation. While managers need to develop internal innovation capabilities, partnering with like-minded organizations, and creating conditions for effective cooperation are key drivers of innovation outcomes. Originality/value In contrast to prior research that has examined operational issues, this study shows how the strategic alignment of buyers and suppliers with regard to innovation is an antecedent of product innovation outcomes. Moreover, it adds to a limited literature on supply chain management practices in emerging markets.

scholarly journals Firm Growth as a Driver of Sustainable Product Innovation: Mediation and Moderation Analysis. Evidence from Manufacturing Firms

2021 ◽  
Vol 18 (5) ◽  
pp. 2588
Author(s):  
Ana Labella-Fernández ◽  
M. Mar Serrano-Arcos ◽  
Belén Payán-Sánchez
Keyword(s):  
Product Innovation ◽  
Firm Growth ◽  
Theory Development ◽  
Manufacturing Firms ◽  
Partial Least Square ◽  
Least Square ◽  
Environmental Practices ◽  
Innovation Research ◽  
Sustainable Product ◽  
The Impact

Facing worldwide environmental and social concerns, manufacturing firms are trying to adopt effective environmentally friendly actions to mitigate their environmental impacts. Although the existent literature has provided many insights about the drivers of sustainable product innovation, little is known about the impact of firm growth. Thus, we intend to contribute to this gap in the literature by examining the impact that firm growth can have on sustainable product innovation. To achieve this goal, the partial least square (PLS) modeling technique was used to analyze a dataset of 3250 manufacturing firms from 39 different countries. The results reveal that firm growth exerts a positive effect on sustainable product innovation and that the relationship is partially mediated by the adoption of environmental practices. The findings also indicate that managerial barriers lessen the effectiveness of the adoption of environmental practices in facilitating the development of sustainable product innovation, while improving labor conditions increases it. However, operational barriers do not exert a significant moderating effect between the adoption of environmental practices and sustainable product innovation. These results prompt interesting insights related to theory development in environmental management and sustainable product innovation research.

scholarly journals Logistics integration in the supply chain: a resource dependence theory perspective

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Sung Tae Kim ◽  
Hong-Hee Lee ◽  
Taewon Hwang
Keyword(s):  
Supply Chain ◽  
Resource Dependence ◽  
Service Providers ◽  
Resource Dependence Theory ◽  
Manufacturing Firms ◽  
Future Research ◽  
South Korean ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Dependence Theory

Abstract Firms have strategically used cooperative linkages to establish competitiveness. In this study, we incorporated the resource dependency theory view to assess how trust, satisfaction, and commitment affect firms’ decisions on logistics integration. Also, we examined the link between logistics integration and supply chain performance. The study collected data from 250 South Korean manufacturers for analysis. The results revealed positive impacts of trust, satisfaction, and commitment on logistics integration between manufacturing firms and logistics service providers that enhances logistics service capabilities of the firms. Furthermore, our study showed that building a strategic relationship for logistics services helps the manufacturing firms improve their business and operations performances in their supply chain. Implications and suggestions for future research are discussed.

scholarly journals CHALLENGES OF IMPORT LOGISTICS OUTSOURCING BY MANUFACTURING FIRMS IN NAIROBI COUNTY

2017 ◽  
Vol 1 (1) ◽  
pp. 86-106
Author(s):  
Anne Wanjiru Njoroge ◽  
Mr. Onserio Nyamwange
Keyword(s):  
Manufacturing Industry ◽  
Total Population ◽  
Manufacturing Firms ◽  
Third Party ◽  
Sample Survey ◽  
Primary Data ◽  
Third Party Logistics ◽  
Manufacturing Companies ◽  
Logistics Outsourcing ◽  
Business Functions

Purpose: The purpose of this study was to investigate challenges of import logistics outsourcing by manufacturing firms in Nairobi CountyMethodology: The research design of this study was a sample survey of the importers in the manufacturing industry as per the Kenya Association of Manufacturers. The total population of the companies in the manufacturing industry in Nairobi was 455 manufacturing firms. Primary data was collected via self-administered questionnaires with both open ended and closed questions that were designed to elicit specific responses for qualitative and quantitative analysis respectively. The data was analyzed by use of descriptive statistics.Results: The results indicated that the important reasons of outsourcing were satisfactory in explaining the decision by manufacturing companies to outsource. The reasons of outsourcing are a key determinant in deciding to outsource import logistics. The extent of challenges the importers face when importing services also determined the decision to outsource in the firms.Unique contribution to theory, practice and policy: The study recommends that the manufacturing firms should put more focus on core business functions and ensure reduction of overhead costs. They should take advantage of external expertise and experience and put measures to improve internal capabilities and expertise. The firms should reduce the total overall costs and where third party logistics providers provide a better service contract them. They should also emphasize on improved customer focus put measures to enable them compete effectively in the market.

scholarly journals The Business Process Re-Engineering Strategy: It’s Impact on the Performance of Companies Manufacturing Food in Kenya

2020 ◽  
Vol 5 (5) ◽  
Author(s):  
Richard Nyaanga Ongeri ◽  
Peterson Obara Magutu ◽  
Kate Litondo
Keyword(s):  
Firm Performance ◽  
Survey Design ◽  
Empirical Relationship ◽  
Secondary Data ◽  
Primary Data ◽  
Manufacturing Companies ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Food Manufacturing ◽  
And Performance

The main objective of the study was to determine the relationship between BPR strategy and performance of food manufacturing companies in Kenya. The population of the study comprised of the food manufacturing companies in Kenya. A descriptive cross-sectional survey design was adopted in data collection and analysis. Primary data was collected from respondents using structured questionnaire, while secondary data was collected from published firm’s financial reports. Out of the 75 respondents targeted by the study, 44 respondents forming 56.67% response rate, which was considered adequate for analysis. 63.9% of variations in the overall firm performance is explained by variations in the BPR strategy namely resources mobilization for BPR, sponsorship and commitment, BPR cross functional teams, analytical processes selection, BPR prototypes, management of re-engineered processes, clear BPR definition and vision. Thus, there is a significant relationship between BPR strategy and performance of food manufacturing companies in Kenya. This research makes several noteworthy contributions to the existing theory. Conceptually, the empirical relationship between BPR strategy and firm performance is significant where BPR strategy constructs independently and positively plays a role of fostering firm performance whereby the three significant predictors were: BPR prototypes, clear BPR definition & vision, and analytical processes selection. These three are distinct development elements of the BPR strategy which competitors are unable to imitate in the food manufacturing. The findings of this study offer suggestions that are beneficial to policy makers in the food-manufacturing sector in Kenya. Kenyan manufacturing firms have previously lacked fits well into the existing body of knowledge by holding that BPR strategy influence the firm’s level of performance and vice versa.

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