RELATIONSHIP BETWEEN MACHINE INSTALLATION, COMPUTERIZATION AND COMPETITIVENESS OF LISTED MANUFACTURING FIRMS IN KENYA.

Abstract

Organizations are strategically positioning their operations in order to remain competitive with increased globalization. Automation is one of the salient elements for remaining competitive. The objective of the study was to examine the relationship between machine installation, computerization and competitiveness of listed manufacturing firms in Kenya. The study used a descriptive survey design. The target population of this study was 158 manufacturing
staff who included 84 head of departments of listed manufacturing firms, 14 CEO’s of listed manufacturing firms, 52
staff of Kenya Association of Manufacturers and 8 staff of Industrialization Directorate of Ministry of Industrializations and Enterprise Development. The study adopted a formula by Pagano and Gauvreau (2006) to determine the sample size of this study from a population, whereby a sample size of 113 respondents was established. The sampling technique used was stratified random sampling method. The primary research data for this study was collected using a questionnaire. The questionnaires which were designed to address the research questions and objectives were administered to the Head of departments working in the listed manufacturing firms in Kenya and KAM Staff. Data was cleaned and entered into the Statistical Package for Social Sciences (SPSS Version 20) for analysis. Descriptive statistics was used to analyze the data. Data presentation was done by the use of pie charts, bar charts and tables. Multiple regression analysis and Pearson correlation analysis were further used to establish the relationship between variables. The study results revealed that there was a positive and statistically significant relationship between competitiveness of listed manufacturing firms and machines installation. There was also a positive and statistically significant relationship between computerization and competitiveness of listed manufacturing firms. The study concludes that mechanization of manufacturing firms has a great potential to reduce cost of labor, efficiency in operations and lead to mass production to enhance competitive advantage. Companies that do not mechanize or computerize are likely to find themselves at a competitive disadvantage. The study recommends that manufacturers need to carefully evaluate automation options to craft their strategies for them to be competitive. Kenya must engage an effective strategy for mechanizing or computerizing its manufacturing industries through publicprivate partnerships, in order to gain global economic competitiveness.