The influence of ecological factors on strategy within large-scale manufacturing firms in Nairobi

Abstract

Concerns over ecological factors have evolved through several distinct phases from the 1960's when movements focused on pollution and energy conservation to to-date when ecological factors are seen as a source of competitive advantage as comprehensive strategies continue to be adopted. With oil and energy prices rising and expected to rise more and with the growing awareness of the intensity of change that is being wrought on our planet and the centrality of human effort in provoking this change, pressures in the global market place require firms to develop universally-applied standards of care of the ecological environment hence the manufacturing industry landscape is changing, as are the views of the professionals within it. At the same time, the issue of climate change has sparked a debate weighing the benefits of limiting industrial emissions. Where ecological factors were once seen as little more than a necessary evil, today the business case for environmental initiatives is taking the fore in the public consciousness and the thinking of business leaders. With these imperatives in mind, the study examined the influence of ecological factors on strategy within large-scale manufacturing firms located in Nairobi. The objectives of the study were to establish the extent to which ecological factors were evident in the espoused and enacted strategies of large-scale manufacturing firms in Nairobi and to determine how these ecological factors influenced strategy of the large- scale manufacturing companies. To explore the issues, primary data was collected via mail questionnaires distributed to senior executives and managers. Findings were then analyzed using descriptive statistics. Frequency tables, percentages and graphs were used to present the findings. The study sample comprised of 50 large-scale manufacturing companies based in Nairobi out of which 26 companies responded representing a 52% response rate. The rest were either unwilling to respond due to the fact that they considered the issues sensitive and confidential or took too long to fill the questionnaires. Majority of the companies that responded were predominantly foreign owned. The study established that there was a general recognition that the ecological environment had gained attention and focus in the past few years with manufacturing companies trying to find potentially win opportunities. Majority of the respondents displayed consistency to the fact that they did have reasonable commitment from their top management on ecological issues. Ecological factors were evident in the espoused strategies of most large-scale manufacturing firms but there still seemed to be conflict in implementation as ecological initiatives adopted were more of minimization rather than elimination strategies. The overriding attitude was that although majority of companies had formal departments like the environmental and safety departments, these departments were expected to deal with ecological issues and not interfere with core business. At the same time most respondents saw ecological initiatives as costly as respondents felt that resources were still limited therefore it was unrealistic to expect huge capital investments just for the environment. Lack of awareness and knowledge on ecological issues stood out as a key barrier to integration. The research study was broad hence the level of detail it could delve into given the two objectives was limited, while a more comprehensive study was desirable, this could not be entirely possible in view of the limited resources at the researcher's disposal. The other limitation was that the study was based on a sample limited to Nairobi area and sample limited to large-scale manufacturing firms. At the same time references and comparisons made were mainly from studies done in other countries since no previous research had been done exactly on this topic in the Kenyan context. The study used questionnaire method and ignored other methods of data collection hence there was likely to be questionnaire bias in that respondents may have misunderstood some questions or gave biased opinions. The reluctance of some managers to respond was also a major limiting factor. There is need for replication of the study to be done on other sectors of the economy since the research concentrated on the manufacturing sector. There is also need to research on other large-scale manufacturing firms outside Nairobi since this research concentrated only on companies located within Nairobi area. To conclude, the importance of developing effective ecological policies was recognized. The success and profitability in the future requires thinking and acting today and staying ahead of the game through good research into the latest technologies and strategies. There is also a need for progressive, developmental and workable models and information that make the area more accessible for companies across industry sectors. These could be used to identify and share best practice at overcoming the barriers for integration of ecological factors into corporate strategy. This implies that the role of environmental legislation in companies needs to be further investigated as well as its role and effectiveness in protecting the ecological environment.