Best Practices Crafted by Local Companies in the Current Volatile Global Business World

8/13/2019 Best Practices Crafted by Local Companies in the Current Volatile Global Business World

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BEST PRACTICES CRAFTED BY LOCAL COMPANIES IN THE

CURRENT VOLATILE GLOBAL BUSINESS WORLD: A SURVEY OF

SELECTED MANUFACTURING COMPANIES IN KENYA

TOM WAMBUA

DOCTOR OF PHILOSOPHY

(STRATEGIC MANAGEMENT)

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND

TECHNOLOGY


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Best Pr!t"!es !r#te$ %& '!' !*+"es "+ t,e C-rre+t V't"'e G'%'

B-s"+ess Wr'$. A S-r/e& # Se'e!te$ M+-#!t-r"+0 C*+"es "+ Ke+&

T M%& W%-

A t,es"s *r*s' s-%"tte$ "+ *rt"' #-'#"''e+t #r t,e De0ree # D!tr #

P,"'s*,& "+ Strte0"! M+0ee+t "+ t,e J Ke+&tt -+"/ers"t& #

A0r"!-'t-re +$ Te!,+'0&

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DECLARATION

This thesis is my original work and has not been presented for a degree in any other University

Signed: ____________________ Date: ______________

TOM MBOYA WAMBUA

This thesis proposal has been submitted foe examination with our approval as UniversitySupervisors

Signature: ------------------------------------------ Date: ---------------------------------------

DR1 W'ter O2"% B"!,+03 P,D

JU!T" enya

Signature: ------------------------------------------ Date: ---------------------------------------

DR1 O'23 P,D

JU!T" enya

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DEDICATION

#y study is dedi$ated to the following% my loving wife !nn &es$a for her support and patien$e

during the entire period of my study" my $hildren #i$kella 'se$ond names ( and )esley for their

en$ouragement and $ontinued prayers towards su$$essful $ompletion of this $ourse* + am

grateful to my mother" brothers" sisters and entire )ambua, family whose love and support was

invaluable*

To my fellow students: Daniel itonga" hristopher .agat" Saad /kwiri" and 0eoffrey Sigei for

their en$ouragement and unlimited* Thank you and 0od bless you abundantly*

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ACKNOWLEDGEMENT

1irst + thank !lmighty 0od as my sour$e of all inspiration and gra$e that empowers us to be all

that 2e $reated us to be% thank you in allowing me to undertake this pro3e$t that is too involvingin term of time and resour$es" for imparting wisdom" knowledge and revelation to be where + am

today* To you belong all the 0lory" 4raise and 2onour*

+ would like to express my sin$ere thanks to the .e$turer Dr )alter 5i$hanga at Jomo enyatta

University of !gri$ulture and Te$hnology 4hD programme in S$hool of 5usiness for agreeing to

supervise this resear$h paper*

+ am grateful to my family for giving the invaluable support to $on$entrate on this resear$h*

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TABLE OF CONTENTSDECLARATION...........................................................................................................................iii

DEDICATION..............................................................................................................................iv

ACKNOWLEDGEMENT...............................................................................................................v

LIST OF TABLES....................................................................................................................... viii

LIST OF FIGURES...................................................................................................................... ix

DEFINATION OF TERMS...........................................................................................................xi

LIST OF ABBREVIATIONS.........................................................................................................xii

ABSTRACT................................................................................................................................ 14

CHAPTER ONE.........................................................................................................................15

INTRODUCTION.......................................................................................................................15

1.1.0In!"#$%i"n.....................................................................................................................15

1.& B'%()!"$n# "* S$#+........................................................................................................ 15

1., P!"-/ S'//n........................................................................................................... 1

1.4 O-2/%iv/3 "* / S$#+.....................................................................................................&0

1.5 R/3/'!% $/3i"n3 6Av"i# 7/**/%8 i9'%8 in !/3/'!% $/3i"n3:...................................&1

1.; S%"9/ "* S$#+................................................................................................................. &1

1.< =$3i*i%'i"n "* / S$#+...................................................................................................&1

1.> Si)ni*i%'n%/ "* / S$#+.................................................................................................. &&

1. Lii'i"n3 "* / S$#+....................................................................................................&&

1.10 D/ii'i"n3 "* / 3$#+...............................................................................................&,

CHAPTER TWO........................................................................................................................ &4

LITERATURE REVIEW 6Ci/ *!" &004 "n?'!#3:.....................................................................&4

&.1 In!"#$%i"n.......................................................................................................................&4

&.& T/ C"n%/9 "* B/3 P!'%i%/3......................................................................................... &4

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&., T/"!/i%' F!'/?"!(R/vi/?......................................................................................... &;

&.,.1 T/ @$'i+ M'n')//n T/"!+ ..............................................................................& and


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#anufa$turing is one of the strong pillars of enya,s vision 677 under the ministry of

+ndustriali9ation whi$h involves the development of small and medium enterprise 'S#;(

industrial parks in key urban $entres*)hile #i$ro and Small ;nterprises'#S;s( provide

dire$t employment to more than six > million enyans" #i$ro" small and #edium

+ndustries '#S#+s("whi$h are an intergrat part of #S;s" $onstitute over A7= of

industries and are also a seed bed for innovation and industriali9ation in enya*'enya

vision 677 se$tor plan for manufa$turing 677A-67?6(*

enya manufa$turing se$tor is mainly agro based and $hara$teri9ed by low value

addition" modest employment" poor $apa$ity utili9ation and weak linkages to other

se$tors* #afu$aturing a$tivities a$$ount for the greatest share of industrial produ$tion

output and form the $ore of the industry* The industrial se$tor,s share of 0D4 has

remained about ?8-?>= while that of manufa$turing se$tor has remained at about ?7=

over the last five years* +t forms an important sour$e of employment for the $ountry,s

labour for$e as it is employs ?*= in 677< while lo$ally manufa$tured goods $omprise

688 of enya,s exports*The performan$e of the se$tor has been on the de$line for a

$onsiderable period of time and its $ontribution to the 0D4 has remained stagnant at

about ?7= sin$e the ?C>7s* The de$line in growth is attributed to a number of fa$tors

namely: weak industial linkages and low $ollaboration% informality"poor survival and low

graduation of #S#+s" influx of substandard "$ounterfeits and $ontraband goods"

inadeBuate $apa$ity of industries to meet produ$t Buality standard and +S/ $ertifi$ation"

de$lining lo$al and foreign dire$t investments'1D+( " narrow export base and low value

addition " low adaptation of +T in industries" low te$hnology and innovation uptake"

inadeBuate and run down infrastru$ture" limited a$eess to finan$ial servi$es for industrial

development" limited te$hni$al and managerial skills" weak publi$ private partneshipa"

inse$urity"Unbalan$ed regional industriali9ation*

The manufa$turing se$tor $ontributes about ?8-?>= to kenyas 0D4 with the greatest

share $oming from industrial produ$tion *The se$tor is an important sour$e of

employment for $ontrys labor for$e* +t $urrently employs more than ?*C million people in

both the formal and informal se$tor* .o$ally manufa$tured goods $omprise 68= of

enya,s exports however these produ$ts are not $ompetitive in the market due to high

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$ost of produ$tions" poor or la$k of 54s" and stringent international market $omplian$e

standards'enya vision 677 se$tor plan for manufa$turing(*#anufa$turing a$tivities are

heavily dependent on the types of 54s available and applied*

+n re$ent years manufa$turing $ompanies that do not $ontinuously $raft best pra$ti$e

initiatives are driven out of business* ;nergy $osts forms a big operating expense for

manufa$turing firms and hen$e determining their profitability and sustainability in the

industry* enya ;nergy $ost is $onsidered one of the highest in the $ontinent and some

$ompanies have had to relo$ate their manufa$turing fa$ilities to $ountries with $heaper

energy* olgate 4almolive relo$ated their manufa$turing plant to South !fri$a while

4ro$tor and 0amble relo$ated to ;gypt leaving their marketing fun$tion in enya* 2ow

manufa$turing firms respond to tighter energy as a best pra$ti$e will in$reasingly affe$t

their business performan$e and profitability*

The need for 54 arose with in$reasing power of $ustomers" $ompetitors and today,s

$onstantly $hanging business environment" whi$h have for$ed many organi9ations to

re$ogni9e the need to move away from fo$using on individual tasks and fun$tions to

fo$using on more $ommuni$ated" integrated and $oordinated ways of work by looking at

operations in terms of business sustainability* +ndeed" the effe$t of globali9ation brought

about higher $ost of doing business" in$reased privati9ation of publi$ firms through

in$reased pressure from then $alled donors" intensified $ompetition and eventually pri$es

de$lined whi$h resulted to registration of losses in most firms 'Davenport" ?CC(* !ll

these fa$tors $ontribute to high $ost of doing business and has ne$essitated manufa$turing

$ompanies '#( to $raft 54 in order to sustain their businesses in the volatile business

world otherwise they will be driven out of operations like the $ase of enya ooperative

reameries '( before it reopened as new *

!lthough enya is the most industrially developed $ountry in ;ast !fri$a ';!("

manufa$turing a$$ounts for only ?E= of 0D4 *This level of 0D4 represents only a slight

in$rease sin$e independen$e* ;xpansion of the se$tor after independen$e" initially rapid

has stagnated sin$e the ?CA7s" hampered by shortages in high power" high energy $osts"

dilapidated transport infrastru$ture" $orruption and dumping of $heap imports

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*#anufa$turing a$tivity is $on$entrated around the largest urban $entres &airobi "

#ombasa and isumu* enya,s in$lusion among the US benefi$iaries of the U*S

government !fri$an 0rowth F /pportunity '!0/!( has given boost to manufa$turing in

re$ent years* Under !goa" enya,s $lothing sales to the US almost tripled between 677?

F 677 to US ?A< million*

! 54 strategy $an help # eliminate wastes" improve Buality of goods" in$rease sales"

develop existing as well as new markets" redu$tion of produ$tion $osts" improve

effi$ien$y" effe$tive use of te$hnology" be$ome innovative and more importantly develop

the skills of its workfor$e* ! # has a $ompetitive advantage when it $an implement a

strategy that its $ompetitors are unable to dupli$ate or find it too $ostly to imitate '5arney

and lark" 677


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in the $omfort of their sales vehi$les*;!+ had to Bui$kly $raft 54 in order to remain in

business selling off some of its produ$ts like imbo $ooking oils to its rival 5+D/* ;!+

$hanged its lo$al name to parent global name Unilever and is one of the su$$eeeful

$ompanies* #umias Sugar ompany was $onsistently making losses before $rafted 54

that made it one of the leading profitable #s in enya today* enya #eat ommission

though with government funding initially $losed down and was reopened in the early

6777s with new management team and adoption of 54s* /ther lo$al #s whi$h have

sustained their businesses through adoption of 54 in$lude Spin nit.td" Top Tank" and

;abl*

!pproximately one Buarter of 77 54G pro3e$ts in &orth !meri$a failed and the authors

spe$ulated industry wide figure at $losely


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need for investigation of where they go wrong* /ne su$h strategy is the appli$ation of the

best $rafted business pra$ti$es* 5est $rafted business pra$ti$es are one of pointing out to a

new dire$tion to ma3ority of $urrent well performing lo$al manufa$turing firms in enya

su$h as Spin knit .td" 5!T to name but a few* #iwani Sugar ompany $losed down

operations as a result of not adopting best pra$ti$es 'referen$es(* +n early 6777s 5ritish

!meri$an Toba$$o enya underwent a turbulent time experien$ing de$lining sales

revenue" profitability and in$reasing operating $osts" the management $rafted best

pra$ti$e initiatives dubbed Hbeating the stormI aimed at getting ba$k the $ompany to high

profitability* Today and in 67?6 the $ompany was ranked the fourth highest in tax

revenue $ontributor by enya Gevenue !uthority 'G!(*

!ppli$ation of best pra$ti$es is a $omplete $hange in a self-sustainable dire$tion of a firm

to avoid a $orporate distress whi$h $an easily lead to $ollapse of a $ompany unless a plan

of $orporate survival and renewal is devised and su$$essfully exe$uted" 4ear$e F

Gobinson '677


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i* To establish the influen$e of information te$hnology and innovation on sustainability

of manufa$turing $ompanies in enya

ii* To determine effi$ien$y use of energy by manufa$turing $ompanies in enya in

order to be sustainable in a volatile environment

iii* To examine the influen$e of ben$hmarking on sustainability of manufa$turing

$ompanies in enya

iv* To as$ertain how Delayering enhan$es sustainability of manufa$turing $ompanies in

enya

41 Reser!, ;-est"+s (A/"$ J-st"#"!t"+ # t,e St-$&

The findings will provide $ru$ial information to manufa$turing $ompanies on the best

pra$ti$es in the $urrent volatile global business world in enya* 1urthermore this

&1


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resear$h is to study the best pra$ti$es $rafted by lo$al $ompanies in the $urrent volatile

global business world* Su$h an assessment may validate $urrent pra$ti$e or suggest ways

to refine $urrent poli$y and explore alternative ways and means to improve the business

performan$e in the $urrent volatile global business world*

41? S"0+"#"!+!e # t,e St-$&

5y analy9ing the best $rafted business pra$ti$es for sustainability of manufa$turing

$ompanies in enya" various sto$kholders $an benefit" the study will a$t as a mirror

against whi$h the government will examine and review existing poli$ies on business

pra$ti$es to mat$h with the $urrent situation needs* ;*g* 4oli$y on energy provision $osts

to manufa$turing $ompanies* !s the most affe$ted stakeholders in the study"

manufa$turing firms $an be aware of the best pra$ti$es to apply and ways that they $anin$rease their effi$ien$y and effe$tiveness hen$e a$hieve sustainability* !ny resear$her

who may wish to gather or venture into sub3e$t may find the report useful in ba$king their

findings* The report will also be used for furthering a$ademi$ and related resear$h

initiatives*

41@ L""tt"+s # t,e St-$&

41@14 L""tt"+s

.o$al private manufa$turing firms may be unwilling to divulge information regarding

their best pra$ti$es for fear of been adopted by $ompetition* Due to the nature of their

work and tight s$hedules" respondents at top management may not be available to

respond to Buestionnaires or may see it as a waste of their time* /ne of the identified

manufa$turing $ompanies is 5ritish !meri$an Toba$$o whi$h has respondents in leaf

growing areas* The roads in these areas may be in a$$essible during wet period*

41@16 Mes-res t t,e '""tt"+sThus they need to be assured of $onfidentiality and usage will be $onfined to the

ob3e$tives of the study* The resear$her needs to seek prior appointment with all senior

managers to sell in the benefits of the study* +t,s advisable to get approval from the hief

exe$utive offi$er or any senior exe$utive from the firm* The resear$her will also reBuire

seeking written authority from the relevant ministry of +ndustriali9ation*

&&


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4145 De'""tt"+s # t,e st-$&

#anufa$turing $ompanies are physi$ally spread all over the $ountry but the study will be

$onfined to a survey of 5!T" Spin nit" ;ast !fri$an 5reweries limited and enya

!sso$iation of #anufa$turers* 2owever this may not give a good representation of the

study that $an be applied to the entire industry* The resear$her will have to do an in depth

study to ensure the results $an be applied to a large extent to the manufa$turing industry*

There are Buite several books written by distinguished s$holars on the sub3e$t of best

pra$ti$es $rafted by manufa$turing $ompanies" the resear$her $an,t $over all of them but

will endeavor to review on the most updated books with latest literature on the sub3e$t*

The existing books may also not be able give enough data to fill in knowledge gapintended by the resear$h*

&,


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CHAPTER TWO

LITERATURE REVIEW(C"te #r 6558 +r$s)

614 I+tr$-!t"+

+ntrodu$e the topi$ plus relevant $itations" This se$tion highlights the literature and

theories on the sub3e$t of best pra$ti$es on sustainability of businesses with spe$ial fo$us

on manufa$turing in enya and the rest of the world* ! good number of books"

maga9ines" government publi$ations" 3ournals and internet are $ited for literature*

Different theories are reviewed among them by 4rofessor #i$hael 4orters, diamond

model of nations,s $ompetitive advantage"Total Buality management theory by '!uthor(

and Gesour$e 5ased Theory 'G5T( by 5arney and lark"677


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$ompetition moved into higher gear with the introdu$tion of various league tables and

awards for high performing $ompaniesI ')hittle et al*" ?CC6(* 2owever" 2ughes and

Smart '?CCEa( suggest that it is unlikely that all industrialists understand fully what best

pra$ti$e a$tually means and how it might be determined*

amp '?CAC( defines best pra$ti$es as those Hthat will lead to the superior performan$e of

a $ompanyI* Thus" best pra$ti$e is asso$iated with higher performan$e levels* 2eibeler et

al* '?CCA( des$ribe best pra$ti$es as Hthe best ways to perform a business pro$essI*

2ughes and Smart '?CCEb( propose a more detailed definition of best pra$ti$e as Han

a$tivity or a$tion whi$h is performed to a standard whi$h is better or eBual to the standard

a$hieved by other $ompanies in $ir$umstan$es that are suffi$iently similar to make

meaningful $omparison possibleI*

aution must be exer$ised when using the word HbestI* This $an be illustrated by the +LS

study '?CC( whi$h defines best pra$ti$es as those that have aided the lower performing

organi9ations to improve to medium performan$e" medium performers improve to higher

performers" and higher performers to stay on top and a$hieve further benefits* This study

stated that there are $ertain pra$ti$es that are relevant to $ompanies at parti$ular points in

their development" and thus for some $ompanies individual best pra$ti$es may not be

appropriate at any parti$ular point in time* Thus" best pra$ti$es $an be $ontext spe$ifi$*

2iebeler et al* '?CCA( also state that in the experien$e of !rthur !nderson: no single

pra$ti$e works for everyone in any given situation* 5est is a $ontextual term* +t means

Hbest for youI in the $ontext of your business" your $ompany $ulture" your use of

te$hnology" and your $ompetitive strategies*

5est pra$ti$e is a$tually the finding and using the best ways of working effi$iently and

effe$tively in order to a$hieve firms, business ob3e$tives* +t involves keeping up to date

with ways that su$$essful businesses operate and measuring your ways against those used

by market leaders* 5est pra$ti$e are normally set and implemented by su$$essful market

leaders around the globe* ! best pra$ti$e $an evolve to be$ome better as improvements

are dis$overed* 5est pra$ti$es are used to maintain Buality and $an be used effe$tively for

ben$hmarking

&5


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5est pra$ti$es $an give rise to good strategy formulation and implementation* 1inan$ial

strategy,s goal is to provide the $orporation with the appropriate finan$ial stru$ture and

fund to a$hieve the overall ob3e$tives* ')heelen" ?CC8( +n addition" it examines the

finan$ial impli$ations of $orporate and business-level strategi$ options and identifies the

best finan$ial $ourse of a$tion* +t $an also provide $ompetitive advantage through a lower

$ost of funds and flexible ability to raise $apital to support a business strategy* 1inan$ial

strategy usually attempts to maximi9e the finan$ial value of the firm 'Gobinson" ?CC


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key su$$ess fa$tors for servi$e and other organi9ations* !pplying best pra$ti$es is similar

to development and implementation of a good strategy* #ost of these studies tend to

argue that strategy" whether formal or not" is the starting point for su$$ess* #int9berg

'?CCE( argues that strategy is about winning" and in business and as in the military"

strategy bridges the gap between poli$y and ta$ti$s* Together" strategy and ta$ti$s bridge

the gap between the end and the means* +t is a unifying theme that gives $oheren$e and

dire$tion to the a$tions and de$isions of an individual or an organi9ation '!nsoff" ?CAA(*

The role of strategy in su$$ess is $riti$al" as su$$essful organi9ations are seldom the

out$ome of a purely random pro$ess* Strategy is about having $lear goals" understanding

the $ompetitive environment" resour$e appraisal and effe$tive implementation*

61714 T,e -'"t& M+0ee+t T,er&

Luality management 'L#( has be$ome an all-pervasive management philosophy" finding

its way into more se$tors of today,s business so$iety* Luality management 'L#( was

born almost two de$ades with the $ore ideas of )* ;dwards Deming" Joseph Juran" 4hilip

rosby and aoru +shikawa* Sin$e then it has be$ome an all-pervasive management

philosophy finding its way into more se$tors of today,s business so$iety* #any

$ompanies have now embedded L# pra$ti$es into their normal pra$ti$es and" more and

more these pra$ti$es are being stripped off their faddish $onnotations to the point that

nowadays" it is generally a$$epted that L# is here to stay* ! substantial literature review

was published by ! hire et al '?CC8(* 2is was mainly des$riptive review" providing a

thorough synthesis of arti$les published from ?C


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espoused by the movement,s founders" L# philosophy and pra$ti$e $an be reliably

distinguished from other strategies for organi9ational strategies for organi9ational

improvement* !t the empiri$al level" the assessment of whether su$h a thing as L# exists

and what $onstitutes L# should be made at the level of pra$ti$es: pra$ti$es are the

observable fa$t of L#" and it is through them that the managers work to reali9e

organi9ational improvements*

4rin$iples are too general for empiri$al resear$h and te$hniBues are too detailed to obtain

reliable results 'e*g* one pra$ti$e may be implemented via optional te$hniBues(* 1or

example" the L# prin$iple $ontinuous improvement $an be supported by the pra$ti$e

Hpro$ess managementI" whi$h in turn $an resort to several te$hniBues su$h as statisti$s

pro$ess $ontrol and pareto analysis* L# literature and identify the key L# pra$ti$e

dimensions* The agreement in the literature on what $onstitute L# indi$ates that L# as a

field indeed matured and is lay down on solid definitional foundations* Despite this"

future resear$h should in$rementally build on the already existing base* Some of the

$onfli$ting results reported in the literature may have to do with different levels of

analysis of L# 'e*g* while S4-a te$hniBue supportive of the pra$ti$e Hpro$ess

managementI-maybe observed as not being in use in a $ertain plant" the other te$hniBues

supportive of the same pra$ti$e" e*g* pro$ess data $olle$tion and analysis" may well be

used instead" representing a good overall use of pra$ti$e Hpro$ess managementI(*

Gesear$h in L# has been unable to arrive at a signal definition of a produ$t Buality* !t

best" several optional definitions were proposed* 0arvin '?CCE( identified five ma3or

approa$hes to the definition of Buality and the dis$ipline in whi$h they are rooted*

!nother important reali9ation is that Buality seems to be a multi-dimensional $onstru$t

'0arvin" ?CAE% 23orth-!nderson" ?CAE(* 0arvin '?CAE" ?CA


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?CC


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1inally" improved produ$t Buality $an lead to lower warranty and liability $osts" servi$e

$osts and improved business performan$e* 1lynn et al*,s C?CC8a( $ategori9ation of the

role of L# pra$ti$es into $ore and infrastru$ture 'infrastru$ture pra$ti$es $reate an

environment supportive of the use of the $ore pra$ti$es( proved to be enlightening in

interpreting and $omparing the results of these studies(* 2a$kman and )egman '?CC8(

list several diffi$ulties in dete$ting statisti$ally the dire$t effe$ts of L# by using out$ome

$riteria su$h as business performan$e* ! se$ond interpretation may be that the impa$t of

L# pra$ti$e on business performan$e is $ontingent on other fa$tors" su$h as the nature of

the market environment 'e*g* in terms of market si9e and stru$ture" e*g* perfe$t

$ompetition versus monopoly( armakar and 4itbladdo" ?CC


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I+$e*e+$e+t Vr"%'es De*e+$e+t Vr"%'e

S-r!e: A-t,r (6546)

61814 Use # Te!,+'0& +$ I++/t"+

4rogress in human so$iety has been a$$omplished by the $reation of new te$hnologies*

The last few years have witnessed unparalleled $hanges throughout the world* Gapid

$hanges in the markets demand drasti$ally shortened produ$t life $y$les and high-Buality

produ$ts at $ompetitive pri$es* ustomers now prefer a large variety of produ$ts* Thisphenomenon has inspired manufa$turing firms to look for progressive $omputeri9ed

automation in various pro$esses* Thus mass produ$tion is being repla$ed by low-volume"

high-variety produ$tion* #anufa$turing firms have re$ogni9ed the importan$e of

flexibility in the manufa$turing system to meet the $hallenges posed by the pluralisti$

market* The $on$ept of flexibility in manufa$turing systems has attained signifi$ant

importan$e in meeting the $hallenges for a variety of produ$ts of shorter lead-times"

together with higher produ$tivity and Buality* The flexibility is the underlying $on$ept

behind the transition from traditional methods of produ$tion to the more automated and

integrated methods* They stress that firms implementing automation pro3e$ts should

prioriti9e their needs for different flexibilities for long-range strategi$ perspe$tives*

+ntensifying global $ompetition and rapid advan$ement of manufa$turing te$hnology are

,1

Use of Technology

and Innovation

Participatory

managementBenchmarking (BAT)

Energy efficiency

practices

Firms sustainability

De'&er"+0


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two realties in today,s business environment* These have $ombined to shift the business

strategi$ priorities toward Buality" $ost effe$tiveness and responsiveness to marketpla$e

$hanges*

The Buest for lower operating $osts and improved manufa$turing effi$ien$y has for$ed a

large number of manufa$turing firms to embark on !#Ts pro3e$ts of various types*

Dramati$ developments in !#T at various organi9ational levels $an be attributed to

numerous benefits that improve the $ompetitive position of the adopting $ompanies*

!#T $an also provide distin$tive $ompetitive advantages in $ost and pro$ess leadership*

;vents of the last de$ade" su$h as the US produ$tivity problems" Japanese manufa$turing

su$$ess stories and the $ompetitive global e$onomy" have moved manufa$turing strategy

and pro$ess te$hnology issues from the bottom to the top of the firm,s priority list* The

issues surrounding manufa$turing te$hnologies and their implementations have assumed

greater importan$e in the manufa$turing strategy debate* 4ra$titioners and resear$hers

have developed strong interest in how !#T $an be used as a $ompetitive tool in the

global e$onomy* ! growing number of organi9ations are now adopting !#T to $ope with

re$ent phenomena in today,s $ompetitive environment su$h as fragmented mass markets"

shorter produ$t life $y$le and in$reased demand for $ustomi9ation* !lthough !#T $an

help manufa$turers $ompete under these $hallenging $ir$umstan$es" they often serve as a

double-edged sword" imposing organi9ational $hallenges while providing distin$t

$ompetitive advantage when su$$essfully implemented*

The relationship between +T investment and business performan$e in various $ountries

has only re$ently been investigated in less developed business environments* These

findings are not in $on$ert with the $ommon understanding of the use of +T in strategy

found in the studies $ondu$ted in industriali9ed nations* Serafeimidis and Doukidis

'?CCC( used the $ase study approa$h to investigate the impa$t of +T investment on

business performan$e in 0ree$e* They $on$luded that in their sample" +T investments

$ould not be related to business finan$ial su$$ess* They argue that part of the reason +T

did not impa$t finan$ial su$$ess in their sample was be$ause managers did not have the

edu$ation to make the best use of strategi$ information systems*

,&


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!lthough $ompetitive advantages are broadly expressed in terms of low $osts" flexibility"

Buality" and delivery ')ard et al*" ?CC8% 5erry et al*" ?CC?% 2ayes and )heelwright"

?CAE(" they have been $ategori9ed into three dimensions in 4. settings $ost advantage"

servi$e variety advantage" and servi$e Buality advantage '.ai et al*" 677>(* ost

advantage refers to the relative $apability to offer servi$es at low $ost* The servi$e variety

advantage is defined as the $apability to offer more servi$e produ$ts and fulfil $ustomi9ed

servi$es* Servi$e Buality refers to the $apa$ity for a$$urate ordering" prompt and reliable

delivery" smooth $ommuni$ation" and Bui$k response to $ustomersM inBuiries" $omplaints"

and $laims* !lthough the literature shows that +T influen$es $ompetitive advantages most

studies have assumed that the relationship between $ompetitive advantages and +T is

linear" and no study has empiri$ally tested a nonlinear relationship*

The importan$e of innovation is in$reasing" and in$reasing signifi$antly* +n the $urrent

day e$onomi$ s$enario" innovativeness has be$ome a ma3or fa$tor in influen$ing strategi$

planning* #ost often planned and measured $ombination of ideas" ob3e$ts and people

leads to innovation resulting in new business ideas and te$hnologi$al revolutions that $an

deliver new produ$ts and business system effi$ien$ies* #anagement expert 4eter Dru$ker

'6776( said that if an organi9ation" whi$h in this age ne$essitating innovation" is not able

to innovate" it fa$es de$line and extin$tion*

61816 Prt"!"*tr& M+0ee+tBe+!,r2"+0

#anagement is one of the oldest professions in the world '0riffin" ?CC


34/57

the organi9ation* 4arti$ipatory #anagement is a pro$ess where subordinates share

signifi$ant degree of de$ision-making power with their immediate superiors*

4arti$ipatory de$ision-making is often referred to as a manifestation of group

$ohesiveness 'Sparrowe and .iden" ?CC( positively affe$t organi9ational

pro$esses and out$omes*

4arti$ipatory management be$ame an a$$eptable pra$ti$e following the published work

on theory N and theory O management style 'Sto$ki et al" 677A(* The theory defined as

managers sharing their power and influen$e by regularly asking employees for input

while maintaining at a minimum a veto over their ideas '5rown et al*" ?CCE(* +t represents

a signifi$ant in$rease in empowerment from traditional management style whose

philosophy is to simply figure out what should be done and to tell people to do it '5rown

et al* ?CCE(* The prin$iples of open-book management: timely sharing of $ru$ial finan$ial

information with employees% edu$ating the employees to understand and apply the

information% empowering employees to apply the information to their own work% and

offering employees a stake in the su$$essful implementation of their ideas*

!$$ording to hallenge '?CC8(" hourly workers" professional and te$hni$al employees"

and supervisors $onsistently stated that among the things they value most in a 3ob are

,4


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variety" freedom to de$ide how to do their work without $losed supervision* They also

reported that they value information and $ommuni$ation regarding things that affe$t their

work and their firm" and eviden$e that their employers seek value and a$t on their

suggestions for improvement at their workpla$e 'hallenge" ?CC8(*

0ono" * S '677?(" HThe +mpa$t of 4arti$ipatory #anagement on 4rodu$tivity" Luality"

and ;mployeesM #oraleI ! Gesear$h 4aper Submitted +n 4artial 1ulfilhnent of the

GeBuirements for the #aster of S$ien$e Degree with a #a3or in

Studies of total parti$ipation management 'T4#( has shown" in $ontrast to other more

traditionally managed $ompanies" new per$eption of their employees* ;a$h of them has a

spe$ifi$ Ptheory of the hidden peopleP" whi$h has $onseBuen$es in terms of their

effi$ien$y in governan$e* +mplementation of full parti$ipation to a greater involvement of

workers" $reative atmosphere of work" better $ommuni$ation - and in$reased the

effi$ien$y of teams" the loyalty of employees - less staff turnover* The open book

management also many traditional management te$hniBues were applied" but also

pra$ti$es that differ from the $ompany parti$ipative managed* /nly in fully parti$ipatory

organi9ation that uses T4# $an produ$e a highly effe$tive and effi$ient working

environment 'Summers and 2yman" 6778(* 4arti$ipation is the pro$ess of development of

individual so$ial intera$tion" whi$h is a refle$tion of both the so$ial meaning '$ognition(

and voluntary '$ognitive( a$ts of persons* Together" the pro$esses involving all members

of the development of individuals and $ommunities and systems - are members in the

pro$ess of transmission of meanings in whi$h the individual and the $ommon good is

a$hieved through su$h pro$esses of so$ial intera$tion" that ea$h person will have a

guaranteed freedom to express their *

61817 E+er0& E##"!"e+!& Pr!t"!es

The term energy effi$ien$y is widely used but not always well understood* +t may be

defined as the ratio of useful outputs to energy inputs for a system" where the latter may

be an individual energy $onversion devi$e 'e*g*" a boiler(" a building" an industrial

pro$ess" a firm" a se$tor or an entire e$onomy* +n all $ases" the measure of energy

,5


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effi$ien$y will depend upon how Kuseful, is defined and how inputs and outputs are

measured '4atterson" ?CC>(* The options in$lude: Thermodynami$ measures: where the

outputs are defined in terms of either heat $ontent or the $apa$ity to perform useful work%

4hysi$al measures: where the outputs are defined in physi$al terms" su$h as vehi$le

kilometres or tonnes of steel% or ;$onomi$ measures: where the outputs 'and sometimes

also the inputs( are defined in e$onomi$ terms" su$h as value-added or 0D4* ;$onomists

are primarily interested in energy effi$ien$y improvements that are $onsistent with the

best use of all e$onomi$ resour$es* These are $onventionally divided into two $ategories:

those that are asso$iated with improvements in overall" or Ktotal fa$tor, produ$tivity

'Kte$hni$al $hange,(" and those that are not 'Ksubstitution,(* The latter is assumed to be

indu$ed by $hanges in the pri$e of energy relative to other inputs* The $onseBuen$es of

te$hni$al $hange are of parti$ular interest" sin$e this $ontributes to the growth in

e$onomi$ output* 2owever" distinguishing empiri$ally between these two $ategories $an

be $hallenging" not least be$ause $hanges in relative pri$es also indu$e te$hni$al $hange*

4atterson" #* 0* '?CC>(* P)hat is energy effi$ien$y: $on$epts" indi$ators and

methodologi$al issues*PEnergy Policy" 6E:8" pp* % #$0regor" ?CCE% 2anemann and

,;
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1arrell" 677>% U&;4" 677


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the pro$ess of generating positive attitudes and beliefs towards energy $onservation on

firms*

6181717 Pr/"$"+0 E+er0& E$-!t"+

4roviding adeBuate energy edu$ation to the $ommunity $an help to improve overall

energy $onservation performan$e on firms" and promote the image that the top

management is highly $ommitted to reali9ing sustainable firms* Gelevant energy

edu$ation materials $an be adapted from other universities" whi$h have relevant

experien$e* #oreover" $ollaboration among lo$al universities is a good way of sharing

similar $ulture and $ontext* There are various methods to edu$ate the $ommunity on

energy knowledge" in$luding $lassroom tea$hing" in$orporated into $o-$urri$ular

syllabus" Bui9 $ontests on energy knowledge and other relevant a$tivities*

6181718 De/e'*"+0 E+er0& C+ser/t"+ Be,/"-r

5esides gaining top management for suffi$ient resour$es allo$ation" raising energy

awareness among the $ommunity and edu$ating the $ommunity" developing energy

$onservation is proposed as another $ru$ial implementation strategy for firms* 2uman

behaviour is an important element in energy $onservation a$tivities '5ream" ?CA>(*

)edge '677(has stated that Hthe out$ome of behavioral approa$h is very effe$tive and

helpful in energy $onservationI*

61818 De'&er"+0

Delayering" also known as flattening typi$ally refers to the elimination of layers in a

firm,s organi9ational hierar$hy" and the broadening of managers, spans of $ontrol* The

most fundamental elements to des$ribe the shape of an organi9ation are its breadth and its

depth 'olombo and Delmastro" 677A(* The depth of an organi9ation is the number of

hierar$hi$al layers or management levels between the top management and operational

employees* Delayering means the redu$tion of the number of management levels in an

organi9ation" i*e* the flattening of an organi9ation,s hierar$hy* !$$ording to Ga3an and

)ulf '677>(" most firms s t a r t e d d elayering in the mid-?CA7s* Sin$e then" they have

,>
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39/57

systemati$ally eliminated layers in the hierar$hi$al stru$ture of senior management* 4art

of this delayering $an be attributed to the elimination of key senior management

positions that served as intermediaries*

The rationale for flattening seems sound: to remain $ompetitive in the fa$e of in$reased

$ompetition" for instan$e" firms must pursue a streamlined" effi$ient organi9ation that $an

respond more Bui$kly to $ustomers* )hile flattening is said to redu$e $osts" its alleged

benefits flow primarily from $hanges in internal governan$e: by pushing de$isions

downward" firms not only enhan$e $ustomer and market responsiveness" but also

improve a$$ountability and morale* 2owever" it should not be $onfused with other related

$on$epts of $orporate restru$turing" su$h as downsi9ing or de$entrali9ation 'Ga3an and

)ulf" 677>(* Downsi9ing basi$ally means workfor$e redu$tion* +f $ertain management

levels are targeted" this $an lead to delayering* !$$ordingly" most delayering programs

involve downsi9ing '.ittler and +nnes" 677E(* /n the other hand" larger have even found

to in$rease the number of hierar$hi$al layers while downsi9ing ')ang 677( studied the best manufa$turing pra$ti$es in !ustralia and &ew Oealand and

examined the link between manufa$turing pra$ti$es and firm performan$e* They found

that firms had improved their pra$ti$es in the pre$eding five years* There was also a

strong $orrelation between adoption of best manufa$turing pra$ti$es and performan$e in

the areas of sales growth" export growth and $ash flows* orbett '?CC>( found that

globally-oriented manufa$turing firms emphasi9ed more on Buality improvement" pro$ess

improvement" and design for manufa$ture" and these firms had world-$lass

manufa$turing performan$e* 5atley '?CCC( reported that there was general a$$eptan$e of

the $on$epts of total Buality management in &ew Oealand" although not all tenets were

pra$ti$ed* nu$key" .eung-)al and #eskeill '?CCC( adapted the best pra$ti$es model of

!ustralian #anufa$turing oun$il '!nonymous" ?CCE( to further assess the

manufa$turing pra$ti$es in &ew Oealand* They found that &ew Oealand firms had

,


40/57

improved their pra$ti$es in a holisti$ way* +n parti$ular" the improvement was fo$used on

the relationships in the supply $hain" from the suppliers to the $ustomers* /n the negative

side" they stressed that improvements were needed in the areas of human resour$e

management" te$hnology" and ben$hmarking* 2owever" nu$key and Johnston '6776(

found that the fo$us in supply $hain relationships was more on $ustomers rather than

suppliers*

@oss and 5la$kmon '?CCE( state that the introdu$tion of new pra$ti$es in manufa$turing

is normally asso$iated with expe$ted benefits in terms of improved performan$e in

spe$ified areas* !ny investment of time or resour$es in a new pra$ti$e will ne$essitate the

provision of benefits in terms of improved performan$e* The +nternational Luality Study

'?CC( also supports this statement as it reports that Hthe ultimate result of managementpra$ti$es of an organi9ation is performan$e market performan$e" operational

performan$e" finan$ial performan$eI*

The #ade in 5ritain '+5# onsulting 0roup" ?CC( and #ade in ;urope '+5#

onsulting 0roup" ?CCE( studies proposed that Hthe adoption of best pra$ti$e will be

linked dire$tly to the attainment of high operating performan$e* Superior operating

performan$e will in turn lead to superior business performan$e and $ompetitivenessI

'@oss et al*" ?CC8(* +f this is the $ase" then it is ne$essary to define links between pra$ti$es

and measures* 4erforman$e measures $an be used to identify the areas in whi$h

performan$e must be improved and should measure the effe$tiveness of pra$ti$es 'Davies

and o$hhar" ?CCC(* 4ra$ti$es should be implemented to improve performan$e* The two

a$tivities should not be mutually ex$lusive*

1lynn et al* '?CC8a( des$ribe pra$ti$es as Happroa$hes used by management and workers

with the goal of a$hieving $ertain types of performan$eI* They $ite the example of using

J+T pra$ti$es to improve J+T performan$e* 2owever" they also state that using J+T

pra$ti$es may also affe$t other types of performan$e* J+T pra$ti$es $an lead to

improvements in Buality performan$e as they provide alternative means of redu$ing the

potential for damage" identifying problems in the pro$ess" improving pro$ess feedba$k

and redu$ing pro$ess variability* +n addition" total Buality management 'TL#( pra$ti$es

40


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$an also have a relationship with J+T measures* 1or example" TL# pra$ti$es $an lead to a

less variable manufa$turing pro$ess that redu$es the need for safety sto$k buffers* This

indi$ates the need to evaluate pra$ti$es based on their ability to improve overall

performan$e rather than 3ust the improvement of one spe$ifi$ area*

The need to link pra$ti$es to performan$e has be$ome espe$ially important for $ompanies

striving to a$hieve the goal of world-$lass manufa$turing* This has been the sub3e$t of

studies by +5# onsulting 0roup '?CC" ?CCE( and !ndersen onsulting '?CC" ?CCE(*

Su$h studies indi$ate that operating performan$e is $riti$al to overall $ompetitiveness"

and that operating pra$ti$e is $riti$al to operating performan$e '@oss and 5la$kmon"

?CCE(* Thus" the $ausal relationships between operational pra$ti$e and operational

performan$e are key to improving overall $ompetitiveness*

/ne of the ob3e$tives of the #ade in 5ritain '+5# onsulting 0roup" ?CC( and #ade in

;urope '+5# onsulting 0roup" ?CCE( studies was to test the relationship between

pra$ti$e and performan$e and to investigate whether $ompanies that implement best

pra$ti$es perform better* They found that the most su$$essful $ompanies were those that

adopted best pra$ti$es to improve operational performan$e in every area of

manufa$turing* +t was also $on$luded that the leading $ompanies had adopted best

pra$ti$es whi$h had resulted in strong operational performan$e '@oss et al*" ?CC8(* Thus"

there is a need to investigate whi$h pra$ti$es improve whi$h areas of performan$e in

order that guidan$e $an be given to improve spe$ifi$ areas of performan$e*

61= C,''e+0es I+,"%"t"+0 A!,"e/ee+t # Wr'$ C'ss Se'#S-st"+%"'"t& Stt-s

/ne of the environmental influen$es to a business arises from $ompetition* +n$reased

$ompetition threatens the attra$tiveness of an industry and redu$ing the profitability of

the players* +t exerts pressure on firms to be proa$tive and to formulate su$$essful

strategies that fa$ilitate proa$tive response to anti$ipated and a$tual $hanges in the

$ompetitive environment*

1irms respond to $ompetition in different ways* Some may opt to produ$t improvement"

divestiture" and diversifi$ation" entry into new markets or even merging or buying out

41


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$ompetitors* 4orter '?CA7( postulates that there is the essen$e of strategy formulation is

$oping with $ompetition* ! $ompany has $ompetitive advantage whenever it has an edge

over its rivals in se$uring $ustomers and defending against $ompetitive for$es 'Thompson

F Stri$kland" 6776(* Sustainable $ompetitive advantage is born out of $ore $ompeten$ies

that yield long term benefit to the $ompany*

4rahalad and 2amel '?CC7( define a $ore $ompeten$e as an area of spe$iali9ed expertise

that is the result of harmoni9ing $omplex streams of te$hnology and work a$tivity* They

further explain that a $ore $ompeten$e has three $hara$teristi$s first it provides a$$ess to

a wide variety of markets" se$ondly it in$reases per$eived $ustomer benefits and lastly it

is hard for $ompetitors to imitate* Sour$es of $ompetitive advantage in$lude high Buality

produ$ts" superior $ustomer servi$e and a$hieving lower $osts than its rivals* To su$$eed

in building a sustainable $ompetitive advantage" a firm must try to provide what buyers

will" per$eive as superior value* This entails either a good Buality produ$t at a low pri$e"

or a better Buality produ$t that is worth paying more for 'Thompson F Stri$kland" 6776(*

61> Reser!, r K+'e$0e G*

This study intends to bridge the knowledge gap of la$k a $lear and systemati$ ranking of

the best $rafted pra$ti$es in their relative order of importan$e* +n this regard" the

resear$her poses the following resear$h Buestions% what are the most important best

$rafted pra$ti$es of best manufa$turing firms in enya*

0ap between the theories and the empiri$al studies '2ighlight the .+&(

4&


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RESEARCH METHODOLOGY

714 I+tr$-!t"+

This $hapter presents the methods and pro$edures that will be employed to a$hieve the

set ob3e$tives of the study* These in$lude the resear$h design that will be used" a

des$ription of the study population and the sampling pro$edures that will be used to

obtain the study sample* The $hapter also $overs how data will be $olle$ted" analy9ed and

presented*

716 Reser!, Des"0+

This study will use des$riptive survey design* Survey method will be useful as the

resear$her wants to $olle$t data on phenomena that $annot be observed dire$tly* This

method is deemed appropriate sin$e it will allow $olle$tion of large amounts of data from

manufa$turing $ompanies in a highly effe$tive" easily and in an e$onomi$al way*

!$$ording to 5abbie '6776(" this design refers to a set of methods and pro$edures that

des$ribe variables* +t involves gathering data that des$ribe events and then organi9es"

tabulates" depi$ts" and des$ribes the data* Des$riptive surveys portray the variables by

answering who" what" and how Buestions '5abbie" 6776(*

717 St-$& P*-'t"+ +$ Tr0et P*-'t"+

A study population comprises the entire groups of individuals, objects, items, cases,

articles, or things with common attributes or characteristics existing in space at a

particular point of time (Baker, 1999; Majumdar, 2005). The study population will

comprise of the manufacturing companies in Nairobi City and its environs. A target

population, according to Mugenda and Mugenda (1999), is that population which the

researcher wants to generalize results. The target population in this study will $onsist of

the senior managers and ;/s in the following $ompanies% 5!T" Spin nit" and ;ast

!fri$an 5reweries limited and key stakeholders in enya !sso$iation of #anufa$turers*

The target respondents are deemed appropriate owing to their positions in the $ompanies

and the information they have pertaining to the study sub3e$t*

4,


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718 S*'e S"e +$ S*'"+0 Te!,+";-e

A sample is a subset of a particular population while sampling is the practice concerned

with the selection of individual observations intended to yield some knowledge about a

population of concern especially for the purpose of statistical inference (Mugenda and

Mugenda, 1999). The sample size is a representative of the target population. The

resear$her will sele$t A respondents from ea$h $ompany% the ;/" general managers"

+T manager and assistants" produ$tion managers and their assistants* +n addition" the

resear$her will sele$t A respondents from the enya !sso$iation of #anufa$turers*

Therefore" a sample of E7 respondents will be sele$ted for the study* 4urposive sampling

te$hniBue will be used to obtain the study sample*

71 Dt C''e!t"+

4rimary data and se$ondary data will be $olle$ted* 4rimary data will be $olle$ted through

semi-stru$tured Buestionnaires with both open and $losed ended Buestions* The

Buestionnaire will be divided in se$tions where ea$h se$tion will seek information on a

spe$ifi$ ob3e$tive* /ne Buestionnaire will be administered to ea$h $ompany and

addressed to a senior manager or a ;/* Drop-and-pi$k later method will be used to

administer the Buestionnaires* This will enhan$e the response rate given that the

managers of the manufa$turing $ompanies are busy and might need to respond to this

Buestionnaire at their $onvenient time* Se$ondary data will be $olle$ted from publi$ations

and relevant re$ords on the manufa$turing $ompanies in &airobi*

3.6 Data Analysis

Data $olle$tion will yield both Buantitative and Bualitative data* Luantitative data will be

analy9ed using des$riptive statisti$s su$h as freBuen$ies" per$entages and mean standard

s$ores* The results of Buantitative data analysis will be presented in tables and figures*

Lualitative data on the other hand will be analy9ed using $ontent analysis* Gesponses will

be analy9ed based on ob3e$tives and running themes will be identified and grouped

a$$ording to $ategories* on$lusions will be made from the most $ited themes. Results of

qualitative data analysis will be presented in prose or narrative format*

44


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REFERENCES

0riffin" G* )* '?CC


46/57

Abdalla, (2001) Strategic practices of Stockbrokers in Kenya, Kenya Gazette (1999)

Terms of Reference for the eradication of poverty in Kenya

Addo N., (1996) "Determinants of economic growth: a cross-country empirical study",

NBER Working Paper, No. 5698, NBER, Cambridge, MA,

Adut, D., Cready, W.H., Lopez, T.J. (2003), "Best crafted practices charges and CEO cash

compensation: a reexamination", The Accounting Review, Vol. 78 pp.169-92

Al-Mashari M, Zairi M. (1999). BPR Implementation Process: an Analysis of Key

Success and Failure Factors. Business Process Management Journal 5(1): 87 112.

Analytica .R (2002) "Corporate best crafted practices during performance declines in

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APPENDICES

APPENDI I: LETTER OF INTRODUCTION

The Gespondent"

Dear SirQ#adam"

Re: Re;-est #r Reser!, Dt

+ am a 4ostgraduate student at the Jomo enya University of !gri$ulture and

Te$hnology an exe$utive #aster in 5usiness !dministration ';-#5!( program*

#y resear$h pro3e$t topi$ is H5est 4ra$ti$es rafted by .o$al ompanies in the

urrent @olatile 0lobal 5usiness )orld: ! Survey of Sele$ted #anufa$turing

ompanies in enyaI*

+n order to $arry out the resear$h" you have been sele$ted to form part of those to

provide the ne$essary data* The data will be gathered through personal interview

with the undersigned* Nou are therefore kindly reBuested to assist by granting an

opportunity for the interview at your $onvenient when $onta$ted for an

appointment*

The information you provide will be treated in stri$t $onfiden$e and is purely for

a$ademi$ purpose* +n no way will your name appear in the final resear$h report*

! $opy of sample Buestion to assist in preparation is atta$hed* Nour assistan$e and

$ooperation will be highly appre$iated*

Student Supervisor

T W%-

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APPENDI II: UESTIONNAIRE

I+tr$-!t"+

This study seeks to find out the fa$tors affe$ting outsour$ing of a$$ountan$y

servi$es by small and medium si9ed $ompanies in &airobi" enya* TheBuestionnaire has five se$tions !-;* indly ti$k or write in the spa$es provided as

appropriate*

Se!t"+ A: Ge+er' I+#rt"+

?* indly indi$ate where $ompany headBuarters are situated*

6* Does the $ompany have bran$hes

i( Nes R

ii( &o R +f yes" above" how many *

* 2ow many years have this $ompany been in operation

i( .ess than 6 years R

ii( -8 years R

iii( >-A years R iv( C-?? years R

v( !bove ?6 years R

E* 2ow many employees does the $ompany have

i( ?-?C R

ii( 67-C R iii( E7-8C R iv( !bove >7 R

8* 2ow long have you worked for this $ompany

i( .ess than 6 years R

ii( -8 years R

iii( >-A years R iv( C-?? years R

v( !bove ?6 years R

Se!t"+ B: IT +$ "++/t"+s>* Does your $ompany engage in +T and innovations

i( Nes R

ii( &o R


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___________________________________________________________

___________________________________________________________

______________________________________________________________________________________________________________________

________________To what extent does the use of +T and innovations

affe$t the sustainability of your $ompany

i( @ery little extent ' (

ii( .ittle extent ' (iii( &o effe$t ' (

iv( 0reat ;xtent ' (

v( @ery 0reat ;xtent ' (

A* To what extent does the use of +T and innovations affe$t the sustainabilityof your $ompanyKey: 12 'ot at all, 32 *ittle E4tent, 52 Moderate E4tent,

62 %reat e4tent, 72 8ery %reat E4tent

IT +$ I++/t"+ 4 6 7 8 8

!$$ountingQfinan$e software;le$troni$ staff inputQoutput $ontrol system

!rtifi$ial intelligen$eQ expert systems

+nternet and ;mail

;le$troni$ bar $oding systems

)ord pro$essing

SalesQmarketing software

4rodu$tion $ontrolQplanning software

#anufa$turing resour$e planning

#aterials reBuirements

omputeri9ed maintenan$e management software

orporate website

+nventory management software

Transportation management systems

Luality $ontrolQBuality assuran$e

.o$al area network

Se!t"+ C: Prt"!"*tr& M+0ee+t

C* 1or how many years has parti$ipatory management been pra$ti$ed in your

$ompany

i( 8 or less ' (

ii( >-?7 ' (iii( ??-?8 ' (

iv( ?> or more ' (

?7* 2ow does parti$ipatory management impa$t on produ$tivity of your

$ompany

i( +n$rease ' (

ii( De$rease ' (

5&


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iii( &o hange ' (

??* )hat is the impa$t of parti$ipatory management on Buality of produ$ts

from your $ompany

i( +n$rease ' (

ii( De$rease ' (iii( &o $hange ' (

?6* +mpa$t of parti$ipatory management on employee morale

i( +n$rease ' (

ii( De$rease ' (

iii( &o $hange ' (

?* To what extent does parti$ipatory management affe$t the sustainability ofyour $ompany

i( @ery little extent ' (ii( .ittle extent ' (

iii( &o effe$t ' (iv( 0reat ;xtent ' (v( @ery 0reat ;xtent ' (

Se!t"+ D: E+er0& E##"!"e+!& Pr!t"!es

?E* Does your $ompany have any energy effi$ien$y pra$ti$es

i( Nes R

ii( &o R

+f yes" whi$h are they

+f no" why

5,


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?8* To what extent do the following energy effi$ien$y pra$ti$es influen$e thesustainability of your $ompanyKey: 12 'ot at all, 32 *ittle E4tent, 52

Moderate E4tent, 62 %reat e4tent, 72 8ery %reat E4tent

Pr!t"!e 4 6 7 8 8!dopting new building te$hniBues for natural lighting F ventilation

;mployees engagement into Kenergy saving, behaviour!dopting systems ad3usting light intensity for varying daytime needs

+nvesting in alternative F renewable energy supply 'solar(

+nstallation of heat re$overy systems in $old produ$tion fa$ilities

+nstallation of hinged doors for refrigerated spa$e

Use of motion sensors to swit$h onQoff the lights automati$ally

+nstallation of energy effi$ient bulbs

Se!t"+ E: De'&er"+0

?>* 1or how many years has delayering been pra$ti$ed in your $ompany

v( 8 or less ' (

vi( >-?7 ' (vii( ??-?8 ' (

viii( ?> or more ' (

?


55/57


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APPENDI III: BUDGET

Ite A!t"/"t& Cst # "te Tt' !st

Gesear$h materials ------ 7"777

4rinting proposal and binding 877 ?877

Data $olle$tion expenses ----- A7"777

Data analysis materials 'S4SS( E8"777

4rinting of 4ro3e$t Geport and

binding

8"777 8"777

Tt' 47355 4=4355

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APPENDIX IV: WORK PLAN

Duration

A weeks wks ? wk ? wk ? wk

4roposal writing and

Buestionnaire drafting

Data $olle$tion pro$ess

Data !nalysis

)riting of the resear$h report

Submitting the resear$h pro3e$t

report

Best Practices Crafted by Local Companies in the Current Volatile Global Business World

Documents