Operational Decisions and Performance of Retail Supermarkets in Uasin Gishu County, Kenya

Abstract

Operational decisions relate to all the undertakings essential to plan, develop as well as improve business processes that are involved in the provision of services in supermarkets. The current upsurge and spillover of organized retail outlets, like supermarkets, are adding to the growth of organized retail markets in Kenya. Despite operational decisions being a key in ensuring improved operational performance of retail supermarkets, many have closed shop in Kenya as a whole and even in Uasin Gishu County, Kenya. The aim of this study was to determine the effect of operational decisions and performance of retail supermarkets in Uasin Gishu County, Kenya. The specific objectives were to; determine the extent of implementation of operational decisions by retail supermarkets and to establish the effect of implementation of operational decisions on performance of retail supermarkets in Uasin Gishu County, Kenya. Systems theory (Von Bertalanffy, 1936) and job characteristic theory (Hackman & Oldham, 1975) underpinned this research. Descriptive research design was adopted and target of 86 retail supermarkets where census was used. Data was collection was done using a structured questionnaire and analysis carried through frequencies, percentages and linear regression analysis. The study showed that majority (54.9%) of the retail supermarkets had implemented to a large extent equipment for carrying inventory which are made available to replenish shelves when stock demand was high. In addition, majority (58.5%) of the retail supermarkets in the study area have applied the periodical checking of equipment used to handle stock to ensure they are fully functional to a larger extent and majority (50.0%) retail supermarkets had minimized to a larger extent idleness among employees to ensure customer demands were met. The study found out that scheduling, maintenance management, job design, capacity management and layout design accounted for 57.0% variation in operational performance among retail supermarkets in Uasin Gishu County. Thus, it was recommended that there are other major factors accounting for operational performance of retail supermarkets which need to be put in place to enhance operational performance.