dc.contributor.author | Kihara, Allan | |
dc.contributor.author | Karanja, Partrick | |
dc.contributor.author | Ogollah, Kennedy | |
dc.date.accessioned | 2017-03-24T04:11:33Z | |
dc.date.available | 2017-03-24T04:11:33Z | |
dc.date.issued | 2016 | |
dc.identifier.citation | Kihara, A., Karanja, P., Kennedy, Ogolla. (2016). Influence o f Organizational Structure o n Performance o f Large Manufacturing Firms i n Kenya . European Journal of Business Management. Vol 2 (11). 15 - 29. | en_US |
dc.identifier.uri | http://hdl.handle.net/11295/100711 | |
dc.description.abstract | Even though Kenya has been praised for i
ts robust economy and that is set to become one of the
top five fastest
-
growing in sub
-
Saharan Africa, manufacturing output remains low compared to
other sectors.
Kenyan manufacturers have registered stagnation and declining profits of
over $330
million annually and government loses of $67 million in potential tax revenue
for the last five
years due to contingencies
. It is estimated that manufacturing companies have lost 70 per cent of
their market share in East Africa and this has resul
ted in some
firms announcing plans to shut down
their plants and shift operations to Egypt.
The general objective of the study was to establish the
influence of strategic contingent organizational factors on performance of large manufacturing
firms in Keny
a by reviewing
organizational
structure
as the study variable
.
The study adopted a
mixed research design of cross
-
sectional research design and descriptive survey design and the
research philosophy was positivism. The study population study was 499 large s
cale
manufacturing companies with a sample size of 217 managers from each of the 217 companies.
Data was collected through the administration of questionnaires to the relevant managers.
The
study findings revealed that
organization structure
has a signific
ant effect on performance of large
manufacturing firms in Kenya.
The findings of the study revealed that majority of the companies had a specialized organization structure. Further results indicated that the nature of the span of
control in majority of com
panies is high. On the relationship between Organizational structure and
Return on Equity, the study findings revealed that
departmentalization,
degree of centralization
and degree of specialization were positively and significantly related to ROE. Departm
entalization
was further found to be positively and significantly related to Profit before tax while degree of
centralization and degree of specialization were found to be positively and significantly related to
ROA. Based on the study findings, the study
concluded that
organizational structure influences
performance. Organization structure
has significant effect on performance
of large
manufacturing
firms
in Kenya
.
The sub
-
constructs of organizational structure that is; specialized organization
structure,
nature of the span of control, centralization and departmentalization influences
performance positively.
The study recommended that large manufacturing firms in Kenya should
put in place better
organizational structure strategies as it leads to better perf
ormance. The
companies should ensure they have a specialized organization structure, high nature of the span of
control, centralized structure and have departmentalization in the company. | en_US |
dc.language.iso | en | en_US |
dc.publisher | University of Nairobi | en_US |
dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
dc.subject | Strategic contingent , organizational structure , organizational factors , Large manufacturing firms , performance , Kenya . | en_US |
dc.title | Influence of organizational structure on performance of large manufacturing firms in Kenya | en_US |
dc.type | Article | en_US |