RELATIONSHIP BETWEEN INDUSTRIAL ROBOTS ON COMPETITIVENESS OF LISTED MANUFACTURING FIRMS IN KENYA.

Abstract

Manufacturing firms in the industrialized world are spending enormous resources in upgrading their production technology to cope with the increasing competition from non-industrialized countries and to also improve competitiveness. The purpose of this study was to establish the relationship between industrial robots and competitiveness of listed manufacturing firms in Kenya. The study adopted descriptive research design. The study targeted 14 listed manufacturing firms in NSE (2014). The study population comprised of 42 heads of departments of
listed manufacturing firms, 42 assistant heads of departments of listed Manufacturing firms, 14 CEO’s of listed manufacturing firms, 52 staff of KAM and 8 industrialization directorate of Ministry of Industrialization and Enterprise Development. Pagano and Gauvreau (2006) formula was adopted to calculate the sample size of this study from a population of 158 respondents to give a sample size was 113 respondents. The sampling technique used was stratified random sampling method. The study collected primary data through use of a questionnaire and an interview schedule. The results were presented using tables, charts and graphs. Both descriptive and inferential statistics were adopted to analyze the data. The analysis was aided by Statistical Package for Social Sciences (SPSS) software. The study results indicate that there was little use of industrial robots, Tele-operated robots, cognitive robots or even use of hybrid forms of tele-operated and programmed robots. The findings also reveal there was a negative and insignificant relationship between competitiveness of listed manufacturing firms and industrial robots. There was low application of industrial robots by manufacturing firms in Kenya which might be as a result of limited resources or low return on investments. The study concludes that industrial robots are not economically viable and realistic solution to securing immediate competitiveness of manufacturing firms in Kenya as the Kenyan economy is characterized by low wages and youthful population unlike developed countries. However, in the long term they can be a source of competitiveness. The study recommends that manufacturing firms should install industrial robots to carry out onerous, dangerous, repetitive or tedious tasks. The Kenya manufacturing firms should aim to improve the competitive capacities and enable their manufacturing firms to meet international competitiveness requirements, such as product quality and cost.