best practices crafted by local companies in the current volatile global business world
TRANSCRIPT
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BEST PRACTICES CRAFTED BY LOCAL COMPANIES IN THE
CURRENT VOLATILE GLOBAL BUSINESS WORLD: A SURVEY OF
SELECTED MANUFACTURING COMPANIES IN KENYA
TOM WAMBUA
DOCTOR OF PHILOSOPHY
(STRATEGIC MANAGEMENT)
JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND
TECHNOLOGY
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Best Pr!t"!es !r#te$ %& '!' !*+"es "+ t,e C-rre+t V't"'e G'%'
B-s"+ess Wr'$. A S-r/e& # Se'e!te$ M+-#!t-r"+0 C*+"es "+ Ke+&
T M%& W%-
A t,es"s *r*s' s-%"tte$ "+ *rt"' #-'#"''e+t #r t,e De0ree # D!tr #
P,"'s*,& "+ Strte0"! M+0ee+t "+ t,e J Ke+&tt -+"/ers"t& #
A0r"!-'t-re +$ Te!,+'0&
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DECLARATION
This thesis is my original work and has not been presented for a degree in any other University
Signed: ____________________ Date: ______________
TOM MBOYA WAMBUA
This thesis proposal has been submitted foe examination with our approval as UniversitySupervisors
Signature: ------------------------------------------ Date: ---------------------------------------
DR1 W'ter O2"% B"!,+03 P,D
JU!T" enya
Signature: ------------------------------------------ Date: ---------------------------------------
DR1 O'23 P,D
JU!T" enya
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DEDICATION
#y study is dedi$ated to the following% my loving wife !nn &es$a for her support and patien$e
during the entire period of my study" my $hildren #i$kella 'se$ond names ( and )esley for their
en$ouragement and $ontinued prayers towards su$$essful $ompletion of this $ourse* + am
grateful to my mother" brothers" sisters and entire )ambua, family whose love and support was
invaluable*
To my fellow students: Daniel itonga" hristopher .agat" Saad /kwiri" and 0eoffrey Sigei for
their en$ouragement and unlimited* Thank you and 0od bless you abundantly*
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ACKNOWLEDGEMENT
1irst + thank !lmighty 0od as my sour$e of all inspiration and gra$e that empowers us to be all
that 2e $reated us to be% thank you in allowing me to undertake this pro3e$t that is too involvingin term of time and resour$es" for imparting wisdom" knowledge and revelation to be where + am
today* To you belong all the 0lory" 4raise and 2onour*
+ would like to express my sin$ere thanks to the .e$turer Dr )alter 5i$hanga at Jomo enyatta
University of !gri$ulture and Te$hnology 4hD programme in S$hool of 5usiness for agreeing to
supervise this resear$h paper*
+ am grateful to my family for giving the invaluable support to $on$entrate on this resear$h*
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TABLE OF CONTENTSDECLARATION...........................................................................................................................iii
DEDICATION..............................................................................................................................iv
ACKNOWLEDGEMENT...............................................................................................................v
LIST OF TABLES....................................................................................................................... viii
LIST OF FIGURES...................................................................................................................... ix
DEFINATION OF TERMS...........................................................................................................xi
LIST OF ABBREVIATIONS.........................................................................................................xii
ABSTRACT................................................................................................................................ 14
CHAPTER ONE.........................................................................................................................15
INTRODUCTION.......................................................................................................................15
1.1.0In!"#$%i"n.....................................................................................................................15
1.& B'%()!"$n# "* S$#+........................................................................................................ 15
1., P!"-/ S'//n........................................................................................................... 1
1.4 O-2/%iv/3 "* / S$#+.....................................................................................................&0
1.5 R/3/'!% $/3i"n3 6Av"i# 7/**/%8 i9'%8 in !/3/'!% $/3i"n3:...................................&1
1.; S%"9/ "* S$#+................................................................................................................. &1
1.< =$3i*i%'i"n "* / S$#+...................................................................................................&1
1.> Si)ni*i%'n%/ "* / S$#+.................................................................................................. &&
1. Lii'i"n3 "* / S$#+....................................................................................................&&
1.10 D/ii'i"n3 "* / 3$#+...............................................................................................&,
CHAPTER TWO........................................................................................................................ &4
LITERATURE REVIEW 6Ci/ *!" &004 "n?'!#3:.....................................................................&4
&.1 In!"#$%i"n.......................................................................................................................&4
&.& T/ C"n%/9 "* B/3 P!'%i%/3......................................................................................... &4
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&., T/"!/i%' F!'/?"!(R/vi/?......................................................................................... &;
&.,.1 T/ @$'i+ M'n')//n T/"!+ ..............................................................................& and
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#anufa$turing is one of the strong pillars of enya,s vision 677 under the ministry of
+ndustriali9ation whi$h involves the development of small and medium enterprise 'S#;(
industrial parks in key urban $entres*)hile #i$ro and Small ;nterprises'#S;s( provide
dire$t employment to more than six > million enyans" #i$ro" small and #edium
+ndustries '#S#+s("whi$h are an intergrat part of #S;s" $onstitute over A7= of
industries and are also a seed bed for innovation and industriali9ation in enya*'enya
vision 677 se$tor plan for manufa$turing 677A-67?6(*
enya manufa$turing se$tor is mainly agro based and $hara$teri9ed by low value
addition" modest employment" poor $apa$ity utili9ation and weak linkages to other
se$tors* #afu$aturing a$tivities a$$ount for the greatest share of industrial produ$tion
output and form the $ore of the industry* The industrial se$tor,s share of 0D4 has
remained about ?8-?>= while that of manufa$turing se$tor has remained at about ?7=
over the last five years* +t forms an important sour$e of employment for the $ountry,s
labour for$e as it is employs ?*= in 677< while lo$ally manufa$tured goods $omprise
688 of enya,s exports*The performan$e of the se$tor has been on the de$line for a
$onsiderable period of time and its $ontribution to the 0D4 has remained stagnant at
about ?7= sin$e the ?C>7s* The de$line in growth is attributed to a number of fa$tors
namely: weak industial linkages and low $ollaboration% informality"poor survival and low
graduation of #S#+s" influx of substandard "$ounterfeits and $ontraband goods"
inadeBuate $apa$ity of industries to meet produ$t Buality standard and +S/ $ertifi$ation"
de$lining lo$al and foreign dire$t investments'1D+( " narrow export base and low value
addition " low adaptation of +T in industries" low te$hnology and innovation uptake"
inadeBuate and run down infrastru$ture" limited a$eess to finan$ial servi$es for industrial
development" limited te$hni$al and managerial skills" weak publi$ private partneshipa"
inse$urity"Unbalan$ed regional industriali9ation*
The manufa$turing se$tor $ontributes about ?8-?>= to kenyas 0D4 with the greatest
share $oming from industrial produ$tion *The se$tor is an important sour$e of
employment for $ontrys labor for$e* +t $urrently employs more than ?*C million people in
both the formal and informal se$tor* .o$ally manufa$tured goods $omprise 68= of
enya,s exports however these produ$ts are not $ompetitive in the market due to high
1;
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$ost of produ$tions" poor or la$k of 54s" and stringent international market $omplian$e
standards'enya vision 677 se$tor plan for manufa$turing(*#anufa$turing a$tivities are
heavily dependent on the types of 54s available and applied*
+n re$ent years manufa$turing $ompanies that do not $ontinuously $raft best pra$ti$e
initiatives are driven out of business* ;nergy $osts forms a big operating expense for
manufa$turing firms and hen$e determining their profitability and sustainability in the
industry* enya ;nergy $ost is $onsidered one of the highest in the $ontinent and some
$ompanies have had to relo$ate their manufa$turing fa$ilities to $ountries with $heaper
energy* olgate 4almolive relo$ated their manufa$turing plant to South !fri$a while
4ro$tor and 0amble relo$ated to ;gypt leaving their marketing fun$tion in enya* 2ow
manufa$turing firms respond to tighter energy as a best pra$ti$e will in$reasingly affe$t
their business performan$e and profitability*
The need for 54 arose with in$reasing power of $ustomers" $ompetitors and today,s
$onstantly $hanging business environment" whi$h have for$ed many organi9ations to
re$ogni9e the need to move away from fo$using on individual tasks and fun$tions to
fo$using on more $ommuni$ated" integrated and $oordinated ways of work by looking at
operations in terms of business sustainability* +ndeed" the effe$t of globali9ation brought
about higher $ost of doing business" in$reased privati9ation of publi$ firms through
in$reased pressure from then $alled donors" intensified $ompetition and eventually pri$es
de$lined whi$h resulted to registration of losses in most firms 'Davenport" ?CC(* !ll
these fa$tors $ontribute to high $ost of doing business and has ne$essitated manufa$turing
$ompanies '#( to $raft 54 in order to sustain their businesses in the volatile business
world otherwise they will be driven out of operations like the $ase of enya ooperative
reameries '( before it reopened as new *
!lthough enya is the most industrially developed $ountry in ;ast !fri$a ';!("
manufa$turing a$$ounts for only ?E= of 0D4 *This level of 0D4 represents only a slight
in$rease sin$e independen$e* ;xpansion of the se$tor after independen$e" initially rapid
has stagnated sin$e the ?CA7s" hampered by shortages in high power" high energy $osts"
dilapidated transport infrastru$ture" $orruption and dumping of $heap imports
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*#anufa$turing a$tivity is $on$entrated around the largest urban $entres &airobi "
#ombasa and isumu* enya,s in$lusion among the US benefi$iaries of the U*S
government !fri$an 0rowth F /pportunity '!0/!( has given boost to manufa$turing in
re$ent years* Under !goa" enya,s $lothing sales to the US almost tripled between 677?
F 677 to US ?A< million*
! 54 strategy $an help # eliminate wastes" improve Buality of goods" in$rease sales"
develop existing as well as new markets" redu$tion of produ$tion $osts" improve
effi$ien$y" effe$tive use of te$hnology" be$ome innovative and more importantly develop
the skills of its workfor$e* ! # has a $ompetitive advantage when it $an implement a
strategy that its $ompetitors are unable to dupli$ate or find it too $ostly to imitate '5arney
and lark" 677
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in the $omfort of their sales vehi$les*;!+ had to Bui$kly $raft 54 in order to remain in
business selling off some of its produ$ts like imbo $ooking oils to its rival 5+D/* ;!+
$hanged its lo$al name to parent global name Unilever and is one of the su$$eeeful
$ompanies* #umias Sugar ompany was $onsistently making losses before $rafted 54
that made it one of the leading profitable #s in enya today* enya #eat ommission
though with government funding initially $losed down and was reopened in the early
6777s with new management team and adoption of 54s* /ther lo$al #s whi$h have
sustained their businesses through adoption of 54 in$lude Spin nit.td" Top Tank" and
;abl*
!pproximately one Buarter of 77 54G pro3e$ts in &orth !meri$a failed and the authors
spe$ulated industry wide figure at $losely
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need for investigation of where they go wrong* /ne su$h strategy is the appli$ation of the
best $rafted business pra$ti$es* 5est $rafted business pra$ti$es are one of pointing out to a
new dire$tion to ma3ority of $urrent well performing lo$al manufa$turing firms in enya
su$h as Spin knit .td" 5!T to name but a few* #iwani Sugar ompany $losed down
operations as a result of not adopting best pra$ti$es 'referen$es(* +n early 6777s 5ritish
!meri$an Toba$$o enya underwent a turbulent time experien$ing de$lining sales
revenue" profitability and in$reasing operating $osts" the management $rafted best
pra$ti$e initiatives dubbed Hbeating the stormI aimed at getting ba$k the $ompany to high
profitability* Today and in 67?6 the $ompany was ranked the fourth highest in tax
revenue $ontributor by enya Gevenue !uthority 'G!(*
!ppli$ation of best pra$ti$es is a $omplete $hange in a self-sustainable dire$tion of a firm
to avoid a $orporate distress whi$h $an easily lead to $ollapse of a $ompany unless a plan
of $orporate survival and renewal is devised and su$$essfully exe$uted" 4ear$e F
Gobinson '677
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i* To establish the influen$e of information te$hnology and innovation on sustainability
of manufa$turing $ompanies in enya
ii* To determine effi$ien$y use of energy by manufa$turing $ompanies in enya in
order to be sustainable in a volatile environment
iii* To examine the influen$e of ben$hmarking on sustainability of manufa$turing
$ompanies in enya
iv* To as$ertain how Delayering enhan$es sustainability of manufa$turing $ompanies in
enya
41 Reser!, ;-est"+s (A/"$ J-st"#"!t"+ # t,e St-$&
The findings will provide $ru$ial information to manufa$turing $ompanies on the best
pra$ti$es in the $urrent volatile global business world in enya* 1urthermore this
&1
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resear$h is to study the best pra$ti$es $rafted by lo$al $ompanies in the $urrent volatile
global business world* Su$h an assessment may validate $urrent pra$ti$e or suggest ways
to refine $urrent poli$y and explore alternative ways and means to improve the business
performan$e in the $urrent volatile global business world*
41? S"0+"#"!+!e # t,e St-$&
5y analy9ing the best $rafted business pra$ti$es for sustainability of manufa$turing
$ompanies in enya" various sto$kholders $an benefit" the study will a$t as a mirror
against whi$h the government will examine and review existing poli$ies on business
pra$ti$es to mat$h with the $urrent situation needs* ;*g* 4oli$y on energy provision $osts
to manufa$turing $ompanies* !s the most affe$ted stakeholders in the study"
manufa$turing firms $an be aware of the best pra$ti$es to apply and ways that they $anin$rease their effi$ien$y and effe$tiveness hen$e a$hieve sustainability* !ny resear$her
who may wish to gather or venture into sub3e$t may find the report useful in ba$king their
findings* The report will also be used for furthering a$ademi$ and related resear$h
initiatives*
41@ L""tt"+s # t,e St-$&
41@14 L""tt"+s
.o$al private manufa$turing firms may be unwilling to divulge information regarding
their best pra$ti$es for fear of been adopted by $ompetition* Due to the nature of their
work and tight s$hedules" respondents at top management may not be available to
respond to Buestionnaires or may see it as a waste of their time* /ne of the identified
manufa$turing $ompanies is 5ritish !meri$an Toba$$o whi$h has respondents in leaf
growing areas* The roads in these areas may be in a$$essible during wet period*
41@16 Mes-res t t,e '""tt"+sThus they need to be assured of $onfidentiality and usage will be $onfined to the
ob3e$tives of the study* The resear$her needs to seek prior appointment with all senior
managers to sell in the benefits of the study* +t,s advisable to get approval from the hief
exe$utive offi$er or any senior exe$utive from the firm* The resear$her will also reBuire
seeking written authority from the relevant ministry of +ndustriali9ation*
&&
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4145 De'""tt"+s # t,e st-$&
#anufa$turing $ompanies are physi$ally spread all over the $ountry but the study will be
$onfined to a survey of 5!T" Spin nit" ;ast !fri$an 5reweries limited and enya
!sso$iation of #anufa$turers* 2owever this may not give a good representation of the
study that $an be applied to the entire industry* The resear$her will have to do an in depth
study to ensure the results $an be applied to a large extent to the manufa$turing industry*
There are Buite several books written by distinguished s$holars on the sub3e$t of best
pra$ti$es $rafted by manufa$turing $ompanies" the resear$her $an,t $over all of them but
will endeavor to review on the most updated books with latest literature on the sub3e$t*
The existing books may also not be able give enough data to fill in knowledge gapintended by the resear$h*
&,
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CHAPTER TWO
LITERATURE REVIEW(C"te #r 6558 +r$s)
614 I+tr$-!t"+
+ntrodu$e the topi$ plus relevant $itations" This se$tion highlights the literature and
theories on the sub3e$t of best pra$ti$es on sustainability of businesses with spe$ial fo$us
on manufa$turing in enya and the rest of the world* ! good number of books"
maga9ines" government publi$ations" 3ournals and internet are $ited for literature*
Different theories are reviewed among them by 4rofessor #i$hael 4orters, diamond
model of nations,s $ompetitive advantage"Total Buality management theory by '!uthor(
and Gesour$e 5ased Theory 'G5T( by 5arney and lark"677
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$ompetition moved into higher gear with the introdu$tion of various league tables and
awards for high performing $ompaniesI ')hittle et al*" ?CC6(* 2owever" 2ughes and
Smart '?CCEa( suggest that it is unlikely that all industrialists understand fully what best
pra$ti$e a$tually means and how it might be determined*
amp '?CAC( defines best pra$ti$es as those Hthat will lead to the superior performan$e of
a $ompanyI* Thus" best pra$ti$e is asso$iated with higher performan$e levels* 2eibeler et
al* '?CCA( des$ribe best pra$ti$es as Hthe best ways to perform a business pro$essI*
2ughes and Smart '?CCEb( propose a more detailed definition of best pra$ti$e as Han
a$tivity or a$tion whi$h is performed to a standard whi$h is better or eBual to the standard
a$hieved by other $ompanies in $ir$umstan$es that are suffi$iently similar to make
meaningful $omparison possibleI*
aution must be exer$ised when using the word HbestI* This $an be illustrated by the +LS
study '?CC( whi$h defines best pra$ti$es as those that have aided the lower performing
organi9ations to improve to medium performan$e" medium performers improve to higher
performers" and higher performers to stay on top and a$hieve further benefits* This study
stated that there are $ertain pra$ti$es that are relevant to $ompanies at parti$ular points in
their development" and thus for some $ompanies individual best pra$ti$es may not be
appropriate at any parti$ular point in time* Thus" best pra$ti$es $an be $ontext spe$ifi$*
2iebeler et al* '?CCA( also state that in the experien$e of !rthur !nderson: no single
pra$ti$e works for everyone in any given situation* 5est is a $ontextual term* +t means
Hbest for youI in the $ontext of your business" your $ompany $ulture" your use of
te$hnology" and your $ompetitive strategies*
5est pra$ti$e is a$tually the finding and using the best ways of working effi$iently and
effe$tively in order to a$hieve firms, business ob3e$tives* +t involves keeping up to date
with ways that su$$essful businesses operate and measuring your ways against those used
by market leaders* 5est pra$ti$e are normally set and implemented by su$$essful market
leaders around the globe* ! best pra$ti$e $an evolve to be$ome better as improvements
are dis$overed* 5est pra$ti$es are used to maintain Buality and $an be used effe$tively for
ben$hmarking
&5
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5est pra$ti$es $an give rise to good strategy formulation and implementation* 1inan$ial
strategy,s goal is to provide the $orporation with the appropriate finan$ial stru$ture and
fund to a$hieve the overall ob3e$tives* ')heelen" ?CC8( +n addition" it examines the
finan$ial impli$ations of $orporate and business-level strategi$ options and identifies the
best finan$ial $ourse of a$tion* +t $an also provide $ompetitive advantage through a lower
$ost of funds and flexible ability to raise $apital to support a business strategy* 1inan$ial
strategy usually attempts to maximi9e the finan$ial value of the firm 'Gobinson" ?CC
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key su$$ess fa$tors for servi$e and other organi9ations* !pplying best pra$ti$es is similar
to development and implementation of a good strategy* #ost of these studies tend to
argue that strategy" whether formal or not" is the starting point for su$$ess* #int9berg
'?CCE( argues that strategy is about winning" and in business and as in the military"
strategy bridges the gap between poli$y and ta$ti$s* Together" strategy and ta$ti$s bridge
the gap between the end and the means* +t is a unifying theme that gives $oheren$e and
dire$tion to the a$tions and de$isions of an individual or an organi9ation '!nsoff" ?CAA(*
The role of strategy in su$$ess is $riti$al" as su$$essful organi9ations are seldom the
out$ome of a purely random pro$ess* Strategy is about having $lear goals" understanding
the $ompetitive environment" resour$e appraisal and effe$tive implementation*
61714 T,e -'"t& M+0ee+t T,er&
Luality management 'L#( has be$ome an all-pervasive management philosophy" finding
its way into more se$tors of today,s business so$iety* Luality management 'L#( was
born almost two de$ades with the $ore ideas of )* ;dwards Deming" Joseph Juran" 4hilip
rosby and aoru +shikawa* Sin$e then it has be$ome an all-pervasive management
philosophy finding its way into more se$tors of today,s business so$iety* #any
$ompanies have now embedded L# pra$ti$es into their normal pra$ti$es and" more and
more these pra$ti$es are being stripped off their faddish $onnotations to the point that
nowadays" it is generally a$$epted that L# is here to stay* ! substantial literature review
was published by ! hire et al '?CC8(* 2is was mainly des$riptive review" providing a
thorough synthesis of arti$les published from ?C
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espoused by the movement,s founders" L# philosophy and pra$ti$e $an be reliably
distinguished from other strategies for organi9ational strategies for organi9ational
improvement* !t the empiri$al level" the assessment of whether su$h a thing as L# exists
and what $onstitutes L# should be made at the level of pra$ti$es: pra$ti$es are the
observable fa$t of L#" and it is through them that the managers work to reali9e
organi9ational improvements*
4rin$iples are too general for empiri$al resear$h and te$hniBues are too detailed to obtain
reliable results 'e*g* one pra$ti$e may be implemented via optional te$hniBues(* 1or
example" the L# prin$iple $ontinuous improvement $an be supported by the pra$ti$e
Hpro$ess managementI" whi$h in turn $an resort to several te$hniBues su$h as statisti$s
pro$ess $ontrol and pareto analysis* L# literature and identify the key L# pra$ti$e
dimensions* The agreement in the literature on what $onstitute L# indi$ates that L# as a
field indeed matured and is lay down on solid definitional foundations* Despite this"
future resear$h should in$rementally build on the already existing base* Some of the
$onfli$ting results reported in the literature may have to do with different levels of
analysis of L# 'e*g* while S4-a te$hniBue supportive of the pra$ti$e Hpro$ess
managementI-maybe observed as not being in use in a $ertain plant" the other te$hniBues
supportive of the same pra$ti$e" e*g* pro$ess data $olle$tion and analysis" may well be
used instead" representing a good overall use of pra$ti$e Hpro$ess managementI(*
Gesear$h in L# has been unable to arrive at a signal definition of a produ$t Buality* !t
best" several optional definitions were proposed* 0arvin '?CCE( identified five ma3or
approa$hes to the definition of Buality and the dis$ipline in whi$h they are rooted*
!nother important reali9ation is that Buality seems to be a multi-dimensional $onstru$t
'0arvin" ?CAE% 23orth-!nderson" ?CAE(* 0arvin '?CAE" ?CA
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?CC
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1inally" improved produ$t Buality $an lead to lower warranty and liability $osts" servi$e
$osts and improved business performan$e* 1lynn et al*,s C?CC8a( $ategori9ation of the
role of L# pra$ti$es into $ore and infrastru$ture 'infrastru$ture pra$ti$es $reate an
environment supportive of the use of the $ore pra$ti$es( proved to be enlightening in
interpreting and $omparing the results of these studies(* 2a$kman and )egman '?CC8(
list several diffi$ulties in dete$ting statisti$ally the dire$t effe$ts of L# by using out$ome
$riteria su$h as business performan$e* ! se$ond interpretation may be that the impa$t of
L# pra$ti$e on business performan$e is $ontingent on other fa$tors" su$h as the nature of
the market environment 'e*g* in terms of market si9e and stru$ture" e*g* perfe$t
$ompetition versus monopoly( armakar and 4itbladdo" ?CC
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I+$e*e+$e+t Vr"%'es De*e+$e+t Vr"%'e
S-r!e: A-t,r (6546)
61814 Use # Te!,+'0& +$ I++/t"+
4rogress in human so$iety has been a$$omplished by the $reation of new te$hnologies*
The last few years have witnessed unparalleled $hanges throughout the world* Gapid
$hanges in the markets demand drasti$ally shortened produ$t life $y$les and high-Buality
produ$ts at $ompetitive pri$es* ustomers now prefer a large variety of produ$ts* Thisphenomenon has inspired manufa$turing firms to look for progressive $omputeri9ed
automation in various pro$esses* Thus mass produ$tion is being repla$ed by low-volume"
high-variety produ$tion* #anufa$turing firms have re$ogni9ed the importan$e of
flexibility in the manufa$turing system to meet the $hallenges posed by the pluralisti$
market* The $on$ept of flexibility in manufa$turing systems has attained signifi$ant
importan$e in meeting the $hallenges for a variety of produ$ts of shorter lead-times"
together with higher produ$tivity and Buality* The flexibility is the underlying $on$ept
behind the transition from traditional methods of produ$tion to the more automated and
integrated methods* They stress that firms implementing automation pro3e$ts should
prioriti9e their needs for different flexibilities for long-range strategi$ perspe$tives*
+ntensifying global $ompetition and rapid advan$ement of manufa$turing te$hnology are
,1
Use of Technology
and Innovation
Participatory
managementBenchmarking (BAT)
Energy efficiency
practices
Firms sustainability
De'&er"+0
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two realties in today,s business environment* These have $ombined to shift the business
strategi$ priorities toward Buality" $ost effe$tiveness and responsiveness to marketpla$e
$hanges*
The Buest for lower operating $osts and improved manufa$turing effi$ien$y has for$ed a
large number of manufa$turing firms to embark on !#Ts pro3e$ts of various types*
Dramati$ developments in !#T at various organi9ational levels $an be attributed to
numerous benefits that improve the $ompetitive position of the adopting $ompanies*
!#T $an also provide distin$tive $ompetitive advantages in $ost and pro$ess leadership*
;vents of the last de$ade" su$h as the US produ$tivity problems" Japanese manufa$turing
su$$ess stories and the $ompetitive global e$onomy" have moved manufa$turing strategy
and pro$ess te$hnology issues from the bottom to the top of the firm,s priority list* The
issues surrounding manufa$turing te$hnologies and their implementations have assumed
greater importan$e in the manufa$turing strategy debate* 4ra$titioners and resear$hers
have developed strong interest in how !#T $an be used as a $ompetitive tool in the
global e$onomy* ! growing number of organi9ations are now adopting !#T to $ope with
re$ent phenomena in today,s $ompetitive environment su$h as fragmented mass markets"
shorter produ$t life $y$le and in$reased demand for $ustomi9ation* !lthough !#T $an
help manufa$turers $ompete under these $hallenging $ir$umstan$es" they often serve as a
double-edged sword" imposing organi9ational $hallenges while providing distin$t
$ompetitive advantage when su$$essfully implemented*
The relationship between +T investment and business performan$e in various $ountries
has only re$ently been investigated in less developed business environments* These
findings are not in $on$ert with the $ommon understanding of the use of +T in strategy
found in the studies $ondu$ted in industriali9ed nations* Serafeimidis and Doukidis
'?CCC( used the $ase study approa$h to investigate the impa$t of +T investment on
business performan$e in 0ree$e* They $on$luded that in their sample" +T investments
$ould not be related to business finan$ial su$$ess* They argue that part of the reason +T
did not impa$t finan$ial su$$ess in their sample was be$ause managers did not have the
edu$ation to make the best use of strategi$ information systems*
,&
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!lthough $ompetitive advantages are broadly expressed in terms of low $osts" flexibility"
Buality" and delivery ')ard et al*" ?CC8% 5erry et al*" ?CC?% 2ayes and )heelwright"
?CAE(" they have been $ategori9ed into three dimensions in 4. settings $ost advantage"
servi$e variety advantage" and servi$e Buality advantage '.ai et al*" 677>(* ost
advantage refers to the relative $apability to offer servi$es at low $ost* The servi$e variety
advantage is defined as the $apability to offer more servi$e produ$ts and fulfil $ustomi9ed
servi$es* Servi$e Buality refers to the $apa$ity for a$$urate ordering" prompt and reliable
delivery" smooth $ommuni$ation" and Bui$k response to $ustomersM inBuiries" $omplaints"
and $laims* !lthough the literature shows that +T influen$es $ompetitive advantages most
studies have assumed that the relationship between $ompetitive advantages and +T is
linear" and no study has empiri$ally tested a nonlinear relationship*
The importan$e of innovation is in$reasing" and in$reasing signifi$antly* +n the $urrent
day e$onomi$ s$enario" innovativeness has be$ome a ma3or fa$tor in influen$ing strategi$
planning* #ost often planned and measured $ombination of ideas" ob3e$ts and people
leads to innovation resulting in new business ideas and te$hnologi$al revolutions that $an
deliver new produ$ts and business system effi$ien$ies* #anagement expert 4eter Dru$ker
'6776( said that if an organi9ation" whi$h in this age ne$essitating innovation" is not able
to innovate" it fa$es de$line and extin$tion*
61816 Prt"!"*tr& M+0ee+tBe+!,r2"+0
#anagement is one of the oldest professions in the world '0riffin" ?CC
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the organi9ation* 4arti$ipatory #anagement is a pro$ess where subordinates share
signifi$ant degree of de$ision-making power with their immediate superiors*
4arti$ipatory de$ision-making is often referred to as a manifestation of group
$ohesiveness 'Sparrowe and .iden" ?CC( positively affe$t organi9ational
pro$esses and out$omes*
4arti$ipatory management be$ame an a$$eptable pra$ti$e following the published work
on theory N and theory O management style 'Sto$ki et al" 677A(* The theory defined as
managers sharing their power and influen$e by regularly asking employees for input
while maintaining at a minimum a veto over their ideas '5rown et al*" ?CCE(* +t represents
a signifi$ant in$rease in empowerment from traditional management style whose
philosophy is to simply figure out what should be done and to tell people to do it '5rown
et al* ?CCE(* The prin$iples of open-book management: timely sharing of $ru$ial finan$ial
information with employees% edu$ating the employees to understand and apply the
information% empowering employees to apply the information to their own work% and
offering employees a stake in the su$$essful implementation of their ideas*
!$$ording to hallenge '?CC8(" hourly workers" professional and te$hni$al employees"
and supervisors $onsistently stated that among the things they value most in a 3ob are
,4
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variety" freedom to de$ide how to do their work without $losed supervision* They also
reported that they value information and $ommuni$ation regarding things that affe$t their
work and their firm" and eviden$e that their employers seek value and a$t on their
suggestions for improvement at their workpla$e 'hallenge" ?CC8(*
0ono" * S '677?(" HThe +mpa$t of 4arti$ipatory #anagement on 4rodu$tivity" Luality"
and ;mployeesM #oraleI ! Gesear$h 4aper Submitted +n 4artial 1ulfilhnent of the
GeBuirements for the #aster of S$ien$e Degree with a #a3or in
Studies of total parti$ipation management 'T4#( has shown" in $ontrast to other more
traditionally managed $ompanies" new per$eption of their employees* ;a$h of them has a
spe$ifi$ Ptheory of the hidden peopleP" whi$h has $onseBuen$es in terms of their
effi$ien$y in governan$e* +mplementation of full parti$ipation to a greater involvement of
workers" $reative atmosphere of work" better $ommuni$ation - and in$reased the
effi$ien$y of teams" the loyalty of employees - less staff turnover* The open book
management also many traditional management te$hniBues were applied" but also
pra$ti$es that differ from the $ompany parti$ipative managed* /nly in fully parti$ipatory
organi9ation that uses T4# $an produ$e a highly effe$tive and effi$ient working
environment 'Summers and 2yman" 6778(* 4arti$ipation is the pro$ess of development of
individual so$ial intera$tion" whi$h is a refle$tion of both the so$ial meaning '$ognition(
and voluntary '$ognitive( a$ts of persons* Together" the pro$esses involving all members
of the development of individuals and $ommunities and systems - are members in the
pro$ess of transmission of meanings in whi$h the individual and the $ommon good is
a$hieved through su$h pro$esses of so$ial intera$tion" that ea$h person will have a
guaranteed freedom to express their *
61817 E+er0& E##"!"e+!& Pr!t"!es
The term energy effi$ien$y is widely used but not always well understood* +t may be
defined as the ratio of useful outputs to energy inputs for a system" where the latter may
be an individual energy $onversion devi$e 'e*g*" a boiler(" a building" an industrial
pro$ess" a firm" a se$tor or an entire e$onomy* +n all $ases" the measure of energy
,5
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effi$ien$y will depend upon how Kuseful, is defined and how inputs and outputs are
measured '4atterson" ?CC>(* The options in$lude: Thermodynami$ measures: where the
outputs are defined in terms of either heat $ontent or the $apa$ity to perform useful work%
4hysi$al measures: where the outputs are defined in physi$al terms" su$h as vehi$le
kilometres or tonnes of steel% or ;$onomi$ measures: where the outputs 'and sometimes
also the inputs( are defined in e$onomi$ terms" su$h as value-added or 0D4* ;$onomists
are primarily interested in energy effi$ien$y improvements that are $onsistent with the
best use of all e$onomi$ resour$es* These are $onventionally divided into two $ategories:
those that are asso$iated with improvements in overall" or Ktotal fa$tor, produ$tivity
'Kte$hni$al $hange,(" and those that are not 'Ksubstitution,(* The latter is assumed to be
indu$ed by $hanges in the pri$e of energy relative to other inputs* The $onseBuen$es of
te$hni$al $hange are of parti$ular interest" sin$e this $ontributes to the growth in
e$onomi$ output* 2owever" distinguishing empiri$ally between these two $ategories $an
be $hallenging" not least be$ause $hanges in relative pri$es also indu$e te$hni$al $hange*
4atterson" #* 0* '?CC>(* P)hat is energy effi$ien$y: $on$epts" indi$ators and
methodologi$al issues*PEnergy Policy" 6E:8" pp* % #$0regor" ?CCE% 2anemann and
,;
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1arrell" 677>% U&;4" 677
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the pro$ess of generating positive attitudes and beliefs towards energy $onservation on
firms*
6181717 Pr/"$"+0 E+er0& E$-!t"+
4roviding adeBuate energy edu$ation to the $ommunity $an help to improve overall
energy $onservation performan$e on firms" and promote the image that the top
management is highly $ommitted to reali9ing sustainable firms* Gelevant energy
edu$ation materials $an be adapted from other universities" whi$h have relevant
experien$e* #oreover" $ollaboration among lo$al universities is a good way of sharing
similar $ulture and $ontext* There are various methods to edu$ate the $ommunity on
energy knowledge" in$luding $lassroom tea$hing" in$orporated into $o-$urri$ular
syllabus" Bui9 $ontests on energy knowledge and other relevant a$tivities*
6181718 De/e'*"+0 E+er0& C+ser/t"+ Be,/"-r
5esides gaining top management for suffi$ient resour$es allo$ation" raising energy
awareness among the $ommunity and edu$ating the $ommunity" developing energy
$onservation is proposed as another $ru$ial implementation strategy for firms* 2uman
behaviour is an important element in energy $onservation a$tivities '5ream" ?CA>(*
)edge '677(has stated that Hthe out$ome of behavioral approa$h is very effe$tive and
helpful in energy $onservationI*
61818 De'&er"+0
Delayering" also known as flattening typi$ally refers to the elimination of layers in a
firm,s organi9ational hierar$hy" and the broadening of managers, spans of $ontrol* The
most fundamental elements to des$ribe the shape of an organi9ation are its breadth and its
depth 'olombo and Delmastro" 677A(* The depth of an organi9ation is the number of
hierar$hi$al layers or management levels between the top management and operational
employees* Delayering means the redu$tion of the number of management levels in an
organi9ation" i*e* the flattening of an organi9ation,s hierar$hy* !$$ording to Ga3an and
)ulf '677>(" most firms s t a r t e d d elayering in the mid-?CA7s* Sin$e then" they have
,>
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systemati$ally eliminated layers in the hierar$hi$al stru$ture of senior management* 4art
of this delayering $an be attributed to the elimination of key senior management
positions that served as intermediaries*
The rationale for flattening seems sound: to remain $ompetitive in the fa$e of in$reased
$ompetition" for instan$e" firms must pursue a streamlined" effi$ient organi9ation that $an
respond more Bui$kly to $ustomers* )hile flattening is said to redu$e $osts" its alleged
benefits flow primarily from $hanges in internal governan$e: by pushing de$isions
downward" firms not only enhan$e $ustomer and market responsiveness" but also
improve a$$ountability and morale* 2owever" it should not be $onfused with other related
$on$epts of $orporate restru$turing" su$h as downsi9ing or de$entrali9ation 'Ga3an and
)ulf" 677>(* Downsi9ing basi$ally means workfor$e redu$tion* +f $ertain management
levels are targeted" this $an lead to delayering* !$$ordingly" most delayering programs
involve downsi9ing '.ittler and +nnes" 677E(* /n the other hand" larger have even found
to in$rease the number of hierar$hi$al layers while downsi9ing ')ang 677( studied the best manufa$turing pra$ti$es in !ustralia and &ew Oealand and
examined the link between manufa$turing pra$ti$es and firm performan$e* They found
that firms had improved their pra$ti$es in the pre$eding five years* There was also a
strong $orrelation between adoption of best manufa$turing pra$ti$es and performan$e in
the areas of sales growth" export growth and $ash flows* orbett '?CC>( found that
globally-oriented manufa$turing firms emphasi9ed more on Buality improvement" pro$ess
improvement" and design for manufa$ture" and these firms had world-$lass
manufa$turing performan$e* 5atley '?CCC( reported that there was general a$$eptan$e of
the $on$epts of total Buality management in &ew Oealand" although not all tenets were
pra$ti$ed* nu$key" .eung-)al and #eskeill '?CCC( adapted the best pra$ti$es model of
!ustralian #anufa$turing oun$il '!nonymous" ?CCE( to further assess the
manufa$turing pra$ti$es in &ew Oealand* They found that &ew Oealand firms had
,
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improved their pra$ti$es in a holisti$ way* +n parti$ular" the improvement was fo$used on
the relationships in the supply $hain" from the suppliers to the $ustomers* /n the negative
side" they stressed that improvements were needed in the areas of human resour$e
management" te$hnology" and ben$hmarking* 2owever" nu$key and Johnston '6776(
found that the fo$us in supply $hain relationships was more on $ustomers rather than
suppliers*
@oss and 5la$kmon '?CCE( state that the introdu$tion of new pra$ti$es in manufa$turing
is normally asso$iated with expe$ted benefits in terms of improved performan$e in
spe$ified areas* !ny investment of time or resour$es in a new pra$ti$e will ne$essitate the
provision of benefits in terms of improved performan$e* The +nternational Luality Study
'?CC( also supports this statement as it reports that Hthe ultimate result of managementpra$ti$es of an organi9ation is performan$e market performan$e" operational
performan$e" finan$ial performan$eI*
The #ade in 5ritain '+5# onsulting 0roup" ?CC( and #ade in ;urope '+5#
onsulting 0roup" ?CCE( studies proposed that Hthe adoption of best pra$ti$e will be
linked dire$tly to the attainment of high operating performan$e* Superior operating
performan$e will in turn lead to superior business performan$e and $ompetitivenessI
'@oss et al*" ?CC8(* +f this is the $ase" then it is ne$essary to define links between pra$ti$es
and measures* 4erforman$e measures $an be used to identify the areas in whi$h
performan$e must be improved and should measure the effe$tiveness of pra$ti$es 'Davies
and o$hhar" ?CCC(* 4ra$ti$es should be implemented to improve performan$e* The two
a$tivities should not be mutually ex$lusive*
1lynn et al* '?CC8a( des$ribe pra$ti$es as Happroa$hes used by management and workers
with the goal of a$hieving $ertain types of performan$eI* They $ite the example of using
J+T pra$ti$es to improve J+T performan$e* 2owever" they also state that using J+T
pra$ti$es may also affe$t other types of performan$e* J+T pra$ti$es $an lead to
improvements in Buality performan$e as they provide alternative means of redu$ing the
potential for damage" identifying problems in the pro$ess" improving pro$ess feedba$k
and redu$ing pro$ess variability* +n addition" total Buality management 'TL#( pra$ti$es
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$an also have a relationship with J+T measures* 1or example" TL# pra$ti$es $an lead to a
less variable manufa$turing pro$ess that redu$es the need for safety sto$k buffers* This
indi$ates the need to evaluate pra$ti$es based on their ability to improve overall
performan$e rather than 3ust the improvement of one spe$ifi$ area*
The need to link pra$ti$es to performan$e has be$ome espe$ially important for $ompanies
striving to a$hieve the goal of world-$lass manufa$turing* This has been the sub3e$t of
studies by +5# onsulting 0roup '?CC" ?CCE( and !ndersen onsulting '?CC" ?CCE(*
Su$h studies indi$ate that operating performan$e is $riti$al to overall $ompetitiveness"
and that operating pra$ti$e is $riti$al to operating performan$e '@oss and 5la$kmon"
?CCE(* Thus" the $ausal relationships between operational pra$ti$e and operational
performan$e are key to improving overall $ompetitiveness*
/ne of the ob3e$tives of the #ade in 5ritain '+5# onsulting 0roup" ?CC( and #ade in
;urope '+5# onsulting 0roup" ?CCE( studies was to test the relationship between
pra$ti$e and performan$e and to investigate whether $ompanies that implement best
pra$ti$es perform better* They found that the most su$$essful $ompanies were those that
adopted best pra$ti$es to improve operational performan$e in every area of
manufa$turing* +t was also $on$luded that the leading $ompanies had adopted best
pra$ti$es whi$h had resulted in strong operational performan$e '@oss et al*" ?CC8(* Thus"
there is a need to investigate whi$h pra$ti$es improve whi$h areas of performan$e in
order that guidan$e $an be given to improve spe$ifi$ areas of performan$e*
61= C,''e+0es I+,"%"t"+0 A!,"e/ee+t # Wr'$ C'ss Se'#S-st"+%"'"t& Stt-s
/ne of the environmental influen$es to a business arises from $ompetition* +n$reased
$ompetition threatens the attra$tiveness of an industry and redu$ing the profitability of
the players* +t exerts pressure on firms to be proa$tive and to formulate su$$essful
strategies that fa$ilitate proa$tive response to anti$ipated and a$tual $hanges in the
$ompetitive environment*
1irms respond to $ompetition in different ways* Some may opt to produ$t improvement"
divestiture" and diversifi$ation" entry into new markets or even merging or buying out
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$ompetitors* 4orter '?CA7( postulates that there is the essen$e of strategy formulation is
$oping with $ompetition* ! $ompany has $ompetitive advantage whenever it has an edge
over its rivals in se$uring $ustomers and defending against $ompetitive for$es 'Thompson
F Stri$kland" 6776(* Sustainable $ompetitive advantage is born out of $ore $ompeten$ies
that yield long term benefit to the $ompany*
4rahalad and 2amel '?CC7( define a $ore $ompeten$e as an area of spe$iali9ed expertise
that is the result of harmoni9ing $omplex streams of te$hnology and work a$tivity* They
further explain that a $ore $ompeten$e has three $hara$teristi$s first it provides a$$ess to
a wide variety of markets" se$ondly it in$reases per$eived $ustomer benefits and lastly it
is hard for $ompetitors to imitate* Sour$es of $ompetitive advantage in$lude high Buality
produ$ts" superior $ustomer servi$e and a$hieving lower $osts than its rivals* To su$$eed
in building a sustainable $ompetitive advantage" a firm must try to provide what buyers
will" per$eive as superior value* This entails either a good Buality produ$t at a low pri$e"
or a better Buality produ$t that is worth paying more for 'Thompson F Stri$kland" 6776(*
61> Reser!, r K+'e$0e G*
This study intends to bridge the knowledge gap of la$k a $lear and systemati$ ranking of
the best $rafted pra$ti$es in their relative order of importan$e* +n this regard" the
resear$her poses the following resear$h Buestions% what are the most important best
$rafted pra$ti$es of best manufa$turing firms in enya*
0ap between the theories and the empiri$al studies '2ighlight the .+&(
4&
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RESEARCH METHODOLOGY
714 I+tr$-!t"+
This $hapter presents the methods and pro$edures that will be employed to a$hieve the
set ob3e$tives of the study* These in$lude the resear$h design that will be used" a
des$ription of the study population and the sampling pro$edures that will be used to
obtain the study sample* The $hapter also $overs how data will be $olle$ted" analy9ed and
presented*
716 Reser!, Des"0+
This study will use des$riptive survey design* Survey method will be useful as the
resear$her wants to $olle$t data on phenomena that $annot be observed dire$tly* This
method is deemed appropriate sin$e it will allow $olle$tion of large amounts of data from
manufa$turing $ompanies in a highly effe$tive" easily and in an e$onomi$al way*
!$$ording to 5abbie '6776(" this design refers to a set of methods and pro$edures that
des$ribe variables* +t involves gathering data that des$ribe events and then organi9es"
tabulates" depi$ts" and des$ribes the data* Des$riptive surveys portray the variables by
answering who" what" and how Buestions '5abbie" 6776(*
717 St-$& P*-'t"+ +$ Tr0et P*-'t"+
A study population comprises the entire groups of individuals, objects, items, cases,
articles, or things with common attributes or characteristics existing in space at a
particular point of time (Baker, 1999; Majumdar, 2005). The study population will
comprise of the manufacturing companies in Nairobi City and its environs. A target
population, according to Mugenda and Mugenda (1999), is that population which the
researcher wants to generalize results. The target population in this study will $onsist of
the senior managers and ;/s in the following $ompanies% 5!T" Spin nit" and ;ast
!fri$an 5reweries limited and key stakeholders in enya !sso$iation of #anufa$turers*
The target respondents are deemed appropriate owing to their positions in the $ompanies
and the information they have pertaining to the study sub3e$t*
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718 S*'e S"e +$ S*'"+0 Te!,+";-e
A sample is a subset of a particular population while sampling is the practice concerned
with the selection of individual observations intended to yield some knowledge about a
population of concern especially for the purpose of statistical inference (Mugenda and
Mugenda, 1999). The sample size is a representative of the target population. The
resear$her will sele$t A respondents from ea$h $ompany% the ;/" general managers"
+T manager and assistants" produ$tion managers and their assistants* +n addition" the
resear$her will sele$t A respondents from the enya !sso$iation of #anufa$turers*
Therefore" a sample of E7 respondents will be sele$ted for the study* 4urposive sampling
te$hniBue will be used to obtain the study sample*
71 Dt C''e!t"+
4rimary data and se$ondary data will be $olle$ted* 4rimary data will be $olle$ted through
semi-stru$tured Buestionnaires with both open and $losed ended Buestions* The
Buestionnaire will be divided in se$tions where ea$h se$tion will seek information on a
spe$ifi$ ob3e$tive* /ne Buestionnaire will be administered to ea$h $ompany and
addressed to a senior manager or a ;/* Drop-and-pi$k later method will be used to
administer the Buestionnaires* This will enhan$e the response rate given that the
managers of the manufa$turing $ompanies are busy and might need to respond to this
Buestionnaire at their $onvenient time* Se$ondary data will be $olle$ted from publi$ations
and relevant re$ords on the manufa$turing $ompanies in &airobi*
3.6 Data Analysis
Data $olle$tion will yield both Buantitative and Bualitative data* Luantitative data will be
analy9ed using des$riptive statisti$s su$h as freBuen$ies" per$entages and mean standard
s$ores* The results of Buantitative data analysis will be presented in tables and figures*
Lualitative data on the other hand will be analy9ed using $ontent analysis* Gesponses will
be analy9ed based on ob3e$tives and running themes will be identified and grouped
a$$ording to $ategories* on$lusions will be made from the most $ited themes. Results of
qualitative data analysis will be presented in prose or narrative format*
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APPENDICES
APPENDI I: LETTER OF INTRODUCTION
The Gespondent"
Dear SirQ#adam"
Re: Re;-est #r Reser!, Dt
+ am a 4ostgraduate student at the Jomo enya University of !gri$ulture and
Te$hnology an exe$utive #aster in 5usiness !dministration ';-#5!( program*
#y resear$h pro3e$t topi$ is H5est 4ra$ti$es rafted by .o$al ompanies in the
urrent @olatile 0lobal 5usiness )orld: ! Survey of Sele$ted #anufa$turing
ompanies in enyaI*
+n order to $arry out the resear$h" you have been sele$ted to form part of those to
provide the ne$essary data* The data will be gathered through personal interview
with the undersigned* Nou are therefore kindly reBuested to assist by granting an
opportunity for the interview at your $onvenient when $onta$ted for an
appointment*
The information you provide will be treated in stri$t $onfiden$e and is purely for
a$ademi$ purpose* +n no way will your name appear in the final resear$h report*
! $opy of sample Buestion to assist in preparation is atta$hed* Nour assistan$e and
$ooperation will be highly appre$iated*
Student Supervisor
T W%-
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APPENDI II: UESTIONNAIRE
I+tr$-!t"+
This study seeks to find out the fa$tors affe$ting outsour$ing of a$$ountan$y
servi$es by small and medium si9ed $ompanies in &airobi" enya* TheBuestionnaire has five se$tions !-;* indly ti$k or write in the spa$es provided as
appropriate*
Se!t"+ A: Ge+er' I+#rt"+
?* indly indi$ate where $ompany headBuarters are situated*
6* Does the $ompany have bran$hes
i( Nes R
ii( &o R +f yes" above" how many *
* 2ow many years have this $ompany been in operation
i( .ess than 6 years R
ii( -8 years R
iii( >-A years R iv( C-?? years R
v( !bove ?6 years R
E* 2ow many employees does the $ompany have
i( ?-?C R
ii( 67-C R iii( E7-8C R iv( !bove >7 R
8* 2ow long have you worked for this $ompany
i( .ess than 6 years R
ii( -8 years R
iii( >-A years R iv( C-?? years R
v( !bove ?6 years R
Se!t"+ B: IT +$ "++/t"+s>* Does your $ompany engage in +T and innovations
i( Nes R
ii( &o R
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___________________________________________________________
___________________________________________________________
______________________________________________________________________________________________________________________
________________To what extent does the use of +T and innovations
affe$t the sustainability of your $ompany
i( @ery little extent ' (
ii( .ittle extent ' (iii( &o effe$t ' (
iv( 0reat ;xtent ' (
v( @ery 0reat ;xtent ' (
A* To what extent does the use of +T and innovations affe$t the sustainabilityof your $ompanyKey: 12 'ot at all, 32 *ittle E4tent, 52 Moderate E4tent,
62 %reat e4tent, 72 8ery %reat E4tent
IT +$ I++/t"+ 4 6 7 8 8
!$$ountingQfinan$e software;le$troni$ staff inputQoutput $ontrol system
!rtifi$ial intelligen$eQ expert systems
+nternet and ;mail
;le$troni$ bar $oding systems
)ord pro$essing
SalesQmarketing software
4rodu$tion $ontrolQplanning software
#anufa$turing resour$e planning
#aterials reBuirements
omputeri9ed maintenan$e management software
orporate website
+nventory management software
Transportation management systems
Luality $ontrolQBuality assuran$e
.o$al area network
Se!t"+ C: Prt"!"*tr& M+0ee+t
C* 1or how many years has parti$ipatory management been pra$ti$ed in your
$ompany
i( 8 or less ' (
ii( >-?7 ' (iii( ??-?8 ' (
iv( ?> or more ' (
?7* 2ow does parti$ipatory management impa$t on produ$tivity of your
$ompany
i( +n$rease ' (
ii( De$rease ' (
5&
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iii( &o hange ' (
??* )hat is the impa$t of parti$ipatory management on Buality of produ$ts
from your $ompany
i( +n$rease ' (
ii( De$rease ' (iii( &o $hange ' (
?6* +mpa$t of parti$ipatory management on employee morale
i( +n$rease ' (
ii( De$rease ' (
iii( &o $hange ' (
?* To what extent does parti$ipatory management affe$t the sustainability ofyour $ompany
i( @ery little extent ' (ii( .ittle extent ' (
iii( &o effe$t ' (iv( 0reat ;xtent ' (v( @ery 0reat ;xtent ' (
Se!t"+ D: E+er0& E##"!"e+!& Pr!t"!es
?E* Does your $ompany have any energy effi$ien$y pra$ti$es
i( Nes R
ii( &o R
+f yes" whi$h are they
+f no" why
5,
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?8* To what extent do the following energy effi$ien$y pra$ti$es influen$e thesustainability of your $ompanyKey: 12 'ot at all, 32 *ittle E4tent, 52
Moderate E4tent, 62 %reat e4tent, 72 8ery %reat E4tent
Pr!t"!e 4 6 7 8 8!dopting new building te$hniBues for natural lighting F ventilation
;mployees engagement into Kenergy saving, behaviour!dopting systems ad3usting light intensity for varying daytime needs
+nvesting in alternative F renewable energy supply 'solar(
+nstallation of heat re$overy systems in $old produ$tion fa$ilities
+nstallation of hinged doors for refrigerated spa$e
Use of motion sensors to swit$h onQoff the lights automati$ally
+nstallation of energy effi$ient bulbs
Se!t"+ E: De'&er"+0
?>* 1or how many years has delayering been pra$ti$ed in your $ompany
v( 8 or less ' (
vi( >-?7 ' (vii( ??-?8 ' (
viii( ?> or more ' (
?
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APPENDI III: BUDGET
Ite A!t"/"t& Cst # "te Tt' !st
Gesear$h materials ------ 7"777
4rinting proposal and binding 877 ?877
Data $olle$tion expenses ----- A7"777
Data analysis materials 'S4SS( E8"777
4rinting of 4ro3e$t Geport and
binding
8"777 8"777
Tt' 47355 4=4355
5;
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APPENDIX IV: WORK PLAN
Duration
A weeks wks ? wk ? wk ? wk
4roposal writing and
Buestionnaire drafting
Data $olle$tion pro$ess
Data !nalysis
)riting of the resear$h report
Submitting the resear$h pro3e$t
report