Despite strategic management advocating for the use of strategic control practices to improve the implementation of strategic plans and competitive position, establishing the strategic control-performance relationship has been problematic, suggesting failure by researchers to consider contingent variables. This study used data, collected during the period November 2008 to May 2009 from 109 senior managers in a census survey of 45 firms in the sugar value-chain in western Kenya, to examine the moderating effect of strategic orientation on the relationship between belief control and competitive position. Descriptive statistics, bi-variate regression analysis and moderated regression analysis were used to analyze data. The findings revealed moderate prevalence of Interactive control mean 2.86, std dev 0.83. The most prevalent strategic orientation was the reactor (60%), followed by defender (24%); prospectors (9%) and analyzers (7%). All the four levers were positively and significantly related to competitive position (interactive β = 0.393, p < 0.01). The results of this study suggest that urgent measures are required by the firms in the study to design interractive control systems to cope with the changing business environment. The study contributes to validation and upgrade of the existing belief control theory. For managers, the study sheds light on the design and use of belief controls and also for public sector managers in guiding the strategic change. It is recommended that future studies focus on the specific firms in sugar value chain and adopt longitudinal casestudy designs to establish causal relationships among variables.
Creating superior operational performance through total quality management pr...Alexander Decker
This document summarizes a study that investigated the effect of total quality management (TQM) practices on operational performance at manufacturing companies in Surabaya, Indonesia. The study classified critical TQM practices into three factors: strategic, tactical, and operational. A questionnaire was distributed to 118 medium and large manufacturing companies. Data analysis found that tactical factors were the strongest predictor of operational performance. Overall, TQM practices had a positive effect on operational performance, with tactical factors playing a particularly important role. The study provides empirical evidence on the relationship between TQM practices and operational performance at manufacturing companies.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Effect of Supply Chain Management Competencies on Organization Performance a ...paperpublications3
Abstract: Supply chains as one of the governance aspect are complex systems with different structures and power proportions between partners. Managers would be in a better position to meet the challenges of global supply chain processes if they understand the implementation issues and their roles on supply chain effectiveness. The main purpose of the study is to investigate the effect of supply chain management competencies on organizational performance and specifically the effect of innovation Orientation on organizational performance. Explanatory research design was used. The population of study comprised 244 employees from selected Parastatals in Nairobi City County. Questionnaires were used to collect data and data was analyzed using descriptive statistics like means, frequencies, and percentages, and inferential statistics, Pearson correlation and multiple regressions. Results indicated that innovation orientation has significant and positive effect on organizational performance. This concludes that firms whose managers have innovation orientation improve performance. It is recommended that there should be further research and development on innovative and leading organizational practices in order to enhance performance and need for supply chain management policies and procedures that follow an appropriate sequence and structure.
Impact of Inventory Management on the Effectiveness of Supply Chain Managemen...paperpublications3
Abstract: The main objective of the study was to assess factors affecting the effectiveness of supply chain management practices in Kenyan public sector with, specific reference to the Ministry of Finance. The study’s specific objective being; to establish the effect of inventory management on the effectiveness of supply chain management practices. The study adopted a descriptive case research design and the study population comprised of 120 management staff working at the Ministry of finances’ procurement, finance and administration departments. A stratified random sampling technique was employed to select a sample size of 60 respondents. Questionnaires were used as the main data collection instrument. Descriptive statistics data analysis method was applied to analyze numerical data gathered using closed ended questions aided by Statistical Package for Social Sciences (SPSS). Pearson correlation was carried out to establish the relationship between the research variables. Inventory management was also found to have a strong positive correlation with effectiveness of SCM practices (r = 0.915). The study recommend implementation of EOQ inventory management methods for and IT based SCM systems.
Analyzing the current incorporation of social, environmental And economic mea...World-Academic Journal
We theorize about the incorporation of social, environmental and economic dimensions into strategic performance measurement systems. 81Chinese companies were surveyed for the analysis. Along with the increasing of social responsibility pressure, numbers of enterprises are promoting environmental, social and economic performance as strategic sustainability measures. Although the addition of sustainability measures to enterprise’s long term business strategy has long time been a major preoccupation of literature. Some empirical researches have examined if these nonfinancial measures are effectively incorporated into strategic performance measurement systems. In this research, we will examine why the incorporation of sustainability measures into enterprise business strategy vary across enterprises operating in Shanghai.
Drivers of supply chain performance enhancing organizational output an explo...Alexander Decker
This document summarizes a research paper on the drivers of supply chain performance. It finds that there are six key drivers - facilities, inventory, transportation, information, sourcing and pricing - that organizations must manage to enhance performance. These drivers are interrelated and organizations need to balance efficiency and responsiveness in their supply chain practices. Properly managing these six drivers through integration, goals, market identification, and other practices can help firms increase performance and gain a competitive advantage through effective supply chain management. The paper provides a framework for organizations to manage the different drivers of supply chain performance.
This document summarizes an article from the International Journal of Management that discusses redesigning the strategic planning process of a higher education institution through process management. It provides context on the increasing competitiveness of educational institutions and importance of strategic planning and process management. The research studied the strategic planning process of UNISC University in Brazil. It mapped the university's current 9-step process and 6 planning documents. The research proposed a redesigned process with annual rather than 5-year planning, better alignment of strategies and actions, strategic indicators for monitoring, and improved control and measurement of outcomes. The redesign through process management aims to improve the university's ability to address challenges and evolve from a fragmented to systemic organizational view.
Factors Influencing Supply Chain Performance in the Public Sugar Sector - A C...paperpublications3
Abstract: This paper sought to evaluate the effect of technology adoption, early supplier involvement, low-cost sourcing and backward integration on supply chain performance in the public sugar sector, guided by four objectives: To assess effectiveness of technology adoption on supply chain performance, to assess the role of early supplier involvement on supply chain performance, to evaluate effectiveness of low-cost sourcing on supply chain performance and to evaluate effectiveness of backward integration on supply chain performance. Purposive sampling was used to select a target population of 60 respondents. Questionnaires were used as the main data collection instruments. Descriptive and inferential statistics was used in data analysis aided by SPSS software. From the findings, technology adoption and early supplier involvement were found to be positively correlated to supply chain performance. Thus the above factors should be considered as major determinants in influencing supply chain performance in the public sugar sector.
Keywords: Agile Supply, Backward integration, Collaborative Relationship, Corporate Strategy, Outsourcing, Supply Chain, Supply Chain Management.
Creating superior operational performance through total quality management pr...Alexander Decker
This document summarizes a study that investigated the effect of total quality management (TQM) practices on operational performance at manufacturing companies in Surabaya, Indonesia. The study classified critical TQM practices into three factors: strategic, tactical, and operational. A questionnaire was distributed to 118 medium and large manufacturing companies. Data analysis found that tactical factors were the strongest predictor of operational performance. Overall, TQM practices had a positive effect on operational performance, with tactical factors playing a particularly important role. The study provides empirical evidence on the relationship between TQM practices and operational performance at manufacturing companies.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Effect of Supply Chain Management Competencies on Organization Performance a ...paperpublications3
Abstract: Supply chains as one of the governance aspect are complex systems with different structures and power proportions between partners. Managers would be in a better position to meet the challenges of global supply chain processes if they understand the implementation issues and their roles on supply chain effectiveness. The main purpose of the study is to investigate the effect of supply chain management competencies on organizational performance and specifically the effect of innovation Orientation on organizational performance. Explanatory research design was used. The population of study comprised 244 employees from selected Parastatals in Nairobi City County. Questionnaires were used to collect data and data was analyzed using descriptive statistics like means, frequencies, and percentages, and inferential statistics, Pearson correlation and multiple regressions. Results indicated that innovation orientation has significant and positive effect on organizational performance. This concludes that firms whose managers have innovation orientation improve performance. It is recommended that there should be further research and development on innovative and leading organizational practices in order to enhance performance and need for supply chain management policies and procedures that follow an appropriate sequence and structure.
Impact of Inventory Management on the Effectiveness of Supply Chain Managemen...paperpublications3
Abstract: The main objective of the study was to assess factors affecting the effectiveness of supply chain management practices in Kenyan public sector with, specific reference to the Ministry of Finance. The study’s specific objective being; to establish the effect of inventory management on the effectiveness of supply chain management practices. The study adopted a descriptive case research design and the study population comprised of 120 management staff working at the Ministry of finances’ procurement, finance and administration departments. A stratified random sampling technique was employed to select a sample size of 60 respondents. Questionnaires were used as the main data collection instrument. Descriptive statistics data analysis method was applied to analyze numerical data gathered using closed ended questions aided by Statistical Package for Social Sciences (SPSS). Pearson correlation was carried out to establish the relationship between the research variables. Inventory management was also found to have a strong positive correlation with effectiveness of SCM practices (r = 0.915). The study recommend implementation of EOQ inventory management methods for and IT based SCM systems.
Analyzing the current incorporation of social, environmental And economic mea...World-Academic Journal
We theorize about the incorporation of social, environmental and economic dimensions into strategic performance measurement systems. 81Chinese companies were surveyed for the analysis. Along with the increasing of social responsibility pressure, numbers of enterprises are promoting environmental, social and economic performance as strategic sustainability measures. Although the addition of sustainability measures to enterprise’s long term business strategy has long time been a major preoccupation of literature. Some empirical researches have examined if these nonfinancial measures are effectively incorporated into strategic performance measurement systems. In this research, we will examine why the incorporation of sustainability measures into enterprise business strategy vary across enterprises operating in Shanghai.
Drivers of supply chain performance enhancing organizational output an explo...Alexander Decker
This document summarizes a research paper on the drivers of supply chain performance. It finds that there are six key drivers - facilities, inventory, transportation, information, sourcing and pricing - that organizations must manage to enhance performance. These drivers are interrelated and organizations need to balance efficiency and responsiveness in their supply chain practices. Properly managing these six drivers through integration, goals, market identification, and other practices can help firms increase performance and gain a competitive advantage through effective supply chain management. The paper provides a framework for organizations to manage the different drivers of supply chain performance.
This document summarizes an article from the International Journal of Management that discusses redesigning the strategic planning process of a higher education institution through process management. It provides context on the increasing competitiveness of educational institutions and importance of strategic planning and process management. The research studied the strategic planning process of UNISC University in Brazil. It mapped the university's current 9-step process and 6 planning documents. The research proposed a redesigned process with annual rather than 5-year planning, better alignment of strategies and actions, strategic indicators for monitoring, and improved control and measurement of outcomes. The redesign through process management aims to improve the university's ability to address challenges and evolve from a fragmented to systemic organizational view.
Factors Influencing Supply Chain Performance in the Public Sugar Sector - A C...paperpublications3
Abstract: This paper sought to evaluate the effect of technology adoption, early supplier involvement, low-cost sourcing and backward integration on supply chain performance in the public sugar sector, guided by four objectives: To assess effectiveness of technology adoption on supply chain performance, to assess the role of early supplier involvement on supply chain performance, to evaluate effectiveness of low-cost sourcing on supply chain performance and to evaluate effectiveness of backward integration on supply chain performance. Purposive sampling was used to select a target population of 60 respondents. Questionnaires were used as the main data collection instruments. Descriptive and inferential statistics was used in data analysis aided by SPSS software. From the findings, technology adoption and early supplier involvement were found to be positively correlated to supply chain performance. Thus the above factors should be considered as major determinants in influencing supply chain performance in the public sugar sector.
Keywords: Agile Supply, Backward integration, Collaborative Relationship, Corporate Strategy, Outsourcing, Supply Chain, Supply Chain Management.
Effects of Supplier Relationship Management on the Performance of Organizatio...iosrjce
This study was aimed at filling these gaps on how supplier relations management could be used to
enhance the performance of the sugar industry in Kenya. The study was guided by the following research
objectives, to: determine the effect of the organization structure in the performance of an organization,
determine the effect of value measurement on the performance of an organization, determine the effect of
collaboration on the performance of organizations and finally determine the effects of technology in the
performance of an organizations. The study adopted a survey and targeted the management and the
procurement staff of the three selected sugar companies in western Kenya which are Mumias, West Kenya and
Butali Sugar Companies. The study targeted the 25 departmental staff in the three companies’ and inclusive of
the three procurement managers who head the respective procurement departments in the companies. A total of
25 respondents were therefore targeted. The research employed a census study design. The sample size of the
study comprised of 25 respondents. The questionnaires were issued to the procurement staff through their
respective managers.
Resource configurations on sustainable competitive advantage of food and beve...Alexander Decker
This document summarizes a study that examined which resources food and beverage firms in Kenya use to achieve sustainable competitive advantage. The study tested the resource-based theory of the firm using data from 32 food and beverage firms that responded to a survey. The results found that organizational structure, as an intangible asset, had a significant effect on firms' sustainable competitive advantage. Specifically, the study confirmed that a firm's organizational structure, including its communication patterns and decision-making processes, are key contributors to achieving long-term competitive advantage in Kenya.
Scoring marketing obstacles and recommended solutions: the case of the date m...Premier Publishers
This study is an attempt to identify problematic issues facing date marketing systems in Saudi Arabia and to introduce corrective solutions to overcome them. Eventually, this would increase date marketing efficiency, performance, and the competitiveness level of Saudi dates, both locally and globally. The study applied a typical five-level Likert scale and factor analysis in order to analyze the primary data collected from date dealers at the major Saudi Arabian date markets. Results highlighted that the impact of technical problematic issues were the highest, with an average of 3.67 followed by structural problematic issues with an average of 3.36, and finally followed by behavioral problematic issues with an average of 3.12. Technical, structural, and behavioral problematic issues have been categorized into a set of factors explaining 79.18%, 74.84%, and 77.7% of the variations, respectively. The impact of applying the recommended solutions on a Saudi Arabian date marketing system were found to be high, ranging from a minimum of 3.35 for encouraging competition to a maximum of 3.98 for providing affordable cold storages. Dates marketing channel types, geographical factors, and the date marketing dealers’ educational level have shown significant effects on the prevailing problematic issues of the Saudi Arabian date marketing system.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the
following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
Environmental Factors Affecting Procurement Performance in County Government...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Instantaneous Deteriorated Economic Order Quantity (EOQ) Model with Promotion...IJAEMSJORNAL
This model studies the problem by proposing a continuous review inventory model under promotion by assuming that the units do not lost due to deterioration of the items. In this model optimization has been studied for applying promotional effort cost with promotion constraint. The effect of deteriorating items on the instantaneous profit maximization replenishment model under promotion is considered in this model. The market demand may increase with the promotion of the product over time when the units do not lost due to deterioration. In this model, promotional effort and replenishment decision are adjusted arbitrarily upward or downward for profit maximization model in response to the change in market demand within the planning horizon with fixed ordering cost. The objective of this model is to determine the optimal time length, the promotional effort and the replenishment quantity with fixed ordering cost so that the net profit is maximized and the numerical analysis show that an appropriate promotion policy can benefit the retailer and that promotion policy is important, especially for deteriorating items. Finally, sensitivity analyses of the optimal solution with respect to the major parameters are also studied to draw the managerial implications.
A STUDY ON THE RELATIONSHIP AMONG SUPPLY CHAIN MANAGEMENT COMPONENTS, SUPPLY ...Dr.Ganeshkumar C
This document outlines a study on the relationship between supply chain management components, supply chain performance, and organizational performance of manufacturing industries in Puducherry, India. The study aims to understand the impact of important supply chain management components on supply chain performance and organizational performance. It reviews literature on related topics and identifies variables and constructs such as supply chain concerns, competence, practices, and performance. The methodology section outlines how data will be collected and analyzed through statistical tools to test hypotheses and relationships between variables. The findings will provide insights on how supply chain management can impact performance.
Management Control in Contemporary Organization: Opportunities, Challenges an...Dr. Amarjeet Singh
This paper deals with management control as an
important instrument for managing performances in modern
organizations. The paper indicates to the circumstances in
which classical theory of management control was created,
and describes its process of functioning, with the specifics in
large organizations. The aim is to point to some open questions
and directions of further development of the management
control, as well as to at least partially fill the gap that exists in
the domestic literature. The conclusion is that the existing
management control framework remains still valid. Open
questions can be best resolved within the concept that observes
this matter as a "package" of different control systems, not
just those that are oriented to accounting-based performance
measures.
Determinants of Supply Chain Performance of Indian Manufacturing OrganizationsWaqas Tariq
This paper aims at proposing various determinants of supply chain performance of Indian manufacturing organizations. The determinants are summarized based on extensive literature review of empirical research articles on supply chain management (SCM) and performance measurement approaches. This study is a part of a larger research project exploring SC related practices. A critical analysis is carried out so as to identify research gaps in context of performance measurement of supply chains, as well as to propose directions for future research. A conceptual model is also proposed. Critical investigation of selected articles led to an idea that there can be significant effect of selected variables on SC Performance. It is to be seen that how various parameters, taken from the literature review, affect SC performance and ultimately contributing to its competitiveness. The various parameters like supplier-buyer relations, external supply chain, environmental factors, human metrics, information sharing and performance measurement approaches are taken in a single study in the context of Indian manufacturing organizations. Based on a pilot study with sample size of 100, empirical tests resulted in reduction of items. Based on the obtained results, the organizations can enhance the SCM performance by improving the current practices/strategies through focusing on the determinants that significantly influence SCM performance. Further research can be carried out by using data of various supply chains of other sectors and industries of India to generalize the research.
Production improvement function and corporate operational efficiency in the n...Alexander Decker
This document summarizes a study that investigated the impact of production improvement functions on corporate operational efficiency in the Nigerian manufacturing industry. The study found that:
1) Production planning has a significant positive impact on operational efficiency.
2) Production scheduling has an insignificant and weak influence on operational efficiency.
3) Production control has a significant positive relationship with operational efficiency.
The study concludes that production improvement functions significantly affect operational efficiency in Nigerian manufacturing firms, with planning and control having more impact than scheduling. It recommends that firms fully utilize production improvement functions, especially scheduling, to improve efficiency.
Factors Affecting Performance of Cut Flower Firms in Kenya: A Case of Maji Ma...paperpublications3
Abstract: The flower firms in Kenya face high competition from those in the developed countries whose produce is deemed to be of quality. There is a need therefore to improve on the activities in Kenyan flower firms to gain competitive edge. This study sought to provide insights into policies and practices of flower production and marketing in MajiMazuri Flower Company in Uasin Gishu County. The overall objective of the study was to look at the Factors Affecting the Performance of Cut flower firms and the main factors that shape its structure and functioning in the cut flower industry in Kenya. Specifically, the study sought, to establish the contribution Government policy in the performance of the cut flower. The target population is Maji Mazuri flowers with 37 employees. The study used Census research design on a total of 37 departmental heads and supervisors. Data was collected through questionnaires and interviews then analysed by SPSS. It was found out that the Government of Kenya supports the flower sector by providing export licenses, marketing horticultural produce internationally through the Ministry of Agriculture. It is recommended that Flower firms need to follow the rules and regulation in place for them to succeed.
Lake Tana basin is one of the most potential vegetable production areas in Ethiopia. However, production in this
region has been carried out at smallholders’ level with poor marketing infrastructure. Hence, this study was aimed to
examine the structure and performance of vegetable marketing in the Lake Tana basin. Multistage random sampling
mixed with non probability sampling techniques were employed to collect data from 385 smallholder vegetable
producing farmers and 107 vegetable traders from three districts and two major town markets. Data were analyzed
using market structure and performance indicators. The result of the analysis showed that market structure in the
study area could be characterized by weak oligopolistic market with little chance of market participants to influence
market price. Storage loss and transport cost were found the two largest cost components of vegetable marketing in
the study area. Net marketing margin and producers’ share of the consumers’ price could be improved by shortening
the distance between the producer and urban consumer or reducing the intermediaries involved. Establishing
farmers’ group marketing with communication access together with least cost storage and transport technologies
should be encouraged to improve vegetable marketing performance.
The document presents a framework for measuring supply chain performance. It discusses the importance of performance measurement in supply chain management and reviews relevant literature. The framework was developed based on literature and an empirical study of British companies. The framework considers performance measures at strategic, tactical, and operational levels for key supply chain activities like planning, sourcing, production, and delivery. It aims to promote a better understanding of supply chain performance measurement and stimulate further research.
Factors Affecting Purchasing Effectiveness in the Public Sugar Sector:A Case ...paperpublications3
Abstract:In the recent past, procurement performance has been attracting great attention from practitioners, academicians and researchers due to poor performance resulting from non adherence to proper processes and procedures. Many of the studies have devoted their content to financial factors as measures of effectiveness dismally giving consideration to non financial factors. This study aimed at investigating selected non financial factors that influence the effectiveness of purchasing function in the public sugar sector guided by four specific objectives; to find out how purchasing interaction with other departments impacts on its effectiveness, to find out how Purchasing delegated authority impacts on its effectiveness, to find out how Purchasing activity Execution impacts on its effectiveness and to find out how supplier relationship management practices impacts on purchasing function effectiveness. The four variables were found to have an effect on effectiveness of purchasing function in the public sugar sector. The study adopted a descriptive case research design and the study population comprised of 118 management staff Nzoia Sugar Company Ltd. A purposive sampling technique was employed to select a sample size of 57 respondents. Questionnaires were used as the main data collection instruments. Descriptive statistics data analysis method was applied to analyze numerical data gathered using closed ended questions aided by Statistical Package for Social Sciences (SPSS). From the findings, level of task execution explained 43.1% of purchasing department’s effectiveness, level of supplier relationship explained 20.9% and interaction level explained 2.2% while the level of purchasing delegated authority had a negative relationship with its effectiveness at -4.1% which means that the more autonomous purchasing department becomes the less effective it will be. The study recommends application of supplier collaboration strategies, integration of supply chain management tasks with IT to help speed up decision making process between the SCM partners, signing service level agreements (SLA),purchasing function to increase effectiveness by training and being members of professional bodies such as CIPS and KISM.
Keywords:Assessment, delegated authority, effectiveness, efficiency, inventory, non financial measures, purchasing interaction.
This research aims at identifying the impact of excellence in drawing up the following four marketing mix strategies (Product, Pricing, Promotion and Distribution) of the small and medium enterprises in Jordan, in terms of their marketing performance in its dimensions (Sales Growth, Profit Growth, Customer Attraction and Customer Retention).In order to reach the results of this study, A total of (187) valid questionnaire surveys were collected from companies belong to the SME Association in Jordan. The Statistical Package for the Social Sciences (SPSS) approach was used to analyze the collected data. The empirical results indicated there is a significant relationship between the building of marketing strategies of the marketing mix elements in the Jordanian SME and their marketing performance, by (sales growth, profit growth, customer attraction, and customer retention) dimensions. Consequently, decision makers in small and medium organizations need to choose strategies based on their target market to the positive impact on the mind of the consumer, which in turn could improve modern scientific methods in SME to divide their markets into sub-market sectors.
This document summarizes a study on the relationship between corporate innovation and organizational performance in the telecommunications industry in Somalia. The study used a cross-sectional survey of 180 employees from telecom companies in three cities. It found that technological innovation, administrative innovation, and strategic innovation all had a statistically significant positive effect on organizational performance. Therefore, telecom companies need to focus on these factors to maintain their performance in the future.
Effects of Internal Control on the Financial Performance of Processing Firms ...paperpublications3
Abstract: Internal control is a system structured within the corporation whose goal is to raise efficiency and effectiveness of activities. The main objective of the study was to establish effects of internal control systems on the financial performance of Menengai Oil Company, Kenya. The specific objectives of the study were to determine the effect of control environment on the financial performance of Menengai Company, determine the influence of risk assessment on the financial performance of Menengai Company and to establish the influence of information systems on financial performance of Menengai Company. The study adopted a survey research design. A census of 189 respondents was used in the study. The data collected were first be tabulated, then analyzed by use of descriptive statistics and inferential statistics. The results were presented in charts, tables and graphs. ANOVA tests confirmed that control environment, risk assessment and information have a significant influence on the financial performance of Menengai Company. This study will shed light on the various internal control activities which can be put in place by the management of Menengai Company.
Keywords: Internal Control, Control environment, Risk Assessment, Information Systems, Menengai Oil Company.
Title: Effects of Internal Control on the Financial Performance of Processing Firms in Kenya: A Case of Menengai Company
Author: Janet Cheptoo Bett, Dr. Florence Sigara Memba
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
NEW GLOBAL OPEN WEB E BANKING MARKET HANDLING INTERNATIONAL GREEK CHARGES GR0112005674 Name und Anschrift des Leistenden Name/Unternehmen E.D.GOUTOS SA Postleitzahl 21300 Ort PORTOCHELI GREECE Staat Vereinigte Staaten von Amerika Steuernummer/USt-IdNr. 93172860596 Sitz des Geldinstitutes GREECE Bankleitzahl (Sortcode) 20122262 Bank Identification Code (BIC) HRB68648
JOSCM | Journal of Operations and Supply Chain Management - Volume 8 number 2 - July/December 2015
This issue of Journal of Operations and Supply Chain Management counts with eight papers that focus on strategic, tactical and operational aspects of supply chain management.
The paper from Nyaoga, Magutu and Aduda (2015) explores the link between supply chain strategies and firm performance. Based on data from 627 companies, the authors show that supply chain strategies account for a significant share of firms´ performance; reinforcing that companies should investments in supply chain practices. Radanliev (2015), in its turn, develops a framework based on the supply chain architecture, design, and engineering literature that offers guidelines on how practitioners can decompose and build a green-field (new and non-existent) supply chain. We also have three papers on specific supply chain strategies. Pereira and Silva (2015) and Bradaschia and Pereira (2015), for instance, explore the concept of supply chain resilience and its antecedents. With the use of case studies, the former shows how the management of buyer and supplier interfaces, of risk, and of knowledge can enhance resilience in a supply chain while the latter adds that flexibility is also a vital enabler of supply chain resilience. Ferreira, Bertan and Pimenta (2015) then show the importance of inter-organizational integration to achieve the outcomes expected by companies.
This volume also counts with papers focused on logistic services, transportation, and inventory management - key decision areas in supply chain management. Liane Okdinawati, Simatupang and Sunitiyoso (2015) review the literature on collaborative transportation management and suggest areas for future research in the field and Yang (2015) provides an overview of the third-party logistics providers in the United States for investigating how the industry has evolved to meets customers' needs in an environment marked by global supply chains. Finally, this issue has a technical note on a stochastic two-echelon model to solve the petrol station replenishment problem. This model offers insights on how firms can devise a replenishment policy to minimize inventory costs, in the long run, given the demand pattern.
For more information on this issue, visit the FGV Library System: http://bit.ly/2livlzW
A REVIEW OF LITERATURE IN MANAGEMENT CONTROL SYSTEM (MCS), BUSINESS STRATEGY,...Christine Maffla
This document reviews 10 articles on the relationship between management control systems (MCS), business strategy, and firm performance. Most articles studied manufacturing industries in Australia and Canada, with managers and top management as the most common key informants. The majority used quantitative methods. Findings showed MCS can support both cost leadership and differentiation strategies, though different MCS may be needed for each. Interactive MCS were found to support differentiation strategies and influence innovation and financial performance. Overall the literature revealed linkages between MCS, strategy, and performance.
ROLE OF SUPPLIER MANAGEMENT PRACTICES IN OPTIMIZATION OF OPERATIONAL PERFORM...muo charles
ROLE OF SUPPLIER MANAGEMENT PRACTICES IN OPTIMIZATION OF OPERATIONAL PERFORMANCE IN TELECOMMUNICATION SERVICE INDUSTRY IN KENYA. A CASE OF SAFARICOM LIMITED KENYA
Sugarcane Company’s performance has remained to be one of the challenging facts in the growing companies in Kenya today. The delays in harvesting operations are attributed to uncoordinated and unpredictable harvesting and transport schedules; and inefficiencies in mill operations. Therefore, the main aim of the study is to determine the influence of Sustainability Management Systems CSR on firm performance of selected sugarcane companies in Kenya. The study is guided by Corporate Social Performance Theory. This study used ex- post facto research design. Ex- post facto research design determines and reports the way things are. The target population was 528 employees. This study therefore sampled 228 respondents. Purposive sampling technique was used to select 10 managers, 24 supervisors, 38 accountants and 156 clerks from the 7 sugarcane companies because they have specific information concerning the effects of corporate social responsibility practice on firm performance of selected sugarcane companies in Kenya. Pilot study was done in order to test for validity and reliability of the research tools. The pilot study was done in Trans-Mara Sugar Company found in rift Valley region of Kenya. For inferential statistics, correlation and multiple regression was used for comparative analysis between frequencies of corporate social responsibility practice on firm performance. The study findings indicated that sustainability management systems have an effect on firm performance. The government will use this study in establishing policies that would ensure improvement in firm performance of sugarcane processing firms among other firms in Kenya. The study recommends that the companies should encourage sustainability management systems since sustainable management systems is an important mechanism for improving corporate sustainability performance. It can generate business value through measurement and management of sustainability risks and opportunities. The study recommends further researchers to study on corporate social responsibility strategy and financial performance of firms in Kenya which the study didn’t cover.
Effects of Supplier Relationship Management on the Performance of Organizatio...iosrjce
This study was aimed at filling these gaps on how supplier relations management could be used to
enhance the performance of the sugar industry in Kenya. The study was guided by the following research
objectives, to: determine the effect of the organization structure in the performance of an organization,
determine the effect of value measurement on the performance of an organization, determine the effect of
collaboration on the performance of organizations and finally determine the effects of technology in the
performance of an organizations. The study adopted a survey and targeted the management and the
procurement staff of the three selected sugar companies in western Kenya which are Mumias, West Kenya and
Butali Sugar Companies. The study targeted the 25 departmental staff in the three companies’ and inclusive of
the three procurement managers who head the respective procurement departments in the companies. A total of
25 respondents were therefore targeted. The research employed a census study design. The sample size of the
study comprised of 25 respondents. The questionnaires were issued to the procurement staff through their
respective managers.
Resource configurations on sustainable competitive advantage of food and beve...Alexander Decker
This document summarizes a study that examined which resources food and beverage firms in Kenya use to achieve sustainable competitive advantage. The study tested the resource-based theory of the firm using data from 32 food and beverage firms that responded to a survey. The results found that organizational structure, as an intangible asset, had a significant effect on firms' sustainable competitive advantage. Specifically, the study confirmed that a firm's organizational structure, including its communication patterns and decision-making processes, are key contributors to achieving long-term competitive advantage in Kenya.
Scoring marketing obstacles and recommended solutions: the case of the date m...Premier Publishers
This study is an attempt to identify problematic issues facing date marketing systems in Saudi Arabia and to introduce corrective solutions to overcome them. Eventually, this would increase date marketing efficiency, performance, and the competitiveness level of Saudi dates, both locally and globally. The study applied a typical five-level Likert scale and factor analysis in order to analyze the primary data collected from date dealers at the major Saudi Arabian date markets. Results highlighted that the impact of technical problematic issues were the highest, with an average of 3.67 followed by structural problematic issues with an average of 3.36, and finally followed by behavioral problematic issues with an average of 3.12. Technical, structural, and behavioral problematic issues have been categorized into a set of factors explaining 79.18%, 74.84%, and 77.7% of the variations, respectively. The impact of applying the recommended solutions on a Saudi Arabian date marketing system were found to be high, ranging from a minimum of 3.35 for encouraging competition to a maximum of 3.98 for providing affordable cold storages. Dates marketing channel types, geographical factors, and the date marketing dealers’ educational level have shown significant effects on the prevailing problematic issues of the Saudi Arabian date marketing system.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the
following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
Environmental Factors Affecting Procurement Performance in County Government...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Instantaneous Deteriorated Economic Order Quantity (EOQ) Model with Promotion...IJAEMSJORNAL
This model studies the problem by proposing a continuous review inventory model under promotion by assuming that the units do not lost due to deterioration of the items. In this model optimization has been studied for applying promotional effort cost with promotion constraint. The effect of deteriorating items on the instantaneous profit maximization replenishment model under promotion is considered in this model. The market demand may increase with the promotion of the product over time when the units do not lost due to deterioration. In this model, promotional effort and replenishment decision are adjusted arbitrarily upward or downward for profit maximization model in response to the change in market demand within the planning horizon with fixed ordering cost. The objective of this model is to determine the optimal time length, the promotional effort and the replenishment quantity with fixed ordering cost so that the net profit is maximized and the numerical analysis show that an appropriate promotion policy can benefit the retailer and that promotion policy is important, especially for deteriorating items. Finally, sensitivity analyses of the optimal solution with respect to the major parameters are also studied to draw the managerial implications.
A STUDY ON THE RELATIONSHIP AMONG SUPPLY CHAIN MANAGEMENT COMPONENTS, SUPPLY ...Dr.Ganeshkumar C
This document outlines a study on the relationship between supply chain management components, supply chain performance, and organizational performance of manufacturing industries in Puducherry, India. The study aims to understand the impact of important supply chain management components on supply chain performance and organizational performance. It reviews literature on related topics and identifies variables and constructs such as supply chain concerns, competence, practices, and performance. The methodology section outlines how data will be collected and analyzed through statistical tools to test hypotheses and relationships between variables. The findings will provide insights on how supply chain management can impact performance.
Management Control in Contemporary Organization: Opportunities, Challenges an...Dr. Amarjeet Singh
This paper deals with management control as an
important instrument for managing performances in modern
organizations. The paper indicates to the circumstances in
which classical theory of management control was created,
and describes its process of functioning, with the specifics in
large organizations. The aim is to point to some open questions
and directions of further development of the management
control, as well as to at least partially fill the gap that exists in
the domestic literature. The conclusion is that the existing
management control framework remains still valid. Open
questions can be best resolved within the concept that observes
this matter as a "package" of different control systems, not
just those that are oriented to accounting-based performance
measures.
Determinants of Supply Chain Performance of Indian Manufacturing OrganizationsWaqas Tariq
This paper aims at proposing various determinants of supply chain performance of Indian manufacturing organizations. The determinants are summarized based on extensive literature review of empirical research articles on supply chain management (SCM) and performance measurement approaches. This study is a part of a larger research project exploring SC related practices. A critical analysis is carried out so as to identify research gaps in context of performance measurement of supply chains, as well as to propose directions for future research. A conceptual model is also proposed. Critical investigation of selected articles led to an idea that there can be significant effect of selected variables on SC Performance. It is to be seen that how various parameters, taken from the literature review, affect SC performance and ultimately contributing to its competitiveness. The various parameters like supplier-buyer relations, external supply chain, environmental factors, human metrics, information sharing and performance measurement approaches are taken in a single study in the context of Indian manufacturing organizations. Based on a pilot study with sample size of 100, empirical tests resulted in reduction of items. Based on the obtained results, the organizations can enhance the SCM performance by improving the current practices/strategies through focusing on the determinants that significantly influence SCM performance. Further research can be carried out by using data of various supply chains of other sectors and industries of India to generalize the research.
Production improvement function and corporate operational efficiency in the n...Alexander Decker
This document summarizes a study that investigated the impact of production improvement functions on corporate operational efficiency in the Nigerian manufacturing industry. The study found that:
1) Production planning has a significant positive impact on operational efficiency.
2) Production scheduling has an insignificant and weak influence on operational efficiency.
3) Production control has a significant positive relationship with operational efficiency.
The study concludes that production improvement functions significantly affect operational efficiency in Nigerian manufacturing firms, with planning and control having more impact than scheduling. It recommends that firms fully utilize production improvement functions, especially scheduling, to improve efficiency.
Factors Affecting Performance of Cut Flower Firms in Kenya: A Case of Maji Ma...paperpublications3
Abstract: The flower firms in Kenya face high competition from those in the developed countries whose produce is deemed to be of quality. There is a need therefore to improve on the activities in Kenyan flower firms to gain competitive edge. This study sought to provide insights into policies and practices of flower production and marketing in MajiMazuri Flower Company in Uasin Gishu County. The overall objective of the study was to look at the Factors Affecting the Performance of Cut flower firms and the main factors that shape its structure and functioning in the cut flower industry in Kenya. Specifically, the study sought, to establish the contribution Government policy in the performance of the cut flower. The target population is Maji Mazuri flowers with 37 employees. The study used Census research design on a total of 37 departmental heads and supervisors. Data was collected through questionnaires and interviews then analysed by SPSS. It was found out that the Government of Kenya supports the flower sector by providing export licenses, marketing horticultural produce internationally through the Ministry of Agriculture. It is recommended that Flower firms need to follow the rules and regulation in place for them to succeed.
Lake Tana basin is one of the most potential vegetable production areas in Ethiopia. However, production in this
region has been carried out at smallholders’ level with poor marketing infrastructure. Hence, this study was aimed to
examine the structure and performance of vegetable marketing in the Lake Tana basin. Multistage random sampling
mixed with non probability sampling techniques were employed to collect data from 385 smallholder vegetable
producing farmers and 107 vegetable traders from three districts and two major town markets. Data were analyzed
using market structure and performance indicators. The result of the analysis showed that market structure in the
study area could be characterized by weak oligopolistic market with little chance of market participants to influence
market price. Storage loss and transport cost were found the two largest cost components of vegetable marketing in
the study area. Net marketing margin and producers’ share of the consumers’ price could be improved by shortening
the distance between the producer and urban consumer or reducing the intermediaries involved. Establishing
farmers’ group marketing with communication access together with least cost storage and transport technologies
should be encouraged to improve vegetable marketing performance.
The document presents a framework for measuring supply chain performance. It discusses the importance of performance measurement in supply chain management and reviews relevant literature. The framework was developed based on literature and an empirical study of British companies. The framework considers performance measures at strategic, tactical, and operational levels for key supply chain activities like planning, sourcing, production, and delivery. It aims to promote a better understanding of supply chain performance measurement and stimulate further research.
Factors Affecting Purchasing Effectiveness in the Public Sugar Sector:A Case ...paperpublications3
Abstract:In the recent past, procurement performance has been attracting great attention from practitioners, academicians and researchers due to poor performance resulting from non adherence to proper processes and procedures. Many of the studies have devoted their content to financial factors as measures of effectiveness dismally giving consideration to non financial factors. This study aimed at investigating selected non financial factors that influence the effectiveness of purchasing function in the public sugar sector guided by four specific objectives; to find out how purchasing interaction with other departments impacts on its effectiveness, to find out how Purchasing delegated authority impacts on its effectiveness, to find out how Purchasing activity Execution impacts on its effectiveness and to find out how supplier relationship management practices impacts on purchasing function effectiveness. The four variables were found to have an effect on effectiveness of purchasing function in the public sugar sector. The study adopted a descriptive case research design and the study population comprised of 118 management staff Nzoia Sugar Company Ltd. A purposive sampling technique was employed to select a sample size of 57 respondents. Questionnaires were used as the main data collection instruments. Descriptive statistics data analysis method was applied to analyze numerical data gathered using closed ended questions aided by Statistical Package for Social Sciences (SPSS). From the findings, level of task execution explained 43.1% of purchasing department’s effectiveness, level of supplier relationship explained 20.9% and interaction level explained 2.2% while the level of purchasing delegated authority had a negative relationship with its effectiveness at -4.1% which means that the more autonomous purchasing department becomes the less effective it will be. The study recommends application of supplier collaboration strategies, integration of supply chain management tasks with IT to help speed up decision making process between the SCM partners, signing service level agreements (SLA),purchasing function to increase effectiveness by training and being members of professional bodies such as CIPS and KISM.
Keywords:Assessment, delegated authority, effectiveness, efficiency, inventory, non financial measures, purchasing interaction.
This research aims at identifying the impact of excellence in drawing up the following four marketing mix strategies (Product, Pricing, Promotion and Distribution) of the small and medium enterprises in Jordan, in terms of their marketing performance in its dimensions (Sales Growth, Profit Growth, Customer Attraction and Customer Retention).In order to reach the results of this study, A total of (187) valid questionnaire surveys were collected from companies belong to the SME Association in Jordan. The Statistical Package for the Social Sciences (SPSS) approach was used to analyze the collected data. The empirical results indicated there is a significant relationship between the building of marketing strategies of the marketing mix elements in the Jordanian SME and their marketing performance, by (sales growth, profit growth, customer attraction, and customer retention) dimensions. Consequently, decision makers in small and medium organizations need to choose strategies based on their target market to the positive impact on the mind of the consumer, which in turn could improve modern scientific methods in SME to divide their markets into sub-market sectors.
This document summarizes a study on the relationship between corporate innovation and organizational performance in the telecommunications industry in Somalia. The study used a cross-sectional survey of 180 employees from telecom companies in three cities. It found that technological innovation, administrative innovation, and strategic innovation all had a statistically significant positive effect on organizational performance. Therefore, telecom companies need to focus on these factors to maintain their performance in the future.
Effects of Internal Control on the Financial Performance of Processing Firms ...paperpublications3
Abstract: Internal control is a system structured within the corporation whose goal is to raise efficiency and effectiveness of activities. The main objective of the study was to establish effects of internal control systems on the financial performance of Menengai Oil Company, Kenya. The specific objectives of the study were to determine the effect of control environment on the financial performance of Menengai Company, determine the influence of risk assessment on the financial performance of Menengai Company and to establish the influence of information systems on financial performance of Menengai Company. The study adopted a survey research design. A census of 189 respondents was used in the study. The data collected were first be tabulated, then analyzed by use of descriptive statistics and inferential statistics. The results were presented in charts, tables and graphs. ANOVA tests confirmed that control environment, risk assessment and information have a significant influence on the financial performance of Menengai Company. This study will shed light on the various internal control activities which can be put in place by the management of Menengai Company.
Keywords: Internal Control, Control environment, Risk Assessment, Information Systems, Menengai Oil Company.
Title: Effects of Internal Control on the Financial Performance of Processing Firms in Kenya: A Case of Menengai Company
Author: Janet Cheptoo Bett, Dr. Florence Sigara Memba
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
NEW GLOBAL OPEN WEB E BANKING MARKET HANDLING INTERNATIONAL GREEK CHARGES GR0112005674 Name und Anschrift des Leistenden Name/Unternehmen E.D.GOUTOS SA Postleitzahl 21300 Ort PORTOCHELI GREECE Staat Vereinigte Staaten von Amerika Steuernummer/USt-IdNr. 93172860596 Sitz des Geldinstitutes GREECE Bankleitzahl (Sortcode) 20122262 Bank Identification Code (BIC) HRB68648
JOSCM | Journal of Operations and Supply Chain Management - Volume 8 number 2 - July/December 2015
This issue of Journal of Operations and Supply Chain Management counts with eight papers that focus on strategic, tactical and operational aspects of supply chain management.
The paper from Nyaoga, Magutu and Aduda (2015) explores the link between supply chain strategies and firm performance. Based on data from 627 companies, the authors show that supply chain strategies account for a significant share of firms´ performance; reinforcing that companies should investments in supply chain practices. Radanliev (2015), in its turn, develops a framework based on the supply chain architecture, design, and engineering literature that offers guidelines on how practitioners can decompose and build a green-field (new and non-existent) supply chain. We also have three papers on specific supply chain strategies. Pereira and Silva (2015) and Bradaschia and Pereira (2015), for instance, explore the concept of supply chain resilience and its antecedents. With the use of case studies, the former shows how the management of buyer and supplier interfaces, of risk, and of knowledge can enhance resilience in a supply chain while the latter adds that flexibility is also a vital enabler of supply chain resilience. Ferreira, Bertan and Pimenta (2015) then show the importance of inter-organizational integration to achieve the outcomes expected by companies.
This volume also counts with papers focused on logistic services, transportation, and inventory management - key decision areas in supply chain management. Liane Okdinawati, Simatupang and Sunitiyoso (2015) review the literature on collaborative transportation management and suggest areas for future research in the field and Yang (2015) provides an overview of the third-party logistics providers in the United States for investigating how the industry has evolved to meets customers' needs in an environment marked by global supply chains. Finally, this issue has a technical note on a stochastic two-echelon model to solve the petrol station replenishment problem. This model offers insights on how firms can devise a replenishment policy to minimize inventory costs, in the long run, given the demand pattern.
For more information on this issue, visit the FGV Library System: http://bit.ly/2livlzW
A REVIEW OF LITERATURE IN MANAGEMENT CONTROL SYSTEM (MCS), BUSINESS STRATEGY,...Christine Maffla
This document reviews 10 articles on the relationship between management control systems (MCS), business strategy, and firm performance. Most articles studied manufacturing industries in Australia and Canada, with managers and top management as the most common key informants. The majority used quantitative methods. Findings showed MCS can support both cost leadership and differentiation strategies, though different MCS may be needed for each. Interactive MCS were found to support differentiation strategies and influence innovation and financial performance. Overall the literature revealed linkages between MCS, strategy, and performance.
ROLE OF SUPPLIER MANAGEMENT PRACTICES IN OPTIMIZATION OF OPERATIONAL PERFORM...muo charles
ROLE OF SUPPLIER MANAGEMENT PRACTICES IN OPTIMIZATION OF OPERATIONAL PERFORMANCE IN TELECOMMUNICATION SERVICE INDUSTRY IN KENYA. A CASE OF SAFARICOM LIMITED KENYA
Sugarcane Company’s performance has remained to be one of the challenging facts in the growing companies in Kenya today. The delays in harvesting operations are attributed to uncoordinated and unpredictable harvesting and transport schedules; and inefficiencies in mill operations. Therefore, the main aim of the study is to determine the influence of Sustainability Management Systems CSR on firm performance of selected sugarcane companies in Kenya. The study is guided by Corporate Social Performance Theory. This study used ex- post facto research design. Ex- post facto research design determines and reports the way things are. The target population was 528 employees. This study therefore sampled 228 respondents. Purposive sampling technique was used to select 10 managers, 24 supervisors, 38 accountants and 156 clerks from the 7 sugarcane companies because they have specific information concerning the effects of corporate social responsibility practice on firm performance of selected sugarcane companies in Kenya. Pilot study was done in order to test for validity and reliability of the research tools. The pilot study was done in Trans-Mara Sugar Company found in rift Valley region of Kenya. For inferential statistics, correlation and multiple regression was used for comparative analysis between frequencies of corporate social responsibility practice on firm performance. The study findings indicated that sustainability management systems have an effect on firm performance. The government will use this study in establishing policies that would ensure improvement in firm performance of sugarcane processing firms among other firms in Kenya. The study recommends that the companies should encourage sustainability management systems since sustainable management systems is an important mechanism for improving corporate sustainability performance. It can generate business value through measurement and management of sustainability risks and opportunities. The study recommends further researchers to study on corporate social responsibility strategy and financial performance of firms in Kenya which the study didn’t cover.
Influence of Strategic Capital Structure Practices on Financial Performance o...inventionjournals
This research aimed at analyzing the influence of strategic Capital structure practices on financial performance of manufacturing companies using evidence from Kenya’s sugar industry. The following specific objectives were addressed by this study: to assess the influence of strategic capital structure practices on financial performance of sugar Manufacturing companies in Kenya, and to determine the influence of Board structure as a moderating factor on the financial performance of sugar manufacturing companies in Kenya. This study was guided by Capital structure Model and agency theory. This research adopted a descriptive research design in which a census of all the targeted population of 12 manufacturing companies jointly from sugar manufacturing industry were drawn from a list of 800 manufacturing companies in Kenya, whereby a proportionate random sample of 109 employees were interviewed from all the 12 sugar manufacturing companies in Kenya. Questionnaires were administered as the main tool of data collection whereby 102 questionnaires were collected representing a 93.6% response rate. Descriptive statistical techniques were applied to describe application of strategic financial management practices in the sampled manufacturing companies which were sugar manufacturing companies in this study. Inferential statistical techniques such as Correlation analysis and regression analysis were applied to test the hypotheses of association and differences. Gathered data was processed by computer and the Statistical Package for Social Science (SPSS) which was the main computer software that was utilized in data analysis. The strategic capital practices’ null hypotheses were rejected implying a significant effect on financial performance. Board structure was found significant implying board structure as a moderating value has a significant effect on financial performance. It is therefore recommended that it is important for firms to mix their capital structure in order to diversify their finances. This study suggests the need for further research on other economic factors besides capital structure management practices that influence the financial performance of sugar manufacturing companies and other companies.
Total Quality Management (TQM) Practices toward Product Quality Performance: ...IOSRJBM
The purpose of this research was to test and analyze the effect of TQM practices impelementation which consists of leadership, strategic planning, customer focus, information and analysis, people management, and process management to product quality performance. The population were 108 food and beverage companies in Makassar, Indonesia. Respondents are production managers or operation managers. Sample technique which used is population sampling. Method of analysis which use both descriptive statistic and Structural Equation Modelling (SEM). Data processing uses two statistic tools i.e: IBM SPSS and AMOS 19.00. The findings of research indicate that leadership has significant effect on product quality performance, strategic planning has significant effect on product quality performance, customer focus has significant effect on product quality performance, information and analysis has significant effect on product quality performance, people management has significant effect on product quality performance, and process management has significant effect on product quality performance. Leadership factor has dominant effect on product quality performance (critical ratio = 9.760 > t-table = 1.960; and probability = 0.000 < α = 0.05).
Effect of Supply Chain Management Practices on Organizational Performance of ...AJHSSR Journal
ABSTRACT: The aim of this study was to determine the effect of supply chain management practices on the
performance of Kenya’s state corporations. The study adopted a descriptive research design. A total of 142
parastatals were targeted from which 15 of them were selected to participate in the study. Purposive sampling
was used to select two senior managers from each of the 15 parastatals. These respondents were selected from
the finance and procurement departments. Questionnaires were used to collect primary data from the state
corporations. Both descriptive and inferential statistics were used in the study. Inferential statistics conducted
were regression analyses. Results indicated that outsourcing practices (p=0.205>0.05) have a negative but
insignificant effect on organizational performance. On the other hand, inventory management practices
(p=0.006<0.05), lean practices (p=0.006<0.05), and strategic supplier relationship management practices
(p=0.001<0.05) all have a positive and significant effect on the performance of state corporations.
KEYWORDS:Outsourcing, Inventory Management Practices, Lean Supply Chain Management Practices,
Strategic Supplier Relationship Practices, Organizational Performance,
Challenges to implementation of business strategies implications on business ...Alexander Decker
This document discusses challenges to implementing business strategies for transnational tea firms in Kenya. It finds that the main challenges are currency exchange rate fluctuations, changes in international tea prices, and unpredictable weather patterns. These factors, which are outside the firms' control, can undermine strategy implementation and business sustainability. The document recommends that tea firms use flexible strategies and ensure strategies are integrated to mitigate the effects of these challenges on successful strategy implementation and long-term viability.
This document provides a literature review on performance management systems. It summarizes several studies that have examined the impact and effectiveness of performance management. Some key findings include: successful performance management systems are linked to positive organizational outcomes like financial performance; measurement and goal-setting are associated with better company performance; training and development practices are strongly related to perceived organizational performance; and line manager involvement and buy-in is important for effective implementation of performance management systems. The literature review covers research from 1997 to 2012.
We employ Cameroonian data on 162 Small and Medium Enterprises (SME) to test fourth competing hypotheses about the impact of Supply Chain Management (SCM) on their performance. The first hypothesis states that there is a relationship between Critical Success Factors (CSFs) for implementation of SCM and SME performance in terms of customer service and satisfaction
Strategic Management Practices in the Government of Kenya Ministries and Thei...paperpublications3
Abstract: The aim behind this study was to determine role of strategic management practices on change implementation guided by three objectives; the influence of leadership styles, communication styles and employee skills on change implementation in the government of Kenya Ministries. The study used descriptive research design where 95 respondents were the representative of the entire population from 18 ministries. Questionnaires were used as the instrument of data collection. The data collected was analysed using SPSS and regression analysis method used to establish the hypothetical relationship between variables. The study established that leadership styles, communication styles and employee training were not common strategic management practices to influence change implementation in the ministries. The study concluded that the ministries should recruit managers who can analyse the business environment, formulate, implement and evaluate strategies. Ministries should adopt structures that are flexible to changes and encourage employee training to enhance efficiency and effectiveness. Therefore, the study recommended that ministries should introduce changes by developing a plan that will outline how change will be implemented gradually with minimal systemic and individual resistance.
The impact of applying quality management system and environment standard on ...Alexander Decker
This document summarizes a study that examined the relationship between applying quality management systems
(QMS) and environmental standards on organizational performance in small and medium enterprises (SMEs) in Egypt.
The study collected data from 150 SME management staff through surveys. It found that QMS and environmental
standards were both related to organizational performance, but that QMS had a greater impact on performance than
environmental standards. The findings provide empirical evidence that QMS significantly influences organizational
performance more than environmental standards.
A State-Of-Art Review Of Total Quality Management Application In Service Sectorinventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Effects of business process re engineering on implementation of financial man...Alexander Decker
This document discusses a study on the effects of business process re-engineering on the implementation of financial management systems at Masinde Muliro University of Science and Technology. The study developed a conceptual framework with business process re-engineering as the independent variable, successful financial management system implementation as the dependent variable, and compatibility of financial management modules as the moderating variable. The research found that 85% of financial management system implementation success was accounted for by integrating general ledger, budgetary accounting, accounts payable, accounts receivable, and payroll systems modules. The document also discusses that business process re-engineering, including reforming existing systems, standardizing procedures, and realigning organizational structures is critical for successful financial management system implementation.
This document summarizes a study that conducted a gap analysis to assess Indian seafood exporting firms' readiness to implement total quality management (TQM). The study found the largest gaps were in the areas of using statistical process control tools (66.7% gap), benchmarking (65.6%), top management commitment (56.25%), and customer focus (48.1%). Top management was generally supportive of quality programs but lacked awareness of TQM tools and quality incentives for workers. Supplier quality management also showed a gap, though raw material quality was usually satisfactory. Few firms conducted customer satisfaction surveys. Overall the analysis revealed several areas that would need to be improved for firms to fully adopt a TQM system.
The study presents a conceptual framework showing the moderating role of technological turbulence on the relationship between total quality management and firms performance. Literature was reviewed before arriving at the proposed conceptual framework. From the model, it is proposed that the relationship between total quality management and organizational performance will be stronger when technological turbulence is supportive and taken in to consideration by Nigerian banking industry. Organizations that leverages on opportunities that evolves around its external environment in terms of change in technology has an edge in attaining competitive edge and improving performance of their organizations more efficiently and effectively than competitors do.
Critical analysis of competitive strategies on performance andOddillia Nabwire
This document summarizes a study on the competitive strategies adopted by Middle Level Colleges in Mombasa County, Kenya. It provides background on the competitive environment facing these colleges and discusses Porter's model of generic competitive strategies of differentiation, cost leadership, and focus. The study aimed to identify the strategies used by the colleges, determine if they enhance performance and market positioning, and identify challenges to implementation. It describes the research methodology used, which was a descriptive design studying 20 colleges selected through convenience sampling. The findings provided insight into the strategies adopted and issues facing the colleges.
FACTORS INFLUENCING ON MARKETING PERFORMANCE: THE MEDIATING ROLE OF BUSINESS ...indexPub
In a time when the world economy is undergoing unprecedented change and disruption, the role of market orientation, digital orientation or business agility becomes even more important and necessary, especially the relationship of these factors with the marketing performance of the business is a topic of great interest. This study aims to determine the impact of factors affecting marketing performance including market orientation, digital orientation. It also examines the mediating role of business agility in the relationship between market orientation, digital orientation and marketing performance.
Relationships among Structural Adaptations, Strategy Implementationa and Perf...Prof. Peter Kihara
This document examines the relationships between structural adaptations, strategy implementation, and performance of manufacturing small and medium enterprises (SMEs) in Thika Sub-County, Kenya. It finds that structural adaptations, formalization, and specialization are positively and significantly related to SME performance, while centralization is positively but insignificantly related. The study used a mixed research design and questionnaire to collect primary data from 115 SMEs, analyzing the data using correlation and regression. It concludes that formalization and specialization are key determinants of superior performance for SMEs, while centralization does not necessarily contribute to better performance in the dynamic SME environment in Kenya.
Similar to Interractive Control Systems and Strategic Orientation on Competitive Position of Sugar Firms in Western Kenya (20)
A review on techniques and modelling methodologies used for checking electrom...nooriasukmaningtyas
The proper function of the integrated circuit (IC) in an inhibiting electromagnetic environment has always been a serious concern throughout the decades of revolution in the world of electronics, from disjunct devices to today’s integrated circuit technology, where billions of transistors are combined on a single chip. The automotive industry and smart vehicles in particular, are confronting design issues such as being prone to electromagnetic interference (EMI). Electronic control devices calculate incorrect outputs because of EMI and sensors give misleading values which can prove fatal in case of automotives. In this paper, the authors have non exhaustively tried to review research work concerned with the investigation of EMI in ICs and prediction of this EMI using various modelling methodologies and measurement setups.
CHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECTjpsjournal1
The rivalry between prominent international actors for dominance over Central Asia's hydrocarbon
reserves and the ancient silk trade route, along with China's diplomatic endeavours in the area, has been
referred to as the "New Great Game." This research centres on the power struggle, considering
geopolitical, geostrategic, and geoeconomic variables. Topics including trade, political hegemony, oil
politics, and conventional and nontraditional security are all explored and explained by the researcher.
Using Mackinder's Heartland, Spykman Rimland, and Hegemonic Stability theories, examines China's role
in Central Asia. This study adheres to the empirical epistemological method and has taken care of
objectivity. This study analyze primary and secondary research documents critically to elaborate role of
china’s geo economic outreach in central Asian countries and its future prospect. China is thriving in trade,
pipeline politics, and winning states, according to this study, thanks to important instruments like the
Shanghai Cooperation Organisation and the Belt and Road Economic Initiative. According to this study,
China is seeing significant success in commerce, pipeline politics, and gaining influence on other
governments. This success may be attributed to the effective utilisation of key tools such as the Shanghai
Cooperation Organisation and the Belt and Road Economic Initiative.
Advanced control scheme of doubly fed induction generator for wind turbine us...IJECEIAES
This paper describes a speed control device for generating electrical energy on an electricity network based on the doubly fed induction generator (DFIG) used for wind power conversion systems. At first, a double-fed induction generator model was constructed. A control law is formulated to govern the flow of energy between the stator of a DFIG and the energy network using three types of controllers: proportional integral (PI), sliding mode controller (SMC) and second order sliding mode controller (SOSMC). Their different results in terms of power reference tracking, reaction to unexpected speed fluctuations, sensitivity to perturbations, and resilience against machine parameter alterations are compared. MATLAB/Simulink was used to conduct the simulations for the preceding study. Multiple simulations have shown very satisfying results, and the investigations demonstrate the efficacy and power-enhancing capabilities of the suggested control system.
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMSIJNSA Journal
The smart irrigation system represents an innovative approach to optimize water usage in agricultural and landscaping practices. The integration of cutting-edge technologies, including sensors, actuators, and data analysis, empowers this system to provide accurate monitoring and control of irrigation processes by leveraging real-time environmental conditions. The main objective of a smart irrigation system is to optimize water efficiency, minimize expenses, and foster the adoption of sustainable water management methods. This paper conducts a systematic risk assessment by exploring the key components/assets and their functionalities in the smart irrigation system. The crucial role of sensors in gathering data on soil moisture, weather patterns, and plant well-being is emphasized in this system. These sensors enable intelligent decision-making in irrigation scheduling and water distribution, leading to enhanced water efficiency and sustainable water management practices. Actuators enable automated control of irrigation devices, ensuring precise and targeted water delivery to plants. Additionally, the paper addresses the potential threat and vulnerabilities associated with smart irrigation systems. It discusses limitations of the system, such as power constraints and computational capabilities, and calculates the potential security risks. The paper suggests possible risk treatment methods for effective secure system operation. In conclusion, the paper emphasizes the significant benefits of implementing smart irrigation systems, including improved water conservation, increased crop yield, and reduced environmental impact. Additionally, based on the security analysis conducted, the paper recommends the implementation of countermeasures and security approaches to address vulnerabilities and ensure the integrity and reliability of the system. By incorporating these measures, smart irrigation technology can revolutionize water management practices in agriculture, promoting sustainability, resource efficiency, and safeguarding against potential security threats.
Embedded machine learning-based road conditions and driving behavior monitoringIJECEIAES
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Interractive Control Systems and Strategic Orientation on Competitive Position of Sugar Firms in Western Kenya
1. International Journal of Business and Management Invention
ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X
www.ijbmi.org || Volume 6 Issue 4 || April. 2017 || PP—79-93
www.ijbmi.org 79 | Page
Interractive Control Systems and Strategic Orientation on
Competitive Position of Sugar Firms in Western Kenya
1
Dr. Patrick Boniface Ojera, 2
Prof. Bulitia Godrick Mathews, 3
Prof. Martin
Ogutu,
1
Department: Accounting & Finance School of Business & Economics- Masinde Muliro University of Science
and Technology
2
Department: Business & Economics School of Business & Economics – Murang’a University of Technology
3
Department of Business Administration School of Business University of Nairobi
Abstract: Despite strategic management advocating for the use of strategic control practices to improve the
implementation of strategic plans and competitive position, establishing the strategic control-performance
relationship has been problematic, suggesting failure by researchers to consider contingent variables. This
study used data, collected during the period November 2008 to May 2009 from 109 senior managers in a
census survey of 45 firms in the sugar value-chain in western Kenya, to examine the moderating effect of
strategic orientation on the relationship between belief control and competitive position. Descriptive statistics,
bi-variate regression analysis and moderated regression analysis were used to analyze data. The findings
revealed moderate prevalence of Interactive control mean 2.86, std dev 0.83. The most prevalent strategic
orientation was the reactor (60%), followed by defender (24%); prospectors (9%) and analyzers (7%). All the
four levers were positively and significantly related to competitive position (interactive β = 0.393, p < 0.01).
The results of this study suggest that urgent measures are required by the firms in the study to design
interractive control systems to cope with the changing business environment. The study contributes to
validation and upgrade of the existing belief control theory. For managers, the study sheds light on the design
and use of belief controls and also for public sector managers in guiding the strategic change. It is
recommended that future studies focus on the specific firms in sugar value chain and adopt longitudinal case-
study designs to establish causal relationships among variables.
I. Introduction
Background of the study
Competitive position and its improvement has been the focus of almost all „management studies‟
(Jaeger & Baliga 1985). Current thinking in these management studies is dominated by strategic management
paradigm, with widespread practices, in small businesses, multinational corporations, manufacturing and service
organizations, public sector, not-for-profit sector, and, professional service sector (Johnson & Scholes, 2002;
Kazmi, 2002).
Despite emerging economies embracing strategic management concepts (Gimenez, 1999; Aragon-
Sanchez & Sanchez-Marin, 2005; O‟Regan & Ghobadian, 2006; Hassan, 2010) most studies have focused on
Western countries (Hoskisson et al., 2000). Few studies have been done in Kenya (Ogollah & Bolo, n.d;
Ogollah et al., n.d) which is rather surprising in view of the widespread practice of business entities preparing
strategic plans. Consequently, there are hardly any studies focusing on the sugar industry in Kenya. This lacuna
extends to the concepts of interactive control systems and strategic orientation, both pivotal factors that
influence the implementation of strategic plans.
Interractive Control system
Simons, (1990, 1991, 1995), define Interactive Control System as „a management system used to
provide strategic feedback, track new ideas, trigger new organizational learning, and to properly position the
organization for the future: incorporating process data into management interaction, face-to-face meetings with
employees, challenging data, assumptions and action plans of subordinates”.
It is one of the four (4) levers of control described by Simons to manage the tension in organizations
between profit, growth, risk and control besides Belief Systems, Boundary Systems and Diagnostic Control
Systems” (Kreitner, 2004; Schendel & Hofer 1979). Its chief hallmark, therefore, require that control must
accommodate both intended strategies as well as strategies that emerge from local experimentation and
independent employee initiatives. A number of models have been proposed to guide the practice of interactive
control system (e.g., Horovitz, 1979; Lorange, 1980; Schreyogg & Steinmann, 1987; Preble, 1992; Feigner,
1994; Scherer & Dowling, 1995; Simons, 1995; Ittner & Larcker, 1997). This study adopts the model known as
“Levers of Control” (LOC), developed by Simons from several case studies (Simons, 1990, 1991, 1995), asserts
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that strategic control is achieved by integrating four levers of control: belief systems, boundary systems,
diagnostic systems and interactive control systems. Bruining et al., (2004) lauded this model as a coherent and
comprehensive body of strategic control theory. However, with limited research in strategic management in
emerging economies (Hoskisson et al., 2000) little is known about either interactive control system or their
competitive position consequences in Kenyan sugar firms. It is, therefore, important to study interactive control
system and their competitive position consequences in the sugar industry in Kenya.
Neither the interractive control system nor strategic orientation or their competitive position
consequences are known in Kenyan sugar firms. As a result, it is essential to study interactive control system,
strategic orientation and their competitive position consequences in sugar firms in Kenya.
Strategic Orientation
One of the basic assumptions underlying much of the strategic management literature is that successful
firms engage change in their strategies to attain a better fit with the environment (Audia, Locke & Smith, 2000).
According to strategic management theorists (Gatigon & Xuereb, 1997; Matsuno & Mentzer, 2000), strategic
orientation may broadly be defined as a strategy type or a generic pattern of response at the business unit level
pertaining to the product-market domain, choice of performance criteria, and marketing execution. Studies
report that businesses that properly configure the internal arrangement and external alignment will increase
chances to accomplish competitive position (Hambrick, 1983; Luo & Park, 2001). Engelland and Summey
(1999) point out that strategic orientation is useful because it defines the organization‟s dominant competitive
posture and provides a synthesis of the cognitive mental models of its key strategists.
Researchers suggest that different types of strategic initiatives involve different degrees of uncertainty
and might therefore imply appropriately designed control systems (Bruggeman & Van der Stede, 1993).
According to Goold and Quinn (1993), strategic implementation and control requires alignment of strategies
with processes that implement strategy, most critical being interractive control system. A robust construct and
measurement of strategic orientation would, therefore, enhance an understanding of this interrelationship
interractive control system and competitive position. Once again, the limited research in strategic management
in emerging economies (Hoskisson et al., 2000) has not supported illumination of this concept or its
performance consequences. It is, thus, necessary to study strategic orientation of sugar firms in Kenya.
Competitive position
Competitive position and its improvement has been a dominant theme in strategic management and
practice. Venkatraman and Ramanujam (1986) viewed competitive position as a complex and multidimensional
phenomenon asserting that no single performance measure is inadequate to represent overall business
performance. In support, Walker and Ruekert (1987) assert that appropriate competitive position dimensions
must include effectiveness, efficiency and adaptability, suggesting existence of vital linkages between
interractive control system, strategic orientations and competitive position.
The measurement of the performance impact of strategies has, however, been reported to be
problematic in emerging economies, Kenya included (Hoskisson et al., 2000). Such researchers attribute the
situation to unconventional financial reporting that make comparisons over time and across firms difficult. This
problem is compounded unethical financial reporting practices (EBRD, 1998; Shama & Merrell, 1997).
Previous research that focuses on competitive position of sugar firms in Kenya is limited. All these issues
underline the need and challenge of researching on competitive position in sugar firms in Kenya.
The Sugar Industry in Kenya
According to Kenyan sugar industry reports (GOK, 2008, KSB, 2010) the dominant firms in the sugar-
value chain comprise the sugar manufacturing companies, the molassess processor companies, farmers‟
outgrower firms and the fixed-crusher artisanal jaggeries. The nine sugar manufacturing firms are: Chemelil,
Mumias, Miwani, Nzoia, South Nyanza, Muhoroni, West Kenya, Kibos and Soin. Proposed sugar
manufacturing firms are: Butali, Kwale, Transmara and Tana. There are two molassess processor companies:
Agro-Chemical Food Company and Spectre International. The twelve farmers‟ outgrower firms comprise the
following: Busia, Butali, Chemelil, Kibos, Miwani, Mumias, Nandi Escarpment, Nzoia, Soin, South Nyanza,
West Kenya and Muhroni. In addition, there exists over 300 fixed-crusher artisanal jaggeries.
Besides the government, other stakeholders include private investors, farmers, millers, employees and
tax payers. Oversight in the industry is undertaken by Kenya Sugar Board (KSB), a public body under the
Ministry of Agriculture set up by the Sugar Act of 2001, the Kenya Sugar Research Foundations (KESREF),
and the Sugar Arbitration Tribunal (SAT). Other influential players are the Kenya Bureau of Standards (KEBS),
the Kenya Society of Sugarcane Technologists (KSSCT), the foremost forum for research dissemination. The
various advocacy groups include Kenya Sugar Growers Association (KESGA), Kenya Association of Sugar
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Manufacturers (KESMA), Kenya Parliamentary Group on Sugar (SUPAC), Sugar Campaign for Change
(SUCAM) and Kenya Sugar Plantation Workers Union (KSPWU).
The Kenyan sugar industry was chosen as a context of the study for several reasons. First, the sugar
sub-sector has a great potential for impacting the overall economy of Kenya. It is one of the largest contributors
to the agricultural Gross Domestic Product (GDP), supporting at least 25% of the Kenyans population, produces
over 520,000 metric tonnes of sugar for domestic consumption (saving the economy in excess of US$ 250
million or Kshs 20 billion in foreign exchange annually, (GOK, 2008, KSB, 2010).
Secondly, the sugar sub-sector has is currently undergoing fundamental change occasioned by
liberalization and deregulation in the operating environment. These policy reforms have led to the freeing of
sugar prices and marketing, the elimination of agricultural subsidies and placing the parastatal entities under
management contracts to prepare them for privatization.
Thirdly, with the substantial state holdings, Government of Kenya has spearheaded key policy
initiatives by formulating the National Policy on Sugar Industry (2001), Agriculture Sector Development
Strategy (2009-2020), Kenya Sugar Industry Strategic Plan 2004-2009 and Kenya Sugar Board Strategic Plan
2010-2014. These inititives have seen most of the sugar firms adopt strategic plans and performance
contracting. Some researchers (Ojera, 2001; Mutua et al., 2009) have, however, pointed out that these policies
have not elicited the positive outcomes intended of lowering cost of production and attaining higher efficiency
and global competitiveness. On the contrary, the Sessional Paper No, 4 paints a gloomy scenario of
unsatisfactory performance by firms in the sugar industry: Nzoia sugar has debts estimated at Kshs 16 billion
(technically insolvent); South Nyanza Sugar owes Kshs 2.9 billion; Chemelil, Kshs 1.3 billion; Busia Sugar,
Kshs 373 million (with no factory); Miwani Sugar, Kshs 8.1 billion (in receivership); Muhoroni sugar, Kshs.
11.1 billion (in receivership). Mumias Sugar, Agro-Chemical Company, the privately owned East African
Spetre and West Kenya Sugar, though with varying debts, are considered financially stable. The outgrower
firms and, to a lesser extent, the jaggeries, are also indebted to the government.
A fourth reason for choosing the Kenyan sugar industry is that some resesearchers (Wanyande, 2001;
Mireri et al., 2009; Odek, et al., 2003) have attributed the poor performance in the sugar industry on poor
management, corruption and vested political interest. Finally, there is an impending threat arising from the free
trade Common Market for Eastern and Southern Africa (COMESA) arrangement which has hitherto shielded
Kenya from regional competition.
It is not all gloom, however, since business commentators in the press have depicted some positive
developments in the sugar industry. Mumias sugar has consistently reported profits, has modernized equipment
and processes and built the strongest brands in East Africa. Now largely privatized, the firm has diversified into
power production and has expanded to the Tana Delta, and has also won the best prize for environment
management at Company of the Year Award (COYA), (Mogusu, 2006; Mireri et al., 2008). The other sugar
firms are depicted with mixed financial performance. Nevertheless, most firms are reported to be undertaking
various strategic projects relating to plant expansion and diversification. It is significant to note that since the
mid-nineties there has been no donor involvement in the Kenyan sugar sector.
Despite such significant strategic activity, the industry still faces several challenges as evidenced by
incessant court litigation, workforce strikes and resultant factory shutdowns and widespread opportunistic
behaviours relating to corruption and bribery, suggesting weak institutional infrastructures to support a market-
based system (KACC, 2010). All these concerns highlight the importance of effectively managing the internal
firm and external environmental interfaces. In such situations, Muralidharan (1997, 2004) called for strategic
control systems to focus on strategy implementation, allow managers to monitor performance and redirect
organizational action.
Interactive control systems and strategic orientation, both concepts in strategic management, are tools
that can be useful to management in such situations (Muralidharan 1997, 2004; Preble, 1992, 1997; Miles &
Snow, 1978). However, studies focusing on strategic management in general and interactive control system and
strategic orientation, in particular are scarce in emerging economy context. (Hoskisson et al, 2000).
Consequently, little is known about interactive control system, strategic orientation typologies or their
performance of Kenyan sugar firms.
Statement of the Research Problem
Prescriptive theory asserts that adoption of interactive control system and viable strategic orientations
will improve implementation of strategic plans and competitive position, even for Kenyan sugar firms. Despite
this assertion, the perennial poor performance of firms in the Kenyan industry suggests that their applicability or
suitability to Kenyan sugar firms is doubtful. Apart from some limited studies on strategic orientation in
different sectors in Kenya, no known studies have been reported relating to Kenyan sugar firms with regard to
the extent of adoption of strategic control practices, strategic orientation or their respective competitive position
consequences.
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Furthermore, previous researchers in western countries have acknowledged that establishing the
strategic control-performance relationship has been problematic, with research findings from such studies
revealing mixed results and low statistical power. In consequence of lack of prior studies that have focused on
interactive control system in the Kenyan sugar industry, there have been, inevitably, no research on the
interactive control system-competitive position link. Meanwhile, scholars in western countries have posited that
this tenuous link suggests that failure to consider contextual variables in previous studies, for example strategic
orientation, may have masked this linkage, resulting in low explanatory power.
More so, the studies in western business settings have only focused on correlating contingency or
contextual variable with design of interactive control system, with few attempts to relate the interaction effect of
interactive control system and the contextual variable directly to competitive position.
Several reasons have been advanced for this apparent state of theory impoverishment. These include
lack of consensus over the conceptualization and dimensionality of the key constructs of interactive control
system, strategic orientation leading to use of crude measurement instruments with low reliability power to
operationalize constructs, limitations in modeling of the relationships investigated and, even, competitive
position. In addition it has been suggested that the link between interactive control system and strategic
orientation may not be tenable at the strategic-choice level, but at the organizational capabilities level. In order
to capture more variables that explain how interactive control system is designed and used, it has been observed
that further research focus on the possibility that the interaction of interactive control system and strategic
orientation would be statistically significant.
The lack of theory development has led to the concern that practicing managers in general, and
managers in Kenyan sugar firms in particular, have little in terms of guidelines by which to design and manage
their interactive control system or develop viable strategic orientation. This is particularly harmful in turbulent
business environment of Kenyan sugar firms brought about by industry deregulation and characterized by
increasing competition brought about by globalization leading to saturated markets, changes in custormer needs,
shorter product life cycle, competition, both price-based and non-price-based. This study seeks to examine the
impact of interactive control system practices and strategic orientation on competitive position of sugar firms in
western Kenya.
Objective of the Study
The purpose of this study is to examine how interactive control system and strategic orientation affect
competitive position in the sugar firms in western Kenya.
Conceptual Framework
Strategies and related strategic processes are executed in anticipation of some type of expected
outcome. Strategic control practices are hailed as tools for improving the implementation of strategic plans and
competitive position. This study seeks to examine the impact of interactive control system practices and
strategic orientation on competitive position of sugar firms in western Kenya. The conceptual framework
consisted of hypothesized relationship.
Ho1: There is no significant direct relationship between interactive control system and competitive position
moderated by strategic orientation.
Interactive control system have been hailed as tools for improving the implementation of strategic plans
and competitive position. This study examines how interactive control system affect competitive position.
Rather than examining the direct relationship between the two, which is responsible for the hitherto tenuous
link, the study argues that the relationship is moderated by strategic orientation. This is based on research that
indicates that performance can be improved when key variables are correctly aligned (Chenhall, 2003). The
basic premise of this contingency theory is that there is no universal system applicable to all organizations and
all circumstances and, therefore, suggests that the effectiveness of organizations is a function of the fit between
their structures and the environment in which they operate (Galbraith, 1973; Donaldson, 2001).
Consequently, the conceptual framework includes two sets of hypothesized relationships. The first set
of hypotheses posits a direct relationship where the greater use of strategic control practices (independent
variable) will lead to greater competitive position (dependent variable).
II. Research Methodology
The study describes the methods and procedures used to address the research problem relating to the
tenuous link between strategic control and competitive position. In this regard, the overall objective of the
study which was to examine how interactive control system and strategic orientation affect competitive position
in the sugar firms in western Kenya.
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Research Design
This study used a cross-sectional survey design to acquire relevant data in order to engage a
correlational and analytical approach. This approach facilitated the development of a broad industry-based
understanding, rather than a study of individual firms, of the moderating influence of strategic orientation on the
interactive control system- competitive position relationship.
Study Area
This study focused on the firms in the sugar industry value-chain involved in the production and
marketing of sugar and sugar by-products in western Kenya, comprising the administrative provinces of
Nyanza, Western and part of Rift Valley.
Target Population
The unit of analysis is the firm. The study population was 45 firms comprised a total of 9 sugar
manufacturing firms, 2 molasses processing firms, 10 outgrower companies and 24, jaggeries each of which has
a fixed crushing capacity of at least 20 tonnes of cane per day (TCD). Seven firms were eliminated from the
study because, though they were listed as registered by the Kenya Sugar Board, there were no operational
activities evident on the ground.
The studies adopted a census, since the units of study are not too many, are concentrated in Western
Kenya and, therefore, accessible, and not prohibitive in terms of cost, time and other resources (Saunders et. al.,
2007; Sekaran, 2000). Furthermore, a census survey is suited to the research objectives of establishing the
hitherto enigmatic strategic control-performance relationship in an industry perenially beset with challenges has
been problematic, suggesting failure by researchers to consider contingent variables.
Data Collection
Primary data was collected using a self-administered questionnaire on the firms‟ interactive control
system, strategic orientation and competitive position. Published reports from the Kenya Sugar Board and the
business press were also reviewed to extract secondary data.
Data Collection Procedure
The researcher and research assistants personally made visits to the firms. This procedure was
preferred due to the geographical dispersion of the units of study, being scattered throughout western Kenya.
Instrument for Data Collection
The instrument for data collection was the questionnaire.
Methods of Data Analysis
Data analysis involved correlation and regression analysis. Pearson correlation analysis was conducted
to determine the direction, strength, and significance of the bivariate relationship between strategic control
practices and competitive position. Moderated regression analysis was used to determine the moderating effect
of strategic orientation (Sharma, Durand & Gur-Arie, 1981).
Model Specification
The moderated regression analysis used to test data is mathematically presented below:
Y= a + b1X+ e (1)… 3.1
Y= a + b1X + b2Z+ e (2)… 3.2
Y= a + b1X + b2Z + b3XZ+ e (3)… 3.3
Where Y is the dependent variable (competitive position), X is the theoretically-defined independent variable
(Interactive control system), Z is the theoretically-defined moderator variable (strategic orientation), and XZ is
the interaction term, while bi are the regression coefficients. The error terms for equation (1), equation (2) and
equation (3) are e (1), e (2) and e (3), respectively.
III. Results And Discussion
Characteristics of Sugar Firms in Western Kenya
Out of the 135 expected respondents for the 45 surveyed firms, 109 questionnaires were completed, a response
rate of 82%.
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Interactive Control Systems
The responses were on a 5-point scale and revealed that all the variables measuring interactive control
system have mean values slightly below the mean point of three. The overall mean of 2.86 suggest that
interactive control system are moderately practiced in sugar firms in western Kenya.
On the whole, it is evident that although the prevalent view among the respondents was that strategic
control systems exist in the surveyed sugar firms, they are only moderately practiced as all the responses for
specific dimensions on a 5-point scale and reveal that all the variables have mean values around or slightly
below the mean point of three. Indeed the mean composite strategic control system measure was 2.90 (standard
deviation = 0.66, minimum 1.67, maximum 4.40, skewness= 0,35, kurtosis= -0.38)
Strategic Orientation of the Sugar Firms in Western Kenya
In this study strategic orientation was measured by classifying the firms by strategic type. Respondents
were asked to score the firms on 11-dimensions using the “majority-rule decision structure”. The scores were
modified by converting these strategic classifications to an interval-type scale to yield a continuum of low
versus high orientation toward change. This procedure provided the following measure of a firm's strategic
orientation: 1 = Reactor, 3 = Defender, 5 = Analyzer, and 7 = Prospector. Most of the firms were found to be
reactors (60%), followed by defenders (24.4), analyzers (6.7%) and prospectors (8.9%).
The survey responses indicate that most of the firms in the sugar industry in western Kenya (60%) are
reactors, 24.4% of the firms are defenders; 6.7% of the firms are analyzers whilst the least prevalent are
prospectors (8.9%). This trend was discernible across firms. Jaggeries with reactor orientation were 62.5%,
defenders 29.2%, analyzers 8.3% with no prospectors. Similarly, sugar manufacturers were predominantly
reactors (55.5%), with defender and analyzer being 11.1% each whilst prospector orientation was 22.2%. The
survey further found that sugar outgrower firms to be 60% reactors, 30% defenders, 10% prospectors and no
analyzers. Molasses processors were 50% reactor and 50% prospector. These results suggest that, as is
characteristic of reactors, most firms in the sugar industry do not follow a particular strategy.
Competitive position of Sugar Firms in Western Kenya
In order to measure competitive position of the sugar firms, the respondents were asked to rate the
performance of their organization‟s relative performance on a five-point Likert-scale , anchored by “1” Lowest
20% to “5” Top 20%. Most of the respondents perceived their organizations to be performing moderately well
as indicated by the overall mean of 2.99.
From the correlation matrix, interactive control system was significantly and positively correlated with
competitive position as measured by interactive control system(r= 0.55, p< 0.01). On the contrary, competitive
position was not significantly related to strategic orientation (r= 0.25). Moreover, strategic orientation was not
significantly related to interactive control system as measured by interactive control system (r= 0.11).
Interactive Control System and Competitive position
After entry of interactive control system scale at step 2, the total variance explained by the model as a
whole was 35.7 %, Adjusted R2
= 0.327, F (2,42) = 11.675, p< 0.001. Interactive control explained an additional
11.0 % of the variance in competitive position, after controlling for firm size, R squared change = 0.110, F
change (1,42) = 7.185, p< 0.01. In support of H1D, interactive control system was positively and significantly
related to competitive position (B = 0.383, p < 0.01). The results indicate that 35.7% of the variance in
competitive position was explained by the model. According to Cohen (1988), this is a large effect.
Composite Strategic Control System and Competitive position
After entry of composite strategic control system scale at step 2, the total variance explained by the
model as a whole was 38.0 %, Adjusted R2
= 0.351, F (2,42) = 12.896, p< 0.001. Composite strategic control
explained an additional 13.3 % of the variance competitive position, after controlling for firm size, R squared
change = 0.133, F change (1,42) = 9.023, p< 0.01. In support of H1E, composite strategic control system was
positively and significantly related to competitive position (B = 0.531, p < 0.01). The results indicate that
38.0% of the variance in competitive position was explained by the model. According to Cohen (1988), this is a
large effect.
Testing for Hypothesis
Having examined the main effects of interactive control system on competitive position, the next step
was to test whether the relationship between strategic control practices and competitive position is moderated by
strategic orientation. This involved testing the hypotheses that the relationship between each interactive control
system dimension and competitive position is moderated by strategic orientation. Such interaction effects were
tested using moderated regression analysis (MRA). The intent was to examine whether interactive control
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system would be contingent on strategic orientation. This is based on research that indicates that performance
can be improved when key variables are correctly aligned. Furthermore, Luft and Shields (2003), for example,
stated that a weak relationship between two variables may be remedied to expose effect by incorporation of
appropriate intervening or moderation variable.
The contingency effects of strategic orientation on the relationship between strategic control practices
involved for subsets of H2 as below:
H2D: The relationship between interactive control system and competitive position
is moderated by strategic orientation.
H2E: The relationship between composite control practices and organizational
performance is moderated by strategic orientation.
Moderating Effect of Strategic Orientation on the Interactive Control System-Competitive position
Relationship
H2D proposed that the positive relationship between interactive control system and competitive position
is moderated by strategic orientation. The full model that includes the firm size as control variable, interactive
control system as the independent variable, strategic orientation as the moderator, and the interaction effects.
This model is significant at (R2
= 0.374, Adjusted R2
= 0.311, F(4,40) = 2.687, F- change = 5.964, p < 0.05).
Compared with the reduced model, which only includes the control variable, predictors and moderators (step 2),
the addition of interaction terms in the full model significantly increases the R2
(increase in R2
=0.126, p < 0.05).
The moderating effect of strategic orientation is statistically significant. Thus, the hypothesized contingency
model explains 37.4% of the variance in competitive position.
Moderating Effect of Strategic Orientation on the Composite Strategic Control System-Competitive
position Relationship
H2E proposed that the positive relationship between composite strategic control system and
competitive position is moderated by strategic orientation. The full model that includes the firm size as control
variable, the independent variable of composite strategic control system, the moderator of strategic orientation
and the interaction effects is significant at (R2
= 0.438, Adjusted R2
= 0.382, F(4,40) = 4.526, F- change = 5.964,
p < 0.01). Compared with the reduced model, which only includes the control variable, predictors and
moderators (step 2), the addition of interaction terms in the full model significantly increases the R2
(increase in
R2
= 0.191, p < 0.05). The moderating effect of strategic orientation seems significant. The hypothesized
contingency model explains 43.8% of the variance in competitive position.
Summary of the Hypothesized Empirical Framework and Results
Hypothesis 1 entailed the testing of main effects which comprised of five sub-hypotheses relating to H1A, H1B,
H1C, H1D and H1E to determine the relationship between dimensions of strategic control practices (belief control
systems, boundary control systems, diagnostic control systems and interactive control systems) and competitive
position.
Hypothesis 2 tested whether the relationship between strategic control practices and competitive position was
moderated by strategic orientation. Once again, this involved the testing of moderating effect of strategic
orientation on the relationship between each strategic control dimension and competitive position.
The results suggest that strategic control practices positively influence competitive position and that the
relationship between strategic control and competitive position does vary with strategic orientation found in the
sugar companies surveyed. In the latter case, while the relationship for the both boundary control systems and
diagnostic control are significant, this is not the case for belief control systems and interactive control systems.
Table 4.26 gives a summary of hypotheses testing, both for main effects and interactive effects.
Discussion of Findings
The overall objective of this study was to examine the moderating effect of strategic orientation on the
relationship between strategic control practices and competitive position in the sugar firms in western Kenya.
The study reported an overall mean 2.86 suggesting that interactive control systems are somewhat moderately
prevalent in firms in the sugar industry in western Kenya. Interactive control systems are the controls top
management use to follow up with organization-wide dialogue about threats that can jeopardize current strategy,
thereby managing the strategic uncertainties of the firm, (Quinn, 1996). The distinguishing advantage of
interactive control is its support for double-loop learning (Tuomela, 2005).
The finding of less than moderate prevalence is not consistent with the literature that has generally
reported greater use of interactive control systems. Moulang (2007) found a mean of 3.96 (on a scale of 1 to 7),
Mohamed et. al., (2008) found a mean of 3.9 on a five-point scale, Widener (2007) reported a mean of 5.00,
(scale of 1 to 7) while Abernethy and Brownell (1999) on an absolute a scale of 4 to 28, reported a mean of
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21.87, revealing a high extent of prevalence of interactive budget use. In a higher learning institution setting,
Bobe & Taylor (2010) reported that faculty executives with higher longevity of experience in prior academic
management positions and faculty executives based in a faculty with higher complexity tend to use MCSs in a
more interactive way. Thoren and Brown (2004) reported that as the business grew, there was increasing use of
employee-driven integrating meetings serving as interactive control systems. These were associated with a
range of business growth effects such as organizational development and increased motivation. Bruining et. al.,
(2004) found increased use of interactive control systems after buy-out where corporate management of
necessity had to delegate functions to the subsidiary company, a situation necessitating removal of barriers
between management and workers to ensure that ensuing budgets reflected more commitment and reality across
the ranks.
The somewhat inconsistent findings of this study could be due to conflicting views about the
dimensionality of the interactive control system construct. Various scholars have examined slightly different
subsets of the interactive control systems construct domain, resulting inconsistencies and contradictory findings
(Bisbe e.t al., 2005). This has led to suggestions that the interactive control system construct is
multidimensional (Bisbe et. al, 2007; de Harlez & de Ronge, 2009). Implementaion of interactive systems may
also be hampered by systemic, behavioral and political barriers (Lorange & Murphy, 1984).
Strategic Orientation of Sugar Firms in Western Kenya
This study in section 4.4 reported that most of the firms in the sugar industry in western Kenya adopt
the reactor strategic orientation (60%), followed by defenders (24%); prospectors (9%), with the least prevalent
being analyzers (7%). Strategic orientation is defined as “how an organization uses strategy to adapt and/or
change aspects of its environment for a more favorable alignment” (Manu & Siram, 1996, p. 79). The critical
underlying variable in the Miles and Snow (1978) strategic orientation typology is the organization‟s rate of
change in its products or markets (Di Benedetto & Song, 2003). Miles and Snow (1978) opined that
organizations develop relatively enduring patterns of strategic behavior to co-align the organization with the
environment. These are classified as prospector, analyzer and defender. In this scheme, reactors are deemed to
lack any coherent plan for competing and do not exhibit the mechanisms or processes for adapting to the
marketplace. The results of this study suggest that, as is characteristic of reactors, most firms in the sugar
industry in western Kenya do not have a discernible strategy. This finding is inconsistent with the literature
regarding the distribution of strategic orientation types in a typical competitive environment. The literature has
long held the Miles and Snow (1978) proposition that the most prevalent strategic orientation in any industry are
defender, analyzers and prospectors with reactors being the least infrequent (Snow & Hrebiniak, 1980; Conant
et. al.,1990; 2009; Slater & Olson, 2000; McDaniel & Kolari, 1987; Shortell & Zajac, 1990; O‟Regan &
Ghobadian ,2005; DeSarbo et. al., 2007; James & Hatten, 1995; Hinson et. al., 2009; Di Beneddetto & Song,
2003).
Inconsistent with the Miles and Snow (1978) prediction, Hinson et. al., (2009), in a study based in
Ghana, found the prospector strategy most prevalent (40%), followed by the analyzer strategy (35%) and the
defender strategy (25%). A comparative study of Malaysia and Singapore, Teoh and Sim (2000) revealed a
similar distribution. Out of 96 Malaysian firms the distribution was: 36 (37.5 per cent) prospectors, 35 (36.5 per
cent) as analyzers and 25 (26.0 per cent) defenders. In the 69 Singaporean firms were 26 (37.7 per cent)
prospectors, 23 (33.3 per cent) analyzers and 20 (29.0 per cent) defenders. In addition, the three strategy types
occurred across the range of industries researched. Furthermore, it was reported that the higher prevalence of
prospector and analyzer types in the two countries depicted the fast growing business environments markets,
necessitating prompt responses to market complexities. Lastly, there was no significant difference in the
national distribution of strategy types, indicating similar strategic responses to development in their markets.
Some researchers have omitted the study of reactors altogether (O‟Regan & Ghobadian, 2005; Doty,
Glick, & Huber, 1993; Shortell & Zajac, 1990; Miller et. al, 1997; Golden, 1992). Anzaya (2007), while
confirming the existence of the Miles and Snow (1978) typology in Kenya , omitted the reactor strategy and also
failed to report on the relative prevalence of the other three types. Few studies have explicitly reported on
reactor strategy. Slater et. al., (2006) studied 380 firms in manufacturing and service businesses operating in 20
different industries and found that prospectors were 125 (33.9%), analyzers 93 (24.5%) and defenders 135
(35.5%), reactor 27 (7.1%). Parnell et. al., (2000) in the unique study, incorporated an additional classification
called „balancer‟ and featured the following distribution for 137 businesses: prospectors 28 (20%) analyzers 32
(23%), defenders 26 (19%), balancers 17 (12%), and 34 (25%) reactors. Likewise, in a study of 104 across
industries of firms producing industrial and consumer products in Thailand, Tamalee et. al., (2008) found that
reactors (20%) were third in prevalence, beating analyzers (15%) to fourth place after prospector (35%) and
defenders (31%). Snow and Hrebiniak (1980), in a study of 247 firms by industry also reported similar results.
Some studies have even found absence of the so-called regular types but the presence of reactor. For example,
Rajagopalan and Finkelstein (1992) in a study of 50 investor-owned electric utility firms in the US did not find
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any analyzers but reported prospectors (28%), defenders (34%) and reactors (34%). In a study of 75 firms
across industries and 9 countries with 3 cultures Hoffman (2007) found that defenders (9.7%) and reactors
(8.2%) were least prevalent whilst analyzers (47.7%) and prospectors (33.3%) were most prevalent.
Scholars opposed to exclusion of reactors advance the view that they been found to outperform the
other three types in environments characterised by a low degree of movement or change among their
components and by the lack of connection among these components (Zahra & Pearce, 1990; Snow & Hrebiniak,
1980). Rajagopalan (1997) claimed that reactors are not efficiency-oriented as prospectors nor as innovative as
defenders, indications of a lack of focus arising from failure to develop clear competencies. According to Miles
and Snow (1978) the reactor strategy is not viable in the long run due to failure or unwillingness of top
managers to articulate a clear strategic direction. In other words, they do not develop the distinctive
competences, organizational structures, and management processes required by a particular strategy. Such
inconsistencies can be exhibited in rankings. For example, while studying the veracity of the retrospective
technique in strategic management research, Golden (1992) reported that the prevalence of the reactor strategy
changed from last to second last in ranking from period one to period two, respectively.
Competitive position of Sugar Firms in Western Kenya
The study reported an overall mean 2.99 suggesting that most firms in the sugar industry in western
Kenya are in the middle 20%, that is, average performers. This finding is viable due to the considerable
challenges faced in production and marketing of sugar and sugar related products being experienced in the
industry.
Although published comparative studies that focus specifically on competitive position of firms in the
sugar industry in Kenya are virtually non-existent, extant literature on operational benchmarks or assessment of
performance based on rates of change in consumption and sales, provide some insight. But even these studies
exhibit mixed results. Odek, et. al., (2003) reported that the operational benchmarks in the sub-sector revealed
below competitive levels in terms of optimal factory capacity and milling efficiency. Obange (2008) analysed
the performance of the Kenyan local sugar manufacturing firms, based on rates of change in consumption and
sales during the period 1996-2005 and found that sugar production fell below local market demand, leading to
sugar importations, thus worsening the performance of the local industry due to lack of product
uncompetitiveness. Mulwa et. al., (2009) in a case study, examined efficiency level and productivity trend at
Mumias sugar factory for the period 1980-2000, with the aim of comparing efficiency performance pre- and
post-liberalization. The findings indicate decline in efficiency levels from 1992, with 1998 featuring the lowest
levels. However, from 1998 efficiency levels began to increase, the positive impact being atttributed to the
firm‟s successful adjustment to the competitive international production and marketing standards. Wanyande
(2001) lamented worsening performance in sugar manufacturing firms despite the involvement of factories in
sugar-cane production through nucleaus farms, noting that it was only in 1979 that the national goal of self-
sufficiency in sugar production was achieved. He blamed poor management, corruption and vested political
interest.
The situation is not any different elswhere in Africa. Masuku and Kirsten (2003), in a study of 124
smallholder cane growers in Swaziland found average performance results, again attributed to lack of efficiency
in the production process. Besides production inefficiencies, external factors have also been blamed,
particularly instability in world prices, trade barriers to accessing the United States of America and European
Union, wild swings in free market sugar prices (Odek et. al., 2003). The removal of price controls and tariffs,
concomittant with market liberalization has additionally been blamed in Kenya for ushering in competition from
low cost sugar producers within COMESA (Odek et. al., 2003).
The Moderating Effect of Strategic Orientation on the Relationship between Interactive Control Practices
and Competitive position
While it was established that strategic orientation moderated the relationship between interactive
control system and competitive position, H2D, (B = 0.042) the relationships was, nonetheless, not significant.
Similar to belief, the implications is this interactive controls are „higher order‟ levers, that operate independent
of contextual variables. Scholars single out interactive controls as those that top management focus on to follow
up with organization-wide dialogue about strategic uncertainties and, thereby, engender double-loop learning
(Quinn, 1996; Tuomela, 2005). They have been hailed as pivotal in new product development and, hence,
strategic renewal (Davila, 2000). Simon (1995) postulates that different MCS designs would have varying
effects on the organizational innovation and performance due concern for firm-specific strategic uncertainties.
Studies have reported that interactive use of MCS can ameliorate disruptive performance during change of
strategy (Bruining et al., 2004, Davila, 2000). In the same vein Bisbe and Otley (2004), in their research on
whether the effect of innovation on performance is moderated by the style use of MCS, established that the
relationship is significantly stronger when MCS are used interactively than otherwise.
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Due to their special requirements for top management attention, interactive use of control is costly in time
consuming (Simons, 1995). A consequence of an interactive use of control, for example, performance
management system, is that by increasing the visibility of actions it may trigger resistance to change (Tuomela,
2005).
IV. Summary, Conclusions And Recommendations
The fact that all components of strategic control are moderately practiced leads to the conclusion that,
though used in a complementary fashion, the levers of control are not entrenched in sugar firms.
With regards to strategic orientation, it was found that most of the firms in the sugar industry in
western Kenya adopt the reactor strategic orientation, followed by defenders; prospectors, with the least
prevalent being analyzers. The conclusion from this finding is that firms in the sugar industry do not have
discernible or viable long-term strategies (Miles & Snow, 1978). This has been variously attributed; to failure
or unwillingness of top managers to articulate a clear strategic direction (Rajagopalan, 1997).
The study further revealed that most of the sugar firms were average performers. This finding suggests
the sugar firms are faced with considerable challenges that have constrained efficient production and marketing
of sugar and sugar related products. The implies the need to revitalize management systems and strteies to
mitigate corruption and vested political interest.
The finding of the study showed that the positive relationship between interactive control system and
competitive position was moderated by strategic orientation. Individual levers of control, however, revealed
varying magnitude of effects. Whereas it emerged that the positive relationship between strategic control
system and competitive position was significantly moderated by strategic orientation for boundary control
systems and for diagnostic control systems the research found that it is not the case for the relationship between
belief control and interactive controls systems. The conclusions in respect of each research objective are
elucidated in the following section.
Conclusions for Research Objective
Interactive Control System, Strategic Orientation and Organizational Performance of Sugar Firms in
Western Kenya
Strategic orientation was found not to significantly moderate the positive relationship between
interactive control system and competitive position. It can be concluded from this result that the interaction
between strategic orientation and interactive control does not enhance the relationship between interactive
control system and competitive position. Certain implications can be derived from this result. The implication
of all these is that management needs to pay greater attention to design and use of interactive control systems.
Recommendations of the Study
Interactive Control Practices and Competitive position of Sugar Firms in Western Kenya
Drawing from the conclusion that style of use of levers of control is important in enhancing
competitive position, it is recommended that managerial attention be increasingly directed towards adoption of a
commercial orientation, particularly aspects that monitor and mitigate strategic uncertainties.
Interactive Control System, Strategic Orientation and Organizational
Performance of Sugar Firms in Western Kenya
Facets of interactive control systems include building information networks to monitor uncertainties
and contingencies that could threaten current strategy. It is recommended that management facilitate employees
to participate industry conferences and seminars where such emerging knowledge is disseminated.
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