Environmental scanning practices in Kenyan large manufacturing firms

Abstract

This study was designed to document environmental scanning practices in Kenyan large manufacturing firms. The study had two main objectives: 1. To establish the environmental scanning practice (s) in large manufacturing firms in Kenya. 2. To find out the factors behind the use of the environmental scanning methods in practice. To achieve these objectives primary data was collected using structured questionnaires from a sample of 100 manufacturing firms picked from the Kenya Industrial Research & Development Institute's (KIRDI) directory. One questionnaire per large manufacturing firm was administered to the Chief Executive Officer (CEO) or a senior manager. A drop and pick later approach was adopted and on many occasions the researcher discussed the contents of the questionnaire with the respondents. A total of 32 firms responded positively giving a response rate of 32%. The data was analysed with the aid of SPSS software. Simple descriptive statistics were used to present this data. Relationship tests were done to determine the influence of scanning on performance. Kruskal-Wallis or betjes.known as the H-test was used to determine any significant differences. The objectives of this study have been met. The manufacturing companies in Kenya do use environmental scanning practices due to the uncertainties and turbulence in the business environment. They only differ on how they conduct the environmental scanning exercise with most preferring market intelligence. The findings of this study further revealed that manufacturing firms have been successful over the last five years, recording above average levels of performance. This confirms the literature review that the manufacturing industry is going through a transition as a result of the stable macro-economic environment, government intervention in promoting export opportunities among others, which have increased investor confidence.