INFORMATION FLOW STRATEGY AND PERFORMANCE OF MANUFACTURING FIRMS IN KENYA

Oscar Barasa Awory, Dr. Denis Chege, Dr. Eric Namusonge

Abstract


The study sought to determine the influence of information flow strategy on the performance of manufacturing firms in Kenya. Despite the Government initiatives to promote manufacturing firms through “Buy Kenya build Kenya” and mandatory reservation of 40% in all Government agencies Procurement Budgets for goods to be sourced locally; An overwhelming number of manufactures in Kenya have experienced a fall in turnover, with a least 23% registering losses in the range of 65% to 100%, and with 51%, registering loses between 30% and 65%, due to a fall in demand of the products. This study sought to determine the influence of information flow strategy on the performance of manufacturing firms in Kenya. The study was guided by innovation diffusion theory. For this study, the research philosophy was positivism. This study adopted cross-sectional research design. The KAM 2023 directory has listing of members (firms) by sectors which contains a register of 13 sectors of those in manufacturing firms spread all over the country (KAM, 2023). The study targeted all manufacturing companies registered under Kenya Association of Manufacturers. Therefore, the target population was 1032 manufacturing companies in Kenya while the unit of observation was senior managers from production and Supply Chain management. This study adopted Yamane (1967) simplified formula to calculate the sample size. Using this formula, a sample of 288 manufacturing firms were selected. This study utilized a semi-structured questionnaire to collect data. Data analysis was done through use of descriptive and inferential statistics. The study used SPSS version 25 in the analysis of data. The rationale for using correlation and regression analysis is to establish the relationship between information flow and Performance of Manufacturing Firms. The study revealed a significant positive relationship between information flow strategy and the performance of manufacturing firms. Efficient information sharing and coordination in the supply chain positively influenced firm performance. Vendor Managed Inventories and Electronic Data Interchange have enabled information sharing in the firm. Such information shared include information on inventories, customer orders and critical information in both upstream and downstream supply markets. Based on the study findings; Firms should prioritize information flow and coordination within the supply chain. Implementing systems and processes that facilitate timely and accurate data exchange among supply chain partners can lead to improved responsiveness, SC visibility, operational efficiency, and better performance outcomes

Key Words: Information Flow Strategy, Innovation Diffusion Theory Manufacturing Firms


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References


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