Operations Competitive Priorities And Performance Of Multinational Corporations In Kenya

Abstract

The main aim of the project report was to investigate on operations competitive priorities and performance of MNCs in Kenya; where the findings from the study may particularly be useful in providing additional knowledge to existing and future organizations on operations competitive priorities adopted to enable them remain competitive. The research design that was used in this study was cross sectional, aimed at establishing the operations competitive priorities and performance of MNCs in Kenya. The population of this study consisted of all the 235 MNCs in Kenya. The proportionate stratified random sampling technique was used to select a sample of 69 corporations from a population of 235 MNCs in Kenya. The study concluded that majority of MNCs employed operations competitive priorities. The study established that increasing sales turnover and profits was the top most factor that influences competitive priority selection. The study also established that MNCs in Kenya did not experience tradeoffs of operations competitive priorities instead they apply cumulative capability model. The study further established that MNCs adopted a number of operations competitive priorities that had a positive relationship with their performance, with quality, innovation and delivery being statistically significant; hence the implication of this study is that operations competitive priorities enhances better organization performance which in the long run has impact on their survival. Emphasis on operations competitive priorities is an effective way of improving performance of corporations; this has been the general perception in the operations management literature to date. The study recommends that the management of MNCs should emphasize quality, delivery and innovations in order to improve their performance. The study further recommends that Government should enact laws that put emphasis on quality, innovations and delivery so that corporations may generate more revenue and hence generate more tax to Increase GDP growth.