Total Quality Management, Circular Manufacturing and Productivity of Manufacturing Firms in Nairobi, Kenya

Abstract

Firms embrace different practices to try and improve productivity. However, the key issue is, do the firms embrace similar practices across the divide? More specifically, owing to the variance in productivity across manufacturing subsectors and product lines, there is need to find out why the firms productivity differ with view of finding whether TQM and circular manufacturing make productivity different across the firms. Thus, more specifically, the study was guided by the following questions; Are TQM and circular manufacturing practices embraced by firms in Kenya? And, do firms which embrace these practices register improved productivity? Two Theories anchored the present study and these are the Deming Theory of Management and the Dynamic Capability Theory (DCT). The present study was grounded on a descriptive survey research design. The 454 manufacturing firms in Nairobi constituted the study population from which 454 management staff was targeted. Cluster sampling was used to select 213 manufacturing firms as they were from diverse sectors from where one management staff was selected. The study employed two research instrumentation tools to gain data relevant to this study. The first one was the questionnaires and the second instrument was a documentary checklist to collect secondary data on productivity of the firms. Cronbach Coefficient test was used to test reliability and an acceptable score of 0.716 was realized. Validity was tested using the exploratory factor analysis. Descriptive statistics tools characterized by frequency, percentage, mean and standard deviation offered a description of the results. Inferential statistics in the form of One Sample T-Test and both Pearson Correlations and regression analysis were used. The results show that 6 out of 4 descriptive statements presented have a mean score >3.00 with many at the 4.00 mark. Thus, the results show that mostly, manufacturing firms practiced circular manufacturing and all the 8 descriptive statements presented have a mean score >3.00 with many at the 4.00 mark and thus, the manufacturing firms in Nairobi Kenya had adopted TQM practices significantly. Also, the productivity of the firms have increased for the years 2022. Further, the findings from the correlations and regression analyses show that the adjusted R Square score of .607 gives evidence that productivity manufacturing firms in Nairobi, was predicted by TQM and CE at 60.7%. Further the regression analysis shows that TQM (=.534 p-value <0.05) and CE (=.428 p-value <0.05) have a statistically significant effect on productivity of manufacturing firms in Nairobi, Kenya. The study thus recommends that: The manufacturing firms should embrace the full scope of circular manufacturing to focus on refurbishing its products to restore them to original functionality; have a robust recycling program and have a robust recovering program of materials that were considered waste but which can be recovered. This should be done alongside the other adopted CE practices which will help improve their productivity. Also, the manufacturing firms should continue with the TQM practices they have adopted and tighten those they are still struggling to implement. This will also help them to improve firm productivity. Finally, the manufacturing firms should find meaningful strategies that help them integrate TQM and CE within their operations almost in a hybrid system. Such integration will help them to improve firm productivity.