DRIVERS OF PERFORMANCE OF TEXTILE PROJECTS IN KENYA: A CASE OF RIVATEX EAST AFRICA LIMITED PROJECTS
Abstract
Textile projects play a significant role on basis of employment creation and heavy contribution towards Gross Domestic Production (GDP) in all nations, and especially developing nations. As vital as they are, textile projects have very low performance rate in Kenya and this has been experienced over the years since the introduction of structural adjustment programmes (SAPs) and liberalization of the market. Rivatex East Africa Limited (REAL) is among the leading textile manufacturer since being revived Eight years ago by Moi University. The general objective of the study was to establish drivers of performance of textile projects in Kenya. The target population was 215 employees of REAL. The study adopted a descriptive survey by use 140 respondents. A stratified sampling technique method was used and data was collected through the use of questionnaires. The secondary data was obtained from published documents such as journals, periodicals, magazines and reports to supplement the primary data. A pilot study was conducted to pretest the validity and reliability of instruments for data collection. The data was analyzed by use of quantitative method with the help of Statistical Package for Social Sciences (SPSS) version 21 and excel. The multiple regression analysis was used to establish the direction and strength of the relationship of the variables at 5% level of significance.Data collection was done using a questionnaire. A reliability coefficient of 0.7 or higher is recommended and was used as the threshold for accepting reliability. Data was analyzed using descriptive statistics using mean and standard deviation and inferential statistics such as Pearson correlation and regression analysis. The study variables were regressed at 5% level of significance to establish the strength and direction of their relationship. The analysis showed that managerial skills had the strongest positive (Pearson correlation coefficient =.843) influence on performance of textile projects. In addition, human resource capacity, access to finance and competitive environment are positively correlated to performance of textile projects with Pearson correlation coefficient of .587, .775 .690 and .606 with p-values of .029, 001, .005 and .010 respectively. Findings indicated that the variables positively and significantly influence the performance of textile projects. The study thus concludes that performance of textile projects is enhanced by management skills, access to finance, human resource capacity and competitive environment. It is therefore crucial for the management to be committed to performance of textile. They should therefore invest on improving managerial skills of the top level staff. Organizations also need to seek for more funding for its projects.
Key Words: Performance, Textile Projects, Human Resource Capacity, Managerial Skills, Access to finance, Competitive Environment
Full Text:
PDFReferences
ACTIF. (2010). Impact of AGOA on the Textile and Apparel Industry of Kenya.
Aggrey, N., Eliab, L., & Joseph, S. (2010). Human capital and labor productivity in East African manufacturing firms. Current Research Journal of Economic Theory, 2(2), 48–54.
Aguinis, H., Gottfredson, R. K., & Joo, H. (2012). Delivering effective performance feedback: The strengths-based approach. Business Horizons, 55(2), 105–111.
Aiginger, K. (2006). Revisiting an evasive concept: Introduction to the special issue on competitiveness. Journal of Industry, Competition and Trade, 6(2), 63–66.
Amondi, O. B. (2011). Representation of women in top educational management and leadership positions in Kenya. Advancing Women in Leadership, 31, 57.
Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Baptista, R., Lima, F., & Mendonça, J. (2012). Human Capital and the Performance of Firms Over Time. Available at SSRN 2009673.
Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press.
Bernardin, H. J., & Wiatrowski, M. (2013). Performance appraisal. Psychology and Policing, 257.
Betts, S. C. (2011). Contingency theory: science or technology? Journal of Business & Economics Research (JBER), 1(8).
Bloom, N., & Van Reenen, J. (2010). Why do management practices differ across firms and countries? The Journal of Economic Perspectives, 203–224.
Bose, D. C. (2012). Principles of management and administration. PHI Learning Pvt. Ltd.
Bratton, J., & Gold, J. (2012). Human resource management: theory and practice. Palgrave Macmillan.
Bredin, K., & Söderlund, J. (2011). Human resource management in project-based organizations: the HR quadriad framework.
Carrigan, M. (2011). Pre-Employment Testing–Prediction Of Employee Success And Legal Issues: A Revisitation Of Griggs V. Duke Power. Journal of Business & Economics Research (JBER), 5(8).
Chege, J., Ngui, D., & Kimuyu, P. (2014). Scoping paper on Kenyan manufacturing. WIDER Working Paper. R
Chemengich, M. (2010). Impact Of AGOA on The Textile Industry In Kenya. Kenya: African Cotton and Textile Industries Federation (ACTIF).
CODA. (2012). The Status Report on the Cotton Industry in Kenya (ICAC Plenary Meeting in Interlaken, Switzerland) (p. 21). Kenya.
Coppage-Gross, J. (2015). Textiles for Industrial Applications: By R. Senthil Kumar, Taylor & Francis Group, 2012, 386 pp., ISBN 978-1-4665-6649-1. Materials and Manufacturing Processes, (just-accepted).
Crandall, W. R., & Crandall, R. E. (2010). Linking Contingency Theory with Operations Management: The Role of Management Improvement Programs. In Proceedings of the 2010 Southeast Decision Science Meeting (pp. 17–19).
Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen Jr, D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443.
Dana, L. P. (2008). Handbook of research on European business and entrepreneurship: Towards a theory of internationalization. Edward Elgar Publishing.
De, R. (2014). Optimal conditions for innovation: Firm-level evidence from Kenya and Uganda.
Ekwoaba, J. O., Ogochukwa U., I., & Ndubuisi, U. (2015). The Impact of recruitment and Selection Criteria on Organizational Performance, 3(2), 22–33.
Fukunishi, T. (n.d.). The Kenyan Garment Industry: Is it able to revive in the economic boom?
Gado, N. D., & Nmadu, T. M. (2012). The Performance of Textile Companies in the North West Zone of Nigeria: the Role of Infrastructure as a Resource. International Journal of Human Resource Studies, 2(1), 89–100.
Gatara, timothy, Henry. (2010). Introduction to: Research Methodology. Nairobi, Kenya: The Olive Marketing and Publishing Company.
Gido, J., & Clements, J. (2014). Successful project management. Cengage Learning.
Glaser, M., & Walther, T. (2014). Run, Walk, or Buy? Financial Literacy, Dual-Process Theory, and Investment Behavior. Financial Literacy, Dual-Process Theory, and Investment Behavior (April 16, 2014).
Gomez-Mejia, L. R., Berrone, P., & Franco-Santos, M. (2014). Compensation and organizational performance: Theory, research, and practice. Routledge.
Gray, D. E. (2013). Doing research in the real world. Sage.
Guiso, L., & Jappelli, T. (2008). Financial literacy and portfolio diversification. Retrieved from http://cadmus.eui.eu/handle/1814/9811
Hassan Al-Tamimi, H. A., & Anood Bin Kalli, A. (2009). Financial literacy and investment decisions of UAE investors. The Journal of Risk Finance, 10(5), 500–516.
Huggins, R., Izushi, H., & Thompson, P. (2013). Regional competitiveness: theories and methodologies for empirical analysis. Journal of CENTRUM Cathedra: The Business and Economics Research Journal, 6(2), 155–172.
Hutchison, L. A. (2007). A Pilot Study of Students’ Self-perceptions of Efficacy and Engagement in the Writing Process. ProQuest.
Jabareen, Y. R. (2009). Building a conceptual framework: philosophy, definitions, and procedure. International Journal of Qualitative Methods, 8(4), 49–62.
Jha, A. S. (2014). Social Research Methods. Tata McGraw-Hill Education.
Johnson, T. P., & Wislar, J. S. (2012). Response rates and nonresponse errors in surveys. Jama, 307(17), 1805–1806.
Jones, P. (2013). Performance Management Pocketbook. Pocketbooks.
Kaya, N., & Patton, J. (2011). The effects of knowledge-based resources, market orientation and learning orientation on innovation performance: An empirical study of Turkish firms. Journal of International Development, 23(2), 204–219.
Kenya National Bureau of Statistics. (2014). Economic Survey report. Nairobi, Kenya: Kenya National Bureau of Statistics.
Konings, J., & Vanormelingen, S. (2015). The impact of training on productivity and wages: firm-level evidence. Review of Economics and Statistics, 97(2), 485–497.
Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International.
Krippendorff, K. (2012). Content analysis: An introduction to its methodology. Sage.
Langan, M. (2013). 5 Governing trade. Governing the World?: Cases in Global Governance, 79.
Lindell, F., & Hansson, M. (2011). Managing a Business on the Bumpy Roads of Kenya–A Study about Women Entrepreneurs in the Textile Industry in Nairobi.
Maiyo, R. C., & Imo, B. E. (2012a). The Kenyan textile industry in a liberalized economy: an analysis of performance and challenges. Journal of Emerging Trends in Economics and Management Sciences, 3(1), 111–115.
Maiyo, R. C., & Imo, B. E. (2012b). The Kenyan textile industry in a liberalized economy: an analysis of performance and challenges. Journal of Emerging Trends in Economics and Management Sciences, 3(1), 111–115.
Martínez-Alemán, A. M., Pusser, B., & Bensimon, E. M. (2015). Critical Approaches to the Study of Higher Education: A Practical Introduction. JHU Press.
Martin, R. L. (2003). A study on the factors of regional competitiveness. A draft final report for the European Commission Directorate-General regional policy. Cambridge: Cambridge University.
Meredith, J. R., & Mantel Jr, S. J. (2011). Project management: a managerial approach. John Wiley & Sons.
Moorthy, K., Tan, A., Choo, C., Wei, C. S., Ping, J. T. Y., & Leong, K. T. (2012). A study on factors affecting the performance of SMEs in Malaysia. International Journal of Academic Research in Business and Social Sciences, 2(4), 224–238.
Mugenda,O.Mugenda. A.(2003). Research methods Quantitative and Qualitative Approaches. Nairobi: ACTS.
Müller, S., & Weber, M. (2010). Financial Literacy and Mutual Fund Investments: Who Buys Actively Managed Funds? Schmalenbach Business Review, 62, 126–153.
Mutambi, J. (n.d.). Advancing Value Addition and Competitiveness through Standardization to Promote Manufacturing.
Mwangi, S. M., & Namusonge, M. J. (2014). Influence of innovation on small and medium enterprise (sme) growth-a case of garment manufacturing industries in Nakuru County. International Journal for Innovation Education and Research, 2 (5).
Olaniyan, D. A., & Okemakinde, T. (2008). Human capital theory: Implications for educational development. Pakistan Journal of Social Sciences, 5(5), 479–483.
Olweny-CODA, H., & Karuiki, F. G. (2013). Policy Research on The Kenyan Textile Industry.
Porter, M. E. (1986). Changing patterns of international competition. University of California.
Porter, M. E. (1990). The competitive advantage of nations. Harvard Business Review, 68(2), 73–93.
Porter, M. E. (2008). Competitive advantage: Creating and sustaining superior performance. Simon and Schuster.
Prabhakar, G. P. (2009). Projects and their management: A literature review. International Journal of Business and Management, 3(8), p3.
Punch, K. F. (2009). Introduction to research methods in education. Sage.
Rahaman, M. M. (2011). Access to financing and firm growth. Journal of Banking & Finance, 35(3), 709–723.
Rolstadas, A. (2012). Performance management: A business process benchmarking approach. Springer Science & Business Media.
Romberg, C. (2013). What is the current situation of the German textile and clothing industry, and what are its prospects of developmen in the near future? Armsterdam Fashion Institute, Germany.
Salthouse, T. (2012). Consequences of age-related cognitive declines. Annual Review of Psychology, 63, 201.
Saxena, S. B., & Salze-Lozac’h, V. (2010a). Competitiveness in the Garment and Textiles Industry: Creating a supportive environment. A Case Study of Bangladesh.
Saxena, S. B., & Salze-Lozac’h, V. (2010b). Competitiveness in the Garment and Textiles Industry: Creating a supportive environment. A Case Study of Bangladesh.
Scarpetta, S., Fally, T., & Aghion, P. (2007). Credit Constraints as a Barrier to the Entry and Post-Entry Growth of Firms.
Smith, E., Smith, A., & Selby Smith, C. (2010). Old dogs, new tricks: training mature-aged manufacturing workers. Journal of Workplace Learning, 22(5), 277–291.
Solar, P. M. (2012). The Triumph of Cotton in Europe.
Son, N. H., & Son, D. D. (2011). Improving Accessibility of Financial Services in the Border-Gate Areas to Facilitate Cross-Border Trade: The Case of Viet Nam and Implications for GMS Cooperation.
Stokes, P., Larson, M., Balasubrahmanyam, S., Singh, S. K., Ghosh, P., Satyawadi, R., … Shadman, M. (2013). Who stays with you? Factors predicting employees’ intention to stay. International Journal of Organizational Analysis, 21(3), 288–312.
Sufi, A. (2009). Bank lines of credit in corporate finance: An empirical analysis. Review of Financial Studies, 22(3), 1057–1088.
Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach’s alpha. International Journal of Medical Education, 2, 53.
Tuan, N. P., & Yoshi, T. (2010). Organizational capabilities, competitive advantage and performance in supporting industries in Vietnam. Asian Academy of Management Journal, 15(1), 1–21.
Tusubira, R. (2007). Challenges faced by Ugandan textile industries in accessing duty free trade to the USA markets under AGOA. Makerere University.
Usman, M., Hassan, A., Mahmood, F., & Shahid, H. (2014). Performance of Textile Sector of Pakistan: Application of Data Envelopment Analysis Approach. International Review of Management and Business Research, 3(3), 1683.
Wanjau, K. L., Gakure, R. W., & Kahiri, J. (2012). The role of quality in growth of small and medium enterprises and economic development in Kenya. In Scientific Conference Proceedings.
Welch, J. M. (2006). Business models for competitive success in the United States textile industry. Citeseer.
Williams, C. (2013). Principles of management. South-Western/Cengage Learning.
World Bank Group. (2013). Kenya Apparel and Textile Industry. Dignosis, Strategy and Action Plan (No. 99480) (p. 68). Kenya: Miistry of Industrialization and Enterprise Developemnt.
Xiao_zhunyi.pdf. (n.d.). Retrieved from http://www.itmf.org/conference2014/Xiao_zhunyi.pdf
Yin, R. K. (2010a). Qualitative research from start to finish. Guilford Press.
Yin, R. K. (2010b). Qualitative research from start to finish. Guilford Press.
DOI: http://dx.doi.org/10.61426/sjbcm.v3i1.222
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.