Critical Success Factors for Operational Performance of the Organic Adhesive Industry: Case Study of Henkel Kenya Ltd

Abstract

Operational performance undertakes a predominant role in generating a substantial portion of new employment opportunities within any economy and success of an entity. Producers operating in a highly competitive market, where consumers have an abundance of choices, must prioritize operational metrics that offer valuable insights into the company's capacity to fulfill its mission and strategic goals. Consequently, the objectives of this study were to determine the critical success factors for operational performance of organic adhesive industry at Henkel Kenya Ltd and to determine the relationship between critical success factors and operational performance. Against this backdrop, regression coefficients' findings illuminate essential facets of operational performance within the study. The estimated model's constant yielded a positive value, implying that factors beyond technological innovation, process design, quality management, and product design influence production performance. Analyzing individual variables, the coefficient for technological innovation showed a positive value and proved statistically significant indicating a noteworthy boost in production performance with a one-unit improvement in technological innovation. Likewise, process design exhibited a positive and significant regression coefficient signifying a considerable production performance improvement with a one-unit enhancement in the production process's design. Quality management also displayed a positive and significant regression coefficient, underscoring the importance of effective quality management during production to enhance overall performance. Moreover, product design demonstrated a positive coefficient and was statistically significant, emphasizing its role in bolstering production performance. To conclude, the study underscores the critical role played by technological innovation, process design, quality management, and product design in augmenting production performance, leading to enhanced production processes and overall efficiency.