The Resource Based View of Competition: The Case of Large Manufacturing Firms Quoted in the Nairobi Stock Exchange.

Abstract

This study was conducted on a cross section of large manufacturing firms in Kenya that are quoted in the Nairobi Stock Exchange. A sample of 15 firms had been selected and 60% response rate was achieved. Data was collected using a semi-structured questionnaire. The researcher used the drop and pick later method of data collection. The collected data was analysed using descriptive statistics such as frequencies, proportions, tables and charts. The findings largely achieved the objective of the study. Most respondents indicated that cost, flexibility, delivery speed and quality were very important factors in determining the choice of the manufacturing priorities. The respondents indicated that in comparing their process technology with the industry competition, majority of the respondents were average or above the industry average. That patenting has had a positive effect on the manufacturing cost, wastage level, delivery, throughput time and flexibility and that the plant should maintain close communication with the suppliers about quality considerations and design changes, and the extent to which the customers should be involved in the product design process. Most respondents also agreed that employees receive training to perform multiple tasks and management was keen to implement useful ideas and suggestions. The objective of this study was to study three types of resources and capabilities that are built within the manufacturing function and whether these capabilities can improve performance for the plant. The study concluded that it was evident that these resources and capabilities are very important. It also indicated that these capabilities and resources can improve performance of the plant, increase production flexibility and quality, reduce wastage, improve delivery to customers and reduce throughput time. The study failed to reject the null hypothesis that manufacturing resources and capabilities do not have a positive effect on performance at plant level.