Strategy Monitoring, Evaluation, and Performance of Manufacturing Firms in Nairobi County

Abstract

The study was motivated by the need to enhance the output of manufacturing firms in the County of Nairobi through a comprehensive understanding of the impact of strategy monitoring and evaluation practices including regular reporting, technology adoption, feedback systems, and benchmarking. It was guided by the resource dependence theory and stakeholder theory. A cross-sectional survey research design, targeting the entire population of 626 registered manufacturing firms in Nairobi County as of December 31, 2022, was employed. A sample size of 83 respondents was selected, and primary quantitative data was collected through structured questionnaires. Senior managers were identified as the most suitable respondents. The information collected was subjected to analysis, utilizing descriptive statistics, correlation, and regression analysis techniques to extract meaningful insights. The study's regression analysis revealed that, collectively, the independent variables accounted for approximately 72.5% of the variance in organizational performance, with an R-squared value of 0.725. However, the adjusted R-squared value of 0.704, slightly lower than the R-squared value, indicated a slight reduction in explanatory power due to multiple predictors. In terms of individual variables; regular reporting, feedback system, and benchmarking all showed a positive correlation with organizational performance but did not achieve statistical significance in the regression analysis. On the other hand, the adoption of technology exhibited a strong positive correlation and a significant positive effect on organizational performance in both correlation and regression analyses, underlining its substantial impact. The study recommended that policymakers in Nairobi County recognize the pivotal role of strategy monitoring and evaluation practices in the manufacturing sector. They were advised to encourage the adoption of regular reporting, technology, feedback systems, and benchmarking, with a special focus on supporting technology initiatives. Manufacturing firms were recommended to fully embrace technology adoption, enhance regular reporting, refine feedback systems, and utilize benchmarking practices, recognizing their collective impact on organizational performance. The study also suggested that future research should explore these areas further and consider contextual factors and a broader array of independent variables to gain a deeper understanding of organizational performance within manufacturing firms.