INFLUENCE OF VALUE CHAIN’S SUPPORT ACTIVITIES ON THE PERFORMANCE OF MULTINATIONAL MANUFACTURING FIRMS: A CASE OF COCA COLA LTD
Abstract
This study determined the value chain activities, key factors influencing these activities and how they contribute to performance in the multinational manufacturing companies in Nairobi. The study adopted a cross sectional descriptive survey intended to establish the activities that constitute the value chain and extent in which these activities affect performance in the beer manufacturing industry in Kenya. The target population of the study was 47 value chain professionals; these were managers and heads of departments of Coca Cola Ltd in Kenya. Primary data was collected using semi structured questionnaire that was administered by drop and pick methods. Data from questionnaires was summarized, coded, tabulated and analyzed. Editing was done to improve the quality of data for coding. Coded data was then fed into the statistical package for social sciences (SPSS) version 21. Linear Regression Analysis was used to investigate the relationship between the variables and the organizational performance of manufacturing companies. From the study findings it was established that the main factors that influence the value chain in the beer manufacturing industry in Kenya were well managed procurement costs, use of modern information technology, effective human resources management, efficient firm infrastructure and continuous improvement. The study recommended that value chain professionals in the manufacturing industry embrace collaborative relationships with their suppliers so as to optimize their value chain costs. Technology was also viewed as one of the failures in achieving a sustainable value chain performance and indications from the findings of its crucial role in the implementation suggested that firms should also invest in information technology not only in their firms but also in partnership with suppliers so as to streamline operations in the value chain.
Key Words: Value Chain, Organizational Performance, Manufacturing Industry
CITATION: Kanyi, F. & Litunya, R. (2021). Influence of value chain’s support activities on the performance of multinational manufacturing firms: A case of Coca Cola Ltd. The Strategic Journal of Business & Change Management, 8 (2), 228 – 241.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i3.2040
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